Income Tax Department Launches Excel Tool for ITR Filing: Here's How It Makes Tax Returns Easier for FY 2024–25

To make income tax filing easier and more accessible for individuals, the Income Tax Department has introduced a new Excel-based utility for Assessment Year 2025–26. This tool is specifically designed for taxpayers filing ITR-1 (Sahaj) and ITR-4 (Sugam) and aims to simplify the overall return filing process. With this initiative, the Central Board of Direct Taxes (CBDT) hopes to reduce the stress and complexity associated with filing income tax returns.

Announced via the department’s official handle on X (formerly Twitter), this Excel tool is now available for use and caters to taxpayers reporting income for the financial year 2024–25. Along with this launch, the due date to file ITR-1 and ITR-4 has also been extended from July 31 to September 15, 2025, giving taxpayers additional time to gather documents, complete forms, and file their returns without haste.

Who Can Use ITR-1 and ITR-4?

Understanding eligibility is key to using the Excel utility effectively. Here's a quick guide:

✅ ITR-1 (Sahaj):

• For resident individuals with a total annual income up to ₹50 lakh

• Income should be from salary, one house property, other sources (like interest), and agricultural income up to ₹5,000

✅ ITR-4 (Sugam):

• For residents (individuals, HUFs, and firms excluding LLPs) having total income up to ₹50 lakh

• Includes income from business and profession under the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE

Key Benefits of the Excel Tool

The newly released Excel-based tool provides an offline and user-friendly platform to input, calculate, and validate tax return data before uploading it online. Key features include:

• Simplified data entry for deductions, income, and exemptions

• Built-in validation rules to avoid errors

• Compatibility with updated ITR schemas for AY 2025–26

• No need for internet while filling the form (only required for submission)

This tool is especially helpful for senior citizens and individuals with limited tech knowledge who may not be comfortable with the fully online e-filing process.

Attention taxpayers!
The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers. @FinMinIndia@nsitharamanoffc @officeofPCM @PIB_India

— Income Tax India (@IncomeTaxIndia) May 30, 2025

Major Change: LTCG of Up to ₹1.25 Lakh Now Allowed in ITR-1 and ITR-4

In a significant policy update, taxpayers reporting long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A can now use ITR-1 or ITR-4 to file returns. Earlier, such taxpayers were required to use ITR-2, even for minor capital gains, making the filing process more complicated. This move simplifies compliance for small investors.

Why Was There a Delay in Form Release?

Typically, ITR forms are released by February or March each year. However, this year, the rollout was delayed until April and late May due to ongoing work on a new income tax bill introduced during the Parliament's Budget session in February. The delay was strategic to accommodate updates and align the forms with proposed legislative changes.

Final Word: Why This Update Matters

The combination of an Excel tool and extended deadline is a welcome relief for millions of taxpayers. It allows:

• Better document preparation

• More time for accurate data entry

• Reduced stress during the filing period

If you are eligible to file using ITR-1 or ITR-4, you are encouraged to use the new Excel utility and complete your tax filing before September 15, 2025.

This proactive step by the Income Tax Department underscores its commitment to making tax compliance easier, faster, and more transparent for every Indian taxpayer.