Filing ITR-1 or ITR-4 under Old Tax Regime? New disclosure rules apply
If you’re using the Old Tax Regime while filing your ITR-1 or ITR-4 this year, don’t miss this update.
To continue claiming deductions like Section 80C or 80D, you now need to specify individual section-wise amounts in a new schedule.
Let’s break it down simply — no jargon, no confusion.
What changed for Old Regime filers?
Starting AY 2025–26, the Central Board of Direct Taxes (CBDT) has revised the ITR-1 and ITR-4 forms via Notification No. 40/2025 dated 29.04.2025.
Here’s what’s new if you’re opting for the Old Tax Regime:
✅ A separate ‘Schedule DI-Old’ has been introduced
✅ You must report deduction-wise break-up for each section
✅ Applies only if you opt out of New Regime (Section 115BAC(6))
This means you can’t just enter a lump sum deduction amount — you need to disclose:
| Deduction Section | What You Must Report |
|---|---|
| 80C | PPF, LIC, ELSS, etc. |
| 80D | Medical Insurance |
| 80G | Donations |
| 80TTA/TTB | Interest on Savings |
| Others (80E, 80CCD etc.) | Actual Amount Claimed |
Why did CBDT make this change?
To improve transparency and enable pre-filled returns in the future, the Income Tax Department is tightening how deductions are reported.
By collecting granular data, the department can:
- Cross-verify deduction claims
- Pre-populate fields with Form 26AS and AIS info
- Detect mismatches in high deduction claims
Expert Tip: Keep proof ready
Tax experts recommend keeping receipts, premium certificates, and bank statements ready in case of any scrutiny.
📝 Example: If you’re claiming ₹1.5 lakh under Section 80C, be ready to list how much went to LIC, PPF, ELSS, etc.
How to file correctly under Old Tax Regime
Step-by-step:
- Choose ‘Opt-Out of New Regime’ in the return
- Navigate to the new Schedule for deductions
- Fill each eligible section with actual amount
- Validate and e-verify your return
⚠️ Mistake alert: Many taxpayers still claim deductions under the Old Regime but forget to tick the opt-out box. That could auto-shift your ITR to the New Regime — with zero deductions allowed.
Which ITRs are impacted?
| ITR Form | Regime Impacted | Action Needed |
|---|---|---|
| ITR-1 | Old Regime | Fill Schedule Deductions |
| ITR-4 | Old Regime | Fill Schedule Deductions |
| ITR-1/4 (New Regime) | No Deductions Allowed | No Action |
Legal Source
📜 CBDT Notification No. 40/2025 dated 29.04.2025
Link: incometaxindia.gov.in/communications/notification/40_2025.pdf
Internal Resource
Want to know which deductions you can still claim under the Old Tax Regime?
👉 Read: Complete List of 80C to 80U Deductions for AY 2025–26
FAQs: New Deduction Schedule in ITR
Q1. What if I miss filling the new deduction schedule?
Your claim may get reduced or ignored during processing.
Q2. Does this apply to salaried taxpayers only?
No. Anyone using ITR-1 or ITR-4 under Old Regime must comply.
Q3. Can I revise the return if I filed without this schedule?
Yes, file a revised return before the due date.
Summary
Old Regime ITR filers must now give section-wise deduction details in ITR-1 and ITR-4 for AY 2025–26. A new schedule is added per CBDT Notification 40/2025. Claiming 80C, 80D or 80G? Report each amount separately to avoid rejection.