ITR XML vs JSON Format: Which One Should You Use?
- Asharam Swain
- 4 days ago
- 8 min read
The transition from XML to JSON format for Income Tax Return (ITR) filing has redefined how taxpayers in India prepare and submit returns. Starting from Assessment Year (AY) 2021-22, the Income Tax Department shifted to JSON—a lightweight, modern format that ensures faster uploads, reduced errors, and better compatibility with e-filing utilities. While XML served as the foundation for many years, JSON now provides an improved experience, simplifying the process for individuals and professionals alike. Understanding which format to use can help ensure accuracy, compliance, and smoother digital filing.
Table of Contents
Understanding XML and JSON Formats in ITR Filing
Income Tax Return (ITR) filing in India has evolved from the traditional XML-based system to a more advanced JSON-based approach. Both XML (Extensible Markup Language) and JSON (JavaScript Object Notation) formats are used to structure taxpayer data for online filing. The XML format was widely used in earlier years, allowing users to prepare returns offline and upload them manually. However, as tax systems became more digitized and dynamic, the Income Tax Department introduced JSON files to enhance compatibility, speed, and error validation. JSON is lighter, faster to process, and easier to integrate with AI-driven tax platforms like TaxBuddy, ensuring smoother and more accurate filings.
Transition from XML to JSON in Income Tax Return Filing
The transition from XML to JSON format marks a major technological upgrade in India’s e-filing ecosystem. Until Assessment Year 2020–21, ITR utilities relied mainly on XML, which required manual preparation and validation. Starting from AY 2021–22, the Income Tax Department officially shifted to JSON for all return utilities, enabling real-time data exchange and automation. JSON allows users to pre-fill information directly from Form 26AS, AIS, and PAN databases. This change simplifies the overall process and reduces the chances of human error during filing.
Key Differences Between ITR XML and JSON Format
While both formats serve the same purpose of submitting structured tax data, they differ significantly in efficiency and usability. XML files are heavier, difficult to read manually, and prone to data entry errors. JSON, on the other hand, is lightweight and designed for smoother communication between systems. JSON supports modern APIs, integrates directly with tax software, and processes data faster. Additionally, while XML requires manual validation through desktop utilities, JSON enables real-time validation through the online e-filing portal and mobile-based applications.
Benefits of JSON Format for Taxpayers
The JSON format provides several advantages for taxpayers. It allows faster uploading of return data, auto-import of pre-filled information, and instant verification. Since JSON is compatible with cloud-based tools, it improves user experience on mobile and web applications. Taxpayers can now seamlessly access their income, deduction, and TDS details without repetitive manual entries. The JSON format also minimizes file corruption issues, ensuring that data integrity remains intact during submission.
When Should You Use XML Format?
Although JSON has largely replaced XML, certain legacy systems or older versions of tax utilities may still support XML for reference purposes. Tax professionals may use XML for reviewing historical data or comparing previous years’ filings. However, for current assessment years, XML files are not accepted for uploading returns on the Income Tax portal. XML should only be used for internal recordkeeping or offline reconciliation when JSON utilities are unavailable.
Why JSON Format Is the Future of ITR Filing
JSON represents the future of ITR filing because of its adaptability and integration capabilities. It is compatible with advanced analytics, AI systems, and cloud platforms, allowing faster updates to tax utilities. With the government focusing on automation and pre-filled returns, JSON enables smoother data exchange between departments and banks. This integration not only reduces manual workload but also enhances transparency and compliance. Over time, XML will become obsolete as the JSON-based filing ecosystem expands to cover all return types and taxpayers.
How TaxBuddy Simplifies JSON-Based ITR Filing
TaxBuddy simplifies JSON-based filing by automating every step of the process. Users only need to upload Form 16, AIS, or TDS data, and the system automatically generates the JSON file for submission. It ensures error-free validation and pre-fills eligible deductions under relevant sections such as 80C, 80D, or 24(b). TaxBuddy’s expert-assisted plan further reviews the JSON file before submission, ensuring all information is accurate, complete, and compliant with the Income Tax Department’s schema.
JSON Format and Bank Account Integration in ITR
One of the biggest improvements with the JSON format is its ability to integrate bank account and PAN details directly with the ITR utility. This ensures that refund processing, TDS verification, and income entries are automatically synced. Taxpayers can now link multiple bank accounts and choose their preferred refund account directly in the ITR form without manual re-entry. This integration minimizes mismatches between reported data and bank records, ensuring smoother refund settlements.
Common Mistakes to Avoid While Filing in JSON Format
Taxpayers should ensure that the JSON utility downloaded from the official portal is updated to the latest version before use. Avoid modifying the JSON file manually, as even small format changes can make the file unreadable by the portal. Ensure all mandatory fields—PAN, assessment year, income heads, and deductions—are correctly entered. Double-check that the file size does not exceed the limit prescribed by the portal. Always validate the JSON file using the official utility or a trusted filing platform like TaxBuddy before submission.
Expert Recommendation – Which Format Should You Use?
For all current and future ITR filings, taxpayers must use the JSON format, as XML is no longer accepted for uploading returns. JSON offers faster processing, real-time validation, and seamless integration with online systems. Expert platforms like TaxBuddy recommend using the JSON-based utility for a smoother experience, particularly because it aligns with the department’s automated compliance checks. Filing in JSON also makes it easier to reconcile AIS and Form 26AS data automatically, reducing the risk of mismatches.
Conclusion
The transition from XML to JSON format marks a significant step toward automation and digital efficiency in India’s income tax system. JSON-based filing ensures accuracy, faster validations, and better integration across financial platforms. It reduces manual intervention and aligns with modern compliance needs. For a smooth and hassle-free ITR filing experience, professional guidance and automation tools are key.
For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. What is the difference between ITR XML and JSON formats? The XML format was traditionally used by the Income Tax Department for filing returns, especially in offline utilities. It uses a structured markup language where data is represented through tags and attributes, making it suitable for machine processing but less flexible for updates. JSON (JavaScript Object Notation), on the other hand, is a modern, lightweight data format that is easier to read, modify, and transmit. JSON files are now the preferred format for ITR filing because they allow faster uploads, smaller file sizes, and improved compatibility with the latest online and offline ITR utilities.
Q2. Why did the Income Tax Department shift from XML to JSON format? The move to JSON format was driven by the need for efficiency, accuracy, and user convenience. JSON offers better data compression and faster processing than XML. It is less prone to structural errors and integrates seamlessly with AI-based validation tools used in the new ITR utilities. This shift also enables smoother pre-filling of taxpayer data from sources like Form 26AS, AIS, and TIS, improving the overall user experience.
Q3. Which format should be used for filing income tax returns in FY 2024-25? For FY 2024-25 (AY 2025-26), the Income Tax Department accepts only JSON format for ITR filing. All offline utilities released by the department, including those for ITR-1 to ITR-7, generate and process JSON files. XML format has been completely phased out and is no longer supported in the new income tax e-filing system.
Q4. How is a JSON file used in ITR filing? A JSON file acts as a digital container for all your return-related data. After filling your ITR details using the Income Tax Department’s offline utility or an authorized platform like TaxBuddy, the system generates a JSON file. You can upload this file directly to the e-filing portal, where it gets validated and processed. This allows users to prepare their returns offline and file them online without losing data integrity.
Q5. Can older XML-based ITR files still be uploaded? No, XML-based ITR files cannot be uploaded on the new e-filing portal. The current system only supports JSON format. If you have older XML files, you must re-enter your data using the new JSON-based offline utility or through an authorized tax filing platform that automatically converts your information into the correct JSON format.
Q6. How do I open or view a JSON ITR file? JSON files can be opened using the official Income Tax Department’s offline utility, which is designed to interpret and display the data correctly. Alternatively, you can open a JSON file in any text editor like Notepad or code editor such as Visual Studio Code, though it may not appear user-friendly. It’s advisable to use authorized software or the official utility to avoid corrupting the file’s structure.
Q7. What are the advantages of JSON over XML for taxpayers? JSON offers several advantages: it has a smaller file size, loads faster, and is easier to edit or transfer. It supports dynamic data exchange, allowing real-time pre-filling from departmental databases. JSON also minimizes technical errors like tag mismatches common in XML. Overall, it simplifies the return filing process and reduces the chances of file rejection due to formatting issues.
Q8. Can JSON files be used for both online and offline filing? Yes, JSON files are compatible with both modes. In offline filing, the taxpayer prepares the return using the utility and uploads the JSON file to the e-filing portal. For online filing, the portal itself generates and processes JSON data in the background. Thus, JSON serves as the unified data structure for all ITR submissions, whether manual or automated.
Q9. Is the JSON format more secure than XML? Yes, JSON offers improved data handling and encryption compatibility, reducing risks of file corruption and manipulation. It supports structured encryption and allows easier validation through checksum verification before uploading. Moreover, since JSON files are smaller, they minimize the chances of data upload failures that can expose sensitive information.
Q10. What happens if there is an error in the JSON file during upload? If the JSON file contains validation errors, the e-filing portal automatically displays the issue and prevents submission until it’s corrected. Common errors include missing mandatory fields, incorrect PAN or date formats, and mismatched income entries. Platforms like TaxBuddy automatically detect and fix such errors, ensuring the file is compliant before upload.
Q11. How does TaxBuddy simplify JSON-based ITR filing? TaxBuddy eliminates the need for manual handling of JSON files. Users simply upload their Form 16, AIS, or other financial details, and the platform automatically generates a ready-to-upload JSON file with accurate data mapping. It also performs AI-driven error checks and ensures all deductions, like under Sections 80C or 24(b), are applied correctly. The file is then securely uploaded to the e-filing portal without technical intervention.
Q12. What are the common mistakes to avoid while using JSON format for ITR? Common mistakes include editing JSON files manually, using outdated offline utilities, or uploading partially saved files. Some taxpayers mistakenly upload the wrong JSON version (e.g., ITR-1 instead of ITR-2). To prevent errors, always use the latest official utility or a trusted platform like TaxBuddy, which ensures real-time compliance with Income Tax Department updates and prevents format or validation failures.
