ITR Filing 2026 Begins: Big Relief for Taxpayers as ITR-1 and ITR-4 Utilities Go Live
The filing process for Income Tax Returns (ITR) for Financial Year 2025-26 (Assessment Year 2026-27) has officially started. Income Tax Department has released the Excel utilities for ITR-1 and ITR-4 forms, allowing taxpayers to begin preparing their tax returns.
Although online filing on the portal is not fully active yet, taxpayers can now use the offline Excel utility to prepare and upload their returns manually through the income tax portal.
What Is the Excel Utility?
The newly released Excel utility works as an offline filing tool. Taxpayers can download the form, enter details such as income, deductions, taxes paid, and other financial information, and then generate a JSON file.
This JSON file can later be uploaded on the official income tax portal to complete the return filing process.
The move is expected to help taxpayers start preparations early instead of waiting until the last moment.
Who Can File ITR-1?
ITR-1, also known as “Sahaj,” is designed for individual taxpayers with annual income up to ₹50 lakh.
This form is mainly suitable for people earning income from:
- Salary or pension
- One house property
- Interest income
- Other standard income sources
The form can also include:
- Long-term capital gains up to ₹1.25 lakh
- Agricultural income up to ₹5,000
ITR-1 is generally preferred by salaried individuals because of its simpler structure.
Who Should Use ITR-4?
ITR-4, also called “Sugam,” is meant for:
- Small business owners
- Professionals
- Hindu Undivided Families (HUFs)
- Firms (excluding LLPs)
with annual income up to ₹50 lakh under the presumptive taxation scheme.
Under this scheme, taxpayers can pay taxes based on a fixed percentage of income without maintaining detailed account books. This system is especially beneficial for small traders and professionals who want a simplified tax process.
Experts Advise Salaried Employees to Wait for Form 16
Tax experts are advising salaried taxpayers not to rush into filing returns immediately. Employees are recommended to wait for their Form 16 before submitting ITR.
Companies generally issue Form 16 by June 15, which contains complete details related to:
- Salary paid
- Tax Deducted at Source (TDS)
- Exemptions and deductions
Filing ITR before receiving Form 16 may increase the chances of errors or mismatches in tax records.
Last Date to File ITR
The last date to file Income Tax Returns for Assessment Year 2026-27 has been fixed as July 31, 2026.
Tax professionals suggest that taxpayers should begin organizing documents such as:
- PAN card
- Aadhaar card
- Bank statements
- Investment proofs
- Form 16
- Capital gains details
well in advance to avoid last-minute technical issues or mistakes during filing.
Why Early Preparation Matters
With the release of ITR utilities, taxpayers now have enough time to verify their financial information and ensure accurate filing. Experts believe early preparation can help individuals avoid penalties, incorrect claims, delayed refunds, and notices from the tax department.
As the filing season progresses, the Income Tax Department is expected to gradually activate online filing options for additional ITR forms as well.
