The Income Tax Department has enabled the Excel utilities and online filing options for ITR-1 and ITR-4 on the e-Filing portal, thus enabling taxpayers to start preparing their income tax returns for Assessment Year (AY) 2026-27. The move represents the official commencement of ITR filing season for many salaried individuals, pensioners, freelancers and small business taxpayers. Eligible taxpayers can now file the returns directly online or prepare the return using the Excel utility and upload the returns to the portal.

Who can file ITR-1(Sahaj)?

  • Resident individuals having a total income up to Rs 50 lakh in a financial year can file ITR-1, also known as Sahaj. 
  • The form is primarily created for salaried individuals and pensioners with income from salary or pension, one house property, family pension, and other sources such as bank interest or post office interest. ITR-1 can be used for reporting agricultural income up to Rs 5,000 as well. 
  • Taxpayers can also use ITR-1 for AY 2026-27 if they have long-term capital gains up to Rs 1.25 lakh under Section 112A from listed equity shares or equity mutual funds, subject to conditions. 
  • Additionally, the income of a spouse or minor child can be clubbed in ITR-1 if it falls within the permitted income categories. 
  • However, taxpayers who have an income above Rs 50 lakh, business or professional income, income from more than one house property, foreign assets, unlisted shares or taxable capital gains above the specified limit cannot file the ITR-1.
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Who can’t file ITR-1(Sahaj)?

ITR-1 (Sahaj) cannot be used by taxpayers having certain types of income. Here are the key exclusions:

  1. Taxpayers with income from a business or profession are not eligible to file ITR-1.
  2. Individuals having short-term capital gains or long-term capital gains under Section 112A exceeding Rs 1.25 lakh cannot use this form.
  3. ITR-1 cannot be filed by those earning income from more than one house property.
  4. Certain incomes under “other sources” are not allowed in ITR-1, including lottery winnings, income from race horses, and income taxable at special rates under Sections 115BBDA or 115BBE.
  5. Taxpayers having income that needs to be apportioned under Section 5A are also not eligible to file ITR-1.

How to file ITR-1 (Sahaj) online for AY 2026-27: Step-by-step guide for taxpayers 

Step 1: Log in to the e-Filing portal

Visit the Income Tax e-Filing portal and log in using PAN, password and captcha.

Step 2: Start filing the return

Go to: e-File > Income Tax Returns > File Income Tax Return

Select AY 2026-27 and choose “Online” mode.

Step 3: Choose filing status and ITR form

Select your filing status and choose ITR-1 (Sahaj). Then proceed further.

Step 4: Select reason for filing

Choose the applicable reason for filing the income tax return.

Step 5: Choose tax regime

The new tax regime continues to remain the default regime. Taxpayers wanting to opt for the old tax regime need to explicitly select the option while filing the return.

Step 6: Review pre-filled information

The portal auto-fills several details, including:

  • Personal details
  • Salary income
  • TDS information
  • Interest income
  • Bank details

Taxpayers should carefully verify and edit details wherever required.

Sections available in ITR-1

The form mainly includes five sections:

  1. Personal Information
  2. Gross Total Income
  3. Total Deductions
  4. Tax Paid
  5. Total Tax Liability

Claiming deductions

Eligible deductions under Chapter VI-A can be claimed while filing the return. However, under the new tax regime, only limited deductions such as employer contributions to NPS under Section 80CCD(2) and deductions under Section 80CCH are available.

Check tax liability or refund

After entering all details, the portal automatically computes:

  • Tax payable
  • Refund amount
  • No-demand/no-refund status

If tax is payable, taxpayers can use the “Pay Now” option directly through the portal.

Preview and validate the return

Before submission, taxpayers should:

  • Preview the return
  • Validate all information
  • Correct errors, if any

Verify the ITR

The final step is verification. Taxpayers can e-Verify using:

  • Aadhaar OTP
  • Net banking
  • Bank account
  • Demat account

The Income Tax Department recommends e-Verification as it is faster and paperless. Returns must generally be verified within 30 days of filing.

Documents required to file ITR-1 (Sahaj)

Before starting the filing process, taxpayers should keep these documents ready:

  • Form 16 issued by the employer
  • AIS (Annual Information Statement)
  • Form 26AS
  • Bank statements and interest certificates
  • Investment proofs for deductions
  • House rent receipts, if applicable
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Who can file ITR-4?

ITR-4 or Sugam is an income tax return form for small taxpayers opting for the presumptive taxation scheme under Sections 44AD, 44ADA and 44AE of the Income Tax Act. The form can be used by resident individuals, Hindu undivided families (HUFs) and firms, other than LLPs, having a total income up to Rs 50 lakh in a financial year. The Income Tax Department has now made available online filing and an Excel utility for ITR-4 for AY 2026-27 on the e-filing portal. ITR-4 can be filed by taxpayers who have: 

  • Total income up to Rs 50 lakh
  • Business income under the presumptive taxation scheme under Section 44AD
  • Professional income under Section 44ADA
  • Income from goods carriage business under Section 44AE
  • Salary or pension income
  • Income from one house property
  • Agricultural income up to Rs 5,000
  • Income from other sources, such as savings account interest, bank deposit interest, family pension, and income tax refund interest
  • Long-term capital gains under Section 112A up to Rs 1.25 lakh, subject to conditions.

Who is not eligible to file ITR-4?

ITR-4 cannot be used by taxpayers who:

  • Are non-residents or RNORs
  • Have a total income exceeding Rs 50 lakh
  • Have short-term capital gains
  • Have long-term capital gains under Section 112A exceeding Rs 1.25 lakh
  • Own more than one house property
  • Have an agricultural income above Rs 5,000
  • Are directors in a company
  • Hold unlisted equity shares
  • Have foreign assets or foreign income
  • Have lottery income or racehorse income
  • Have income taxable under Sections 115BBDA or 115BBE
  • Have deferred tax on ESOPs from eligible startups

How to file ITR-4 (Sugam) online for AY 2026-27?

The Income Tax Department has activated online filing and Excel utility for ITR-4 (Sugam) on the e-Filing portal for the Assessment Year (AY) 2026-27. ITR-4 is meant for small businesses and professionals opting for the presumptive taxation scheme under Sections 44AD, 44ADA and 44AE. Taxpayers can now file the returns directly online through the portal or can use the offline utility in Excel.

Step 1: Log in to the e-Filing portal

Visit the official Income Tax e-Filing portal and log in using PAN, password and captcha.

Step 2: Go to the Income Tax Return filing section

Click on: e-File → Income Tax Returns → File Income Tax Return

Select AY 2026-27 and choose “Online” as the mode of filing.

Step 3: Select status and ITR form

Choose your taxpayer status:

  • Individual
  • HUF
  • Firm

Then select ITR-4 (Sugam) from the available return forms.

Step 4: Choose the reason for filing the return

Select the applicable reason, such as:

  • Taxable income exceeds the exemption limit
  • Refund claim
  • Carry forward of losses
  • Other applicable reasons

Step 5: Verify pre-filled personal details

The portal auto-fills many details from PAN and previous filings, including:

  • Name and address
  • Aadhaar details
  • Bank accounts
  • Contact information

Taxpayers should carefully verify and edit details if required.

Step 6: Fill Gross Total Income details

Under this section, taxpayers need to report:

  • Salary or pension income
  • Presumptive business or professional income
  • House property income
  • Interest income and other sources
  • Family pension
  • Long-term capital gains under Section 112A, if applicable

Taxpayers opting for presumptive taxation need to declare turnover, gross receipts and presumptive income percentages.

Step 7: Enter disclosures and exempt income

Provide details related to:

  • Business financial particulars
  • GST turnover information, if applicable
  • Exempt income, such as PPF interest or agricultural income

Step 8: Claim deductions under Chapter VI-A

Eligible deductions can be claimed under sections such as:

  • Section 80C
  • Section 80CCD(1B) for NPS
  • Section 80D for health insurance
  • Section 80E for education loan
  • Section 80GG for rent paid
  • Section 80U and 80DD for disability-related deductions

Additional disclosure requirements may apply for certain deductions, including PRAN details, insurance policy details and Form 10BA or Form 10-IA acknowledgement numbers.

Step 9: Verify taxes paid

Check tax credits appearing under:

  • TDS
  • TCS
  • Advance tax
  • Self-assessment tax

Taxpayers should cross-check figures with Form 26AS and AIS before proceeding.

Step 10: Review tax liability

The portal automatically computes:

  • Total income
  • Tax liability
  • Rebate
  • Interest and cess
  • Refund or tax payable

If tax is payable, payment can be made online through net banking or other available methods.

Step 11: Preview and submit return

After reviewing all details:

  • Click “Preview Return”
  • Verify declaration details
  • Submit the return

Step 12: E-verify the ITR

The final step is verification of the return. The return filing process is complete only after successful verification using:

  • Aadhaar OTP
  • Net banking
  • Bank account EVC
  • Demat account EVC
  • Sending signed ITR-V to CPC Bengaluru

Key takeaways

With the utilities now live, taxpayers have the option to either file returns directly online through the portal or download the Excel utility, fill in details offline and upload the JSON file later. Early filing can also help taxpayers get their refund faster and avoid last-minute technical glitches on the portal. Before filing returns, taxpayers should keep key documents ready, like Form 16, AIS, Form 26AS, bank interest certificates, capital gains statements, and proofs of investments.

Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws and regimes are subject to frequent changes by the government. Readers should verify details with official Income Tax Department notifications or consult a Chartered Accountant before making any financial decisions.