ITR Filing 2025: Old Regime May Invite Notices; 'Other Deductions' in New Regime Under Scanner

In a strong and clear advisory to taxpayers, the tax professional community has sounded an alarm ahead of the Income Tax Return (ITR) filing season for Assessment Year 2025-26. The message is simple: be cautious, be honest, and donโ€™t game the system.

According to the advisory, those opting for the old tax regime should exercise heightened diligence and maintain full documentation. Tax professionals caution that with tighter analytics and increased red flags, the likelihood of receiving notices for additional information has risen significantly under the old regime.

“If the tax saving is marginal, consider the new tax regime, which is safer, more transparent, and generally attracts less scrutiny,โ€ the advisory noted.

The professionals also issued a stern warning against misusing the โ€œOther Deductionsโ€ field in the new regime, clarifying that it is not a loophole and will be cross-verified during processing. Any inconsistency may lead to questioning or penalties.

Most importantly, the advisory makes it clear that taxpayers alone will be held accountable for any unfair practices. โ€œIf you adopt unfair means, you will face the trouble โ€” not your consultant,โ€ it stated, reinforcing the principle that the responsibility to file correctly lies solely with the taxpayer.

The collective message from tax professionals ends with a firm appeal:
โ€œFile honestly.โ€

With the July 31 deadline approaching, this reminder from tax consultants across the country serves as a timely nudge for responsible and lawful tax compliance.

Read More: Fake ITC Scam: Lucknow Zone DGGI Uncovers Rs. 60 Crore GST Evasion

Mariya Paliwala
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