First time filing your Income Tax Return? Don’t worry! From knowing if you actually need to file, to picking the right form, and meeting the deadline, here’s a simple checklist of the 10 most important things you should remember.
Filing your first ITR (Income Tax Return) can feel overwhelming. However, with a bit of preparation, it’s a smooth process. Here’s your step-by-step guide.
1. Do you need to file ITR?
You must file your ITR if you meet any of these conditions:
- Your total income exceeds the prescribed taxable limit.
- You own assets in India or abroad.
- You have investments in shares, ESOPs, or other markets.
- Your total bank deposits exceed ₹50 lakh.
- Your savings/current account total balance exceeds ₹1 crore.
- You’ve paid over ₹1 lakh in electricity bills in a year.
- You’ve spent over ₹2 lakh on foreign travel.
- Your annual sales value exceeds ₹60 lakh (even if profit is lower).
2. Understand your total taxable income
Your taxable income = total earnings (salary + interest + investments) minus deductions (if any).
Deductions can include:
- PPF or NPS contributions
- Life/Health Insurance premiums
- Home Loan interest
- Rent payments (if eligible)
3. Old regime or new regime?
The new regime offers lower tax rates but fewer deductions. The old regime has higher rates but allows more deductions.
Tip: Use our online tax calculator or consult a Chartered Accountant to see which option saves you more.
Additional Reading: All About Filing Nil Income Tax Returns
4. Mark the deadline
- Without penalty: File by 15th September 2025 (for FY 2024-25 / AY 2025-26).
- Late filing: You can file till 31st December 2025, but you’ll pay a penalty of ₹1,000-₹10,000 depending on your income and delay.
5. Keep these documents ready
- Form 16 from your employer(s)
- PAN & Aadhaar card (must be linked)
- Proof of investments (PPF, FD, insurance receipts, if applicable)
- Home Loan interest certificate (if any)
- Any other deduction-related receipts
6. Know your Form 16
Think of Form 16 as your salary report card — it shows your total pay, deductions, and exemptions. Your employer issues this, and it’s essential for accurate filing.
7. Review your Form 26AS
This form lists all income where TDS (Tax Deducted at Source) was applied. Cross-check it to avoid mismatches that can delay refunds.
Where to get it: You can download Form 26AS from the TRACES website or through the Income Tax e-filing portal using your PAN login.
8. Check your AIS (Annual Information Statement)
The AIS automatically lists your interest earnings, dividends, share transactions, and even foreign remittances. Remember that much of your ITR will already be pre-filled based on this.
Where to get it: Log in to the Income Tax e-filing portal, go to the ‘Services’ section, and select Annual Information Statement (AIS) to view or download it.
Additional Reading: Everything You Need To Know About Income Tax Return For Freelancers
9. Complete e-verification
Filing is not complete until you e-verify your ITR within 30 days of filing. Without it, your return may be marked “invalid” and refunds delayed.
You can e-verify via:
- Aadhaar OTP
- Net banking
- Electronic Verification Code (EVC)
10. Pick the right ITR form
- ITR-1: Income from salary, one house property, and other sources.
- ITR-2: Individuals/HUFs without business income.
- ITR-3: Individuals/HUFs with business/professional income.
- ITR-4: Presumptive business/professional income.
Filing your ITR on time isn’t just about avoiding penalties, it also helps you build a clean financial record, which can be crucial for loans, visas, and future investments. If you’re unsure, take professional help the first year – believe us, it’s worth the peace of mind.