New Income Tax Filing Rules: Here's What You Must Disclose This Tax Season

One of the major changes involves the House Rent Allowance (HRA) exemption. Taxpayers claiming HRA must now provide their place of work, exact rent paid, actual HRA received, among other proofs

Medical insurance deductions under Section 80D also face similar scrutiny, with mandatory disclosure of the insurer’s name and policy number

Source : Freepik

The income tax department has rolled out stringent validation measures for the Excel-based ITR-1 and ITR-4 forms for the financial year 2024–25 (assessment year 2025–26). These changes, particularly impacting salaried taxpayers opting for deductions under the old tax regime, demand more comprehensive disclosures while filing returns. The goal is to enhance accuracy, reduce false claims, and speed up the processing of tax returns.

Detailed Disclosure Requirements For Key Deductions

One of the major changes involves the House Rent Allowance (HRA) exemption. Taxpayers claiming HRA must now provide their place of work, exact rent paid, actual HRA received, and a detailed salary breakup, including basic salary and dearness allowance. Additionally, they must specify whether they reside in a metro or non-metro city to correctly apply the exemption limits of 50 per cent or 40 per cent of basic salary.

Deductions under Section 80C, which include investments like PPF and life insurance, now require taxpayers to submit policy numbers or valid identification documents. This replaces the earlier system where only the deduction amount was declared, increasing traceability and verification.

Medical insurance deductions under Section 80D also face similar scrutiny, with mandatory disclosure of the insurer’s name and policy number.

For education loan interest claims under Section 80E, taxpayers must report comprehensive loan details such as lender name, account number, sanction date, total sanctioned and outstanding amounts, as well as interest paid.

Home loan interest deductions under Sections 80EE and 80EEA will also require lender and loan specifics to avoid overlapping claims, especially with HRA in the same city.

The new rules extend to loans under Section 80EEB (electric vehicle loans), demanding the same level of loan documentation as other categories.

Medical expense claims for specified diseases under Section 80DDB must now include the disease name to validate the deduction claim.