New Deduction Disclosure Rules for Old Tax Regime Taxpayers in ITR AY 2025–2026 | Extra Disclosures You Can’t Ignore ! Read This Before You File

The Income Tax Department has rolled out the ITR-1 and ITR-4 forms for the Assessment Year 2025–26, introducing several significant updates — particularly impacting taxpayers opting for the Old Tax Regime. These revisions are designed to enhance transparency, improve compliance, and simplify the overall reporting process.

At Tax Manthan, we’ve done the groundwork for you and compiled a comprehensive summary of the major changes in deduction-related disclosures. Whether you’re a taxpayer or a tax professional, staying informed about these updates is crucial to ensure smooth and accurate filing.

What’s New in ITR-1 and ITR-4 for AY 2025–26?

• Enhanced Deduction Reporting: Taxpayers under the Old Tax Regime will now need to provide more detailed disclosures related to their eligible deductions.

• Improved Transparency: These changes aim to minimize errors and discrepancies, facilitating better scrutiny and verification by the Income Tax Department.

• Streamlined Compliance: Clearer reporting requirements will help taxpayers comply easily without facing last-minute confusion or delays.

Why These Changes Matter

The revised forms reflect the government’s ongoing efforts to tighten compliance frameworks and reduce tax evasion. More detailed deduction disclosures ensure that the claimed benefits are legitimate and verifiable.  

In the next section, we’ll break down the major updates you need to know for smooth filing this year.

🔹 1. House Rent Allowance (HRA) – More Disclosures Required

Taxpayers claiming exemption under HRA must now provide the following details:

• Place of Work

• Actual HRA Received

• Actual Rent Paid

• Basic Salary

These fields ensure proper validation of the exemption being claimed.

🔹 2. Section 80C – Investment Proof

For deductions under 80C (LIC, NSC, PPF, etc.), the following must now be disclosed:

• Policy Number or

• Document Identification Number

🔹 3. Section 80D – Health Insurance Deduction

New mandatory disclosures for claiming health insurance premium deductions:

• Name of the Insurance Company

• Policy Number

This change helps verify the legitimacy of health insurance claims.

🔹 4. Section 80E – Interest on Higher Education Loan

When claiming this deduction, the following details are required:

• Loan Sanctioning Institution

• Bank Name

• Loan Account Number

• Date of Loan Sanction

• Total Loan Amount

• Outstanding Loan as on 31st March

🔹 5. Section 80EE – Interest on Loan for First-Time Home Buyers

Mandatory fields include:

• Lending Institution

• Bank Name

• Loan Account Number

• Sanction Date

• Total Loan Amount

• Outstanding Balance as on 31st March

🔹 6. Section 80EEA – Interest on Loan for Affordable Housing

Mandatory fields include:

• Lending Institution

• Bank Name

• Loan Account Number

• Sanction Date

• Total Loan Amount

• Outstanding Balance as on 31st March

🔹 7. Section 80EEB – Interest on Electric Vehicle Loan

In addition to standard loan details, you must now also furnish:

• Vehicle Registration Number

This will help the department track EV-related deductions more accurately.

🔹 8. Section 80DDB – Medical Treatment for Specified Diseases

New requirement:

• Name of the Specified Disease

Previously, just a certificate was enough. Now, clear identification of the illness is mandatory.

📌 Important Note

These changes signify the Income Tax Department’s continued effort to streamline tax filings and reduce fraudulent claims. Taxpayers under the Old Tax Regime should ensure they:

• Maintain accurate documentation

• Collect all necessary proofs

• Verify disclosures before submitting their ITR

Filing accurate and complete returns will reduce the risk of notices and ensure smooth processing of refunds.

✍️ Tax Manthan Insight

These updates reflect a stronger push towards comprehensive verification and document-based deductions. If you’re planning to file under the Old Tax Regime, we highly recommend that you start collecting all relevant details and documents well in advance.

✅ Stay tuned with Tax Manthan for more such updates, analysis, and expert tips to keep your tax game strong and compliant. Click Here to Join WhatsApp Channel

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