The Income Tax Department has announced significant updates for taxpayers through social media platform X. For the assessment year 2025-26, the Excel facility for Income Tax Returns (ITR) forms ITR-1 and ITR-4 is now accessible, enhancing the filing process for individual taxpayers and small businesses.
Understanding ITR Forms
ITR forms are essential tax documents that individuals and businesses must submit to the Income Tax Department. They help in declaring income, claiming deductions, and paying due taxes. Each ITR form caters to different types of income and taxpayer categories.
What is ITR-1?
ITR-1, also known as Sahaj, is designed for resident individuals with a total income of up to INR 50 lakh. It is primarily for those earning income from salaries, one house property, and other sources like interest income. The simplicity of ITR-1 allows taxpayers to file returns quickly, especially through the newly introduced Excel facility.
What is ITR-4?
ITR-4, known as Sugam, is applicable for resident individuals, Hindu Undivided Families (HUFs), and partnership firms (other than LLPs) whose total income does not exceed INR 50 lakh. This form is primarily for taxpayers opting for the presumptive taxation scheme under Section 44AD, 44ADA, or 44AE. The availability of the Excel facility simplifies the calculation and filing process for these participants.
Benefits of Excel Facility
- User-Friendly Template: The Excel template is designed for easy data entry, making it accessible even for those with limited tax knowledge.
- Error Reduction: Automated calculations in the Excel facility help minimize errors commonly seen in manual entries.
- Quick Submission: Taxpayers can easily download and submit completed Excel sheets, streamlining the filing process.
Filing Process for ITR-1 and ITR-4
The following steps outline the filing process using the Excel facility:
- Download the Excel utility for ITR-1 or ITR-4 from the official Income Tax Department website.
- Fill in the required details, including personal information, income sources, and deductions.
- Validate the data and check for errors using the in-built validation feature.
- Generate the XML file from the completed form and upload it on the Income Tax portal.
- Submit the form and keep a copy for your records.
Important Dates and Deadlines
| Event | Date |
|---|---|
| Filing Start Date | April 1, 2025 |
| Filing Deadline for ITR-1 and ITR-4 | July 31, 2025 |
| Extended Deadline (if applicable) | October 31, 2025 |
Conclusion
The introduction of the Excel facility for ITR-1 and ITR-4 for the assessment year 2025-26 marks a significant advancement aimed at simplifying the tax filing process for individual taxpayers and small businesses. By utilizing this tool, taxpayers can ensure accurate and efficient filing, thus promoting timely compliance with tax regulations. It’s crucial for taxpayers to stay informed about the filing procedures and deadlines to avoid penalties.
