In a much-anticipated development for taxpayers, the Income Tax Department of India has officially released the Excel utilities for ITR-1 and ITR-4 for the Assessment Year (AY) 2025–26. With this release, individuals and small business owners can now begin filing their income tax returns (ITRs) for the income earned in Financial Year (FY) 2024–25.
The announcement was made via the department’s official handle on X (formerly Twitter), confirming that the utilities are now live and ready for use on the official income tax website.
📅 Deadline Extended to September 15, 2025
Unlike previous years when the deadline for filing ITR-1 and ITR-4 was July 31, the government has extended the due date to September 15, 2025 for AY 2025–26. The delay comes in the wake of structural and content changes in the forms, which required additional time for utility development and system testing.
This move is expected to bring relief to salaried taxpayers, freelancers, small business owners, and professionals who now have a larger window to gather documents and file accurate returns.
📝 What Are ITR-1 and ITR-4?
Let’s take a quick look at the eligibility criteria and applicability of these forms:
✅ ITR-1 (Sahaj)
Designed for resident individuals (other than not ordinarily resident) with:
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Total income up to ₹50 lakh
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Income from salary/pension, one house property, interest income, and agricultural income up to ₹5,000
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Long-term capital gains under Section 112A up to ₹1.25 lakh (e.g., gains from equity mutual funds or shares)
🔴 Who cannot use ITR-1?
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Company directors
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Individuals who own unlisted equity shares
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Those with foreign assets/income
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Individuals claiming deferred tax on ESOPs
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Those covered under Section 194N
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Individuals earning from lotteries, online gaming, crypto assets, etc.
✅ ITR-4 (Sugam)
Applicable to individuals, Hindu Undivided Families (HUFs), and firms (except LLPs) who:
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Have total income up to ₹50 lakh
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Earn income from business or profession under presumptive taxation (Sections 44AD, 44ADA, 44AE)
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Report long-term capital gains under Section 112A up to ₹1.25 lakh
This form is commonly used by freelancers, small business owners, and self-employed professionals.
🔍 Key Changes in AY 2025–26 Utilities
While the ITR-4 utility has not seen any major overhauls, there’s an important update in the ITR-1 schema.
Tax expert Himank Singla, Partner at SBHS & Associates, pointed out that the new version of ITR-1 includes validation rules that disqualify users with certain types of income.
“If a taxpayer’s Form 26AS or AIS includes TDS under codes like 194B (lotteries), 194BB (horse racing), 194S (crypto), 194LA (compensation on land acquisition), or 195/196A (foreign remittances)—the utility will not allow them to file using ITR-1,” said Singla.
This change is intended to prevent incorrect form usage, a common problem in past years that led to defective return notices.
“Earlier, many filers mistakenly used ITR-1 despite having ineligible income sources. This validation step will block such errors before filing, saving both the taxpayer and the department time,” he added.
💡 How to Download and Use the Excel Utility
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Visit the official Income Tax e-filing portal: https://www.incometax.gov.in/iec/foportal
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Go to the “Downloads” section
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Select ITR-1 or ITR-4 Excel Utility for AY 2025–26
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Download the file, enable macros, and start filling in the relevant fields
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After validation, generate XML and upload it to the portal to complete filing
🙌 Final Thoughts
The early release of the Excel utilities, combined with the extended deadline, is a welcome move by the Income Tax Department, especially for individual taxpayers and small business owners. With the new validation checks, the department aims to improve accuracy, reduce post-filing defects, and make the return-filing process smoother for everyone.
Whether you are salaried, self-employed, or a business owner using presumptive taxation, this is the right time to get your financials in order and file your ITR early.
🧾 Need help filing your return? Stay tuned to our blog for step-by-step ITR guides, latest tax updates, and expert tips to make your filing process hassle-free.
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