New ITR Rules Make It Harder to Claim Tax Deductions in Old System

New changes have been made by the Income Tax Department for individuals who want to file their Income Tax Return (ITR) using the old tax regime for the AY 2025-26. Stricter rules and detailed disclosure are necessary now for claiming deductions like HRA, Section 80C, Section 24b, and others. The reason behind this is to stop false claims and make the process more transparent and easy.

The verification of deductions will not be done manually after filing. From now on, taxpayers must provide all the necessary details and documents at the time of filing the return itself. This step is expected to make ITR processing more fast, reduce mistakes and prevent fraud.

The Central Board of Direct Taxes (CBDT) has extended the ITR filing deadline to 15 September 2025 providing taxpayers extra time for preparation. This extra time allows filers to collect the necessary documents and data.

People claiming deductions under Sections 80C, 80D, and 24 should provide detailed information instead of just stating lump-sum amounts. For example, if someone is claiming home loan interest under Section 24b or deductions for education loans and electric vehicle financing then they must mention the name of the lender, loan account number, loan sanction date, total loan amount and outstanding balance.

Also, the insurer’s name and policy number will be required for health insurance deductions under Section 80D. For claims which come under Section 80DDB related to critical illnesses, the specific disease must be mentioned. For HRA (House Rent Allowance) claims, details like salary breakdown, rent paid and work location must be submitted.

One common misuse taking place was claiming both HRA and home loan deductions for properties in the same city. Those cases will be strictly checked from now on. Taxpayers must prove that renting a house is necessary based on their work location.

All information provided will be cross-checked through the use of PAN and Aadhaar with records from banks, insurance companies and other databases. This helps match taxpayer claims with actual financial activity and adds another layer of transparency.

These new rules are a move towards making the proper use of technology to make the tax filing more fair, organized and no misuse of anything.