New ITR Filing Changes for AY 2025-26: What You Need to Know

The Income Tax Department has introduced several significant changes to the Income Tax Return (ITR) filing process for Assessment Year (AY) 2025-26 (Financial Year 2024-25), sparking widespread discussion among taxpayers. With stricter validation rules, enhanced transparency measures, and an extended filing deadline, salaried individuals, especially those opting for the old tax regime, face new compliance requirements. The most frequently asked question trending now is: “What are the new ITR filing requirements and validation rules for AY 2025-26, especially for salaried individuals claiming deductions under the old tax regime?” This blog explores these changes, their implications, and how you can prepare to file your ITR accurately and on time.

Key ITR Filing Changes for AY 2025-26

The Central Board of Direct Taxes (CBDT) has rolled out several updates to streamline ITR filing, reduce errors, and curb false claims. These changes primarily affect ITR-1 (Sahaj) and ITR-4 (Sugam), which are commonly used by salaried individuals and small taxpayers. Here’s a breakdown of the key changes:

1. Stricter Validation Rules for Deductions and Exemptions

To ensure accurate claims, the Income Tax Department has introduced enhanced pre-filling and validation requirements in the ITR e-filing utilities. These rules apply particularly to taxpayers opting for the old tax regime, where deductions and exemptions are common. Key validations include:

• House Rent Allowance (HRA):
  • Taxpayers must provide the landlord’s name, PAN (if rent exceeds ₹1 lakh annually), and details of rent payments (e.g., amount, period, and mode of payment).
  • The ITR utility cross-verifies these details with the landlord’s income, if reported, to prevent fraudulent claims.
• Section 80C Deductions (e.g., LIC, PPF, ELSS, tuition fees):
  • Details such as the name of the investment institution, policy/investment number, and payment dates are required.
  • For home loan interest under Section 80C, taxpayers must provide the lender’s name, PAN, loan account number, and loan sanction date.
• Section 80D (Medical Insurance):
  • Details of the insurance provider, policy number, and premium payment proof are mandatory.
  • For senior citizen parents, additional details about the insured person are required.
• Other Deductions (e.g., Section 80E, 80EE/80EEA, 80EEB, 80DDB):
  • Specific details like the lender’s name, bank name, loan account number, and sanction date are required for interest on education loans (80E) or housing/electric vehicle loans (80EE/80EEA/80EEB).
  • For Section 80DDB (medical expenditure on specified diseases), taxpayers must specify the disease, doctor’s name, and hospital details.

These validations aim to pre-check claims against available data, reducing discrepancies and expediting ITR processing.

2. Extended ITR Filing Deadline

• The CBDT has extended the ITR filing deadline for non-audit cases (e.g., salaried individuals, small businesses) to September 15, 2025, from the usual July 31. This extension provides taxpayers additional time to gather documents and comply with the new validation requirements, especially given the delayed release of e-filing utilities for AY 2025-26.
• For audit cases (e.g., businesses with turnover above ₹60 lakh), the deadline remains October 31, 2025, unless further extended.

3. Enhanced Pre-Filled ITR Forms

• The ITR forms for AY 2025-26 come with improved pre-filling features, pulling data from sources like Form 16, Form 26AS, Annual Information Statement (AIS), and Tax Information Statement (TIS).
• Taxpayers must verify pre-filled data, especially for salary, interest income, and capital gains, and reconcile any discrepancies before submission to avoid notices from the tax department.

4. Mandatory E-Verification

• E-verification of ITRs using Aadhaar OTP, net banking, or Digital Signature Certificate (DSC) is now mandatory within 30 days of filing. Physical submission of ITR-V (acknowledgment) is no longer accepted, emphasizing the shift to a fully digital process.

5. Changes in ITR Forms Applicability

• ITR-1 (Sahaj): Applicable for resident individuals with income up to ₹50 lakh from salary, one house property, and other sources (e.g., interest). Now includes stricter validation for HRA and deductions.
• ITR-4 (Sugam): For individuals, HUFs, and firms with presumptive business/professional income, with similar validation enhancements.
• Taxpayers opting for the old regime with complex deductions or capital gains may need to use ITR-2 or ITR-3, as ITR-1 and ITR-4 have limited flexibility for detailed claims.

Implications for Salaried Individuals

The new validation rules significantly impact salaried individuals opting for the old tax regime, where deductions like HRA, 80C, and 80D are commonly claimed. Key implications include:

• Increased Documentation: Taxpayers must maintain detailed records (e.g., rent agreements, payment receipts, loan sanction letters) to support claims. Missing or incorrect details may lead to claim disallowance or notices from the tax department.
• Higher Compliance Burden: The need to provide specific details, such as landlord PAN or loan account numbers, adds to the compliance effort, especially for those unfamiliar with the e-filing portal.
• Risk of Scrutiny: Incorrect or unverified claims may trigger automated scrutiny, as the ITR utility cross-checks data with AIS and Form 26AS. Taxpayers must ensure accuracy to avoid penalties.
• Old vs. New Tax Regime Decision: The stricter validations may prompt some taxpayers to switch to the new tax regime, which is now the default and offers simpler filing with fewer deductions (e.g., standard deduction of ₹75,000 for salaried individuals). However, those with significant deductions may still find the old regime beneficial.

How to Prepare for ITR Filing in AY 2025-26

To navigate these changes and file your ITR accurately by the September 15, 2025 deadline, follow these steps:

1. Gather Necessary Documents:
   • Salary Details: Form 16 from your employer, including salary, TDS, and allowances.
   • Rent Agreements: For HRA claims, keep rent receipts, landlord’s PAN, and bank transaction details.
   • Investment Proofs: Receipts for 80C investments (e.g., LIC, PPF), 80D premiums, and loan statements for 80E/80EE/80EEA/80EEB.
   • Medical Expenditure: For 80DDB, collect prescriptions, hospital bills, and doctor’s certificates.
   • Form 26AS and AIS: Download these from the e-filing portal to verify income and TDS details.
2. Choose the Right ITR Form:
   • Use ITR-1 or ITR-4 if eligible (simple income sources, old or new regime).
   • Opt for ITR-2 or ITR-3 if you have capital gains, multiple properties, or complex deductions under the old regime.
3. Verify Pre-Filled Data:
   • Log in to the e-filing portal (www.incometax.gov.in) and check pre-filled ITR data.
   • Reconcile discrepancies between AIS, Form 26AS, and your records to avoid errors.
4. Provide Accurate Deduction Details:
   • Enter precise details for HRA, 80C, 80D, etc., as required by the ITR utility.
   • Cross-check PANs and other particulars to ensure compliance with validation rules.
5. E-Verify Your Return:
   • Complete e-verification within 30 days using Aadhaar OTP, net banking, or DSC to finalize the filing process.
6. Consult a Professional if Needed:
   • If you have complex income sources (e.g., capital gains, foreign income) or are unsure about the new rules, consult a chartered accountant to optimize your tax planning.

Why These Changes Matter

The stricter validation rules aim to enhance transparency, reduce tax evasion, and streamline ITR processing. However, they increase the compliance burden, particularly for salaried individuals claiming deductions under the old regime. The extended deadline to September 15, 2025, offers relief, but taxpayers must act early to gather documents and avoid last-minute errors. Additionally, the choice between the old and new tax regimes remains critical, as the new regime’s simplicity (with fewer deductions) may appeal to some, while the old regime’s deductions benefit those with significant investments or expenses.

Conclusion

The ITR filing changes for AY 2025-26 reflect the Income Tax Department’s push toward a more transparent and digital tax ecosystem. Salaried individuals opting for the old tax regime must navigate stricter validation rules for deductions like HRA, 80C, and 80D, requiring detailed documentation and accuracy. By preparing early, verifying pre-filled data, and choosing the appropriate tax regime, you can ensure a smooth filing experience. Mark your calendar for the September 15, 2025 deadline and leverage the e-filing portal’s resources to stay compliant.

For more details, visit the Income Tax Department’s e-filing portal (www.incometax.gov.in) or consult a tax professional for personalized guidance.

Disclaimer: This blog is for informational purposes only and does not constitute professional tax advice. Always consult a tax professional for tailored advice based on your financial situation.