ITR-1 Or ITR-4? Check Which Income Tax Return Form You Are Eligible To File For AY 2026-27

The income tax filing period for FY 2025-26 has officially begun. For millions of taxpayers across India, this means one thing – it’s time to find out which ITR form you need before rushing to file your return. Excel utilities and online filing support for ITR-1 and ITR-4 are now live on the Income Tax Department’s e-filing portal for assessment year 2026-27.

Many salaried individuals are already gearing up their documents, including Form 16, bank statements and proofs of investments. However, there is still a lot of confusion among taxpayers about whether to file ITR-1 or ITR-4.

If you are wondering, “Can I file ITR-1? “Is ITR-4 for freelancers?” or “What if I have side income?” This filing season you are definitely not alone. Let’s understand what the ITR-1 and ITR-4 forms are and who is eligible for which form.

What did the income tax department announce?

The Income Tax Department has announced on its official X account that the facility for filing ITR-1 and ITR-4 is now available to taxpayers on the e-filing portal.

This enables eligible taxpayers to:

• Download Excel Add-ins
• Offline fill returns
• Create JSON files
• File returns electronically
• Full e-verification online

The move kicks off the ITR filing season for AY 2026-27 and also provides additional time to taxpayers to file returns before the July 31 deadline for non-audit cases.

First question asked by most salaried people: Can I file ITR-1?

ITR-1 or Sahaj is still the most common tax return form for many salaried people.

But not everyone is eligible. You can file ITR-1 if:

• You are an individual taxpayer
• Your annual income is less than ₹50 lakh
• Earnings from salary or pension
• You earn interest income on savings or deposits
• You can have at most two house properties
• Income from agriculture within limits permitted
• Long-term capital gains under Section 112A to ₹1.25 lakh

In layman’s terms, most salaried employees with a straightforward income structure are eligible for ITR-1.

Is ITR-4 applicable for small businesses, freelancers, and consultants?

Yes – and this is where many first-time filers get confused.

ITR-4 or Sugam is mainly meant for those taxpayers who have opted for presumptive taxation schemes under sections 44AD, 44ADA, and 44AE.

This form is generally used for:

• Contractors, Consultants
• Owners of small businesses.
• Presumptive income professionals
• HUFs
• LLPs and other firms

However, the total annual income should normally be within ₹ 50 lakh for eligibility.

This is why ITR-4 is gaining traction among creators, gig workers, digital professionals, and the self-employed during this filing season.

Why are taxpayers being asked to double-check everything?

Every year, mismatches in income tax become one of the biggest concerns for filing. Tax experts tell taxpayers time and again to check:

• Salary information
• TDS entries
• Interest earnings
• AIS & Form 26AS data
• Deductions petition
• Capital gains data
• Bank Details

A small mismatch can hold up refunds or trigger notices down the line.

This is why taxpayers are requested to look carefully at the information before creating and uploading the JSON files.

What is the benefit of Excel utility?

Many taxpayers still prefer to prepare returns offline before final submission. The Excel utility allows the user to:

• File returns without Internet reliance
• Save draft work
• Double-check entries many times.
• Minimise filing errors
• Upload only after full verification

This is especially useful for salaried individuals and senior citizens who want to check tax details thoroughly instead of filing everything online at once.

After I file ITR, do I need to verify online?

Yes, e-verification is now one of the most important last steps in the filing process.

Verification may be required to fully complete the return. Taxpayers can do e-verification through:

• Aadhaar OTP
• Online banking
• Bank account verifications
• Verification of Demat Account
• Other accepted digital techniques

The income tax portal also offers instant validation support through the ‘e-Verify Return’ option.

What’s so special about this ITR filing season?

The filing cycle is becoming a talking point as it coincides with the move to the Income Tax Act 2025 framework from April 1, 2026.

With the increasing digitalisation and compliance orientation of tax systems, taxpayers are expected to pay more attention to the accuracy of reporting, deductions and disclosures of income.

Which ITR form should I file?

If your primary source of income is salary, pension, bank interest or simple investments, then ITR-1 may be suitable to you.

However, if you are a freelancer, consultant, professional or small business owner using presumptive taxation schemes, then ITR-4 can be the form of relevance.

The bigger lesson learned is this: understand your income category properly before filing your return instead of blindly picking a form. A small mistake in filing can lead to bigger troubles later.

For official updates and filing access, taxpayers can visit the Income Tax Department e-Filing Portal.

Also Read: Income Tax Filing Season Begins: ITR-1 And ITR-4 Utilities Go Live For AY 2026-27; Key Dates And Important Documents You Need to Keep Ready