Filing your ITR for the first time in India? This beginner-friendly guide shows you how to file your income tax return step-by-step using Form 16, 26AS & AIS with top tips, FAQs, and trusted resources.
Filing your Income Tax Return (ITR) for the first time can seem like a complex and intimidating task, especially if you’re unfamiliar with the terminology and online filing process. But with the right guidance and documentation, it’s simpler than most people expect.
This guide is designed to walk you through every step of the process—from understanding the basics to submitting your ITR online for the first time.
Let’s help you become a confident and compliant taxpayer in India.
Understanding Income Tax Return (ITR): Basics for First-Time Filers
Before diving into the filing process, it’s important to understand what an Income Tax Return is and why it’s necessary.
What is ITR?
An Income Tax Return (ITR) is a form in which a person reports their income, deductions, and taxes paid to the Income Tax Department of India. It serves as proof of income and compliance with tax regulations under the Income Tax Act, 1961.
Even if your total income is below the taxable limit, filing ITR may still be beneficial or required in specific cases—for example, to claim a refund or when applying for a loan or visa.
Who Should File ITR?
Here’s a quick look at individuals who must file an ITR in India:
| Criteria | Description |
|---|---|
| Income exceeds basic exemption limit | ₹2.5 lakh (below 60 years), ₹3 lakh (60–80 years), ₹5 lakh (80+ years) |
| Deposited large amounts in bank accounts | Cash deposits exceeding ₹1 crore in current accounts |
| High-value spending | Foreign travel over ₹2 lakh, electricity bill over ₹1 lakh in a year |
| Received income from abroad or multiple sources | NRIs, freelancers, or individuals with global income |
| Want to claim a refund | TDS deducted but income below taxable limit |
| Required under other laws | For carrying forward capital losses, etc. |
For an official reference, visit the Income Tax India portal.
Choosing the Right ITR Form
One of the most common doubts for first-time filers is: Which ITR form should I choose? Selecting the correct form is crucial because submitting the wrong one could result in rejection or penalties.
Common ITR Forms for Individuals
| ITR Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salaried individuals with total income up to ₹50 lakh and only one house property |
| ITR-2 | Individuals with capital gains, more than one house property, or foreign income |
| ITR-3 | Professionals, freelancers, or business owners |
| ITR-4 (Sugam) | Individuals under presumptive income scheme under Sections 44AD, 44ADA, or 44AE |
For detailed form selection criteria, consult the CBDT’s official ITR form guide.
Tip: Most salaried first-time taxpayers with no capital gains or business income will be eligible to file ITR-1.
Documents Required to File ITR
Gathering the correct documents ahead of time makes the ITR filing process much easier and error-free. Below is a checklist that applies to most first-time filers:
Essential Documents
| Document | Purpose |
|---|---|
| PAN Card | Mandatory for filing and verification |
| Aadhaar Card | Required for linking and authentication |
| Form 16 | Issued by employer; shows salary paid and TDS deducted |
| Bank Account Details | For refund processing and pre-validation |
| Form 26AS | Annual consolidated statement of TDS deducted |
| AIS (Annual Information Statement) | Tracks income, investments, and high-value transactions |
| Investment Proofs | For claiming deductions under sections like 80C, 80D, etc. |
| Loan Certificates | For home loan interest and education loan deduction claims |
To view your Form 26AS, log in to the TRACES portal via the Income Tax site.
Step-by-Step Guide to File ITR Online for the First Time
Filing your ITR online is not only convenient but also encouraged by the Income Tax Department. The e-Filing portal offers a streamlined interface suitable even for first-time users.
Follow these step-by-step instructions to complete your ITR filing without errors.
Step 1: Register on the e-Filing Portal
To get started, you must first register on the official Income Tax e-Filing portal.
How to Register:
- Visit the Income Tax e-Filing Portal.
- Click on ‘Register’ at the top-right corner.
- Select ‘Individual’ as your user type.
- Enter your PAN, which will also serve as your user ID.
- Fill in personal details like name, date of birth, and mobile number.
- Create a strong password and set up a secure login.
- Complete the OTP verification (via Aadhaar-linked mobile/email).
Once registered, you can log in anytime to access your returns, notices, refund status, and more.
Step 2: Log in and Choose the ITR Filing Option
After registration, log in using your PAN and password. Once inside:
- Click on “File Income Tax Return” under the e-File tab.
- Select the Assessment Year (e.g., 2024–25 for income earned in FY 2023–24).
- Choose the Online mode (recommended for most individual users).
- Select the appropriate ITR form (e.g., ITR-1 for salaried individuals).
Step 3: Fill in Basic and Income Details
You’ll now begin filling the ITR form step by step. Here's what each section involves:
| Section | Details Required |
|---|---|
| Personal Information | PAN, Aadhaar, Name, DOB, Address, Mobile Number, Email |
| Filing Status | Whether filing as Individual / HUF / other |
| Employment Category | Government, PSU, or private employee |
| Income from Salary | Auto-filled from Form 16 (verify accuracy) |
| Income from Other Sources | Interest on savings account, FDs, etc. |
| Deductions under Chapter VI-A | 80C, 80D, 80G, 80TTA, etc. (as per your proofs and declarations) |
| Tax Details | TDS entries auto-filled via Form 26AS and AIS (verify carefully) |
| Bank Details | Add at least one pre-validated bank account for refund credit |
Make sure to cross-verify all pre-filled details with your actual documents.
Step 4: Claim Deductions & Exemptions (Optional but Important)
If you’ve made eligible investments or expenses, you can claim deductions to reduce your taxable income. Below is a summary of common deductions available under Chapter VI-A of the Income Tax Act:
| Section | Deduction Type | Limit (FY 2024–25) |
|---|---|---|
| 80C | LIC, PPF, ELSS, Tax-saving FD, Tuition fees | Up to ₹1,50,000 |
| 80D | Health insurance premium | ₹25,000 – ₹1,00,000 |
| 80TTA | Interest on Savings Account (for non-senior citizens) | Up to ₹10,000 |
| 80G | Donations to eligible charities | 50% or 100% (varies) |
| 80E | Interest on education loan | Full interest amount |
You can refer to the deduction section of the Income Tax Act for detailed guidance and legal backing.
Important: Ensure your investments were made before March 31 of the financial year for which you’re filing.
Step 5: Compute Tax Liability or Refund
Once income and deductions are entered, the system automatically calculates:
- Total Taxable Income
- Total Tax Payable
- Tax Already Paid (TDS / Advance Tax)
- Balance Tax to Pay or Refund Due
If additional tax is payable, you must pay it using the Challan 280 facility on the TIN NSDL portal before proceeding.
Step 6: Pre-Validate Your Bank Account
For hassle-free refund processing, you need to link and pre-validate your bank account.
Steps:
- Go to “My Profile” > “Bank Account” on the e-Filing portal.
- Enter account number, IFSC, and bank name.
- Click “Validate” and complete OTP verification.
Only pre-validated accounts are eligible for refund credit. Ensure the account is in your name and is active.
Step 7: Preview and Validate the Return
Before you submit the return, it's essential to preview it thoroughly and confirm all data is correct. The e-Filing portal offers a “Preview Return” section where you can:
- Verify your personal information
- Confirm all income heads and deductions are reflected accurately
- Double-check the tax computation
- Ensure the bank account for refund is selected and pre-validated
Any discrepancy, especially in income or TDS data, can trigger a mismatch or notice from the tax department. Ensure the values in Form 26AS and AIS match your entries.
Step 8: Choose e-Verification Mode
Once validated, it’s time to verify your ITR. E-verification is mandatory — unverified returns are considered incomplete.
Here are the available e-verification methods:
| Verification Mode | Details |
|---|---|
| Aadhaar OTP | Linked mobile number receives OTP |
| Net Banking | Log in to bank portal and select “Income Tax e-Filing” |
| Bank Account EVC | Use pre-validated bank account to generate OTP |
| Demat Account EVC | If you’ve validated your Demat account, use it to generate an EVC |
| Digital Signature Certificate (DSC) | Mandatory for companies and audit cases |
| Physical ITR-V (only if e-verification fails) | Print, sign, and send to CPC, Bengaluru within 30 days |
For most salaried individuals, Aadhaar OTP or Net Banking is the fastest and simplest option.
The ITR-V form, if used, must be sent to:
Centralized Processing Center, Income Tax Department, Bengaluru – 560500
Track the dispatch and delivery status using India Post tracking to ensure timely receipt.
Step 9: Submit the Return
After successful e-verification, the return is submitted and acknowledged instantly. You’ll receive:
- Acknowledgment Receipt Number
- ITR-V Acknowledgment (if applicable)
- Status: Verified and Successfully Submitted
You can view and download the acknowledgment anytime from:
- “My Account” → “View Filed Returns” section.
This document is your legal proof of ITR filing, and you should save it securely for at least 6 years, especially if you plan to apply for visas, loans, or higher education.
Common Mistakes First-Time Filers Should Avoid
Many first-time taxpayers unknowingly make avoidable mistakes. Here’s a list of common errors — and how you can avoid them:
| Mistake | Impact | How to Avoid |
|---|---|---|
| Using wrong ITR form | Return may be declared defective | Use the ITR form selector tool |
| Mismatch in PAN or Aadhaar | Return submission gets blocked | Ensure names and DOBs match in both databases |
| Not reporting interest income | May lead to notices or penalty | Declare even small interest from savings and FDs |
| Ignoring Form 26AS and AIS data | Leads to tax mismatch | Always reconcile data before filing |
| Missing e-Verification step | Return treated as not filed | Always complete e-verification promptly |
| Claiming wrong deductions | May trigger scrutiny | Only claim eligible and supported deductions |
It's also advised to download Form 26AS and AIS before starting the return. These are available at the TRACES portal and income tax site respectively, and they summarize all TDS, taxes paid, and high-value transactions recorded against your PAN.
What Happens After You File ITR?
Once your return is submitted and verified, the following process takes place:
- ITD Processing: The Income Tax Department processes your return, which can take a few days to a few weeks.
- Intimation u/s 143(1): You’ll receive an intimation confirming:
- No demand and no refund, or
- Refund payable, or
- Demand payable (in case of under-reporting)
- Refund Status: If a refund is due, it’s credited to your linked, validated bank account.
To track your refund, visit the TIN NSDL refund tracking portal and enter your PAN and assessment year.
Pro Tip: Refunds are typically processed faster for those who e-verify promptly and have clean financial records.
Step 10: Revising or Correcting Your ITR (If Needed)
Mistakes can happen — even after careful filing. If you’ve filed your return but later realize there’s an error (like omitted income, incorrect deduction, or wrong bank detail), don’t panic. The Income Tax Department allows you to revise your return under Section 139(5).
Conditions for Revising ITR
| Criteria | Details |
|---|---|
| Time limit | You can revise your ITR before 31st December of the relevant assessment year |
| Status of original ITR | Must be filed and verified before revising |
| No. of revisions allowed | Multiple times, within the permitted window |
To revise:
- Log in to Income Tax e-Filing portal
- Select “File Income Tax Return” > Choose “Revised Return”
- Enter the Acknowledgment Number and Date of original filing
- Make necessary corrections and resubmit
Once revised, the new ITR supersedes the original one. Always save both copies for reference.
What If You Missed the Due Date?
If you didn’t file your ITR by the due date (typically 31st July for individuals), you can still file a belated return under Section 139(4).
Key Details of Belated Return
| Aspect | Details |
|---|---|
| Last date to file | 31st December of the assessment year |
| Late filing fee | ₹1,000 (if income < ₹5 lakh), ₹5,000 otherwise (Section 234F) |
| Interest on tax due | 1% per month from original due date (Section 234A) |
| Refund eligibility | Yes, refunds are still processed |
While you can file late, you cannot carry forward certain losses (like capital loss) if the ITR is filed after the deadline.
For complete compliance, it's best to file your return within the due date, even if you have zero tax liability.
Final Checklist for First-Time ITR Filers
Before you hit that “Submit” or “Verify” button, go through this final checklist to ensure a complete, accurate, and compliant ITR filing experience:
| Checklist Item | Status |
|---|---|
| PAN, Aadhaar, and Bank Account validated | ✔ |
| Correct ITR form selected | ✔ |
| All income sources declared | ✔ |
| TDS and AIS data reconciled | ✔ |
| Deductions and exemptions correctly claimed | ✔ |
| Taxes paid or refunded, if applicable | ✔ |
| Return previewed and validated | ✔ |
| E-verification completed | ✔ |
| Acknowledgment downloaded and saved | ✔ |
Use this table to cross-verify everything before and after your return is submitted.
Also know:
- How to Calculate In-Hand Salary from CTC
- Top 5 Free Payroll Software for Small Businesses in India
- Difference Between Gross and Net Salary Explained
- TDS on Salary: Rules, Slabs, and Exemptions
- Freelancer Taxation in India: Full Guide
Conclusion
Filing your Income Tax Return for the first time may seem overwhelming, but with proper planning and the right resources, it becomes a smooth and rewarding process. It not only fulfills your legal duty but also helps in building a strong financial record for loans, visas, and refunds.
By following this complete step-by-step guide, you ensure:
- Accurate reporting of income
- Timely refund processing
- Clean tax compliance history
- Peace of mind
FAQ
Is it mandatory to file ITR if my income is below ₹2.5 lakh?
No, it is not mandatory. But filing voluntarily helps with refunds, loan processing, and maintaining a good tax record.
Can I file my ITR online without a CA?
Yes. The Income Tax portal allows individuals to file ITR on their own using simple steps and available pre-filled data.
What documents are needed to file ITR?
You need PAN, Aadhaar, Form 16, Form 26AS, AIS, salary slips, bank details, and investment proofs (if claiming deductions).
How do I know which ITR form to choose?
Salaried individuals without business income usually file ITR-1. Others may require ITR-2, ITR-3, or ITR-4 based on income sources.
What is Form 26AS and why is it important?
Form 26AS shows your TDS, advance tax, and high-value transactions. It's crucial to cross-verify before filing ITR.
Can I file ITR without Form 16?
Yes, but you need to manually collect income and tax details from salary slips, Form 26AS, and AIS reports.
How can I revise my ITR if I made a mistake?
You can file a revised return under Section 139(5) before 31st December of the assessment year using the acknowledgment number.
What if I miss the ITR due date?
You can file a belated return with a penalty under Section 234F, but some losses can't be carried forward if filed late.
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