New ITR Disclosures for AY 2025–26: What Old Regime Taxpayers Must Know

The Income Tax Return (ITR) filing season for Assessment Year 2025–26 has started, and there are some important changes you should know—especially if you’re following the old tax regime. This year, the ITR forms include new disclosure requirements that ask for more details about your income, assets, and other financial information. These changes aim to make tax reporting more transparent and accurate. In this article, we’ll explain the main updates and help you understand what they mean for your tax filing. On 29th June, the Income Tax Department announced the availability of ITR filing utilities for ITR-1 (Sahaj) and ITR-4 (Sugam).(https://www.incometax.gov.in/iec/foportal/)

ITR-1 can be used by resident individuals (not classified as “not ordinarily resident”) whose total income is up to ₹50 lakh. This includes income from salary, one house property, interest income, and long-term capital gains under Section 112A up to ₹1.25 lakh. Small amounts of agricultural income (up to ₹5,000) are also allowed. However, ITR-1 cannot be used by individuals who are directors in a company, have unlisted shares, had TDS deducted under section 194N, have deferred tax on ESOPs, or own foreign assets or financial interests outside India.

ITR-4 is meant for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) who are residents and have a total income up to ₹50 lakh. It is suitable for those earning income from business or profession that is computed under the presumptive taxation schemes of Sections 44AD, 44ADA, or 44AE. It can also be used if they have long-term capital gains under Section 112A up to ₹1.25 lakh.

Following are the changes that made by department and are applicable to old regime:

1. HRA Disclosure (Section 10(13A))

To claim an exemption for House Rent Allowance (HRA) under Section 10(13A), taxpayers are now required to provide more comprehensive information in their tax returns. This increased detail allows tax authorities to verify the legitimacy and accuracy of HRA claims more effectively.

What you now need to report:

• Work City: The specific city where you are employed. This is crucial as HRA exemption limits often vary based on the classification of the city (metro vs. non-metro).
• Actual HRA Received: The exact amount of HRA component you received from your employer during the financial year.
• Rent Paid: The total rent you actually paid during the financial year for the accommodation. This is a critical factor in calculating the HRA exemption.
• Basic Salary Plus Dearness Allowance (DA): Your basic salary combined with any dearness allowance received. This forms the basis for calculating the HRA exemption limit, as the exemption is capped at a certain percentage of your basic salary plus DA.
• Whether the City is Metro or Non-Metro: You must explicitly categorize your work city as either a “metro” (e.g., Delhi, Mumbai, Chennai, Kolkata) or “non-metro” city. This distinction is vital because the HRA exemption is higher for those residing in metro cities (50% of basic salary + DA) compared to non-metro cities (40% of basic salary + DA).

2. 80C Deduction – New Requirement

To claim deductions under Section 80C, which covers a wide range of investments and expenditures (like PPF, EPF, life insurance premiums, ELSS, home loan principal repayment, tuition fees, etc.), taxpayers are now obligated to provide specific identifying details for each investment or policy. This ensures that the claimed deductions can be directly linked to verifiable financial instruments.

What you now need to provide:

• Policy Number or Document Identification Number: For each investment or insurance policy claimed under 80C, you must furnish its unique policy number or a specific document identification number. This acts as a direct reference for verification by the tax authorities. For instance, for a life insurance policy, you’d provide the policy number; for a Public Provident Fund (PPF) account, it might be the account number; for an ELSS investment, it could be the folio number.

3. 80D – Health Insurance

To claim deductions for health insurance premiums paid under Section 80D, which promotes health coverage, taxpayers are now required to furnish more specific details about the insurance policy and the insurer. This helps in validating the legitimacy of the health insurance claims.

What you now need to provide details such as:

• The Insurer’s Name: The full legal name of the health insurance company from which the policy was purchased (e.g., ICICI Lombard General Insurance, HDFC ERGO General Insurance, Star Health and Allied Insurance).
• The Policy or Reference Number: The unique policy number assigned to your health insurance plan or any other specific reference number that identifies the policy.

4. 80E – Education Loan

To claim deductions for interest paid on an education loan under Section 80E, which encourages higher education, taxpayers must now provide comprehensive details about the loan. This ensures that the deduction is claimed for a valid education loan from a recognized financial institution.

Following details are now required:

• Name of the Lender: The official name of the financial institution or bank that sanctioned the education loan (e.g., State Bank of India, HDFC Bank, Axis Bank).
• Name of the Bank: This is often synonymous with the lender’s name, but it emphasizes the specific bank from which the loan was taken.
• Loan Account Number: The unique account number assigned to your education loan by the lending institution.
• Date When the Loan Was Sanctioned: The exact date on which the education loan was officially approved and disbursed.
• Total Amount of the Loan: The original principal amount of the education loan sanctioned.
• Outstanding Loan Balance as of March 31: The remaining principal amount of the education loan that was yet to be repaid as of the end of the financial year (March 31st).

5. 80EE/80EEA – Interest on Loan for House Property

To claim deductions for interest paid on a loan taken for the acquisition of house property under Section 80EE (for first-time home buyers) or Section 80EEA (for affordable housing), taxpayers are now required to provide specific details about the home loan. This helps in verifying the eligibility for these deductions.

What you now need to provide:

• Loan Account Details: The unique account number associated with your home loan.
• The Date the Loan Was Approved: The precise date when the home loan was officially sanctioned by the lending institution.
• The Original Loan Amount: The initial principal amount of the home loan that was disbursed.
• The Outstanding Loan Balance as of March 31: The remaining principal amount of the home loan that was yet to be repaid as of the end of the financial year (March 31st).
• The Name of the Lending Institution: The full legal name of the bank or financial institution that provided the home loan (e.g., HDFC Ltd., LIC Housing Finance, PNB Housing Finance).

6. 80DDB – Specified Disease Treatment

To claim deductions for expenses incurred on the medical treatment of specified diseases under Section 80DDB, taxpayers are now required to explicitly state the name of the disease. This ensures that the deduction is claimed only for illnesses that are covered under the provisions of this section.

What you now need to specify:

• Name of Disease: You must clearly mention the specific disease for which the medical expenses were incurred. For instance, if the deduction is for cancer treatment, you would state “Cancer”; if it’s for chronic renal failure, you would specify that. This helps the tax authorities confirm that the disease falls under the list of specified diseases eligible for deduction under Section 80DDB, as outlined in the Income Tax Rules.