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Salaried taxpayers choosing the old tax regime for the financial year 2024-25 must now follow an updated process for filing their Income Tax Returns (ITR). Relying solely on Form 16 is no longer sufficient. To claim deductions under sections like 80C, 80D, and HRA, individuals must submit supporting documents as proof.
If you’re a salaried employee planning to file your ITR, as you do every year, under the old tax system, it’s essential to note the latest changes in the rules. This time, just using Form 16 won’t complete your filing process. You’ll now be required to upload additional documents to validate your deductions.
ITR Filing Rules – What Has Changed in 2025?
How ITR Filing Worked in Previous Years
Until now, salaried individuals had a relatively simple process when it came to filing Income Tax Returns (ITR). If your income came solely from your salary, you could easily file an ITR using Form 16 and the ITR-1 form. You have just been required to submit details of your tax-saving investments, such as LIC premiums, ELSS mutual funds, or health insurance, to your employer. These deductions were automatically reflected in your Form 16, making the ITR filing process hassle-free. Importantly, no documentary evidence was required during the actual submission of the return.
What’s New in ITR Filing for AY 2025–26?
For Assessment Year 2025–26, taxpayers opting for the old tax regime should prepare for stricter compliance. According to CA (Dr.) Suresh Surana, the Income Tax Department, has implemented enhanced documentation requirements as part of a broader effort to increase transparency and prevent fraudulent deductions.
These new rules mean that taxpayers may now need to provide supporting documents for investment claims and deductions at the time of filing. This shift marks a significant change in the ITR process, particularly for salaried individuals who previously relied solely on Form 16.
More Stringent Compliance for Deductions
CA Surana emphasizes that the documentation requirements have become more rigorous. Taxpayers must now maintain and upload detailed records when filing:
Disability deductions under Section 80DD or 80U require.
- Form 10-IA acknowledgment number
- PAN/Aadhaar of the dependent, if applicable
- UDID number, where available
Education loan interest under Section 80E and other interest-based deductions must be backed by lender-level information, which may be cross-verified with financial systems.
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What If You Don’t Have the Documents
If you’ve made eligible investments but lack proper documentation, your deduction claims may be rejected. This could result in higher tax liability and possible scrutiny. The tax department is empowered to disallow claims that aren’t backed by adequate proof, potentially leading to additional tax payments.
Filing ITR Under the Old Tax Regime
If you’re planning to file your Income Tax Return (ITR) under the old tax regime, there’s no reason to stress, provided you’ve made timely investments and have the necessary proofs ready. Gather all essential documents before beginning the filing process. These new updates aim to make the income tax system more transparent and efficient for taxpayers.
Do You Need Form 16 to File Your Income Tax Return (ITR)?
Form 16 is essential, but only in some instances. If you’re filing your ITR through a third-party portal, Form 16 is generally required. However, if you’re filing directly through the Income Tax Department’s official e-filing website, incometax.gov.in, uploading Form 16 is not mandatory. That’s because your salary, TDS, and other income details are usually pre-filled on the portal. Still, keep Form 16 handy to cross-verify the pre-filled data and avoid discrepancies.
Long-Term Capital Gains (LTCG) Exemption in ITR-1
A significant update for investors: In the ITR-1 form, you can now report Long-Term Capital Gains (LTCG) of up to RS 1.25 lakh earned from the sale of equity mutual funds or listed shares. Even better, if these gains are realized on or after July 23, 2025, they will be completely tax-exempt. This move is designed to offer relief to small and mid-level investors while encouraging long-term equity investments.
Extended ITR Filing Deadline for Non-Audit Cases
Good news for individual taxpayers not subject to audit: the ITR filing deadline has been extended to September 15, 2025. Previously, the last date was July 31. This extension provides taxpayers with additional time to organize documents, verify financial data, and ensure error-free submissions.
FAQs
Can I still use Form 16 to file my ITR under the old regime?
Yes, Form 16 is still helpful for verifying your income and TDS. However, it is no longer sufficient on its own. You must also upload deduction proofs.
What documents are required for claiming 80C and HRA deductions?
Documents like LIC premium receipts, PPF statements, rent agreements, rent receipts, and home loan certificates are required as proof.
What happens if I don’t have the proof for a claimed deduction?
If you can’t provide supporting documents, the deduction can be disallowed, which might increase your tax liability and draw scrutiny.
Is uploading Form 16 mandatory on the ITR portal?
No, it’s not mandatory when filing on the official portal. Salary and TDS data are usually pre-filled, but keeping Form 16 helps cross-verify.
Has the deadline for filing ITR changed for non-audit taxpayers?
Yes, the ITR filing deadline has been extended to September 15, 2025, for individuals who are not subject to a tax audit.
Conclusion
Filing your ITR under the old tax regime in FY 2024–25 now demands more attention to documentation. While Form 16 remains essential, you must also present valid proof for each deduction claimed. The changes are designed to ensure accuracy, transparency, and compliance. By staying organized and informed, you can file your returns confidently and avoid penalties or rejections. Start preparing early, gather your necessary documents, and maximize your eligible deductions within the extended deadline. Thoughtful preparation leads to a smooth tax filing process.
