Income Tax: The Income Tax Department has recently opened the online filing window for Income Tax Returns (ITR) using forms ITR-1 and ITR-4 for the assessment year (AY) 2025–26. Taxpayers can now conveniently file their returns through the official e-filing portal with prefilled data, making the process easier and less error-prone. Over one lakh ITRs have been filed in the past five days.
Online filing activated for ITR-1 and ITR-4
Following the release of Excel utilities for ITR-1 and ITR-4 last week, the department has upgraded its e-filing portal to allow taxpayers to submit these forms online. The key feature of this update is the incorporation of prefilled data that helps taxpayers fill out forms faster and with fewer mistakes.
This initiative is part of the government’s ongoing efforts to modernise tax filing, simplify procedures, and enhance user experience during the busy filing season.
Extended deadline
In an important relief for taxpayers and tax professionals, the last date to file income tax returns for AY 2025–26 has been extended from July 31 to September 15, 2025. This extension comes in response to significant changes in the ITR forms, technical upgrades to the e-filing portal, and the desire to reduce the rush during the peak period.
Taxpayers are advised to take advantage of this extension to ensure accurate filing without last-minute pressure.
Who should file using ITR-1 (Sahaj)?
ITR-1, also called Sahaj, is designed for individual taxpayers with straightforward income sources. The revised form now allows taxpayers with long-term capital gains (LTCG) up to Rs 1.25 lakh under Section 112A, where no tax is payable, to file using ITR-1. This change, effective from April 2025, aims to simplify filing for small investors.
Eligible taxpayers for ITR-1 include:
- Individuals with income from salary or pension.
- Income from one house property (excluding cases where loss is brought forward).
- Income from other sources such as interest.
- LTCG up to Rs 1.25 lakh under Section 112A, where no tax is payable.
Who cannot use ITR-1?
- Taxpayers with short-term capital gains or taxable LTCG.
- Those who have sold property or are carrying forward losses.
- Individuals with income from more than one house property.
Who can use ITR-4?
ITR-4 is suitable for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with business income under the presumptive taxation scheme. This form is ideal for taxpayers with total income up to ₹50 lakh and includes the following:
- Business income under presumptive taxation under Sections 44AD, 44ADA, and 44AE.
- LTCG under Section 112A up to Rs 1.25 lakh, non-taxable.
- Income from salary, house property, and other sources.
Restrictions for ITR-4:
- Directors of companies cannot file using ITR-4.
- Taxpayers holding unlisted shares are not eligible.
- Those with foreign income or assets, or high agricultural income, should avoid this form.
Important filing tips
Taxpayers must carefully select the correct ITR form based on their income sources and financial profile to avoid rejections or penalties. The prefilled data feature simplifies the process, but thorough review before submission is essential.
To file, visit the official portal at cuet.nta.nic.in, log in, and follow the guided steps for online filing. Take advantage of the September 15 deadline to ensure a smooth and accurate tax return process.
By enabling online filing with prefilled data and extending the deadline, the Income Tax Department has taken important steps toward easing taxpayers’ burden during the 2025 filing season.