By buld_online 
The Income Tax Department has rolled out online filing facilities for ITR-1 and ITR-4 for Assessment Year 2025–26. Taxpayers can now file their returns through the e-filing portal, which includes pre-filled data to simplify the process.
This move follows the recent release of Excel utilities for both forms. The department aims to make tax filing more efficient and reduce errors by automating essential data inputs.
To accommodate changes in ITR forms and portal enhancements, the deadline to file income tax returns for AY 2025–26 has been extended from the usual July 31 cut-off to September 15, 2025. The extension is intended to ease the compliance burden for taxpayers and professionals during peak filing season.
The Excel utility is now available for both ITR-1 (Sahaj) and ITR-4 (Sugam).
ITR-1 (Sahaj) Filing Guide
ITR-1, also known as the Sahaj form, is a simple return format for individuals with uncomplicated income sources and total annual income up to ₹50 lakh.
Who can file ITR-1 for FY 2024–25?
ITR-1 is available to resident individuals earning up to ₹50 lakh from the following sources:
Salary or pension (including from multiple employers)
Income from one residential property (excluding cases with carried-forward losses)
Other sources such as interest, dividends, etc. (excluding lottery winnings and horse racing income)
Clubbed income (from a spouse or minor) that falls within the same income categories
Long-term capital gains under Section 112A up to ₹1.25 lakh, with no brought-forward or carry-forward losses
Aadhaar-PAN Linking Mandatory
Taxpayers must link their PAN with Aadhaar on the official Income Tax portal before filing returns. Failure to do so may lead to penalties and invalidation of the return. Click here to learn more.
Key Updates in ITR-1 for AY 2025–26
1. LTCG under Section 112A Now Permitted
Taxpayers can now report long-term capital gains up to ₹1.25 lakh from listed equities or equity mutual funds directly in ITR-1, provided no capital losses are involved. Previously, such reporting required filing ITR-2.
2. Drop-Down Selection for Deductions
All deductions under Sections 80C to 80U must now be selected from drop-down options on the e-filing portal, with the correct clause or sub-section specified.
3. Relief Claim under Section 89A
New fields have been added for taxpayers seeking relief on foreign retirement accounts, improving tracking and compliance.
4. Aadhaar Enrolment ID Removed
Only valid 12-digit Aadhaar numbers will now be accepted. The earlier option of using the 28-digit Aadhaar Enrolment ID has been removed.
5. Additional TDS Reporting Field
A new column in the TDS schedule allows taxpayers to mention the specific section under which tax was deducted at source.
ITR-4 (Sugam) filing guide
ITR-4 is designed for resident individuals, HUFs, and firms (excluding LLPs) who declare income under the presumptive taxation scheme defined in Sections 44AD, 44ADA, or 44AE.
This form can also be used by taxpayers with salaried income, as long as business or professional income is computed on a presumptive basis. It applies to small business owners, freelancers (like bloggers or online content creators), and professionals such as doctors, engineers, lawyers, and accountants.
Eligibility Criteria for ITR-4 (AY 2025–26)
To file ITR-4, taxpayers must meet the following conditions:
Must be a resident individual, HUF, or firm (excluding LLPs)
Total income must not exceed ₹50 lakh
Income from business/profession must be computed under Sections 44AD, 44ADA, or 44AE
Long-term capital gains under Section 112A are allowed up to ₹1.25 lakh, provided there are no capital losses to be adjusted
Major Changes in ITR-4 for AY 2025–26
1. LTCG Declaration Allowed
Capital gains from listed shares or equity mutual funds (up to ₹1.25 lakh and without losses) can now be reported in ITR-4, eliminating the need to file ITR-2 in such cases.
2. New Tax Regime Default (Section 115BAC)
The new regime is now the default. Taxpayers must confirm or change their regime selection within the form each year.
If a taxpayer had opted out in AY 2024–25, they must either retain or revise their choice
First-time opt-outs in AY 2025–26 must provide Form 10-IEA acknowledgment details
Form 10-IEA must be submitted before the due date
3. Drop-Down Deductions Menu
Deductions under Sections 80C to 80U must now be selected via drop-down menus, with accurate reference to clause/sub-section.
4. Relief for Foreign Retirement Accounts (Section 89A)
New disclosure fields have been introduced for relief claims related to overseas retirement income.
5. Aadhaar Enrolment ID Discontinued
The form now only accepts a valid 12-digit Aadhaar number. Enrolment IDs are no longer permitted.
6. TDS Section Field Added
A dedicated field has been added under the TDS schedule to specify the relevant section for each tax deduction entry.