New Income Tax Rules For Changes In Old Tax Regime: All You Need To Know

Like every year, salaried individuals around this time of the year are preparing to file Income Tax Return (ITR).

However, if you are a salaried individual and are set to file ITR under the old tax system, then you need to know that the rules have changed for you.

From now on filing ITR on the basis of Form 16 alone will not be enough and you will need to keep certain documents ready.

How Has The Process Changed?

Taxpayers who are opting for the old tax regime in the Assessment Year (AY) 2025-26 need to prepare for a significantly compliance-oriented regime.

The Income Tax Department is reportedly enforcing enhanced documentation protocols during Income Tax Return (ITR) filing to strengthen transparency and limit false claims.

In case taxpayers wish to choose the old tax system and want to claim deductions like section 80C, 80D, HRA to get tax exemption, then they shall have to provide solid proof of them.

This means that taxpayers who are claiming HRA need rent receipts, or will need to submit copies of policies like LIC or ELSS that they have invested in.

Additionally, the level of detail required now, places greater onus on taxpayers to maintain and furnish comprehensive records at the time of filing.

For instance, claims under Section 80E (education loan) and other interest-based deductions now require supporting lender-level information, which may be cross-verified through financial systems.

Exemption For LTCG

For the AY 2025-26, in the ITR-1 form, taxpayers can also give information about long term capital gain (LTCG) up to Rs 1.25 lakh, if this profit is made from selling equity mutual funds or shares.

However, if this particular profit is made after July 23, then no tax will be levied on it.

Also Read: Sold Shares or Property? What You Must Know About Capital Gains in ITR 2025