"Infographic showing 7 key changes in ITR forms for FY 2024-25"
Significant changes have been made to the Excel-based ITR-1 and ITR-4 forms by the Income Tax Department for the Financial Year 2024–25 (Assessment Year 2025–26).
By requiring more thorough disclosures from taxpayers, particularly those choosing to use the previous tax scheme, these amendments seek to improve openness and decrease bogus claims.
The seven main updates are as follows:
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1. Comprehensive HRA Claim Data
Now, taxpayers who claim an exemption from the House Rent Allowance (HRA) must supply:
Workplace
Rent paid in full
Received actual HRA
Salary breakdown (base pay plus dearness allowance)
This comprehensive data is required to support HRA claims.
2. Policy or Document ID is Required for Section 80C Deduction
Taxpayers must now present the policy number or a legitimate document identification number for investments such as PPF, tax-saving FDs, and life insurance in order to claim deductions under Section 80C (up to ₹1.5 lakh).
The old practice of just reporting the deduction amount has been replaced by this.
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3. Section 80D: Name and Policy Number of the Insurer Needed
In order to claim Section 80D deductions for medical or health insurance premiums, taxpayers must now enter:
The insurance company’s name
Document number or policy
This guarantees that claims are backed up by authentic insurance documentation.
4. Details of the Comprehensive Education Loan under Section 80E
In order for taxpayers to claim Section 80E interest deductions on student loans, they must supply:
Name of the lender
Name of the bank
Number of accounts
Date of loan approval
Total authorized sum
Amount owed as of March 31
The old practice of just reporting the deduction amount has been replaced by this comprehensive information.
5. The Default Option is the New Tax Regime
The new tax regime is now the default for individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs) in accordance with the Finance Act 2023.
If a taxpayer wants to file under the previous tax system, they must specifically opt out.
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6. Cash Disclosure Receipts
The ITR-4 form now includes a new disclosure that details monetary receipts. Prior to the introduction of a distinct column for cash receipts, all receipts were disclosed together.
This seeks to increase openness and stop the presumptive taxation scheme from being abused.
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7. Large Refunds Legal Entity Identifier (LEI)
In ITR-2 and ITR-3, taxpayers must submit the following documentation for refund claims totaling ₹50 crore or more:
Identification of a Legal Entity (LEI)
