New ITR Rules for AY 2024-25: Key Disclosures Taxpayers Must Know
New ITR Filing Norms for AY 2024-25: What Every Taxpayer Needs to Know
The Income Tax Return (ITR) filing process for Assessment Year (AY) 2024–25 has undergone significant changes. The Income Tax Department has introduced enhanced disclosure requirements aimed at improving transparency, curbing inaccurate claims, and accelerating the return processing system. These changes primarily impact salaried individuals and those opting for the old tax regime.
🔍 More Accurate Disclosures for Common Deductions
One of the most notable updates is the increased scrutiny on House Rent Allowance (HRA) claims. Earlier, taxpayers could enter a lump-sum exemption amount manually. Now, they are required to provide a detailed breakdown, including:
- Place of employment
- Actual rent paid
- Basic salary
- Exact amount of HRA received
This new system ensures that only legitimate claims are approved and reduces the chances of incorrect exemptions.
Similarly, for Section 80C deductions (which include investments in PPF, tax-saving FDs, and life insurance), taxpayers must now disclose specific policy or document identification numbers. This level of detail was not mandatory in earlier years.
Tax experts suggest this move is part of a broader shift toward pre-validation—capturing critical data before filing rather than relying only on post-filing checks.
🧾 Expanded Details for Other Sections
The disclosure requirements now extend across a wide range of deductions:
Section 80D – Health Insurance Premiums:
- Name of the insurance provider
- Policy number or document ID
Section 80E – Education Loan Interest:
- Name of the lender and bank
- Loan account number
- Sanction date
- Total loan amount
- Outstanding balance as of March 31
- Total interest paid
Sections 80EE & 80EEA – Housing Loan Interest:
- Lender details
- Loan account numbers
- Sanction dates and loan amounts
- Year-end outstanding balance
Section 80EEB – Electric Vehicle Loan Interest:
- All standard loan details similar to housing loans
Section 80DDB – Treatment for Specified Diseases:
- Name of the disease being treated
These disclosures are aimed at preventing fraudulent deductions and ensuring faster, more accurate processing of returns.
🧰 Excel vs. Common Offline Utility: Which One to Use?
For those filing ITRs offline, two different utilities are now available:
-
Excel Utilities (Released May 29):
Designed for early filers who prefer spreadsheet-based return preparation. However, these lack real-time integration and require manual upload to the e-filing portal. -
Common Offline Utilities (Built with JavaScript & JSON):
More advanced and aligned with the IT Department’s backend. These offer dynamic forms, automatic validations, and easy import of prefilled data from the tax portal, simplifying the entire filing process.