First-time filing? Top tips to make your income tax return process easy

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Choose the correct ITR form

The Income Tax Department offers different ITR forms depending on your source of income, amount, and taxpayer type. Filing the wrong form may lead to a defective return notice or penalties. First-time taxpayers who are salaried usually file ITR-1, but you should verify as per your exact situation.

Link PAN and Aadhaar

You are required to associate your Permanent Account Number (PAN) with Aadhaar to file. If they are not associated, your ITR cannot be processed. They can be associated using the e-filing portal upon payment of the prescribed fee if due.

Provide details of all the sources of income

Even if some income is not taxable, such as savings account interest below ₹10,000 under Section 80TTA, you will still be required to report it. Report also income received from casual jobs, freelance work, and investments, not just your principal salary.

Check Form 26AS and AIS

Before submission, verify tax credits using Form 26AS and Annual Information Statement (AIS). These reveal TDS paid by your employer, bank, or other payers and high-value transactions. Discrepancies should be explained before submission.

Claim eligible deductions and exemptions

Take advantage of deductions under Sections 80C, 80D, and others for investments, insurance premiums, medical expenses, and more. If you’ve opted for the old tax regime, claiming these can significantly reduce your taxable income.

Verify TDS certificates (Form 16 and 16A)

Verify your TDS in your Form 16 (salary) and Form 16A (non-salary) with your Form 26AS. This will provide you with credit for each rupee of tax already paid on your behalf.

Document preparation for verification

Although you are not required to upload all proofs at the time of filing, have your bank statements, investment evidence, rent receipt, and medical bills ready as a future tax department query may call for them.

Choose the proper tax regime

New filers have the option to choose from the old and the new regime. The right one is dependent on your income and eligible deductions. Compare using online calculators before making a decision.

Settle any self-assessment tax before submitting

If your overall tax liability is more than TDS deducted, you have to remit the balance amount as self-assessment tax and get the challan details revised in your return before filing. This helps your return get processed without any delay.

Check your ITR at the earliest

E-verification is missing unless you e-verify your ITR. You can e-verify by net banking, Aadhaar OTP, or any other accepted way. If you prefer physical verification, mail a signed ITR-V to the Centralized Processing Centre within 30 days.

FAQs

Q. What if I am unable to file ITR on the due date?

If you delay filing, you will be levied a late filing fee under Section 234F, miss the chance of setting off certain losses, and be subject to payment of interest on tax remaining unpaid.

Q. Can we make modifications in ITR after filing?

Yes, if you notice errors or left out income after filing, you can file a revised return till December 31 of the assessment year.

Q. Do I need to file an ITR if my income is below the taxing level?

You are not required by law to file if your income is below the threshold, but it's better to file in case you ever need a tax clearance certificate, visa, or loan.