ITR Filing FY25: Claiming Deductions Under Old Tax Regime? More Proof Needed for HRA, 80C & 24b

Taxpayers opting for the old tax regime in the Assessment Year 2025-26 will encounter stricter Income Tax Return (ITR) filing norms. 

ITR Filing FY25: HRA, 80C and 24b Deductions Under Scanner 

With the Income Tax Department introducing automation and rigorous documentation checks, popular deductions under House Rent Allowance (HRA), Section 80C and Section 24b now require comprehensive disclosure. The objective behind this move is to prevent fraudulent deduction claims and improve accuracy in tax filings.

Old Tax Regime Now Requires More Detailed Disclosure

To ensure authenticity, the Central Board of Direct Taxes (CBDT) has mandated enhanced reporting for deductions. Taxpayers must now present item-wise details rather than relying on bulk entries. Sections 80C, 80D, and 24b are among the most affected. Claims must be supported with proof and documentation at the time of filing rather than post-submission. The aim is to discourage unsupported claims and make the process more transparent.

Section 24b and Loan-Based Deductions Under the Scanner

Deductions claimed under Section 24b for home loan interest, as well as for education and electric vehicle loans, now require the following details:

• Name of the lender
   
• Loan account number
   
• Sanction date
   
• Total loan amount
   
• Outstanding balance

The objective is to match these submissions with verified third-party sources using PAN and Aadhaar integration.

Read More: HRA Tax Exemption: Can You Claim It for Society Maintenance Charges?

Health Insurance and Critical Illness Disclosures

Claims under Section 80D now require the policy number and the insurer’s name. For deductions related to critical illness under Section 80DDB, taxpayers must specify the disease for which the benefit is claimed. These rules are designed to prevent vague or incorrect entries from slipping through unchecked.

House Rent Allowance Claims to Be Verified Closely

HRA claims are now subject to more scrutiny. Taxpayers must disclose:

• Salary break-up, including basic pay
   
• Total rent paid during the financial year
   
• Work location

This data will be used to determine whether the rent paid is genuine and aligned with actual living arrangements. Claims involving both HRA and home loan interest for properties in the same city will be assessed for their validity.

Technology-Driven Verification to Prevent Invalid Claims

All deduction claims will be digitally verified using data from insurance providers, banks and other linked entities. Automation is expected to reduce manual errors and speed up the filing process. More importantly, it will align claimed figures with actual financial transactions and eliminate inconsistencies.

Conclusion

These new ITR filing measures for the old tax regime reflect a significant shift in how deductions are handled. By moving to a system that demands detailed, upfront disclosures and uses technology to verify them, the Income Tax Department aims to strengthen compliance and transparency across the board.

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