Additional Detail required in ITR-1 & ITR-4 for A.Y. 2025–26

7. Additional Information and Details required in ITR-1 and ITR-4 for A.Y. 2025–26 especially for Taxpayers in Old Regime

1. Enhanced Disclosure for House Rent Allowance (HRA)

Taxpayers claiming HRA exemption must now provide comprehensive details, including:
•Place of Work
•Actual HRA Received
•Actual Rent Paid
•Basic Salary and Dearness Allowance
•50% or 40% of Basic Salary, depending on whether the city is metro or non-metro

This change ensures precise calculation of HRA exemption under Section 10(13A).

2. Section 80C Deduction: Additional Documentation Required

To claim deductions under Section 80C, such as PPF contributions and insurance premiums, the following information must be disclosed:
•Document or Receipt Number
•PPF Account Number
•Insurance Policy Number

3. Section 80D: Health Insurance Details

Taxpayers claiming deductions under Section 80D for medical/health insurance must now provide:
•Name of the Insurance Company
•Policy or Document Number

4. Section 80E: Education Loan Interest

For deductions on interest paid on education loans under Section 80E, the following details are now mandatory:
•Name of the Lender
•Bank Name
•Loan Account Number
•Date of Loan Sanction
•Total Loan Amount
•Loan Outstanding as on 31st March

5. Section 80EE / 80EEA: Interest on Home Loan

Similar disclosures are required for interest deductions under Section 80EE or 80EEA for residential house property:
•Name of the Lender
•Bank Name
•Loan Account Number
•Date of Loan Sanction
•Total Loan Amount
•Loan Outstanding as on 31st March

6. Section 80EEB: Electric Vehicle Loan Interest

For interest paid on loans taken for the purchase of electric vehicles under Section 80EEB, taxpayers must provide:
•Name of the Lender
•Bank Name
•Loan Account Number
•Date of Loan Sanction
•Total Loan Amount
•Loan Outstanding as on 31st March

7. Section 80DDB: Treatment of Specified Diseases

Taxpayers claiming deductions under Section 80DDB for medical treatment of specified diseases are now required to mention the  Name of the Specified Disease

Implications of this change classified as System-Level Enforcement – “Category A” Defects.

• ITR will be rejected at the upload stage if any mandatory fields are missing.
• 276 validations in ITR-1, 347 in ITR-4 (Excel Utility as of now).
• No bypass possible—errors must be fixed before submission.
• New additional disclosures is common Pitfalls to Addressed the following:
  • Double-dipping (e.g., HRA + Home Loan in same city)
  • Fake deductions with no documents
  • Generic claims (e.g., “LIC – ₹1.5L” without policy number)

  Now, these will fail at validation stage, avoiding refunds based on false claims and ensuring only genuine, traceable deductions are processed.

Why New Additional Disclosure For Claiming Deductions is This Matters:

• Category A Validation Errors like If key details are missing, the return cannot be uploaded at all. And 276 checks for ITR-1 and 347 for ITR-4 now in place.
• Automated Cross-Verification: PAN-Aadhaar linkage will be used to match insurance, bank loan, and employment records with ITR entries. and any mismatch or vague data increases the chance of ITR rejection or notices.
• Extended Deadline – September 15, 2025: To accommodate the additional data collection burden, especially for salaried individuals relying on employers, banks, and insurers.

Implications for Taxpayers and Professionals

• Taxpayers Must gather and verify all documents beforehand, and Use latest Excel/Java utilities only (currently, only ITR-1 and ITR-4 available).
• Taxpayer must advise clients to prepare documentary evidence well in advance and Scrutiny chances lower if validation rules are met upfront