The Income Tax Department has officially started the ITR Filing AY 2026-27 season by releasing the Excel utilities for ITR-1 and ITR-4 forms on the e-Filing portal. Eligible taxpayers can now begin filing their income tax returns for Financial Year 2025-26 using both online and offline filing options.
The department has confirmed that taxpayers can either file returns directly through the online e-Filing system or use downloadable Excel and HTML utilities for offline preparation. The activation of these utilities marks the beginning of the tax return filing process for Assessment Year 2026-27.
The launch of the ITR Filing AY 2026-27 utilities is important for salaried individuals, small business owners, freelancers, and professionals preparing to complete their annual tax compliance requirements before the due date.
Who Can File ITR-1 (Sahaj)?
Under the ITR Filing AY 2026-27 process, ITR-1 or Sahaj is available for resident individuals having total income up to Rs 50 lakh during the financial year. The form is mainly designed for salaried taxpayers with simple income structures.
Eligible taxpayers can report salary income, income from one house property, family pension, agricultural income up to Rs 5,000, and income from other sources such as savings account interest and fixed deposit interest.
A notable update in the ITR Filing AY 2026-27 cycle is that taxpayers can now report long-term capital gains under Section 112A up to Rs 1.25 lakh through ITR-1, making the form more flexible for small investors.
The form can also include income such as:
- Interest from savings accounts
- Interest from post office and bank deposits
- Family pension income
- Interest on income tax refunds
- Clubbed income of spouse or minor child under specified conditions
However, ITR-1 cannot be used by NRIs, RNORs, company directors, individuals earning business income, taxpayers owning multiple house properties, or those having taxable capital gains above the prescribed threshold.
Eligibility for ITR-4 (Sugam)
The ITR Filing AY 2026-27 utilities also include ITR-4 or Sugam, which is primarily designed for taxpayers opting for presumptive taxation schemes under Sections 44AD, 44AE, and 44ADA.
ITR-4 can be filed by resident individuals, Hindu Undivided Families (HUFs), and partnership firms excluding LLPs. The form is commonly used by freelancers, small traders, transport operators, and professionals using simplified taxation methods.
Eligible taxpayers under ITR-4 include those earning:
- Presumptive business income under Section 44AD or 44AE
- Professional income under Section 44ADA
- Income from one house property
- Long-term capital gains under Section 112A up to Rs 1.25 lakh without carried-forward losses
The department has clarified that ITR-4 can be used under both the old and new tax regimes.
Important Requirements Before Filing Returns
As the ITR Filing AY 2026-27 season begins, taxpayers are advised to complete a few mandatory checks before submitting returns. PAN should remain active, Aadhaar should preferably be linked, and at least one bank account must be pre-validated for refund processing.
The Income Tax Department has also recommended maintaining an active mobile number linked to Aadhaar or bank accounts for smooth e-verification. Taxpayers whose PAN is not linked with Aadhaar may face restrictions in accessing certain tax services until compliance requirements are completed.
The department is also strengthening digital cross-verification through AIS, TDS records, Form 26AS, and banking data. Because of this, taxpayers should carefully reconcile all disclosures before filing returns online.
Online and Offline Filing Options Available
The ITR Filing AY 2026-27 process now supports both online filing and offline utility-based filing. Taxpayers comfortable with the portal can directly submit returns online, while others may prefer preparing returns using Excel utilities before uploading them.
The availability of multiple filing modes is expected to make the tax filing process smoother for salaried employees, freelancers, professionals, and small business owners across India.
With the filing utilities now activated, taxpayers can begin early preparation to avoid last-minute errors, validation issues, and refund delays during the peak filing season.
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