Filing Income Tax Returns (ITRs) for FY 2024-25 has become more detailed and stricter compared to previous years. The Income Tax Department has introduced additional reporting requirements and tightened verification using AI tools. Here are the major updates every taxpayer—especially NRIs—should be aware of.
- More Detailed Reporting in ITR Forms
This year’s ITR forms demand specific details while claiming deductions. Only genuine claims will pass scrutiny. Key requirements include:
- Section 80C deductions: You must provide the policy number for LIC, PPF, or other eligible investments.
- HRA exemption: Disclosure of the actual rent paid is mandatory.
- Home Loan deduction: Additional details like bank name, loan disbursement date, outstanding loan amount, etc., are now required.
👉 The department is actively using AI-driven tools to detect hidden income and inflated deductions. Small mismatches or “over-claiming” can now trigger scrutiny.
- Choosing Between Old and New Tax Regime
With lower slab rates, the new tax regime is beneficial for many individuals—especially those with fewer deductions.
- If you have home loan interest or HRA benefits, the old regime may still save more tax.
- If not, the new regime generally works better.
- Big Capital Gains Tax Changes After July 23, 2024
The Interim Budget brought a major shift in capital gains taxation:
- For Residents:
- Option 1: Pay 12.5% tax without indexation
- Option 2: Pay 20% tax with indexation
- For NRIs:
- No choice – must pay 12.5% tax without indexation
👉 Many NRIs face higher taxes due to the absence of indexation benefit.
- Hidden Trap in Carry Forward of Losses
Your choice of taxation impacts the ability to carry forward losses:
- 12.5% without indexation → You can carry forward long-term capital losses.
- 20% with indexation → You cannot carry forward such losses.
This restriction is a major drawback for taxpayers with large losses. Similarly, under the new tax regime, carrying forward house property and business losses is also limited.
- Limited Indexation Benefit
Indexation is now restricted:
- Available only for land and building (at 20% tax).
- Not available for gold, jewellery, or other long-term assets – taxed at 12.5% without indexation.
- Rebate Under Section 87A – NRIs Beware
The rebate under Section 87A often creates 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 benefit.
- Portal & Verification Issues – A Growing Concern
This year, many taxpayers—especially NRIs—are facing serious portal challenges:
- OTPs not working due to Aadhaar not linked with Indian mobile.
- “Access Denied” errors in net banking or EVC verification.
- Adding a bank account for EVC creates a circular verification loop.
Even resident taxpayers are reporting login and e-verification glitches. Unfortunately, helpline responses remain generic, and the issue needs urgent resolution.
Final Takeaway
The ITR filing process for FY 2024-25 is stricter, more transparent, and technology-driven. Taxpayers must:
- Report accurate details for deductions.
- Carefully evaluate old vs. new regime.
- Understand the new capital gains and indexation rules.
- Stay cautious of portal verification glitches.
👉 In today’s compliance environment, accuracy matters more than ever. With AI-based monitoring, false claims or mismatches can easily lead to 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.
Stay Updated, Stay Compliant!
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.
