Deciding Between ITR-1 and ITR-4: Assess Eligibility and Latest Changes This Year Using Spreadsheet Tools
Taxpayers in New Delhi receive a reprieve, as the Income Tax Department makes Excel utilities for ITR-1 and ITR-4 available for Assessment Year 2025-26. These resources can now be downloaded from the official portal, enabling taxpayers to prepare their returns for the financial year 2024-25.
The department's announcement comes following an extension of the ITR filing deadline to September 15, 2025. This extension aims to accommodate updates in ITR forms, technical improvements on the portal, and the need to correct TDS information.
ITR-1 (Sahaj): Eligibility and Changes for AY 2025-26
ITR-1, also known as Sahaj, is a simple income tax return form ideal for salaried individuals or pensioners. It can be utilized if an individual's income stems from a salary, one house property, or other sources, such as interest from savings or fixed deposits.
Recently, the department has allowed taxpayers to submit ITR-1 even if they have long-term capital gains (LTCG) up to Rs 1.25 lakh under Section 112A, provided no tax is due on this income. Previously, such taxpayers had to use ITR-2. However, ITR-1 remains inapplicable for those with taxable capital gains, short-term capital gains, property sales, or unclaimed losses.
ITR-4 (Sugam): Eligibility and Changes for AY 2025-26
ITR-4, or Sugam, is a form designed for individuals, Hindu Undivided Families (HUF), and firms (excluding LLP) who opt for the presumptive income scheme. This form can be filed if an individual's income originates from a business or profession under Sections 44AD, 44ADA, or 44AE, with a total income of up to Rs 50 lakh for the year.
However, ITR-4 is not suitable for company directors, those owning unlisted shares, those with income or assets abroad, or those earning more than Rs5,000 from agriculture. With the recent release of Excel utilities, eligible taxpayers can now make an early start on their filings. To avoid complications later, taxpayers should ensure they select the appropriate form.
ITR Deadline Extended to September 15, 2025
The Income Tax Department has granted taxpayers additional time to file their returns for the financial year 2024-25 (Assessment Year 2025-26), extending the original deadline from July 31, 2025, to September 15, 2025. This extension provides relief, especially after delays in issuing ITR form notifications.
Financial relief is offered to taxpayers in New Delhi as they can now utilize the Excel utilities for personal-finance management, provided by the Income Tax Department, to prepare their ITR-1 and ITR-4 returns for the financial year 2024-25, in view of the extended deadline for filing ITRs, which is now set for September 15, 2025. Those who wish to take advantage of this extra time must ensure they select the appropriate form for their financial situation.
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