🧾 New Additional Disclosure Requirements for Claiming Deductions in ITR-1 and ITR-4 (AY 2025-26)

Author: CA Pranay Bafna | Zrotax

Updated for Assessment Year 2025-26, the Income Tax Department has introduced mandatory additional disclosures for individuals filing ITR-1 and ITR-4 under the Old Tax Regime. These new requirements are aimed at enhancing transparency and reducing fraudulent or unverifiable deductions.

Let’s dive into what’s new and what you need to prepare before filing your Income Tax Return. ✅ Applicability

Return Forms: ITR-1 (Sahaj) and ITR-4 (Sugam)

Tax Regime: Only applicable if you're opting for the Old Regime

Assessment Year: AY 2025-26

Relevant For: Salaried Individuals, Pensioners, and Small Business Owners opting for presumptive taxation

🔍 Additional Disclosure Requirements for Deductions

🏠 House Rent Allowance (HRA)

If you’re claiming deduction for House Rent Allowance (HRA) under Section 10(13A), you now need to disclose:

1. Place of Work

2. Basic Salary

3. Actual HRA Received

4. Rent Paid

💡 Ensure rent receipts and lease agreements are retained for documentation.

📅 Section 80C – Investments (LIC, PPF, ELSS, etc.)

1. For claiming deduction under Section 80C, you're now required to mandatorily disclose:

2. Policy Number, or

3. Document Identification Number for each eligible investment

This includes investments in:

Life Insurance Premiums

Public Provident Fund (PPF)

ELSS (Tax-saving mutual funds)

Sukanya Samriddhi Yojana

5-Year FD, etc.

🛡️ Section 80D – Health Insurance

To claim deductions under Section 80D for health insurance premiums paid, provide:

1. Name of Insurance Company

2. Policy Number

This applies whether the policy is taken for self, spouse, children, or parents.

🎓 Section 80E – Education Loan Interest

For claiming interest on education loan under Section 80E, disclosures must include:

1. Bank Name

2. Loan Account Number

3. Loan Sanction Date

4. Total Loan Amount

5. Outstanding Balance

📘 Deduction is available for up to 8 years from the year repayment begins.

🏡 Section 80EE – Home Loan for First-Time Buyers

To claim additional deduction under Section 80EE, you must disclose:

1. Bank Name

2. Loan Account Number

3. Sanction Date

4. Total Loan Amount

5. Outstanding Balance

Only applicable if:

You are a first-time homebuyer

Loan sanctioned between specified dates

Property value and loan amount meet eligibility criteria

⚡ Section 80EEB – EV Loan Interest

If you bought an electric vehicle and are claiming interest deduction under Section 80EEB, you need to report:

1. Bank Name

2. Loan Details

3. Vehicle Registration Number

Note: Loan should be taken between 1 April 2019 and 31 March 2023.

🏥 Section 80DDB – Medical Treatment

To claim deduction for medical treatment of specified diseases under Section 80DDB, you must mention:

1. Name of the Specified Disease as per the Income Tax Rules

2. Also, keep Form 10-I from a specialist doctor for your records.

🔔 Why These Disclosures Matter

Failing to make these new disclosures may lead to:

Rejection of deductions

Mismatch notices

Increased chances of scrutiny

By proactively collecting and entering the required data, you ensure:

Smooth processing of your ITR

Faster refunds

Lower audit risk