Do You Need Proofs If Filing Under the New Tax Regime?
- PRITI SIRDESHMUKH
- Sep 19
- 9 min read
Updated: Sep 29
The introduction of the new tax regime for FY 2025-26 has brought a simplified approach to income tax filing for salaried individuals and taxpayers. One of the key questions many taxpayers have is whether proof submission is required under this new system. Unlike the old tax regime, which required detailed documentation for most deductions, the new regime allows for a streamlined filing process with minimal proof requirements. This change aims to reduce the administrative burden, save time, and encourage accurate reporting without the stress of gathering multiple documents. Understanding how proofs are treated under the new tax regime can help taxpayers plan their filings efficiently and avoid unnecessary errors or delays.
Table of Contents
Do You Need Proofs When Filing Under the New Tax Regime?
Under the new tax regime, most deductions are replaced by lower tax rates, and the majority of traditional deductions no longer require proof submission. Taxpayers do not need to submit documents for allowances like House Rent Allowance (HRA), Standard Deduction, or other section-specific deductions that existed in the old regime. Only specific claims, such as certain employer-provided exemptions or government-mandated contributions, may require documentation in rare cases. This simplification reduces the paperwork burden and makes the filing process faster and more transparent.
Basics of the New Tax Regime (FY 2025-26 Onwards)
The new tax regime replaces multiple deductions with lower income tax slabs. Key features include:
Reduced income tax rates for most income brackets.
Minimal deductions, with exemptions only for NPS contributions and certain employer benefits.
Simplified compliance, as taxpayers no longer need to maintain proof for most deductions claimed under the old system.
Focus on straight-forward income reporting, eliminating complexities associated with multiple proofs and exemptions.
Proof Requirements Under the New Tax Regime
While most deductions do not require proofs, taxpayers must maintain basic records in case of verification by the Income Tax Department. Examples include:
Employer-provided allowances that exceed standard exemptions.
NPS or pension contributions made directly by the employee.
Any special relief claimed that falls under government-specified categories. For routine deductions like standard deduction, HRA (if opting for exemption via employer), and other replaced deductions, no documents are required for filing.
Is Any Proof Required for NPS or Standard Deduction?
For NPS contributions made by the employee, submitting proof may only be necessary if claiming additional deduction under Section 80CCD(1B) over ₹50,000. Standard deduction, on the other hand, is applied automatically and does not require any supporting documents. This reduces the compliance burden and ensures faster processing of returns.
How Proof Submission Worked in the Old Tax Regime
In the old tax regime, almost all deductions required valid proof:
HRA required rent receipts and landlord details.
Section 80C deductions are needed for investment receipts (PPF, ELSS, LIC, etc.).
Medical insurance claimed under Section 80D required premium payment receipts.
Donations under Section 80G require official donation certificates. This system often caused delays and increased the chances of errors or mismatches with employer-reported TDS.
Situations Where Proofs May Still Be Needed
Even under the new regime, proofs may occasionally be needed:
If discrepancies arise between employer-reported income and actual contributions.
When claiming voluntary employer contributions to retirement benefits or certain specified exemptions.
If the IT Department raises a notice regarding specific allowances or reimbursements.
Advantages of Not Needing Proofs
Simplified Filing: Eliminates the need to gather and upload multiple documents.
Time-Saving: Filing can be completed quickly without searching for old receipts.
Reduced Errors: Less chance of mismatches between submitted proofs and actual claims.
Lower Stress: Taxpayers no longer need to maintain extensive records for everyday deductions.
Impact on TDS and Employer Reporting
Employers still deduct TDS based on gross salary or declared allowances. Since proofs are minimal, employers no longer need to validate every employee claim for deductions like the standard deduction. This ensures that salary processing and TDS reporting remain straightforward, aligning with the simplified filing under the new regime.
Filing Taxes Easily Using TaxBuddy
Platforms like TaxBuddy make it seamless to file under the new tax regime. The software automatically applies applicable deductions, calculates TDS, and guides taxpayers through the simplified process. TaxBuddy’s mobile app allows hassle-free filing without the need to upload proofs, ensuring a smooth and efficient experience.
Tips for Maintaining Minimal Records
Even though the Income Tax Department does not strictly require submission of proofs for most deductions and exemptions, maintaining a few essential records can help ensure smooth tax filing and provide support in case of any future scrutiny. Here are some practical tips for keeping minimal but effective documentation:
Keep NPS Contribution Slips: Contributions to the National Pension Scheme (NPS) under Section 80CCD are eligible for deductions. Retaining your NPS contribution slips, whether in physical or digital form, ensures that you have proof of investment ready. These slips may be required in the event of verification or a discrepancy notice from the Income Tax Department.
Maintain Documentation for Special Allowances: Certain allowances, such as travel, education, or house rent, may have exemptions or partial tax benefits. Keeping documents like travel bills, rent receipts, or fee statements is helpful, even if not mandatory, to validate these claims if the tax authorities seek clarification.
Retain Salary Slips for Reference: Salary slips serve as an essential record for checking consistency in income reporting, TDS deductions, and claimed exemptions. Retaining them ensures you can quickly verify figures or respond to any notices regarding discrepancies in reported salary or tax deductions.
By following these simple steps, taxpayers can maintain a lean yet sufficient set of records, making future filings and queries easier to manage while avoiding unnecessary documentation clutter.
Common Mistakes to Avoid While Filing Without Proofs
Filing your Income Tax Return (ITR) without proper proofs can lead to errors, mismatches, and potential notices from the Income Tax Department. While the new tax regime has simplified exemptions and deductions, certain mistakes remain common among taxpayers. Understanding these pitfalls can help avoid delays in processing refunds, penalties, or scrutiny.
Incorrect Income Reporting: One of the most frequent mistakes is reporting income incorrectly. Taxpayers must reconcile their income with the details provided in Form 16 issued by their employer. Failing to do so can lead to mismatched records between the employer’s TDS statements and the income reported in the return. For instance, if your salary, allowances, or bonus are not correctly captured, it may trigger a notice and delay refunds. Double-checking your Form 16, along with bank statements and other income sources, ensures that all income is accurately reported.
Claiming Non-Eligible Exemptions: Another common error is claiming deductions or exemptions that are not allowed under the new tax regime. The new regime has significantly reduced the number of exemptions and deductions available. Attempting to claim non-eligible items—like certain HRA benefits, standard deductions beyond the allowed limit, or outdated deductions—can result in disallowances or penalties. Always verify which exemptions are valid for the applicable tax regime before claiming them.
Ignoring Employer Contributions: Employer contributions to benefits such as the National Pension Scheme (NPS), provident fund, or health insurance must be correctly reported in your ITR. Many taxpayers either overlook these contributions or fail to include them, leading to mismatches with the employer’s TDS records. Accurate reporting of these contributions ensures proper credit of eligible deductions and prevents unnecessary scrutiny from the tax authorities.
By being mindful of these mistakes, taxpayers can file their ITR accurately, avoid errors, and ensure smoother processing of refunds and tax compliance. Platforms like TaxBuddy can also assist in cross-verifying income, exemptions, and employer contributions for error-free filing.
Key Differences Between Old and New Regimes Regarding Proofs
When it comes to filing Income Tax Returns (ITR), one of the major distinctions between the oldtax regime and the new tax regime lies in the documentation or proofs required to claim deductions. Understanding these differences helps taxpayers prepare efficiently and ensures smooth filing.
Old Regime: In the old tax regime, taxpayers were required to submit comprehensive proof to claim most deductions and exemptions. For example, deductions under Section 80C (like life insurance premiums, PPF contributions, and ELSS investments), Section 80D (medical insurance premiums), and other allowances demand supporting documents. Each proof must be accurate and verifiable, as discrepancies can trigger notices or delay refunds. This level of detail, while ensuring compliance, often leads to time-consuming paperwork and requires careful tracking of receipts, bills, and statements.
New Regime: The new tax regime significantly simplifies the proof requirements. Most deductions are not available, except for a few cases such as National Pension Scheme (NPS) contributions and rare allowances where minimal proof is needed. Taxpayers do not need to maintain detailed documents for standard exemptions, which reduces the risk of filing errors.
Benefits of Simplified Proof Requirements:
Faster Filing: Reduced documentation allows for quicker ITR preparation.
Lower Error Rates: Minimal proof decreases the chances of mismatched claims or rejections.
Reduced Administrative Work: Both taxpayers and employers save time, as verification of multiple documents is largely unnecessary.
Smoother Compliance: Streamlined proof requirements make it easier for salaried individuals and small business owners to comply without additional professional help.
Overall, the shift from comprehensive documentation in the old regime to minimal proof in the new regime transforms tax filing into a faster, simpler, and less error-prone process, benefiting both taxpayers and the tax authorities.
Conclusion
The new tax regime has significantly simplified the filing process by eliminating the need for most proofs. Taxpayers can now focus on accurate income reporting without being burdened by extensive documentation. For anyone looking for assistance in tax filing, it is highly recommended todownload the TaxBuddy mobile appfor a simplified, secure, and hassle-free experience.
FAQs
Q1. Does the new tax regime require any proofs for standard deduction?
No, under the new tax regime, the standard deduction of ₹75,000 (for FY 2024–25) is automatically applied. Taxpayers do not need to submit any supporting proofs or documents to claim it. This makes filing simpler for salaried individuals. However, keeping salary slips for reference is recommended in case of any queries from the Income Tax Department.
Q2. Are proofs needed for NPS contributions under the new regime?
Yes, but only for additional contributions under Section 80CCD(1B), which allows an extra deduction of up to ₹50,000 beyond the Section 80C limit. Basic NPS contributions are accounted automatically, but taxpayers claiming the additional deduction should retain proof of contributions for verification.
Q3. Can I switch to the old regime if I want to submit proofs for deductions?
Yes, taxpayers have the flexibility to choose between the new and old tax regimes each financial year. If submitting proofs for deductions like Section 80C investments, Section 80D premiums, or home loan interest makes financial sense, opting for the old regime may result in a lower tax liability.
Q4. How does TaxBuddy simplify filing under the new regime?
TaxBuddy streamlines the filing process by automatically applying standard deductions, calculating taxes based on declared income, and highlighting applicable sections. Users do not need to manually upload proofs for standard deductions or allowances. The platform ensures accuracy and reduces errors while maintaining compliance with the Income Tax Act.
Q5. Do I need to maintain salary slips under the new regime?
While salary slips are not mandatory for claiming deductions under the new regime, keeping them is recommended for personal records and future reference. Salary slips can be useful if there are discrepancies in Form 16 or TDS statements, ensuring smooth processing of refunds and verification by the department.
Q6. Are donations under Section 80G required in the new regime?
Deductions for charitable donations under Section 80G are not available under the new regime. Instead, lower tax rates have been applied to simplify compliance. Taxpayers planning charitable contributions should factor this in when deciding whether to choose the old regime for the year.
Q7. Can employers still request proofs for allowances?
Yes, employers may request proof for certain allowances or reimbursements, such as travel, medical, or special benefits, even under the new regime. These proofs are mainly for internal accounting and reimbursement purposes, not for claiming tax deductions at the employee’s end.
Q8. Is TDS affected by the lack of proof requirements?
No, TDS (Tax Deducted at Source) is calculated based on the income declared by the employer in Form 16, along with the applicable tax slabs. The absence of a proof submission under the new regime does not affect TDS calculation. Employees will still have TDS deducted correctly by the employer.
Q9. Can filing without proofs delay my refund?
No, as long as income and TDS details are correctly reported, filing under the new regime does not require proofs and typically does not delay refunds. However, taxpayers should ensure that Form 16 and TDS statements are accurate to avoid discrepancies that may require additional verification.
Q10. Are minimal records necessary for IT verification?
Yes, maintaining basic records such as NPS contribution slips, Form 16, and bank statements is advisable. These documents can help resolve queries in case the Income Tax Department initiates verification or raises questions regarding TDS or reported income.
Q11. Can I claim old deductions retroactively after switching to the new regime?
No, deductions under the old tax regime can only be claimed if that regime is chosen at the time of filing for that financial year. Once a taxpayer opts for the new regime, old deductions like Section 80C, 80D, 80G, and others cannot be applied retroactively.
Q12. Does TaxBuddy provide expert assistance for the new regime?
Yes, TaxBuddy offers both self-filing and expert-assisted plans. Users can choose guided filing with step-by-step instructions or have a tax expert handle filing to ensure accuracy, proper TDS reflection, and timely submission. This is particularly helpful for salaried professionals, freelancers, and business owners navigating the new ITR forms and JSON utility.
Comments