Are you preparing to file your Income Tax Return (ITR) for FY 2024-25 (AY 2025-26)? Then read this before you start. The Income Tax Department has introduced 6 important new disclosure requirements in ITR-1 and ITR-4 forms. These changes aim to improve transparency, stop fake claims, and simplify cross-verification through AIS (Annual Information Statement). Here’s a detailed look at what has changed:
✅ 1. House Rent Allowance (HRA) – More Than Just a Number
Earlier:
Taxpayers could simply declare the deductible HRA amount without much detail.
Now:
You must disclose the following:
- Whether your workplace is in a Metro or Non-Metro city
- Your Basic Salary
- Actual HRA received from your employer
- Rent paid during the year
Why it matters:
The department is tightening HRA claims by matching with PAN of landlord (if rent exceeds ₹1 lakh/year) and location details.
✅ 2. Section 80C Investments – PPF, LIC, ELSS & More
Earlier:
Only a lump sum entry was required under Section 80C.
Now:
You must provide:
- Policy Number or Document Identification Number (DIN) of the investment
Why the change?
With AIS, the Income Tax Department can verify if your claimed deductions are actually reflected in your financial records.
✅ 3. Health Insurance Premium – Section 80D
Earlier:
Just enter the total premium amount paid.
Now:
You need to report:
- Insurance company’s name
- Policy number
Important Tip:
If you don’t have proper documentation, your claim will be rejected. Keep your policy documents and payment proofs handy.
✅ 4. Education Loan/Home Loan Interest – Sections 80E, 80EE, 80EEA
Earlier:
Only the interest amount was needed.
Now:
You must disclose:
- Name of the lender bank or NBFC
- Loan account number
- Loan sanction date
- Outstanding loan amount
Reason:
This helps verify eligibility based on loan type, tenure, and amount.
✅ 5. Electric Vehicle (EV) Loan – Section 80EEB
Earlier:
Interest amount alone was enough.
Now:
You must submit:
- Bank name
- Loan details
- Vehicle registration number
Why?
The section applies only for EVs purchased on loan – cross-verifying ownership and vehicle type is now mandatory.
✅ 6. Treatment of Specified Diseases – Section 80DDB
Earlier:
Claim could be made by simply mentioning the amount.
Now:
You must specify the name of the disease for which treatment expenses were incurred.
Note:
Only diseases listed under Rule 11DD (e.g., cancer, chronic renal failure, etc.) are eligible.
⚠️ Why These Changes Matter
The new rules in ITR forms are introduced to:
- Prevent false or inflated deduction claims
- Enable automated data-matching through AIS
- Make tax filing more transparent and accountable
🚨 Consequences of Claiming False Deductions
If you try to claim deductions fraudulently, here’s what could happen:
- Section 270A: Penalty up to 200% of the tax payable on misreported income
- Sections 234B & 234C: 24% per annum interest on the shortfall in tax paid
- Section 276C: Prosecution up to 7 years for willful tax evasion
Remember: One wrong claim could lead to a tax notice or even legal trouble.
📝 Final Word
If you’re filing your ITR for AY 2025-26, make sure your documentation is in order and disclosures are accurate. These enhanced ITR rules are meant to ensure fair tax compliance and curb misuse of deductions.
✅ Stay updated, file smart, and avoid penalties.