1. Introduction

ITR filing is moving from simple number reporting to structured, verifiable disclosures. For FY 2024–25 (AY 2025–26), the Income‑tax Department has introduced additional mandatory fields in the updated ITR utilities to increase transparency and reduce bogus claims. These changes affect individuals, HUFs, businesses and professionals—especially those claiming exemptions, deductions or reporting capital gains and special incomes.

2. What Changed — Key New Disclosures

The updated forms and utilities require greater granularity in several areas. Major additions include:

• Detailed deduction supporting fields: Policy/account numbers, insurer/lender names and loan account details for claims under Sections 80C/80D/80E/24(b) and related investments.
• HRA & rent disclosures: Place of work (metro/non‑metro), actual HRA received, rent paid, landlord PAN (if applicable) and rent agreement references.
• Capital gains reporting: Separate fields to capture transactions falling under different tax treatments (pre/post legislative changes), share buy‑back captions, and stock‑specific disclosures.
• Revised Schedule AL applicability: the asset‑liability disclosure threshold has been updated (applicability change compared to prior years).
• TDS/TCS section‑wise reporting: More granularity on TDS/TCS categories — not just aggregate amounts.
• New fields for presumptive/special scheme incomes: reporting codes and schedules for specified schemes.

3. Why the Change — Policy Rationale

The revised disclosure regime is driven by three policy goals: (a) reduce fraudulent or inflated claims by making them verifiable against third‑party data (SFT/AIS/26AS), (b) enable pre‑validation and automated matching to improve refund accuracy and reduce manual assessments, and (c) align statutory reporting with recent tax law changes (capital gains and dividend/buy‑back treatment) so the ITR can capture nuanced tax liabilities correctly.

4. Practical Implications for Taxpayers

Taxpayers will face higher documentation needs and pre‑filing reconciliation tasks. Expect longer pre‑filing preparation, the need to retain organized digital records, and a higher likelihood of automated mismatch alerts if disclosures do not align with third‑party reporting.

5. Action Checklist — How to Prepare

1. Gather investment identifiers (policy numbers, demat details, mutual fund folio/ARN, insurer/lender names, loan A/C numbers).
2. Collect rent receipts, rent agreements, and landlord PAN (where applicable).
3. Reconcile capital gains with AIS/26AS and broker/RTA statements; reconstruct acquisition costs where AIS is missing data.
4. Download loan statements showing principal and interest breakup for home‑loan deduction claims.
5. Confirm TDS sections and reconcile Form 26AS with employer and other deductors.
6. Retain sale deeds, stamp duty records, and TDS challans for property transactions.

6. Risks & Potential Challenges

Risks include inadvertent mismatches leading to e‑campaigns/notices, privacy concerns because of disclosure of multiple identifiers, and increased compliance costs—particularly for taxpayers who previously relied on loose record‑keeping.

7. Recommendations for a Smooth Filing

• Start documentation early—don’t wait for the filing window.
• Use professional software or an advisor for complex filings (capital gains, buybacks, business income).
• Prefer the new tax regime if deductions cannot be fully documented—simpler and less disclosure‑intensive.
• Respond promptly to AIS/TIS mismatch alerts on the e‑filing portal to avoid escalation.
• Keep scanned copies of all proofs in a secure, indexed folder for at least 8 years.

8. Conclusion

The new disclosure requirements mark a significant step toward a more transparent, data‑aligned tax system. While they create short‑term inconvenience, the long‑term effect should be fewer disputes, more accurate refunds and a gradual reduction in manual scrutiny. Taxpayers who adopt disciplined record‑keeping and reconcile third‑party data before filing will find the transition manageable—and ultimately beneficial.