What’s New: Key Updates
1. Online Filing Enabled for ITR-5 & ITR-7 with Prefilled Data
- 1. The Income Tax Department (ITD) has enabled online mode filing for ITR-5 and ITR-7 through the e-Filing portal with prefilled data.
- 2. Prefilled data includes basic taxpayer information tied to the PAN, prior return / last import, assessment year, etc. This reduces manual entry and helps avoid errors.
2. Offline Utility Released for ITR-7 (AY 2025-26)
- 1. An offline utility specific to ITR-7 for Assessment Year 2025-26 is now available for taxpayers who prefer to prepare returns offline and then upload. Also, Excel utilities and JSON schema & validations are provided, so taxpayers
have multiple tools / formats.
3. Other Related Utilities & Tools
- 1. Offline utility for ITR-5 is also available for AY 2025-26.
- 2. Excel-based utilities, schema and validations have been updated for ITR-5, ITR-6, ITR-7 and for previous years (e.g. AYs 2021-22, 2022-23) especially when filing updated returns.
Why These Changes Matter
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1. Ease and convenience: Prefilled data cuts down manual inputs, reducing chances of mistakes, and simplifies the filing process.
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2. Flexibility: Taxpayers who are not comfortable with purely online filing can use offline utilities (Excel or JSON) and then upload.
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3. Consistency and compliance: Updated schema, validations and tools help ensure returns are properly formatted, adhere to latest law changes, which is especially relevant for trusts, political
parties etc. who file ITR-7.
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4. Helps updated returns / revised returns: Since there are utilities for “updated returns” for past assessment years, taxpayers who need to revise or correct past filings can do so with
newer tools.
Who Should Use Which Tool / Mode
| Category / Situation |
Use Online Filing with Prefilled Data If… |
Use Offline Utility / Excel / JSON If… |
| Trusts, NGOs, Entities required to file ITR-7 |
You want simplicity, fewer manual entries, faster submission, fewer chances of data mismatch. |
You want to prepare at your own pace, perhaps offline, verify calculations, or need to make complex entries or corrections. |
| Firms, LLPs, AOPs that file under ITR-5
|
Same as above — online mode will save effort. |
If returns are complex, or schedules need detailed work, or you prefer working with sheets / drafts. |
| Taxpayers revising old returns / filing updated returns
|
You can check if online mode supports the required features. Prefilled data may help with consistency. |
Offline utilities might be more suitable because of the need for revised entries, using updated schema / validation. |
How to Use the Offline Utility for ITR-5 / ITR-7
Here’s a step-by-step guide based on the user manual and sources:
Prerequisites:
- 1. Registered user on the e-Filing portal; valid login credentials; download correct offline utility (ITR-5 to ITR-7 or just ITR-7) for the relevant assessment year.
Download & install:
- 1. Go to Downloads → Income Tax Returns → Utility section on ITD’s e-Filing portal. Extract the zip, install/open utility.
Using prefilled data:
- 1. Download pre-filled data (JSON) for your PAN / AY.
- 2. Import the pre-filled data into the offline utility.
Prepare the return:
- 1. Fill in additional details (income, deductions, schedules etc.), use the tool to calculate tax, validate tabs / sheets.
Generate JSON & upload:
- 1. Once filled and validated, generate JSON (or relevant file), then upload via e-Filing portal. E-verify as required.
Potential Challenges & Tips
- 1. Accuracy of prefilled data: Always verify prefilled information (PAN, bank details, past incomes etc.); errors upstream (like wrong bank account or address) can lead to verification/rejection issues.
- 2. Version compatibility: Ensure you are using the latest version of offline utility / Excel tool, schema & validations — older versions may lack recent updates or may not get accepted.
- 3. Learning curve: Offline utilities are powerful, but require care: handling JSON, knowing schedules, validating forms. Might be more work for someone not tech-savvy.
- 4. Deadline compliance: Even with tools, filing after deadline means penalties or late fees; procrastination can lead to technical glitches.
What's Next / What to Watch For
- 1. Whether ITR-7 and ITR-5 online with prefilled data will include more advanced prefill (say, trust assets, donations, etc.).
- 2. Further improvements to user interface / ease of downloading/importing JSON.
- 3. Awareness campaigns from ITD so smaller trusts / NGOs know about offline utilities.
- 4. Possible extensions in deadlines if many users face problems (as has happened in past years).
Conclusion
The Income Tax Department’s move to enable online filing of ITR-5 & ITR-7 with prefilled data and launch of offline utility for ITR-7 (AY 2025-26) are welcome steps towards making tax compliance smoother. They offer both convenience and flexibility. Taxpayers
who choose the right mode (online vs offline) and use the updated utilities carefully can save time, avoid errors, and meet their obligations with greater ease.
