Updated ITR Utilities for FY25: Major Enhancements for ITR-1 and ITR-4 Filers

Income Tax Department Simplifies Tax Filing with New Excel Features

The Income Tax Department has rolled out updated Excel utilities for ITR-1 (Sahaj) and ITR-4 (Sugam) forms for the assessment year 2025–26, introducing several key features aimed at simplifying the tax filing process for salaried individuals and small businesses.

Key Additions to ITR-1 and ITR-4 Excel Utilities

The revamped Excel utilities now support:

• Reporting of Long-Term Capital Gains (LTCG)
• Claiming rent receipts under Section 80GG
• Filing under the New Tax Regime

These features align with the changes introduced under the Finance Act, of 2024, ensuring easier data entry and compliance for taxpayers using offline tools.

Who Can Use These Updated Forms?

• ITR-1 (Sahaj) is meant for resident individuals with income up to ₹50 lakh from salary, one house property, and other sources such as interest.
• ITR-4 (Sugam) is designed for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) opting for presumptive taxation under sections 44AD, 44ADA, or 44AE.

Enhanced Offline Filing Experience

With the upgraded Excel utilities available on the official Income Tax portal (incometax.gov.in), taxpayers can:

• Fill in income details offline
• Validate their entries
• Generate a JSON file for upload to the e-filing portal

This enhancement offers greater flexibility, especially in areas with limited internet access. Although a fully online filing feature is not yet enabled, it is expected soon.

The updated utilities aim to streamline the tax filing experience, reduce manual errors, and ensure compliance with the latest tax provisions for FY 2024–25.

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