Income Tax Department Enables ITR Filing for AY 2026–27 With Release of Excel Utilities

New Delhi, May 2026 : The Income Tax Department on Friday announced the activation of the income tax return filing process for the financial year 2025–26 (assessment year 2026–27), with the release of Excel-based utilities for ITR-1 and ITR-4 on its official e-filing portal.

In a post on social media platform X, the department said taxpayers can now access both offline Excel utilities and online filing options for the two most commonly used return forms, marking the formal commencement of the ITR filing cycle for AY 2026–27.

With the rollout of these utilities, taxpayers are now able to fill out return forms offline, generate a JSON file, and upload it directly to the e-filing portal after completing verification. The system is expected to make filing more convenient, especially for individuals and small taxpayers.

According to standard timelines, non-audit taxpayers are required to file their returns by July 31 each year, and the current cycle follows the same deadline.

At present, the department has made available seven different Income Tax Return (ITR) forms, which vary depending on income type and taxpayer category.

Among them, ITR-1, also known as “Sahaj,” is designed for resident individuals (excluding not ordinarily residents) with total annual income up to ₹50 lakh. It is one of the simplest return forms and is widely used by salaried taxpayers.

ITR-4, also called “Sugam,” is applicable to resident individuals, Hindu Undivided Families (HUFs), and firms other than LLPs who opt for presumptive taxation and have income up to ₹50 lakh.

Earlier, the Central Board of Direct Taxes (Central Board of Direct Taxes) had notified the updated ITR forms for AY 2026–27, introducing revised disclosure requirements aimed at improving transparency in tax reporting.

The revised norms include additional reporting obligations related to long-term capital gains, losses arising from share buybacks, and specified trading transactions. Officials said these changes are intended to improve data accuracy and strengthen compliance monitoring.

The Income Tax Department said the updated utilities are part of its continued efforts to simplify the return filing process while ensuring better reporting standards.

In parallel, India’s direct tax system has shown steady growth. Net direct tax collections for FY 2025–26 rose by 5.12 per cent year-on-year to ₹23,40,406 crore, according to data released by the Central Board of Direct Taxes.

Tax officials said the early availability of utilities is expected to help taxpayers plan and complete filings in a timely manner, reducing last-minute congestion on the portal.

With the filing window now officially open, taxpayers are advised to verify details carefully before submission and make use of the updated tools for smoother compliance.

Team Maverick