AY 2026-27 ITR Update: Excel Utilities for ITR-1, 4 Released

The Income Tax Department has introduced new updates for FY 2025-26 (AY 2026-27) regarding the Excel utilities for ITR-1 and ITR-4 forms. These updates enable eligible taxpayers to begin filing their income tax returns for the relevant assessment year. The Excel utility tools are now available for download on the official Income Tax portal, making the return filing process more convenient and accessible for taxpayers.

An ITR is an important form that taxpayers use to report their income, deductions, and tax liabilities to the Income Tax Department. Filing the return on or before July 31 of each financial year is essential to remain compliant with tax laws and regulations.

Currently, there are seven different Income Tax Return (ITR) forms, ranging from ITR-1 to ITR-7. The applicable form depends on the taxpayer’s category, nature of income, and total earnings.

Form ITR-1 is the designated simplified return for ordinary resident individuals with an aggregate total income capped at Rs. 50 lakh. The form accommodates specific revenue streams, including salary/pension, income from a maximum of two house properties, and miscellaneous earnings under 'Income from Other Sources'.

Notably, agricultural income must not exceed Rs. 5,000 to maintain eligibility. Furthermore, the compliance scope explicitly extends to taxpayers with long-term capital gains under Section 112A, provided the gains remain within the Rs. 1.25 lakh threshold.

Read Also: Complete Month-Wise ITR & TDS Compliance Calendar FY 2026-27

ITR-4, also known as Sugam, applies to resident individuals, Hindu Undivided Families (HUFs), and firms other than LLPs having a total income of up to Rs. 50 lakh and opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. Additionally, in line with updated compliance provisions, the form also allows individuals reporting long-term capital gains under Section 112A up to Rs. 1.25 lakh to file ITR-4.

The deployment of the official Excel utilities signals the formal opening of the Income Tax Return (ITR) filing cycle for Assessment Year 2026–27. Assessees and tax professionals can download the designated utility to compile tax data offline. The process requires users to enter the relevant financial details, perform system validation, generate the mandatory JSON file, and upload it to the Income Tax e-filing portal for final submission and electronic verification.

The Central Board of Direct Taxes (CBDT) had earlier notified the Income Tax Return (ITR) forms for AY 2026-27 with several important changes in reporting requirements. These updates include additional disclosures related to long-term capital gains, buyback losses, and certain trading transactions.

According to tax experts, the early release of the utility tools gives salaried taxpayers and small businesses additional time to collect their documents and prepare their income tax returns. This extended preparation period helps taxpayers complete and file their returns well before the July 31, 2026, deadline applicable to most non-audit cases.