ITR Updates for AY 2025-26: Key Disclosures Under Old Tax Regime

ITR Updates

ITR Updates for AY 2025-26: Key Disclosures Under Old Tax Regime

ITR Updates

With the Income Tax Return (ITR) filing season for Assessment Year 2025–26 now underway, taxpayers opting for the old tax regime need to be aware of several key updates. The Income Tax Department has introduced enhanced disclosure requirements aimed at improving accuracy, transparency, and verification of claims made in returns.

ITR Utilities Now Available

On 29th June, the Income Tax Department released the ITR filing utilities for ITR-1 (Sahaj) and ITR-4 (Sugam). You can access them at the official income tax e-filing portal.

  • ITR-1 is for resident individuals (excluding those who are “not ordinarily resident”) with income up to ₹50 lakh from salary, one house property, interest, and long-term capital gains under Section 112A (up to ₹1.25 lakh). Certain exclusions apply—such as company directorships, foreign assets, or ESOP-related tax deferrals.

  • ITR-4 is for residents (individuals, HUFs, and firms other than LLPs) with income up to ₹50 lakh from business or profession under the presumptive taxation schemes (Sections 44AD, 44ADA, or 44AE).

Now, let’s dive into the new disclosures mandated under the old tax regime for AY 2025–26:

1. HRA Claim – More Details Required

To claim House Rent Allowance (HRA) exemption under Section 10(13A), you must now provide additional details to help authorities verify your claim:

  • Work City – Specify the city where you are employed. This determines whether the metro or non-metro HRA limits apply.

  • Actual HRA Received – State the HRA amount received from your employer.

  • Rent Paid – Mention the total rent paid during the year.

  • Basic Salary + Dearness Allowance – Provide this figure, as HRA exemption is calculated on a percentage of this.

  • City Classification – Confirm if your work city is a metro (e.g., Delhi, Mumbai, Kolkata, Chennai) or a non-metro, which impacts the exemption rate (50% for metro vs. 40% for non-metro).

2. Section 80C – Investment Identification Mandatory

Deductions under Section 80C—covering PPF, EPF, life insurance, ELSS, home loan principal, tuition fees, and more—now require you to furnish identifiable details:

  • Policy/Document Number – Each investment must be linked with a unique ID—such as a policy number, PPF account number, or ELSS folio number—to enable traceability and verification.

3. Section 80D – Health Insurance Disclosure

To claim deduction under Section 80D for health insurance premiums:

  • Insurer Name – Mention the full name of the insurance provider.

  • Policy Number – Provide the policy number or any relevant reference number linked to the plan.

4. Section 80E – Education Loan Disclosure

Interest on education loans is deductible under Section 80E, but now you must report the following:

  • Lender Name – The name of the bank or financial institution that sanctioned the loan.

  • Loan Account Number – The loan’s unique identifier.

  • Loan Sanction Date – When the loan was officially approved.

  • Original Loan Amount – Total principal sanctioned.

  • Outstanding Balance (as of March 31) – The remaining unpaid principal at the end of the financial year.

5. Sections 80EE / 80EEA – Home Loan Interest

For deductions under Section 80EE (first-time homebuyers) or Section 80EEA (affordable housing):

  • Loan Account Number

  • Sanction Date

  • Original Loan Amount

  • Outstanding Balance as on March 31

  • Lending Institution Name – Such as HDFC Ltd., LIC Housing Finance, etc.

ITR Updates

6. Section 80DDB – Medical Treatment for Specified Diseases

To claim expenses under Section 80DDB, taxpayers must now clearly disclose the disease name:

  • Specified Disease – E.g., Cancer, Parkinson’s disease, Chronic Renal Failure, etc., as per the Income Tax Rules.

Read More: Tax Implications of ESOPs and RSUs for Employees

These new ITR disclosure norms reflect the Income Tax Department’s push towards greater compliance and data transparency. Taxpayers under the old tax regime must carefully gather and report all relevant details to avoid rejection of claims or future scrutiny.

Ensuring accurate reporting not only safeguards your deductions but also reduces the chances of notices and reassessments. It’s advisable to consult a tax advisor or CA to review your documentation before filing.

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Can You File Income Tax Return Without a PAN in 2025? Here’s What You Need to Know

Income Tax Return

Can You File Income Tax Return Without a PAN in 2025? Here's What You Need to Know

Income Tax Return

As the extended deadline of September 15, 2025, for filing Income Tax Returns (ITR) for Assessment Year 2025–26 draws near, a common query among taxpayers is whether it’s possible to file an ITR without a PAN (Permanent Account Number). With the growing integration of Aadhaar in India’s tax system, and the facility of instant e-PAN generation, taxpayers have more options than ever to stay compliant.

Here’s what you need to know about filing ITR without a PAN, how Aadhaar plays a role, and how to generate an e-PAN if you don’t have one yet.

Is PAN Mandatory for Filing ITR in 2025?

Yes, according to the Income Tax Department, quoting a valid PAN is mandatory when filing your Income Tax Return. It is also required when:

  • Making tax payments through challans

  • Communicating with the Income Tax Department

  • Applying for tax refunds, and

  • Submitting various financial documents

However, there’s an important exception under Section 139AA of the Income Tax Act.

Using Aadhaar in Place of PAN

Since September 1, 2019, individuals who have both PAN and Aadhaar and have linked the two can use Aadhaar in lieu of PAN for all transactions where PAN is required, including ITR filing.

What this means:
If your Aadhaar is linked to your PAN, you can quote your Aadhaar number instead of PAN while filing your income tax return.

What If You Don’t Have a PAN Yet?

If you haven’t been allotted a PAN yet, you can quickly generate an instant e-PAN using your Aadhaar number and the mobile number linked to Aadhaar. This process is:

  • Free of cost

  • Completely online

  • Paperless – no need to submit any physical documents

🔹 Visit the Income Tax e-filing portal and navigate to the “Get New e-PAN” section to generate your instant e-PAN.

However, note:

  • If a PAN is already allotted and linked to your Aadhaar, you cannot reapply for an e-PAN.

  • If your Aadhaar is linked to an incorrect PAN, you must request delinking by contacting your Jurisdictional Assessing Officer (JAO). After delinking, you can apply for an e-PAN afresh.

Income Tax Return

Important Deadline for ITR Filing

The due date to file ITR for Financial Year 2024–25 (AY 2025–26) has been extended to September 15, 2025, for individuals and businesses not subject to audit. Don’t miss this deadline to avoid interest, late filing fees, or scrutiny.

Read More: Tax Implications of ESOPs and RSUs for Employees

Conclusion: You Can’t File ITR Without PAN – But You Can Use Aadhaar or Get an e-PAN Instantly

To sum up:

  • You need PAN to file your ITR.

  • If your Aadhaar is linked to PAN, you can file ITR using Aadhaar number.

  • If you don’t have PAN, generate an e-PAN instantly using Aadhaar.

Stay compliant, act early, and ensure your documents are in order before filing your return for AY 2025–26.

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Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting

GST Updates

Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting

GST Updates

As India continues to strengthen its indirect tax framework, several important changes under the Goods and Services Tax (GST) regime have been introduced, effective from April 1, 2025, and beyond. These reforms are aimed at enhancing ease of doing business, improving data accuracy, and reducing compliance challenges for taxpayers.

Biometric-Based Aadhaar Authentication for GST Registration (Effective in Assam)

A significant development under Rule 8 of the CGST Rules, 2017, is the introduction of biometric-based Aadhaar authentication for GST registration. Starting April 1, 2025, this functionality has been rolled out in Assam on a pilot basis.

Key Features:

  • Risk-Based Selection: Applicants may be selected for biometric authentication based on data analytics and risk parameters.

  • Two Types of Authentication:

    • OTP-Based: Usual Aadhaar OTP authentication.

    • Biometric-Based: Requires physical presence at a GST Suvidha Kendra (GSK) for fingerprint and document verification.

  • Mandatory Documents: Applicants must carry original Aadhaar and PAN cards, jurisdiction details, appointment confirmation, and all documents uploaded during the application process.

  • Timelines: The biometric process must be completed within the specified time for the ARN to be generated.

This initiative aims to curb fake registrations and enhance the authenticity of GST applicants.

Revised Formats for GSTR-7 (TDS) and GSTR-8 (TCS)

To promote transparency and traceability, the government has revised the formats for GSTR-7 (for Tax Deducted at Source) and GSTR-8 (for Tax Collected at Source by e-commerce operators).

GSTR-7 Updates

  • Mandatory invoice/document-wise reporting.

  • Requires details like deductee GSTIN, invoice number, payment amount, and tax deducted.

GSTR-8 Updates

  • More granular data capturing supplies made via e-commerce platforms.

  • Improved accuracy and compliance checks for digital commerce ecosystems.

Clarification: No GST on UPI Transactions Above ₹2,000

A clarification from the government has put to rest rumors regarding the imposition of GST on UPI payments above ₹2,000.

Highlights

  • No GST is levied on UPI transactions, irrespective of amount.

  • GST applies only on payment-related services (e.g., MDR).

  • Since January 2020, the MDR for P2M (Person-to-Merchant) UPI transactions has been zero, hence no GST applies.

  • UPI has grown exponentially, reaching a transaction volume of ₹260.56 lakh crore by March 2025, with India contributing to nearly 49% of global real-time transactions (ACI Worldwide Report 2024).

Case Insensitivity in IRN Generation (Effective June 1, 2025)

To address inconsistencies in invoice numbering during e-invoicing, the Invoice Registration Portal (IRP) will treat invoice/document numbers as case-insensitive starting June 1, 2025.

What This Means

  • Invoice numbers like “abc123” and “ABC123” will be treated as the same.

  • All invoice numbers will be automatically converted to uppercase.

  • This aligns with the case-insensitive treatment in GSTR-1 and helps prevent duplication errors.

Auto-Population of Table 3.2 in GSTR-3B (Effective April 2025)

To ensure data consistency across returns, Table 3.2 of GSTR-3B (pertaining to inter-state supplies to unregistered persons, UIN holders, and composition taxpayers) will now be auto-populated and non-editable.

Compliance Guidance

  • The values in Table 3.2 will be derived from GSTR-1, GSTR-1A, and IFF filings.

  • Corrections, if any, must be made in the source returns (GSTR-1 or IFF).

  • Accurate and timely reporting is essential to avoid filing errors in GSTR-3B.

E-Invoicing and E-Way Bill Compliance Enhancements

E-Invoicing Update

  • Businesses with an Annual Aggregate Turnover (AATO) of over ₹10 crore are now required to report e-invoices within 30 days from the date of invoice issuance.

  • Previously, this timeline was applicable only to businesses with AATO above ₹100 crore.

E-Way Bill Validity

  • E-Way Bill generation is restricted to documents dated within 180 days prior to generation (effective from January 1, 2025).

  • Extension limits are capped at 360 days from the original generation date.

These measures are designed to tighten control on logistics documentation and ensure timely reporting.

CBIC Guidelines to Streamline GST Registration (Instruction No. 03/2025-GST)

Responding to taxpayer grievances over unwarranted document demands during registration, the Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 03/2025-GST dated April 17, 2025.

Key Directives

  • Officers must strictly adhere to the prescribed document list in GST REG-01.

  • No registration notice should be issued based on presumptions or minor discrepancies.

  • Any request for additional documents must be approved by the Deputy/Assistant Commissioner.

  • Zonal Chief Commissioners are to implement monitoring systems and issue trade notices for better enforcement.

This directive reinforces transparency, minimizes delays, and promotes ease of doing business.

GST Updates

DISHA Mobile App Launched for Taxpayer Assistance

A new DISHA self-help mobile application has been launched by the CGST & Customs Pune Zone to assist visitors and taxpayers in navigating government offices. This is a user-friendly initiative to enhance in-person taxpayer services.

Read More: Tax Implications of ESOPs and RSUs for Employees

The April 2025 GST amendments mark a notable shift toward automation, accountability, and taxpayer facilitation. With tighter timelines, improved data integrity, and a more robust registration framework, businesses must now be even more vigilant with accurate return filing and documentation.

Staying updated and proactive will be key to ensuring seamless compliance under the evolving GST regime.

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