The Income Tax Department has released the Excel utilities for ITR-1 and ITR-4 for Assessment Year (AY) 2025–26, applicable to income earned during Financial Year (FY) 2024–25. This year’s updates introduce several important changes designed to improve transparency, minimise filing errors, and strengthen taxpayer compliance—particularly for salaried individuals and small business owners opting for the old tax regime.
Additionally, the income tax return filing deadline has been extended from the usual July 31 to September 15, 2025, giving taxpayers extra time to understand and comply with the new validation rules and enhanced disclosure requirements introduced in the updated Excel utilities.
Quick Summary
Eligible taxpayers: Individuals and HUFs with total income up to ₹50 lakh can file using ITR-1 or ITR-4.
Revised deadline: The due date for filing returns for FY 2024–25 has been extended to September 15, 2025.
Excel utilities released: Updated ITR-1 and ITR-4 Excel utilities are now available, featuring improved validation checks and enhanced disclosure requirements.
ITR-1 and ITR-4 Excel Utilities Released for AY 2025–26
The Income Tax Department released the updated Excel utilities for ITR-1 and ITR-4 on May 30, 2025, enabling taxpayers to file returns for Assessment Year (AY) 2025–26, corresponding to income earned in Financial Year (FY) 2024–25. These are among the most widely used forms by:
Salaried individuals (ITR-1)
Professionals and small businesses under presumptive income schemes (ITR-4)
Who Can File ITR-1 and ITR-4 for AY 2025–26?
ITR-1 (Sahaj)
Eligible for resident individuals (excluding “not ordinarily resident”) with:
Total income up to ₹50 lakh
Income from salary/pension, one house property, other sources (e.g., interest)
LTCG under Section 112A up to ₹1.25 lakh
Agricultural income up to ₹5,000
Not eligible: Company directors, holders of unlisted equity shares, foreign asset holders, or those with TDS under Section 194N.
ITR-4 (Sugam)
Applicable to Individuals, HUFs, and Firms (excluding LLPs) with:
Income up to ₹50 lakh
Presumptive income under Sections 44AD, 44ADA, 44AE
LTCG under Section 112A up to ₹1.25 lakh
Download ITR Utilities
The ITR-1 and ITR-4 Excel utilities now come with enhanced validation and disclosure features to simplify filing and ensure compliance.
7 Key Changes in ITR-1 & ITR-4 Excel Utilities for AY 2025–26
The updated utilities include several features to improve accuracy, compliance, and user experience. Key changes include:
1. Mandatory Detailed Disclosures for Deductions
Taxpayers under the old regime must provide detailed information for:
Section 80C: Nature of investment, amount, and payee details
Section 80D: Insurer, policy number, and premiums for self/family/parents
HRA Claims: Rent, landlord name, and PAN (if rent > ₹1 lakh)
Section 80E/80EEA: Loan interest and lender details
Impact: Reduces errors and prevents false claims.
2. LTCG Reporting in ITR-1 and ITR-4
Taxpayers can now disclose LTCG up to ₹1.25 lakh under Section 112A directly in ITR-1 and ITR-4.
Who benefits: Salaried individuals and small investors.
3. Mandatory Mention of TDS Sections
Taxpayers must specify the TDS section for each income type (e.g., 192 for salary, 194A for interest, 194H for commission).
Benefit: Ensures accurate matching with Form 26AS and reduces processing delays.
4. Revised Asset Reporting Thresholds
The threshold for asset and liability reporting in ITR-3 and ITR-4 has been increased, easing compliance for small business owners and professionals.
5. Improved Reporting of Self-Occupied House Property
Taxpayers can report:
Interest paid
Lender’s name and PAN
Property address
Benefit: Simplifies claiming home loan interest deduction (up to ₹2 lakh) under the old regime.
6. Updated Capital Gains Rules
The utilities now reflect:
Grandfathering provisions for equity acquired before Feb 1, 2018
Indexation for non-equity assets
Segregation of short-term and long-term gains
Tip: Keep acquisition dates and supporting documents ready.
7. Smarter Excel Utility with Error Detection
The new Excel utilities include:
Real-time field validation
Automated tax and surcharge calculations
Section-wise pop-up guidance
Alerts for missing mandatory fields
Advantage: Minimizes errors and ensures smoother filing, especially for first-time users.
TDS Code Validation in ITR-1
Certain TDS section codes now disqualify filing via ITR-1, including:
194B – Lottery winnings
194BB – Horse race winnings
194S – Crypto income
194LA – Land/building compensation
195 – Payments to non-residents
196A, 194Q, 194R – Cross-border/business payments
This prevents incorrect or defective filings.
Smart Features of 2025–26 Excel Utilities
Real-time validations and error detection
Auto-tax calculation and drop-down menus
Mandatory field alerts and error summary sheet
Benefit: Reduces mistakes and accelerates return processing.
Key Takeaways
For AY 2025–26, the ITR-1 and ITR-4 utilities introduce:
Stricter validation rules
Detailed disclosure requirements
Disqualification for certain TDS and income types
Advice: Ensure accurate reporting with proper documentation to avoid delays, rejections, or defective returns. Early preparation and expert help can simplify filing and maximize eligible tax benefits.
Need Help with ITR Filing for AY 2025–26?
Filing ITR can be complex, especially with new rules and disclosure requirements. Auriga Accounting pvt. ltd. provides end-to-end assistance:
Document collection and deduction checks
Expert validation and e-filing
Compliance with the latest ITR schema
Error-free filing and optimized tax savings
With professional support, you can file confidently, accurately, and on time.
About the Author
Ravi
Ravi simplifies complex legal concepts into practical guidance, helping entrepreneurs stay compliant and build strong, legally sound businesses.
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