The Income Tax Return (ITR) filing season for Assessment Year 2025-26 has started, and the Income Tax Department has already opened the portal for taxpayers. While many experienced taxpayers may find this routine, first-time filers often find the process confusing.
From choosing the right form to understanding tax regimes and deductions, several steps need to be followed carefully. A small mistake can lead to form rejection, delayed refunds, or even notices from the tax department.
Here’s a simple and complete guide for those who are filing their Income Tax Return for the first time. Follow these steps to stay on the safe side and avoid common errors.
1. Collect All Income Documents Before Filing
Before you begin the return filing process, make sure to gather all documents related to your income. Even if your total income is below the taxable limit, it’s necessary to declare all sources.
✅ Things You Must Collect:
- PAN Card and Aadhaar Card
- Form 16 from your employer
- Salary slips
- Bank account interest certificates
- Rental income details (if any)
- Capital gains statement (like stocks or mutual fund profits)
- Form 16A for TDS (if applicable)
Having all the papers ready before starting the process will save time and reduce the chances of making mistakes.
2. Link PAN with Aadhaar for Smooth Filing
It is mandatory to link your PAN with Aadhaar to file your ITR. If not done, the Income Tax portal will not allow you to submit your return.
You can check your PAN-Aadhaar linking status on the official Income Tax website. If not linked, do it right away using the same portal.
3. Understand the Two Tax Regimes Before Choosing
India has two tax systems — Old Regime and New Regime. You can choose whichever benefits you the most, but first-time filers often get confused.
📌 Old Tax Regime:
- Allows various deductions and exemptions (like 80C, 80D, HRA, LTA, etc.)
- Suitable for people with more investments or deductions to claim
📌 New Tax Regime:
- Offers lower tax rates
- No major deductions or exemptions allowed
- Best for those who don’t have many savings/investments
Compare your income under both regimes using the tax calculator on the Income Tax website or with help from a CA.
4. Pick the Right ITR Form – It’s Very Important
The Income Tax Department offers seven different ITR forms. Each is designed for a different income type. Filing the wrong form can cause your return to be rejected.
Here’s a basic guide:
- ITR-1 (Sahaj): For salaried individuals earning up to ₹50 lakh
- ITR-2: For those with capital gains, more than one property, or foreign income
- ITR-3: For self-employed or professionals
- ITR-4 (Sugam): For presumptive income (small business or profession)
If you are salaried with no extra business or foreign income, you will likely use ITR-1. But check the official details on https://www.incometax.gov.in.
5. Claim All Available Deductions and Benefits
There are many tax-saving deductions available, especially under the old tax regime. First-time filers may not be aware of all of them, so here’s a list to help:
Popular Sections to Know:
- Section 80C: Up to Rs.1.5 lakh deduction for LIC, PPF, ELSS, EPF, tuition fees, etc.
- Section 80D: Deduction for health insurance premiums
- Section 80E: Deduction for education loan interest
- HRA (House Rent Allowance): For salaried people living on rent
- LTA (Leave Travel Allowance): For travel within India
Check your Form 16 carefully. It usually includes most of these deductions if your employer has already considered them.
6. Don’t Forget to Report Other Incomes Too
Even if your other incomes are small, they must be declared. First-time filers often miss this and may get notices from the IT department later.
You must include:
- Interest from Savings Bank Account
- Fixed Deposit Interest
- Dividend Income
- Gifts received (above ₹50,000)
- Freelancing or side income
There’s a special section in the ITR form where these incomes can be declared separately.
7. Check for TDS and 26AS Statement
Before finalizing your ITR, make sure to cross-check your income and TDS (Tax Deducted at Source) with Form 26AS.
This form shows all the taxes that have been already deducted by your employer, bank, or any other payer.
You can download it from the TRACES portal via the income tax website. Make sure the numbers match with what you’re entering in your ITR.
8. E-Verify Your ITR Within 30 Days
Filing your ITR is not the final step. You also need to verify it electronically. If not done, the return will be treated as invalid.
Ways to e-verify:
- Through OTP on Aadhaar-linked mobile
- Using net banking
- By uploading Digital Signature Certificate (DSC)
- By sending a signed ITR-V to CPC Bengaluru (if not doing e-verification)
If you choose e-verification, it must be completed within 30 days of filing.
Stay Aware of ITR Filing Deadline
The deadline to file ITR for AY 2025-26 is 31st July 2025. If you miss it, you might have to pay a late fee or miss out on refunds. Also, remember that your ITR is not considered complete until you verify it.
Once you submit your return, you have to e-verify it within 30 days. There are multiple ways to do it:
- Using Aadhaar OTP
- Through Net banking
- Using Demat account
- Or by sending a signed ITR-V to CPC Bangalore (if you can’t e-verify)
E-verification is mandatory and failure to do so will result in the return being considered invalid.
Important Reminders for First-Time ITR Filers
- Don’t wait till the last date – start early to avoid last-minute panic.
- Double-check every entry in your return – even a small spelling or number error can lead to issues.
- Keep your bank account details updated so that any refund can be credited easily.
- If you are unsure, take help from a tax consultant or use the filing assistance provided on the government portal.
- Once filed and verified, keep a copy of your ITR acknowledgment safely.
Final Tip: Filing ITR is not just for those who earn a taxable income. Even if your earnings are low, filing returns can help in getting loans, visas, or claiming refunds on TDS. So don’t skip it just because you’re not in the tax slab.
