Synopsis
For AY 2025 26 (FY 2024 25), the Income Tax Department has updated the ITR‑1 and ITR‑4 Excel utilities, extending the filing deadline to September 15, 2025. These enhancements introduce strict validation, detailed disclosures, and error-free filing, benefiting salaried individuals and small business owners. Here’s a comprehensive yet easy-to-understand overview of these changes and how to file without hassle.
- Deadline Extended to September 15, 2025
Taxpayers filing ITR‑1 and ITR‑4 now have until September 15, 2025, instead of the usual July 31. This extended window gives you extra time to adapt to the new Excel utility validation rules and gather detailed documentation without rushing.
- More Transparency in Deduction Disclosures
Claiming deductions under Section 80C, 80D, 80E, and 80DDB now requires additional details including:
- Specific investment type (e.g., PPF, ELSS, NSC)
- Insurer names and policy numbers for health insurance premium
- Actual rent, landlord PAN, and address for HRA claim
- Loan account numbers, lender details, and interest dates
These demands aim to ensure more accurate and transparent ITR filing.
- Reporting LTCG Up to ₹1.25 Lakh in ITR‑1 & ITR‑4
Tax on Long-Term Capital Gains (LTCG) under Section 112A up to ₹1.25 lakh can now be included in ITR‑1 and ITR‑4. Earlier, such gains required ITR‑2 or ITR‑3. This streamlines reporting for many small investors.
- Mandatory Disclosure of TDS Sections
When entering TDS amounts, it’s essential to specify the exact TDS section (e.g., Section 192 for salary, Section 194A for interest). This enhances matching with Form 26AS and reduces the risk of tax credit mismatches.
- Relaxed Asset-Liability Reporting Thresholds
The criterion requiring disclosures of assets and liabilities has been raised, lightening compliance for small-scale taxpayers and professionals filing ITR‑4 under presumptive schemes.
- Enhanced Reporting for Self‑Occupied Home Loan
Claiming home loan interest deduction (up to ₹2 lakh) now requires detailed information on the lender, loan interest, and property address. The updated utility simplifies interest reporting for self‑occupied property.
- Smarter Excel Utility with Built‑In Checks
The new Excel ITR utility features:
- Pop‑up guidance for each section
- Real‑time validation and automatic tax calculations
- Alerts for missing or incorrect inputs
- Dropdowns for deduction and section selections
These improvements make the filing process more user‑friendly and error‑resilient.
Extra Update: Auto‑Disqualification Based on TDS Sections
If your Form 26AS includes TDS under disqualifying sections like 194B (lottery), 194S (crypto), or 195 (non‑residents), the utility will block ITR‑1 filing. You will need to use ITR‑2 or ITR‑3 instead.
- Note the extended ITR filing deadline
- Prepare for detailed deduction disclosures
- Report LTCG up to ₹1.25 lakh in ITR‑1/ITR‑4
- Choose the correct TDS section code
- Understand when asset‑liability disclosures apply
- Declare home loan interest details fully
- Use the smart Excel utility to avoid errors
If unsure, seek professional assistance or an e‑filing expert for seamless compliance.
