ITR-1, ITR-4 Filing Goes Live For AY 2026-27; Salaried Taxpayers Can Now Start Filing Returns

The Income Tax Department has started enabling online filing for ITR-1 and ITR-4 forms for Assessment Year (AY) 2026-27, marking the beginning of this year’s return filing season for millions of taxpayers.

The development is particularly relevant for salaried individuals, pensioners, small business owners, and professionals covered under presumptive taxation schemes, since these two forms are among the most widely used ITR forms in the country.

Along with online filing, the department has also made the Excel utilities available. This means taxpayers can either file returns directly on the portal or prepare them offline before uploading them later.

The rollout comes at a time when the government is gradually preparing taxpayers for the shift to the new Income Tax Act, 2025, which is expected to come into force from April 1, 2026. Even though the larger legal transition is still ahead, taxpayers filing returns for income earned during FY2025-26 will continue under the existing system for now.

For many individuals, the activation of these forms effectively signals the start of tax filing activity for the year, according to a rediff.com report.

Which Taxpayers Can Use These Forms

ITR-1, commonly known as Sahaj, is generally meant for resident individuals whose total annual income is up to Rs 50 lakh. It is mostly used by salaried employees and pensioners who earn income from salary, one house property, and other sources such as interest income.

Taxpayers reporting agricultural income up to Rs 5,000 may also use this form. However, individuals with capital gains, foreign income or assets, multiple house properties, or business income are not allowed to file through ITR-1.

ITR-4, also called Sugam, is meant for taxpayers opting for the presumptive taxation route. Resident individuals, HUFs, and certain firms with total income up to Rs 50 lakh can use this form if they are declaring business or professional income under presumptive taxation provisions.

Chartered accountants say a very large share of individual taxpayers usually falls under these two categories, which is why the department tends to release these forms first every year.

Why Many Taxpayers Prefer Filing Early

Although the deadline for non-audit taxpayers is still some time away, many tax experts advise individuals to avoid waiting until the last moment.

One reason is that early filing gives taxpayers enough time to identify mismatches between salary details, tax deducted at source (TDS) deductions, AIS entries, and Form 26AS records. In recent years, such mismatches have become a common reason behind notices, delayed refunds, or defective return communications.

Refund processing is another reason many individuals prefer filing early. In cases where excess TDS has been deducted by employers or banks, quicker filing often results in faster refund processing as well.

Tax consultants also point out that filing pressure usually increases sharply closer to the due date, which sometimes leads to portal slowdowns, documentation mistakes, or hurried disclosures.

Transition Towards A New Tax Framework

This year’s filing season also carries additional significance because the government is simultaneously preparing for a wider overhaul of the tax law structure through the Income Tax Act, 2025.

Over the past few months, several compliance-related changes, renumbered forms, and new procedural references have already started appearing across the tax administration ecosystem. The broader objective appears to be simplification and standardisation before the new framework formally takes effect next year.

For ordinary taxpayers, however, the immediate focus remains straightforward — checking eligibility, choosing the correct ITR form, reconciling tax documents carefully, and filing returns accurately within the prescribed timeline.

FAQs

1. Who can file ITR-1 for AY 2026-27?

ITR-1 can generally be used by resident individuals with income up to Rs 50 lakh from salary, pension, one house property, and interest income.

2. Who is eligible to use ITR-4 (Sugam)?

ITR-4 is meant for taxpayers opting for presumptive taxation, including small business owners and professionals with income up to Rs 50 lakh.

3. Why do tax experts advise filing ITR early?

Early filing helps taxpayers spot mismatches in AIS, Form 26AS, or TDS records sooner and may also lead to faster refund processing.