Old Tax Regime Filers, Beware: Income Tax Dept to Auto-Verify Deductions in Real Time

The Income Tax Department introduced real-time auto-verification of deductions for individuals filing returns under the old tax regime. This new system, integrated with multiple government and financial databases, will validate income tax deduction claims the moment they are entered into the return, making it much harder to inflate or falsify information.

Until now, if someone claimed a false deduction, like faking a home loan or using someone else’s insurance policy, the tax department would only catch it later during post-filing checks or by sending a notice. This process was slow and often let people get away with fake claims.

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To fix this, the department has launched an Integrated Verification System that checks the information instantly using your PAN and Aadhaar, along with data from banks, insurance companies, and government apps like mParivahan.

If you're filing under the old tax regime, the following claims will now be auto-verified:

• Section 80C investments like PPF, ELSS, LIC, etc.
• Health insurance premiums (Section 80D)
• House Rent Allowance (HRA) – you’ll need to provide the landlord’s PAN if the rent is more than Rs. 1 lakh/year
• Home loan interest (Sections 80EE, 80EEA)
• Education loan interest (80E)
• Electric vehicle loan deductions – checked using vehicle registration info

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For each of these, you'll have to give exact details like policy numbers, loan account numbers, and investment type.

The ITR forms for AY 2025–26 have been updated to support this system. You can no longer just write "₹1.5 lakh under Section 80C"; you’ll have to break it down and mention whether it’s for PPF, LIC, or any other eligible investment. These entries will then be checked instantly.

To give taxpayers time to adjust to these changes, the Income Tax Department has extended the ITR filing deadline for individuals (non-audit cases) from 31 July to 15 September 2025.

If you plan to file under the old regime. First, gather proofs of all your investments and deductions, use Form 26AS and AIS to check if your income and TDS details are correctand enter accurate information in your ITR to avoid errors or delays.

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