Big Changes in ITR Forms for AY 2025-26: Proof of Tax-Saving Investments Now Mandatory
If you’re planning to file your income tax return for the financial year 2024–25 (Assessment Year 2025–26), here’s an important update you must not miss. The Income Tax Department has introduced significant changes in ITR-1 (Sahaj) and ITR-4 (Sugam) forms. While the structure of these forms may appear similar to previous years, several crucial new fields have been added—especially related to tax-saving claims.
For taxpayers who file under the old tax regime and claim deductions under sections like 80C, 80D, 80E, and more, the process is no longer as simple as just mentioning the amount invested. Now, detailed proof and specific information about each deduction must be provided. Missing out on these details could lead to your return being rejected.
Earlier, taxpayers could declare deductions without having to submit supporting details like policy numbers or lender information. That has now changed. For every claim made under major sections, complete and verifiable information must be filled in the return. This includes:
Policy number or document ID for investments under Section 80C
Insurance company name and policy number under Section 80D (Health Insurance)
Loan account number, lender bank name, amount, and sanction date for education, home, or electric vehicle loans
These requirements, once optional, have now become mandatory in the new ITR-1 and ITR-4 forms.
For those claiming deductions under Section 80DDB for treatment of serious illnesses, the name of the specific illness must now be clearly mentioned in the form. Similarly, under Section 80E (Education Loan) and Sections 80EE, 80EEA, and 80EEB related to home and EV loans, details such as the loan sanctioning bank, amount, loan tenure, and remaining balance need to be reported.
For EV loans under Section 80EEB, the vehicle registration number has also been made mandatory.
In a welcome move, the Income Tax Department has also extended the scope of ITR-1 and ITR-4 forms to include certain long-term capital gain (LTCG) earners. Taxpayers who have LTCG up to ₹1.25 lakh under Section 112A (and do not have any carry-forward losses) can now continue using ITR-1 or ITR-4. Earlier, they had to opt for more complex forms such as ITR-2, even for minor LTCG income.
The primary objective behind these modifications is to enhance transparency and reduce tax evasion. By making the documentation more stringent, the government aims to ensure that only valid and verifiable deductions are claimed. This helps plug revenue leakages and strengthens the overall compliance ecosystem.
However, this also means that honest taxpayers need to be more careful and thorough while filing returns. Incomplete or incorrect entries could result in ITR processing delays or outright rejection of returns.
If you are filing ITR-1 or ITR-4 this year, make sure you have all relevant documents ready, such as:
Insurance policy numbers
Loan sanction letters and account numbers
Medical certificates with disease names (for 80DDB claims)
EV registration papers
Double-check your entries and ensure accurate disclosures. With digital tools and utilities provided by the Income Tax Department—like pre-filled data and Excel-based filing tools—the process can be simplified. Still, careful attention to detail is a must this year.
