The Central Board of Direct Taxes (CBDT) has taken a significant step toward facilitating timely and smooth income tax return filing by releasing the Excel-based offline utilities and Online filing for ITR-1 (Sahaj) and ITR-4 (Sugam) for Assessment Year 2026-27. Both utilities were made available on 15th May 2026 on the Income Tax e-Filing portal. Taxpayers and tax professionals are encouraged to download the latest versions and begin preparing their returns at the earliest to avoid last-minute rush and errors.
ITR-1 (Sahaj) — For Salaried Individuals and Simple Income Profiles
ITR-1, commonly known as Sahaj, is one of the most widely used income tax return forms in India. It is designed to keep the filing process simple and straightforward for a large section of individual taxpayers whose financial affairs are not complex.
Applicability
ITR-1 is applicable for individuals who are residents of India (but not those falling under the category of Not Ordinarily Resident) and whose total income for the financial year does not exceed ₹50 lakh. The income must be from the following specified sources only:
- Salaries or Pension — Income received from one or more employers or as pension.
- House Property — Income or loss from up to two house properties.
- Other Sources — Income from interest on savings accounts, fixed deposits, recurring deposits, family pension, or similar receipts.
- Long-Term Capital Gains under Section 112A — Gains from the sale of listed equity shares or equity-oriented mutual funds, subject to a ceiling of ₹1.25 lakh.
- Agricultural Income — Agricultural income not exceeding ₹5,000.
Individuals with income from business or profession, more than two house properties, foreign assets or income, or capital gains other than those permitted above cannot use ITR-1 and must file under a more appropriate form.
Available Resources for ITR-1
The following utilities and supporting documents have been released for ITR-1 for AY 2026-27:
- Excel-Based Offline Utility —This utility allows taxpayers to fill in their details offline and generate the XML file for uploading on the portal.
- JSON Schema —This is primarily useful for software developers and tax professionals building or integrating return preparation software.
- Validation Rules —This document outlines the field-level validations applicable to ITR-1 for AY 2026-27, ensuring that the data entered is accurate and complete before submission.
ITR-4 (Sugam) — For Presumptive Income Taxpayers
ITR-4, known as Sugam, caters to a broader category of taxpayers — individuals, Hindu Undivided Families (HUFs), and firms other than Limited Liability Partnerships (LLPs) — who opt for the presumptive taxation scheme. This scheme is particularly beneficial for small businessmen, traders, and professionals as it simplifies income computation and reduces the compliance burden.
Applicability
ITR-4 is applicable for resident taxpayers (individuals, HUFs, and firms other than LLP) whose total income does not exceed ₹50 lakh and whose business or professional income is computed under any of the following presumptive taxation provisions:
- Section 44AD — For eligible small businesses with turnover up to the prescribed threshold.
- Section 44ADA — For specified professionals such as doctors, lawyers, architects, engineers, accountants, and consultants.
- Section 44AE — For taxpayers engaged in the business of plying, hiring, or leasing goods carriages.
Additionally, ITR-4 now also accommodates long-term capital gains under Section 112A up to ₹1.25 lakh, bringing it in line with ITR-1 and making it more inclusive for small taxpayers who may have modest equity investment gains alongside their business income.
Key Takeaway for Taxpayers
With the utilities now available from the very beginning of May 2026, taxpayers have sufficient time to compile their documents, verify their Form 26AS and AIS/TIS statements, and file their returns well before the due date 31st July 2026. It is always advisable to use the latest version of the utility available on the portal at the time of filing, as CBDT may release updated versions incorporating corrections or enhancements. Early filing not only avoids penalties but also ensures faster processing of refunds, if any.
