Filing your income tax return for the first time is a significant financial milestone in India. It marks your transition into a responsible taxpayer and builds a solid financial history. While the process might seem technical, the digital push by the Income Tax Department has made first time ITR filing India more accessible and transparent than ever before.
For the Financial Year (FY) 2025-26, the filing process is primarily online. Whether you are a salaried employee, a freelancer, or a small business owner, submitting your return correctly ensures you avoid penalties and stay eligible for future financial benefits.
Why Should Beginners File Tax Returns?
Many beginners wonder why they need to file a return if their income is below the taxable limit. Beyond mere compliance, tax returns serve as a critical document for several reasons:
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Loan Approvals: Most banks require three years of ITR for a Business Loan or a Home Loan.
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Visa Processing: Embassies often ask for ITR copies to check your financial standing.
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Income Proof: It acts as the most authentic proof of income for self-employed individuals.
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Tax Refunds: If you have paid more tax through TDS than your actual liability, filing ITR is the only way to get a Tax Refund.
Documents Required for ITR Filing
A first time tax return checklist is essential to avoid last-minute hurdles. Having your paperwork ready will help you complete the how to file ITR online step by step process without errors.
Mandatory Personal Documents
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PAN Card: Your Permanent Account Number is your primary ID for tax.
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Aadhaar Card: Must be linked with your PAN for e-filing.
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Bank Account Details: Account number and IFSC code for all active accounts.
Income and Tax Statements
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Form 16: This is the bank documentation checklist staple for salaried individuals, issued by employers.
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Annual Information Statement (AIS): Shows all your financial transactions like savings interest and stock sales.
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Form 26AS: A tax passbook reflecting TDS deducted on your behalf.
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Interest Certificates: From banks and post offices for your savings and FDs.
Investment Proofs (for Old Tax Regime)
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80C Proofs: LIC premiums, PPF receipts, and school tuition fees.
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Medical Insurance: Receipts for 80D deductions.
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Rent Receipts: To claim HRA if your employer didn’t consider it.
Which ITR Form to Choose First Time?
Choosing the right form is the most critical part of the income tax filing guide for beginners. Picking the wrong form can make your return “defective.“
| Form Type | Who Should Choose It? |
| ITR 1 (Sahaj) | For residents with income up to ₹50 Lakh from salary, one house, and interest. |
| ITR 2 | For individuals with capital gains, foreign assets, or income above ₹50 Lakh. |
| ITR 3 | For those having income from a proprietary business or profession. |
| ITR 4 (Sugam) | For residents opting for presumptive income schemes with income up to ₹50 Lakh. |
The ITR 1 vs ITR 2 difference usually boils down to the complexity of your income. If you only have salary and a Savings Account, ITR 1 is your best bet.
Step-by-Step ITR Filing Process 2026
The income tax return filing portal India has been updated for the Assessment Year (AY) 2026-27. Follow these steps to file:
1. Register on the E-filing Portal
If this is your first time, visit the Income Tax Department portal. Click on “Register” and use your PAN as your User ID. Complete the profile by adding your mobile number and email.
2. Select Filing Mode and Year
Log in and go to “e-File” > “Income Tax Returns” > “File Income Tax Return.” Select Assessment Year 2026-27 and the mode as “Online.“
3. Choose Your Tax Regime
For FY 2025-26, the New Tax Regime is the default. If you want to use the Old Tax Regime to claim deductions like 80C, you must explicitly select “Yes” to opt-out of the new regime during the filing process.
4. Verify Pre-filled Data
The portal will show data from your Form 16 and AIS. Check your salary and TDS entries. If you are using an Overdraft facility for business, ensure those interest payments are correctly categorized if filing ITR 3.
5. Confirm and Pay Tax
Review the tax computation. If you have any “Tax Payable,” you must pay it using Net Banking or UPI before submitting. If a refund is due, ensure your bank account is “Pre-validated” on the portal.
How to E-Verify ITR
Your filing is not complete until you verify it. You must do this within 30 days of submission. The how to e verify ITR options include:
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Aadhaar OTP: The fastest method if your mobile is linked to Aadhaar.
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Net Banking: Log in to your bank and use the “e-Verify” link.
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Bank Account EVC: Generate an Electronic Verification Code via your pre-validated bank account.
Important Dates and Deadlines
Mark your calendar for the income tax return last date 2026:
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31 July 2026: Deadline for individuals and non-audit cases.
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31 October 2026: For businesses requiring a tax audit.
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31 December 2026: Last date for filing a “Belated Return” with a penalty.
ITR Filing Mistakes to Avoid
Even seasoned taxpayers make errors. For a beginner, avoiding these ITR filing mistakes is vital:
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Mismatched AIS Data: Always cross-check your income with the Annual Information Statement.
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Omitting Interest Income: Don’t forget to report interest from all your bank accounts.
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Wrong Bank Account: A wrong IFSC code will delay your refund.
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Not E-verifying: Forgetting to verify makes your return invalid, leading to a notice.
FAQs
1. Can I file ITR without a CA?
Yes, you can file ITR without a CA if your income is straightforward. The online portal is quite intuitive for salaried individuals using ITR 1.
2. Is it mandatory to file ITR if my income is below 2.5 Lakh?
It is not mandatory unless you meet specific criteria like high electricity bills or foreign travel. However, filing a “Nil Return” is recommended to build a financial record for a future Construction Finance or Machinery Loan.
3. What if I missed the 31st July deadline?
You can file a belated return until 31st December 2026, but you will have to pay a late fee under Section 234F.
4. How long does it take to get a refund?
Generally, refunds are processed within 2 to 6 weeks after e-verification, provided there are no discrepancies.
Conclusion
Mastering how to file income tax return for the first time is about organization and accuracy. By using this complete guide on how to file income tax returns, you can ensure that your first filing is a smooth experience. Staying compliant not only saves you from legal trouble but also improves your CIBIL score indirectly by showing financial stability.
Ready to start your financial journey?Check your eligibility for various financial tools or Contact us for expert guidance on tax and loan planning.
For more visual guidance on navigating the portal, you might find this step-by-step ITR-1 filing walkthrough helpful. It demonstrates the actual interface changes for the 2026 season.
How to File Income Tax Return for the First Time (2026 Complete Guide)
