Filing your Income Tax Return (ITR) for the first time may feel confusing, especially if you don’t know how it works. The first step is to choose the right ITR form based on how you earn your income. This helps you file your return correctly and follow all rules.
For the Assessment Year 2025-26, it’s important to understand the filing process, gather all needed documents, and select the correct ITR form. Each form is made for different types of income, deductions, and exemptions. This helps calculate your total taxable income and how much tax you owe.
Your income can come from different sources like salary, business, rent, or profits from selling assets. You also need to report other earnings such as interest, dividends, or royalty income.
Filing ITR for the First Time? Here’s a Simple 10-Step Guide
The Income Tax Department has released seven ITR forms (ITR-1 to ITR-7) for FY 2024-25. The form you need depends on how you earn, how much you earn, and your taxpayer type. Choosing the correct form is important for a proper and error-free return.
If you’re filing an Income Tax Return (ITR) for the first time, don’t worry. Follow these easy steps to file your return online:
1. Understand the Basics
Income tax is a tax on your earnings. The Financial Year (FY) is from April 1 to March 31. The Assessment Year (AY) is the next year when your income is reviewed and taxed.
2. Keep All Documents Ready
Before you start, collect these documents:
- PAN Card
- Form 16 (from your employer)
- Bank statements
- Investment proofs (PPF, ELSS, etc.)
- TDS certificates
- Form 26AS (shows tax deducted and deposited in your name)
3. Register on the Income Tax Portal
Go to the income tax e-filing website.
- Select ‘Taxpayer’ and enter your PAN
- Fill in your details and verify via OTP
- Set a password and complete registration
4. Choose the Correct ITR Form
Pick the right form based on your income:
- ITR-1 (Sahaj): For salaried individuals earning up to ₹50 lakh
- ITR-2: For those with capital gains or more than one house property
- ITR-3: For business/professional income
- ITR-4 (Sugam): For presumptive income from small businesses or professions
5. Check Form 26AS
This form shows all taxes paid or deducted in your name. Make sure the details match your records before filing.
6. Claim Deductions to Save Tax
Use deductions to lower your tax amount:
- Section 80C: ₹1.5 lakh for investments (PPF, ELSS, LIC, etc.)
- Section 80D: Health insurance premium
- Section 80TTA: ₹10,000 on savings account interest
- Section 24(b): ₹2 lakh on home loan interest
7. Report All Income
List all income sources—salary, rent, interest, freelancing, etc. Hiding income can lead to penalties.
8. File Before Deadline
Submit your ITR by July 31 to avoid a late fee of up to ₹10,000. Filing early helps fix errors in time.
9. Ask a Tax Expert if Needed
If your finances are complicated, get help from a Chartered Accountant. They can guide you and ensure you get all tax benefits.
10. Keep Records Safe
Save a copy of your filed ITR, acknowledgment, and all related documents. You’ll need them for future reference or loans.
Conclusion:
Filing your first ITR doesn’t have to be stressful. With the right information and preparation, it’s a smooth process. Start early, follow the steps, and stay organized to file your return correctly and on time.
FAQs
1. What is the due date for filing Income Tax Return in India?
The due date for most individual taxpayers is July 31 of the relevant assessment year.
2. Which ITR form should a salaried person use?
Salaried individuals typically use ITR-1 (Sahaj), unless they have other income sources like capital gains or foreign income.
3. Do I need to file ITR if my income is below ₹2.5 lakhs?
No, it’s not mandatory if your total income is below the basic exemption limit, unless you meet specific conditions.
4. What documents are required to file Income Tax Return?
You need Form 16, PAN, Aadhaar, bank statements, interest certificates, and details of investments or deductions.
5. Can I revise my Income Tax Return after filing it?
Yes, you can file a revised return before the end of the assessment year if you find any mistakes in your original return.
