Income Tax Dept releases Common Offline Utility for filing Income-tax Returns ITR 1 and ITR 4 for AY 2025-26

The Income Tax Department has unveiled its much-anticipated Common Offline Utility for filing Income-tax Returns ITR-1 and ITR-4 for the Assessment Year 2025-26. Released on June 11, 2025, the Common Offline Utility arrives as version 1.1.0 and is available for download via the official e-filing portal. This marks the first consolidated offline tool enabling both salaried individuals and small business professionals to prepare returns without an active internet connection.

Packaged as a ZIP file of approximately 29 MB, the new utility integrates form preparation, error validation, and XML generation into a single interface. Taxpayers simply input their data into Excel-based worksheets, which then undergo built-in compliance checks before producing a ready-to-upload file. The Common Offline Utility supports batch processing of multiple returns, streamlining workflows for tax practitioners handling ITR-1 and ITR-4 filings.

Eligibility for using the ITR-1 module remains limited to resident individuals (other than not ordinarily resident) with total income up to ₹50 lakh, income sources comprising salaries, one house property, and other specified categories such as long-term capital gains (up to ₹1.25 lakh) and agricultural income (up to ₹5,000). Meanwhile, the ITR-4 section caters to resident individuals, HUFs, and firms (excluding LLPs) opting for presumptive taxation under sections 44AD, 44ADA, or 44AE, provided total income does not exceed ₹50 lakh.

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Beyond its unified format, the COU incorporates seven notable schema and validation enhancements for AY 2025-26. Key changes include updated rules for categorizing income sources—particularly electric vehicle subsidies and rent deductions—and stricter checks on TDS entries to prevent misreporting. These modifications aim to reduce filing errors and expedite processing times at the Centralized Processing Centre.

To install, taxpayers need not log in to the portal; they can download the utility from Home → Downloads → Income Tax Returns. Upon installation, the tool auto-updates to the latest version if internet access is detected. Official guidance, including a detailed step-by-step user manual, is accessible on the Income Tax website’s help section.

Stakeholders are encouraged to leverage this tool ahead of the July filing deadline for FY 2024-25, ensuring accurate, compliant, and efficient return submission. For direct download, visit the Income Tax Department e-filing portal’s “Downloads” section (incometax.gov.in).

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