Filing Income Tax Returns (ITRs) for FY 2024-25 has become stricter and more detailed compared to earlier years. The Income Tax Department has introduced new reporting requirements, tightened claim verifications, and deployed AI-based tools to track hidden incomes and false deductions.
Here are the most important updates every taxpayer—especially NRIs—should keep in mind while filing ITR this year.
- Detailed Reporting Requirements in ITR Forms
The new ITR forms require specific information for claiming deductions. Only genuine claims will be allowed. Key disclosures include:
- Section 80C deductions → Policy number of LIC, PPF, or other eligible investments.
- HRA exemption → Actual rent paid must be reported.
- Home loan interest deduction → Details such as bank name, loan sanction date, and outstanding loan amount are now mandatory.
👉 With AI-powered verification, even minor mismatches or inflated claims can attract scrutiny.
- Old vs. New Tax Regime – Which Works Better?
The new tax regime offers lower slab rates but disallows most deductions. It is often beneficial for taxpayers with limited exemptions.
- If you claim HRA or home loan interest, the old regime may save more tax.
- For others, the new regime is generally more tax-efficient.
- Capital Gains Tax Changes After July 23, 2024
The Interim Budget 2024 brought major changes in capital gains taxation:
- For Residents:
- 12.5% tax without indexation, or
- 20% tax with indexation (choice available).
- For NRIs:
- No choice – only 12.5% tax without indexation applies.
👉 This change often results in higher taxes for NRIs, as the indexation benefit is no longer available.
- Carry Forward of Losses – A Hidden Trap
Your taxation option also impacts loss carry forward rules:
- 12.5% without indexation → Long-term capital losses can be carried forward.
- 20% with indexation → Carry forward of such losses is not allowed.
This is a major disadvantage for taxpayers with large losses. Similarly, under the new tax regime, carry forward of house property losses and certain business deductions is restricted.
- Limited Indexation Benefit
The indexation benefit is now restricted to only land and building (20% tax).
- Assets like gold, jewellery, and other long-term investments are taxed at 12.5% without indexation.
- Section 87A Rebate – Not for NRIs
The rebate under Section 87A continues to cause confusion:
- Residents with income up to ₹5 lakh (old regime) or ₹7 lakh (new regime) pay zero tax due to rebate.
- NRIs are not eligible for this rebate.
- Income Tax Portal & E-Verification Issues
Despite improvements, the Income Tax e-filing portal continues to trouble many taxpayers—particularly NRIs. Common issues include:
- OTPs not working due to Aadhaar not linked with Indian mobile.
- “Access Denied” errors during net banking/EVC login.
- A circular loop when adding a bank account for EVC verification.
Even resident taxpayers are facing login and e-verification errors, while grievance responses remain generic.
Final Takeaway
The ITR filing process for FY 2024-25 is more stringent, transparent, and technology-driven. To avoid scrutiny, taxpayers must:
- Ensure accurate reporting of deductions and exemptions.
- Compare both old and new regimes before selecting.
- Understand the new capital gains and indexation rules.
- Be prepared for possible portal verification glitches.
👉 With the Income Tax Department actively using AI tools, accuracy is more important than ever. Over-claiming or misreporting can easily lead to notices and scrutiny.
If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.