If you are among those taxpayers who are still under the Old Tax Regime and claiming various deductions like 80C, 80D, or home loan, you need to be watchful from now onwards. The Income Tax Department has now reportedly decided to be strict in the matter of deductions. Now, to claim deductions, concrete documents will have to be given against each deduction at the time of ITR filing, if the benefit is claimed.

This is so that fake claims can be stopped and the tax process is more transparent, reports said, suggesting that people must keep a record of every deduction because this time the scrutiny is going to be more stringent than before.

Information will be sought as soon as the form is filled, not later

Earlier, the department used to verify the information after filling the ITR, but now the rules have changed. Now as soon as you fill the form, at the same time you will have to give the complete details behind every deduction. This will process your return quickly and there will be less scope for errors.

Also read: How to file ITR online: Step-by-step guide for e-filing income tax return for AY2025-26

Filing date extended, but preparation must be complete

The Central Board of Direct Taxes (CBDT) recently extended the deadline to file Income Tax Returns (ITRs) by taxpayers in the non-audit category till September 15, against the earlier July 31. The government this time felt that there are lots of changes with respect to forms, tax rules and other compliance related matters, so by extending the deadline taxpayers will have a little more time to gather complete information. But you should not wait until September 15 and rather keep your documents ready since now lump-sum or deduction claims without Aadhaar will not work.

Now complete details are required for every deduction

Whether it is a home loan, health insurance or education loan—with every claim you will have to provide:

Name of the loan provider

Account number

Date of loan approval

Total and outstanding amount

Insurance company and policy number

Names of critical illnesses (in 80DDB)

How much rent was paid, salary breakup and work location (in HRA)

Also read: ITR filing for AY2025-26 begins for THESE taxpayers: Over 54K income tax returns filed in 3 days

Fussy claims will be stopped

Now it will not happen that you bought a house in the same city and took a deduction on both while living on rent. The department will look at such cases with special attention. You will have to prove that it was necessary to live on rent.

Technology will verify every information

All the data given by you will be verified by linking it with PAN and Aadhaar. It will be matched with bank, insurance companies and government records to find out whether the claim made is correct or not.

This change is a big step towards making the tax system more honest, transparent and fast. Now you will have to think while claiming every deduction, do I have proof of it? If yes, then definitely claim it. If not, then do not take unnecessary risks.