ITR Filing under Old Tax Regime made more difficult: Know How

Under the ITR 2025 rules, it will not be possible for tax return filers to make false income tax deductions and claim refunds this year. The Income Tax Department has now mandated to provide evidence for claiming deductions under various sections of the Income Tax Act, 1961, for the old tax regime.

The IT Department has issued a clarification that now there shall be no exemptions made for simply entering the lump sum amount; it is now necessary to provide details of the associated investment or expenditure for deductions.

For example, ITR filers earlier could make one-time entries in order to claim deductions up to Rs. 1.5 lakh under the old tax regime.

Taxpayers need to link the information of their investments and expenditures with their PAN and Aadhar, This will enable cross-verification from banks, Vahan Portal, employers, and government platforms, curbing false deductions and ensuring legitimate reporting of income by taxpayers.

Further, is a list of details that will need to be provided by the taxpayers in order to claim deductions under different sections of the IT Act, applicable while filing ITR for AY 2025-26

• House Rent Allowance (HRA): Employees must disclose their place of work, basic salary, HRA recieved, and rent paid.
• Section 80D(health insurance): The Taxpayer must disclose the name of the insurance company and policy number.
• Section 80C (investment): It will be compulsory to submit the policy number or document identification number for LIC, PPF, NSC, ELSS, home loan, etc.
• Section 24b (interest on home loan): mandatory to disclose the name of loan loan-giving institution, date of loan sanction, loan account number, current outstanding and interest amount.
• Section 80E ( higher education loan): Name of the lender, loan account number, sanction date, total loan amount, closing amount, and interest amount shall be submitted.
• Section 80EEB ( electric vehicle loan): Name of lender, sanction date, total loan amount, closing balance, interest amount, and vehicle registration number shall be submitted.
• Section 80DDB (treatment of serious illness): The Name of the disease being treated needs to be clarified.
• Section 80 EEA (loan on affordable house): All details need to be shared as per Section 80EE.

The due date has been extended from July 31 to September 15, 2025, for ITR filing for AY 2025-26.