First-Time ITR Filing Made Easy: Income Tax Department’s Step-by-Step Guide Empowers New Taxpayers

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For millions of Indians entering the workforce or earning taxable income for the first time, filing an Income Tax Return (ITR) can feel daunting. To ease this transition, the Income Tax Department has released a comprehensive guide tailored specifically for first-time filers. Shared via its official social media channels and available on the e-filing portal, the guide outlines every step of the process—from registration to e-verification—ensuring clarity, compliance, and confidence.

Whether you're a salaried employee, freelancer, or new entrepreneur, this initiative aims to simplify tax filing and encourage early submission to avoid last-minute stress.

Key Highlights From The Income Tax Department’s Guide

- First-time taxpayers must register on the Income Tax e-filing portal using their PAN linked to Aadhaar
- A six-step filing process is outlined, including document collection, form selection, and e-verification
- The department emphasizes early filing to avoid technical glitches and ensure smooth processing
- A video tutorial has been released to visually walk users through the portal interface and filing steps
- The guide is applicable for Assessment Year 2025–26, covering income earned in FY 2024–25

Step-by-Step Filing Process

1. Register on the e-Filing Portal
- Visit the official portal and click on ‘Register’
- Enter PAN details and validate with Aadhaar-linked OTP
- Set a secure password to complete registration

2. Collect Required Documents
- Form 16 from employer (for salaried individuals)
- Bank statements and salary slips
- Investment proofs (LIC, PPF, ELSS, etc.)
- Form 26AS and Annual Information Statement (AIS) for TDS and income reconciliation

3. Choose the Correct ITR Form
- ITR-1 for salaried individuals with income up to ₹50 lakh
- ITR-2 for those with capital gains or multiple house properties
- ITR-3 or ITR-4 for business or professional income

4. Fill in Income and Deductions
- Report income from salary, house property, capital gains, and other sources
- Claim deductions under Sections 80C, 80D, 80E, and others
- Choose between old and new tax regimes based on income composition

5. Submit the Return
- Review all entries carefully
- Submit the return through the portal

6. Complete E-Verification
- Use Aadhaar OTP, net banking, or digital signature
- E-verification must be completed within 30 days of submission

Why Filing Early Matters

The Income Tax Department strongly advises first-time filers to begin early. Early filing helps:

- Avoid last-minute portal congestion
- Ensure time for corrections or clarifications
- Speed up refund processing
- Reduce chances of errors due to rushed entries

Understanding Income Thresholds

Filing an ITR is mandatory if your gross total income exceeds the basic exemption limit:

- Below 60 years: ₹2.5 lakh
- 60–79 years: ₹3 lakh
- 80 years and above: ₹5 lakh
- Under the new regime: ₹3 lakh for all age groups

Even if your income is below the threshold, filing can help claim refunds, carry forward losses, and establish financial credibility.

Common Mistakes To Avoid

- Choosing the wrong ITR form
- Missing out on eligible deductions
- Not reconciling AIS and Form 26AS with actual income
- Skipping e-verification, which invalidates the return

Looking Ahead

The Income Tax Department’s proactive approach to guiding new taxpayers reflects its commitment to digital inclusion and financial literacy. With user-friendly tools, video tutorials, and simplified instructions, first-time filers are better equipped than ever to meet their tax obligations confidently.

Sources: Livemint, ClearTax, MSN News.