With this, tax payers can start preparing to file income tax returns for the financial year 2024-25 (AY 2025-26). Filing income tax returns will be much easier with the Excel utility version.

The Income Tax Department has announced the release of Excel utilities through a post on the social media platform X. The Income Tax Department said on X, ‘Attention taxpayers! Excel utility for ITR-1 and ITR-4 for AY 2025-26 has been launched and is now available to taxpayers.’

Process made easy

Himansh Singla, Partner, SBHS & Associates, says, “It is great to see that the Income Tax Department has released Excel Utilities for ITR-1 and ITR-4 for Assessment Year 2025-26. There is no major change in the ITR-4 schema as compared to last year, making it even easier for regular filers and tax professionals.”

He adds, ‘However, a very important change has been made in the schema of ITR-1. A new validation rule has been introduced in the utility itself. Under this, taxpayers having income under special rates or from sources like online games, lottery, crypto, property transfer will have to use ITR-2 or other suitable form.’

Who is ITR-1 form for

For the financial year 2024–25 (assessment year 2025–26), resident individuals (except those classified as not ordinarily resident) having total income up to Rs 50 lakh can file ITR-1 form. This includes income from salary, one house property, other sources such as interest, long-term capital gains up to Rs 1.25 lakh under section 112A and agricultural income up to Rs 5,000.

The post ITR 1 and 4: Government has issued this special facility for those who fill ITR-1 and ITR-4 forms first appeared on Rightsofemployees.com.

In such a situation, it is important for taxpayers to understand the important sections of the Income Tax Act, 1961 which help in getting tax exemption and correct tax calculation.

Section 139(1): Mandatory to file ITR if income exceeds prescribed limit

Under Section 139(1), it is mandatory for any person or entity to file income tax returns if their annual income exceeds a prescribed limit. This section also applies in cases where the return is filed voluntarily.

Section 10(13A): HRA exemption on rented house

If a person lives in a rented house and pays rent of more than ₹ 1 lakh annually, he can avail tax exemption on House Rent Allowance (HRA) under section 10(13A). For this, some rules have to be followed.

Section 80C: Deduction up to ₹1.5 lakh on tax saving investments

Taxpayers following the old tax regime are eligible to get a deduction of up to ₹1.5 lakh on investments such as PPF, EPF, ELSS, tax saving FD, and life insurance premium under section 80C. However, this exemption is not available in the new tax regime.

The new system allows deduction of up to 10% of employer’s contribution to NPS only under section 80CCD(2). Apart from this, deduction can be claimed on certain expenses under sections 80JJAA and 80CCH.

Section 80D: Deduction up to ₹1 lakh on health insurance

Tax exemption on premiums paid on health insurance is available under section 80D. If the taxpayer and his family members are below 60 years of age, the maximum exemption is up to ₹25,000. For those aged 60 years or above, the limit is ₹50,000. There is a separate exemption for parents, which can take the total exemption to ₹1 lakh.

Section 24B: Home loan interest deduction up to ₹2 lakh

Interest paid on home loan or home improvement loan is eligible for deduction up to a maximum of ₹2 lakh under section 24B. This deduction is available in both the old and new tax regimes.

Section 234F: Penalty for late filing of ITR

If a person files ITR after the due date, then a penalty is imposed on him under section 234F. For those with income less than ₹5 lakh, this penalty is ₹1,000, while for those with income more than ₹5 lakh, the penalty can be up to ₹5,000. Apart from this, interest may also have to be paid under sections 234A and 234B.

Know from the experts who are required to file ITR? (Applicable only to individual taxpayers)

According to tax expert Balwant Jain, under various provisions of the Income Tax Act, it becomes mandatory for individual taxpayers to file ITR in certain situations, even if their total income does not fall under the scope of tax liability. Let us know in which cases it is necessary to file ITR:

1. Gross income exceeds the basic exemption limit

It is mandatory to file ITR if your total income (before deductions under sections 80C, 80D, 80G, etc.) exceeds the following limits:

General individual: ₹2.5 lakh

Residents above 60 years of age: ₹3 lakh

Residents above 80 years of age: ₹5 lakh

Equal exemption for all in new tax regime: ₹3 lakh

Long term capital gains (LTCG) will also be added to this.

2. Have property or signature authority abroad

If you are a resident taxpayer in India and:

You have any property in your name abroad (even if there is no balance amount)

If you have a foreign bank account or share in a property or have signature authority, it
is mandatory for you to file ITR.

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The post ITR filing 2025: Key Benefits and Penalties related to 80C, 80D, 24B and HRA first appeared on Rightsofemployees.com.