If you file ITR-1 or ITR-4 under the old tax regime, then this write-up is very important for you. The Income Tax Department has made many new changes in the ITR forms this time, which will directly affect your tax filing. The special thing is that now just filling out the form will not be enough – you will also have to provide valid information about every tax claim made by you.
This simply means that if you have claimed 80C, 80D, HRA or any other deduction, then now its supporting details will also have to be filled in the Excel utility.
What has changed in ITR-1 and ITR-4?
Now, all details will have to be given for claiming various deductions
House Rent Allowance (HRA): You need to report your place of work, basic salary, actual HRA received and rent paid.
Section 80C: It is mandatory to mention policy number or document identification number for eligible investments.
Section 80D: You also have to furnish the name of the insurance company and policy number.
Section 80E: Taxpayers must report bank name, loan account number, sanction date, loan amount and outstanding balance.
Section 80 EEB: You must disclose bank name, loan details and vehicle registration number for electric vehicle loans.
Section 80DDB: Taxpayers must specify the name of the particular disease for medical treatment deduction.
In a nutshell, earlier you could claim deduction of 80C, 80D, 80E or HRA by just writing the amount. But now you will also have to fill details like documents related to them – Policy number, month of investment, PPF account details, rent agreement/receipt, etc.
Also read: Filing ITR without any CA help? Avoid making THESE 5 costly mistakes
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Aadhaar verification has now become mandatory for making a new PAN card.
New rule on LTCG
If your long-term capital gain is less than Rs 1.25 lakh, then you can file it in ITR-1 only, ITR-2 will not be required.
If you are filing in the old tax regime, then Form 10-IEA is necessary
If you have chosen the old tax system and your income source is related to business or profession, then filling Form 10-IEA is now mandatory.
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