Income Tax Filing: ITR-1 and ITR-4 Now Available for Online Filing for AY 2025–26

The Income Tax Department has officially opened the online filing facility for ITR-1 (Sahaj) and ITR-4 for the Assessment Year 2025–26. Taxpayers can now submit their returns through the official e-filing portal, with prefilled data available to streamline the process and minimise errors.

This update follows the recent release of the Excel-based utilities for these forms, launched just a week earlier. The move is part of the department’s ongoing efforts to make tax filing more user-friendly and efficient.

Extended Deadline for Filing Returns

To accommodate recent ITR form revisions, e-filing portal enhancements, and to ease pressure on both taxpayers and tax professionals during the busy filing season, the deadline to file income tax returns for AY 2025–26 has been extended to September 15, 2025 — a shift from the usual July 31 cutoff.

Choose the Right Form Based on Your Income Profile

It's crucial for taxpayers to select the correct ITR form based on their income sources and financial circumstances.

Who Can Use ITR-1 (Sahaj)?

• Individual taxpayers with:
• Income from salary/pension
• Income from one house property
• Income from other sources (interest, etc.)
• Long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A, provided no tax is payable.

What Disqualifies You from Using ITR-1?

• Having taxable LTCG or short-term capital gains
• Sale of property or capital loss carry-forward
• Foreign income/assets or multiple house properties

New Update: Starting this year, small investors with LTCG up to ₹1.25 lakh (tax-exempt) can use ITR-1 — a relief for those who earlier had to file ITR-2.

Who Can Use ITR-4?

• Resident individuals, HUFs, and firms (excluding LLPs)
• Income up to ₹50 lakh
• Business income under presumptive taxation:
• Section 44AD (small businesses)
• Section 44ADA (professionals)
• Section 44AE (transport operators)
• LTCG under Section 112A up to ₹1.25 lakh (tax-exempt)

Not Eligible for ITR-4 If You:

• Are a company director
• Hold unlisted equity shares
• Have foreign assets/income or agricultural income exceeding ₹5,000

Also Read: New Income Tax Bill 2025: A Game-Changer for NRIs on Unlisted Share Gains

Conclusion

Double-check your eligibility before filing and ensure your prefilled data is accurate. This year’s changes are aimed at reducing complexity—take advantage of them to file early and avoid last-minute hassles.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.