Income Tax Returns Filing Update for FY 2025-26

Overview of Income Tax Returns for FY 2025-26

As of now, the Income Tax Department has reported that more than 17 million Income Tax Returns (ITRs) have been submitted for the financial year 2025-26. The department shared this update on X, highlighting that a significant number of taxpayers have proactively filed their ITRs for Assessment Year 2026-27. The deadline for submitting ITRs 1 and 2 for income earned during the 2025-26 fiscal year is set for July 31.

ITR Form 1, known as Sahaj, is designed for a broad range of small and medium taxpayers. This form can be utilized by resident individuals with an annual income of up to Rs 50 lakh, provided they have salary income, one house property, and agricultural income not exceeding Rs 5,000 annually.

Recently, the Income Tax Department introduced an Excel utility for ITR-7 for Assessment Year 2026-27. This tool enables eligible trusts, institutions, political parties, and other entities to prepare their income tax returns offline before the filing deadlines. According to a post on X, taxpayers using ITR-7 can download the Excel utility, input and validate their return details offline, generate a JSON file, and subsequently upload it to the Income Tax e-Filing portal to finalize the filing process. It is important to note that ITR-7 is not intended for salaried individuals; it applies to entities required to submit returns under Sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income-tax Act.

As the July 31 deadline approaches, taxpayers nationwide are receiving reminders to file their income tax returns. This initiative by the department aims to motivate taxpayers to complete their filings early, thereby avoiding the last-minute rush that often results in mistakes, delays, and technical issues. It is crucial for taxpayers to adhere to the guidelines to prevent scrutiny from the Income Tax Department.