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The process for filing Income Tax Returns has commenced today. For Assessment Year (AY) 2026-27 (Financial Year 2025-26), the Department has released the Excel utilities for ITR-1 and ITR-4. Eligible taxpayers can now download these utilities from the official Income Tax portal and begin filing their Income Tax Returns for FY 2025-26 starting today.

The Income Tax Department itself shared this information via a post on the social media platform 'X'. It states: “Attention Taxpayers! The Excel utilities and online filing facilities for ITR-1 and ITR-4 for Assessment Year (AY) 2026-27 have been launched and are now available to taxpayers on the e-filing portal.”

**What is an Excel Utility?**
An Excel utility is a specially designed Excel spreadsheet that helps simplify complex tasks and enables them to be performed offline. It is primarily utilized by the Income Tax Department for ITR filing purposes, allowing taxpayers to fill in their data without an internet connection. They can validate the data locally and subsequently upload it to the e-filing portal.

**ITR-1 (Sahaj)**
A significant change has been introduced in ITR-1 (Sahaj) regarding taxpayers who own two house properties. This form can now be used to report income derived from up to two house properties, whereas previously, this limit was restricted to a single house property. This change is expected to simplify the filing process for many taxpayers.

Resident taxpayers with a total income of up to ₹50 lakh may opt to use ITR-1 (Sahaj) when filing their returns. This form covers income derived from salaries, pensions, up to two house properties, interest earnings, and limited income from agriculture. It is also available to individuals who declare specific long-term capital gains of up to ₹1.25 lakh under Section 112A.

**ITR-4 (Sugam) Form**
The Sugam form is officially known as ITR-4. It is available to resident taxpayers—including individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs)—whose annual income is up to ₹50 lakh. This form is intended for those who file their returns under the presumptive taxation provisions specified in Sections 44AD, 44ADA, and 44AE; it also accommodates the declaration of specific long-term capital gains of up to ₹1.25 lakh under Section 112A. It also permits reporting. The Central Board of Direct Taxes (CBDT) had previously released ITR forms for the Assessment Year 2026-27, introducing several new reporting rules. These key changes include new requirements for disclosing information regarding long-term capital gains, losses arising from share buybacks, and certain specific trading activities.

What is an ITR?
An Income Tax Return—referred to as an ITR—is a formal declaration of a taxpayer's income and deductions, which is submitted to the Income Tax Department. Returns are typically required to be filed annually by July 31st. Currently, there are seven ITR forms available. The specific form applicable depends on the taxpayer's income profile and category.

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