Income Tax Department Now Cross-Verifying Old Regime Claims—Here’s What You Should Know

Filing taxes under the old tax regime just got a bit more detailed—but also more transparent. The Income Tax Department has rolled out a new system that automatically verifies the deductions and claims made in your Income Tax Return (ITR). So, if you’ve been using one-line entries like “₹1.5 lakh under 80C” without any supporting data, it’s time to change that approach.

How Will the Verification Work?

The new system is integrated with PAN and Aadhaar and connects your data across multiple platforms including:

• Insurance companies
• Banks
• Employers and government systems
• The mParivahan app for vehicle-related claims

This means your tax-saving claims will be checked automatically during the ITR filing process.

What’s Changed?

You can’t just put lump sum claims like ₹1.5 lakh under Section 80C anymore.

You’ll need to break down your investments—such as in PPF, ELSS, LIC policies, and more.

Automated checks will highlight mismatched or suspicious entries.

If something doesn't match, you’ll get an instant notification—no more waiting for manual notices.

Extra Details You’ll Now Need to Provide

For House Rent Allowance (HRA):

• Employer details
• Rent paid proof
• Landlord’s PAN (if annual rent exceeds ₹1 lakh)

For Insurance Claims (80C, 80D):

• Policy number
• Insurer name
• Investment date

For Loan Deductions (Sections 80E, 80EE, 80EEA, 80EEB):

• Bank name
• Loan account number
• Sanction date
• Balance as of 31st March

For EV Loan Deductions:

• Vehicle registration number
• Loan details
• Verified through the mParivahan app

Why This Matters

This initiative aims to bring more transparency and accuracy into tax filings. It also discourages inflated or vague claims, helping taxpayers file honestly and avoid future scrutiny.

In short, while the process may feel slightly more detailed, it ensures your tax return is backed by solid data—making it faster and safer in the long run. So, keep your documents ready and double-check your claims before you hit submit.