ITR filing 2025: Excel utilities out for Sahaj and Sugam forms, key changes alert for taxpayers

The Excel-based utilities for filing ITR-1 (Sahaj form) and ITR-4 (Sugam form) for the Assessment Year 2025-26 (Financial Year 2024-25) have been released by the Income Tax Department. These tools can be downloaded from the official income tax e-filing portal, enabling eligible taxpayers to begin preparing their returns in advance. Please note that although the Excel utilities are currently accessible, the option to file ITRs online is not yet operational. 

The Income Tax Department offers offline tools known as the ITR-1 and ITR-4 Excel utilities for taxpayers to utilise. Users can download, complete their income details offline, verify the information, and create a JSON file. Subsequently, this file can be submitted by uploading it on the e-filing portal.

What has changed in utility segment

The ITR-4 utility has seen minimal changes compared to last year, which is beneficial for regular users as it smoothens the filing process. Early filers have already utilized the updated Excel version and have reported a seamless experience, attributed to the consistent schema.

On the other hand, the ITR-1 utility introduces a significant update with a new built-in validation rule. This rule automatically disqualifies returns that contain specific TDS section codes, including 194B (lottery winnings), 194BB (horse racing), 194S (crypto), 194LA (compulsory property acquisition), 195 and 196A (non-resident payments), 194Q (TDS on goods purchase), and 194R (business perquisites), Himank Singhla, Partner at SBHS & Associates, told the Economic Times.

If any of these codes are present in Schedule TDS2 or TDS3, filing under ITR-1 will no longer be allowed. Taxpayers will instead need to file using ITR-2 or another relevant form based on their income profile.

The implementation of this measure is intended to minimize filing inaccuracies and prevent the frequent error of using ITR-1 for income subjected to special tax rates or derived from sources such as online gaming, cryptocurrency, or property-related transactions. Such mistakes in the past often resulted in defect notices from the Central Processing Centre (CPC).

Through the incorporation of validation at the utility level, the Department has proactively taken action to guarantee the accurate selection of forms and facilitate smoother processing of returns—ultimately saving time for taxpayers and the tax administration.

These offline tools are now available for ITR-1 (Sahaj) and ITR-4 (Sugam) and can be downloaded from the official e-filing portal.

Who is eligible to use the ITR-1 excel utility?

The ITR-1 (Sahaj) Excel utility is designed for resident individuals (except non-ordinarily residents) with a total annual income of up to Rs 50 lakh. This form is suitable for individuals who receive income from salaries, one house property, other sources like interest income, and agricultural income up to Rs 5,000.

Who is eligible to use the ITR-4 Excel Utility?

The ITR-4 (Sugam) Excel utility is intended for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with a total income of up to Rs 50 lakh. It is suitable for those earning income under presumptive taxation schemes under Sections 44AD, 44ADA, or 44AE.

This form includes income from business under presumptive taxation, one house property, other sources like interest income, and agricultural income up to Rs 5,000.

The Income Tax Department has extended the income tax return (ITR) filing deadline for Financial Year 2024–25 (Assessment Year 2025–26) from July 31, 2025, to September 15, 2025. The extension comes in light of delays in the official notification and release of ITR forms.

Downloading ITR-1 and ITR-4

Downloadable Excel utility forms for ITR 1 and 4 are available for taxpayers to conveniently fill out offline before uploading them to the income tax e-filing website. Follow these steps to access and complete the forms:

> Visit the Income Tax e-filing portal.
> Download the appropriate ITR form in Excel format.
> Fill in the required details based on your income information.
> Validate the form and generate the XML or JSON file.
> Upload the completed form on the portal to finalize the filing process.

As the utilities are now accessible, taxpayers should organise their financial documents and submit their returns ahead of the September 15, 2025, deadline for FY 2024-25 (AY 2025-26).