The Income Tax Department of India has officially commenced the tax filing season for Assessment Year (AY) 2026-27, a significant step that offers an early start to millions of taxpayers. As of May 15, 2026, the department has made available both the online filing option and Excel utilities for two of the most widely used Income Tax Return (ITR) forms: ITR-1 (Sahaj) and ITR-4 (Sugam).
This early rollout, announced via the department's official X (formerly Twitter) handle, comes well in advance of the general filing deadline of July 31, 2026, for taxpayers not requiring a tax audit. It aims to provide ample time for salaried individuals, freelancers, and small businesses to prepare and submit their tax returns efficiently.
Understanding ITR-1 (Sahaj)
ITR-1, commonly known as Sahaj, is a simplified form designed primarily for resident individuals. Eligibility criteria for using ITR-1 include:
- Total annual income not exceeding ₹50 lakh.
- Income derived from salary or pension.
- Income from one house property.
- Income from other sources, such as interest.
However, it is important to note that ITR-1 is not applicable for non-residents or individuals classified as "not ordinarily resident." Its straightforward structure makes it a popular choice among many salaried taxpayers.
Understanding ITR-4 (Sugam)
ITR-4, or Sugam, caters to a broader category of taxpayers, including individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships - LLPs). This form is specifically for those who:
- Have a total annual income of up to ₹50 lakh.
- Opt for the presumptive taxation provisions under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.
Sugam is particularly favored by small business owners, self-employed professionals, and freelancers who choose the presumptive taxation route to simplify their tax compliance. Unlike ITR-1, ITR-4 allows for the reporting of business and professional income under these specified presumptive schemes.
Key Differences and Expert Advice
While both ITR-1 and ITR-4 are generally intended for taxpayers with an annual income up to ₹50 lakh, their primary distinction lies in the income sources they cover. ITR-1 is tailored for salaried residents with income from limited sources, whereas ITR-4 extends to professionals and businesses operating under the presumptive taxation framework.
Tax experts consistently advise taxpayers to carefully verify their eligibility before selecting an ITR form. Choosing the incorrect form can lead to processing delays or necessitate a revision of the return later, adding unnecessary complications to the filing process.