ITR: Things to Consider When Filing Your Return for 1st Time
The taxpayers, along with the salaried individuals, can start filing their income tax return(ITR) for the earlier fiscal year as the new assessment year 2025-26 starts. The filing of the ITR can be completed online via the official income tax department portal.
Being aware of the tax law, the filing procedure, and a few other essential elements makes the tax filing an easier task. The ITR filing process for first-time filers can not be easier. Below are the 10 things specified that need to be considered by the taxpayer before ITR filing.
Major Steps to Do When Filing ITR At 1st Time
Here we have mentioned some important things before filing an online income tax return for the first time:-Select the Income Tax Slab Rates
Choose the correct tax regime slab: The Old regime has a standard deduction of Rs 50,000, and the New regime has Rs 75,000. But the majority of the deductions are merely accessible under the earlier income tax scheme and not under the existing one.
Manage All Your Sources of Income
When your ITR is filed, it is important to report all income sources. Even if your total income is less than the taxable limit, there are specific cases where specifying your income and assets is still needed. To ease the procedure, ensure you have all the required documents ready and keep precise income and financial transaction records.
Collect All Income Documents
Prepare all the needed paperwork before filing your Income tax return, along with Form 16 for PAN and Aadhaar (for salaried individuals), pay slips, bank interest certificates, capital gains statements, and rental income records.
Confirm Personal Details, Link PAN Aadhaar
Ensure your PAN is linked with your Aadhaar to have e-verification in the subsequent phase. Ensure your name, birthdate, and gender appear appropriately on all official documents to prevent any additional problems.
ITR Form
It is crucial to choose the precise ITR Form as per your financial status and income source. Any ITR Form discrepancy can lead to rejection. The ITR proposes 7 distinct ITR forms- ITR-1 to ITR-7.
ITR-V is an acknowledgement document, not a filing form, that needs to be printed, signed, and submitted to the Income Tax Department following an online ITR filing if it is not e-verified.
Verify Available Tax Deductions & Exemptions
Learn the exemptions and deductions you are entitled to before ITR Form filing. Various sorts of deductions may be acknowledged at the time of filing the return, along with the deductions under sections 80C, 80D, and 80E.
Observing the ITR Filing Deadlines
Learn about the ITR filing date; July 31 will be the due date for the FY 2024-25 (assessment year 2025-26). July 31 is the due date to furnish the ITR of the assessment year for the individuals and Hindu Undivided Families who are waived from audit.
ITR E-verification
Within 30 days of filing, the ITR should be e-verified to guarantee the integrity and genuineness of the returns. It serves as a means of validating that the taxpayer has analysed and accepted the data contained in the ITR.
After the completion of the verification, you receive an acknowledgement message on your mobile device and email. It is significant to preserve this proof.
Fill Form
Taxes-deducted-at-source certificates are located on Forms 16 and 16A. Form 16 is exclusively for income from salaries. There are two parts to it: Part A and Part B. However, Form 16A applies to TDS on income sources apart from salaries.
Enhance I-T Examining
The Finance Bill 2025 enables the Income Tax Department to search for discrepancies between current and previous years' tax returns. This measure aims to reduce tax evasion and enhance tax compliance.
Final Words: Filing your Income Tax Return (ITR) for the first time can seem like a challenging task, but breaking it down into simple steps makes the process much more manageable. If you’re filing the return for the first time, start by gathering all the essential documents you’ll need, such as Form 16 (which details your tax deductions and payments), bank statements, and records of any additional income sources.
Selecting the correct ITR form depends on your type of income. To simplify the process, you can consider using a user-friendly, government-approved Gen Income Tax software. It offers a free trial version, allowing you to explore its features and understand how it works before committing.