Clipped from: https://www.financialexpress.com/money/use-offline-utility-in-e-filing-portal-to-avoid-defective-tax-returns-4254423/
ITR-1, ITR-2 & ITR-4 Excel utilities & online filing for AY26-27 now enabled
Income Tax Dept Releases Offline Utilities for AY 2026-27; Key Form Changes Unveiled
The income tax department has enabled online filing and Excel utilities for ITR-1, ITR-2 and ITR-4 on its e-filing portal for AY 2026-27. Using the offline utility before uploading the income tax returns (ITR) will help flag missing mandatory fields and avoid technically defective returns.
The Excel utilities on the income tax e-filing portal are designed to help taxpayers prepare their returns offline in a structured manner before final submission. Taxpayers should download the Excel/ Java Script Object Notation (JSON) utility from the income-tax e-filing portal and import the pre-filled JSON so that basic details such as salary and TDS/TCS are auto-populated. They must cross-check every pre-filled figure with Form 16, Form 26AS and AIS, and correct any mismatch, since differences often lead to automated notices or adjustments at processing.
Prepare the return offline
The remaining details such as deductions, bank accounts and any extra income not appearing in AIS should be entered manually, and run the ‘validate’ button on each sheet to catch missing or inconsistent entries. Once all sheets are validated, using ‘calculate tax’ and generating a JSON file for upload reduces the risk of the return being treated as defective.
Unlike online filing, which requires continuous internet access and may involve session timeouts, the Excel utility enables taxpayers to prepare the return offline at their own convenience, save drafts, and revisit computations multiple times before uploading the final return.
Sandeep Sehgal, partner, Tax, AKM Global, a tax and consulting firm, says a correctly validated JSON from the latest utility version leads to fewer defect notices and faster refund processing, though the tool only checks format and arithmetic, not whether an income or deduction has been wrongly omitted or claimed.
The offline utility may be particularly useful for taxpayers having multiple income streams, claiming various deductions, reporting capital gains, foreign assets or overseas income disclosures.
“While the utilities are now available for AY 2026–27, taxpayers should avoid rushing to file returns without first ensuring that all relevant tax information particularly TDS details, AIS disclosures and financial transaction reporting is fully updated to minimise mismatches and future notices,” says Neeraj Agarwala, senior partner, Nangia & Company.
Corrections in utility
If the error is caught while working in the utility and before upload, the taxpayer can simply correct the figures, re-validate all sheets and generate a fresh JSON file to upload. Once the return is filed on the portal, however, the earlier file cannot be edited. Any omission of income or wrong claim must be corrected only by filing a revised return.
Changes in ITRs
The new ITR-1 has expanded the eligibility criteria to include two house properties, simplifying compliances for taxpayers. Reporting requirements in Schedule House Property is also expanded to include percentage of co-ownership and details of tenants for let-out property.
In the revised ITR-4, the “Financial Particulars of Business” section is more granular. While details on fixed assets, cash balances, loans and other financial indicators have been retained, fixed assets are now split into fixed assets and ‘investments’.
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