The Income Tax Department has initiated the income tax return filing process for Assessment Year (AY) 2026–27 by activating Excel-based utilities and online filing facilities for ITR-1 (Sahaj) and ITR-4 (Sugam) on the income tax e-filing portal. The move officially marks the beginning of the return filing season for millions of salaried taxpayers, professionals, and small businesses across the country.

The department announced the development through a post on X, informing taxpayers that the two commonly used return forms are now available for filing through the online portal. The activation of these utilities is expected to benefit a large segment of taxpayers who generally fall within the simpler tax return categories.

ITR-1, commonly known as Sahaj, is intended for resident individuals whose total annual income does not exceed ₹50 lakh. It covers taxpayers earning income from salary or pension, one house property, and other sources such as interest income. However, the form is not available for non-residents or individuals categorized as “resident but not ordinarily resident” (RNOR). Taxpayers having more complex income structures, multiple house properties, capital gains, or business income generally need to use other prescribed forms.

Meanwhile, ITR-4, known as Sugam, has been designed for individuals, Hindu Undivided Families (HUFs), and firms excluding Limited Liability Partnerships (LLPs), whose income does not exceed ₹50 lakh and who have opted for the presumptive taxation regime under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. The presumptive taxation scheme is often chosen by small businesses and professionals because it simplifies tax compliance by allowing taxpayers to declare income at prescribed rates without maintaining extensive books of accounts.

The enabling of these utilities assumes significance as the deadline for filing income tax returns for individuals not subject to tax audit remains July 31. Taxpayers generally begin filing their returns once the required utilities become operational and key financial data such as Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS) are available and updated.

As part of its annual practice, the Income Tax Department introduces filing utilities in stages. Forms catering to salaried individuals and smaller taxpayers are generally released first because they cover a substantial portion of return filers. Utilities for other categories, including taxpayers with capital gains, business income, foreign assets, and more complex reporting requirements, are expected to be rolled out gradually over the coming weeks.

Income tax returns serve as the primary mechanism through which taxpayers report their earnings, claim deductions and exemptions where applicable, disclose taxes already paid, and determine their final tax liability or refund position. Selection of the correct ITR form remains important because it depends on factors such as the nature of income, taxpayer category, residential status, and source of earnings.

With the filing season now underway, taxpayers are expected to closely monitor additional utility releases and ensure that tax-related documents and financial records are reconciled before submission of returns for AY 2026–27.

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