The Income Tax Department has rolled out the Excel utility versions of Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year (AY) 2025-26. These tools are now available for download on the official income tax e-filing portal, enabling eligible taxpayers to prepare and file their returns for FY 2024-25 (AY 2025-26). This marks a significant development as taxpayers can now start preparing their income tax returns for the upcoming assessment year.
Delayed Launch of ITR Forms and Utilities
The release of the ITR-1 (Sahaj) and ITR-4 (Sugam) utilities has been delayed by nearly two months, frustrating taxpayers who rely on these tools to file their returns. Typically, the Income Tax Department releases these utilities at the beginning of the financial year, but this year there were unexpected delays. First, the Central Board of Direct Taxes (CBDT) took almost a month to notify the ITR forms, followed by another delay in the release of the Excel utilities for filing.
Can Taxpayers Start Filing ITR for AY 2025-26 Now?
Now that the ITR-1 and ITR-4 offline Excel utilities are available, taxpayers who are eligible to use these forms can begin preparing their returns. But are taxpayers allowed to start filing their returns immediately? The answer is yes, but only once they have completed filling out the necessary details and validated their information.
ITR-1 is designed for individuals earning a total income of up to Rs 50 lakh, while ITR-4 is for those opting for the presumptive taxation scheme. These forms and utilities are ideal for salaried individuals, pensioners, and small business owners with simple tax returns.
Who Needs to File ITR?
Filing an income tax return is mandatory for individuals whose total income exceeds the basic exemption limit. Under the new tax regime, the basic exemption limit is Rs 3 lakh. The exemption limits are slightly higher under the old tax regime:
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Rs 3.5 lakh for senior citizens (aged 60 and above)
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Rs 5 lakh for super senior citizens (aged 80 and above)
Filing ITR is also mandatory if you meet any of these criteria:
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Paid electricity bills exceeding Rs 1 lakh
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Spent over Rs 2 lakh on foreign travel
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Deposited Rs 1 crore or more in a current account
Even if your income is below the exemption limit, filing ITR can be beneficial. It can help you claim refunds, carry forward losses, and serve as a proof of income for loans or visa applications.
A Step-by-Step Guide to Filing ITR Using Excel Utility
For taxpayers who prefer offline filing, using the Excel utility-based method is a simple and effective way to file your income tax returns. Here’s a detailed guide to filing ITR using the Excel utility:
1. Download the Utility
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Visit the official e-filing website: incometax.gov.in.
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Go to the “Downloads” section and select “Income Tax Return”.
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Choose AY 2025–26 and download the relevant Excel utility (ITR-1, ITR-4).
2. Enable Macros
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Extract the ZIP file that you downloaded.
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Open the Excel file and enable macros to allow the utility to function correctly.
3. Fill in Your Details
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Enter your personal information, including your name, address, and PAN.
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Provide details about your income, deductions, and taxes paid.
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Use Form 16, 26AS, and AIS as references to fill out the necessary fields accurately.
4. Validate Your Information
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Once you’ve entered all the details, click the “Validate” button to check for any errors in the form.
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If there are any discrepancies, the utility will highlight them, and you can correct them before moving forward.
5. Generate and Save JSON
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After successful validation, click on “Generate JSON”.
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Save the file to your computer, which you will later upload to the e-filing portal.
