Filing your Income Tax Return (ITR) for the first time might feel confusing, but don’t worry — the online filing system has made the process far simpler than it used to be.
This article is specially created for first-time filers who want to understand the step-by-step process of filing their ITR correctly and confidently.
An ITR is a yearly report that shares details of your income with the Income Tax Department. Your income could include your salary, profits from investments or property, business earnings, rent received, or any other source of income.
The Process of Filing ITR First Time
If you’re new to filing an Income Tax Return (ITR), here’s how you can get started smoothly:
Step 1: Register on the Income Tax Portal
- Visit https://www.incometax.gov.in/iec/foportal
- Click on ‘Register’
- Select ‘Taxpayer’ as your user type
- Enter your PAN and click on ‘Validate’, then hit ‘Continue’
- Fill in your basic personal details (name, address, gender, etc.)
- Enter your mobile number and email address
- Click on ‘Continue’ to proceed
- You will receive an OTP on your registered mobile and email
- Enter the OTP to verify your identity
- Review your details, edit if needed. A fresh OTP will be sent for any changes
- Create your login password and set a secure login message
- Click ‘Register’. A success message will confirm your registration
Step 2: Filing Your ITR Online
- Return to the e-filing website and click on ‘Login’
- Enter your user ID (PAN) and password
- Click on ‘e-File’ > ‘File Income Tax Return’
- Choose the correct assessment year and click ‘Continue’
- Select ‘Online’ as the filing method
- Choose ‘Individual’ as your category
- Pick the appropriate ITR form
- Specify your reason for filing (mandatory)
- Enter and pre-validate your bank account details
- On the summary page, carefully review all the pre-filled and entered details
- Once confirmed, validate and submit your ITR
- Complete e-verification, and send a signed physical copy to the IT Department if required
Documents required for first-time ITR Filing
To file your ITR correctly, you should keep these documents ready:
- Form 16 – Provided by your employer, showing your salary and tax deducted.
- Form 26AS and AIS (Annual Information Statement) – These show all taxes paid and TDS details.
- Bank statements – Required to declare interest income and support financial records.
- Salary slips – Helpful in confirming salary-related entries in the return.
- Investment proofs – Keep documents for LIC, PPF, ELSS, and other tax-saving instruments.
- House rent receipts or rent agreement – Needed if you're claiming House Rent Allowance (HRA).
- Home loan interest certificate – Essential for those claiming interest deductions on a housing loan. If you're planning to buy your first home or considering upgrading to a larger property, understanding your financing options is just as important as managing your taxes. A home loan from Bajaj Finserv can help you achieve homeownership with competitive rates starting from 7.49%* p.a and flexible repayment terms up to 32 years. Check your home loan eligibility with Bajaj Finserv today. You may already be eligible, find out by entering your mobile number and OTP.
- PAN and Aadhaar card – Make sure your PAN is linked to Aadhaar to complete e-filing.
- Other income proofs – Includes documents showing capital gains, business income, freelance payments, etc.
Keeping these documents handy ensures a smooth and accurate tax filing process.
Step 1: Understand the basics
What is ITR?
An Income Tax Return (ITR) is a form that individuals, businesses, and other entities use to report their income, expenses, tax deductions, investments, and other financial details to the Income Tax Department of India. Filing ITR is mandatory for individuals whose income exceeds the basic exemption limit.
Why file ITR?
Filing ITR is not only a legal obligation but also provides several benefits:
- Proof of income
- Claiming tax refunds
- Applying for loans
- Carrying forward losses
- Avoiding penalties
Step 2: Gather necessary documents
Before you start the filing process, ensure you have the following documents ready:
- PAN card: Your Permanent Account Number (PAN) is a unique identifier for tax purposes.
- Aadhaar card: Mandatory for filing ITR in India.
- Bank statements: Detailed records of all your financial transactions.
- Form 16: Issued by your employer, this form details your salary and tax deductions.
- Form 26AS: Your consolidated annual tax statement.
- Investment proofs: Documents for investments made under Section 80C (PPF, NSC, etc.), Section 80D (medical insurance), and other deductions.
- Loan certificates: Interest certificates for home or education loans.
- Salary slips: Detailed records of your monthly salary.
Step 3: Register on the income tax e-filing portal
Follow the simple steps below to register:
- Visit the official Income Tax e-filing portal
- Click on the 'Register' button.
- Select 'Individual' as the user type.
- Enter your PAN number, name, and date of birth as per your PAN card.
- Complete the registration process by providing your contact details and setting a password.
Step 4: Choose the correct ITR Form
Different ITR forms are applicable to different types of income and entities. For most salaried individuals, ITR-1 (Sahaj) is the appropriate form. If you have additional income from other sources, such as rental income or capital gains, you might need to use ITR-2 or ITR-3.
Step 5: Log in to the e-filing portal
Use your PAN as the user ID and the password you created during registration to log in to the e-filing portal. If you file online, the form will be automatically filled in with your details. While filing ITR electronically, you must choose the assessment year correctly.
Step 6: Fill in your personal information
- Name
- PAN
- Aadhaar number
- Address
- Date of birth
- Bank account details
Ensure that all information matches your official documents to avoid discrepancies.
Step 7: Fill in income details
- Salary income: Refer to your Form 16 for details.
- House property income: Rental income and deductions such as municipal taxes and interest on home loans. If you're renting because you haven't found the right financing option yet, it might be time to explore homeownership. With a home loan from Bajaj Finserv, you can transition from paying rent to building equity in your own property. Check your loan offers with Bajaj Finserv. You may already be eligible for competitive rates, find out by entering your mobile number and OTP.
- Other sources: Interest from savings accounts, fixed deposits, etc.
Step 8: Declare deductions and tax-saving investments
- Section 80C: Investments in PPF, NSC, ELSS, etc. (up to Rs. 1.5 lakh).
- Section 80D: Medical insurance premiums.
- Section 80E: Interest on education loans.
- Section 80TTA: Interest on savings accounts (up to Rs. 10,000).
Step 9: Pay additional tax (if any) and e-verify your returns
If there is any additional tax payable after considering TDS and other credits, pay the tax online through the e-filing portal using Challan 280.
The final step of how to file ITR for the first time is the e-verification of your return within 120 days of filing. This can be done through the following modes:
- Aadhaar OTP: Receive an OTP on your registered mobile number linked with Aadhaar.
- Net banking: Generate an Electronic Verification Code (EVC) through your bank’s net banking portal.
- Physical ITR-V: If you cannot e-verify, sign the ITR-V acknowledgment and send it to the Centralized Processing Centre (CPC) in Bengaluru within 120 days.
Income limit for filing ITR
If your total income crosses the basic exemption threshold for a financial year, you are required to file an ITR.
Here’s a quick look at the exemption limits under both tax regimes:
Old Tax Regime
Individuals below 60 years: Rs. 2.5 lakh
Senior citizens aged 60–79 years: Rs. 3 lakh
Super senior citizens (80 years and above): Rs. 5 lakh
New Tax Regime
Rs. 3 lakh for individuals of all age groups
If your total income (before deductions) is more than the above limit, it’s necessary to file your income tax return.
As your income grows and crosses these thresholds, you might also find yourself in a better position to secure a home loan. Higher income levels often translate to better loan eligibility and more favourable terms from lenders like Bajaj Finserv. Check your home loan eligibility and see how much you can borrow. You may already be eligible, find out by entering your mobile number and OTP.
Tips for first-time ITR filing
- Double-check details: Ensure all personal details and income figures are accurate.
- Claim all deductions: Make sure to claim all eligible deductions to reduce your tax liability.
- Cross-verify with Form 26AS: Always cross-verify TDS details with Form 26AS to avoid discrepancies.
- Keep records: Maintain all supporting documents for investments, deductions, and other incomes.
- File before deadline: File your ITR before the deadline to avoid penalties and interest.
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Common mistakes to avoid while filing ITR
- Incorrect personal information: Ensure your personal details are accurate and match your official documents.
- Missing income sources: Report all income sources, including interest income and rental income.
- Overlooking deductions: Claim all eligible deductions to maximize your tax benefits.
- Not verifying ITR: Failing to verify your ITR can lead to the return being considered invalid.
Filing your ITR for the first time can be a smooth process if you follow the steps outlined in this guide. By understanding the requirements, gathering the necessary documents, and accurately reporting your income and deductions, you can ensure a hassle-free filing experience.
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Conclusion
Filing your Income Tax Return for the first time might feel overwhelming, but completing it on time is essential to avoid penalties, interest charges, or legal notices. By following the step-by-step process outlined in this guide, you can simplify the experience and ensure you meet your tax responsibilities. Timely and accurate filing not only keeps you compliant but also helps with quicker visa approvals, smoother loan applications, and claiming tax refunds. With the right documents in hand and a good understanding of the procedure, your first ITR filing can be easy, stress-free, and beneficial in the long run.
Now that you've mastered the art of tax filing, why not take the next step towards financial growth by investing in your own home? Property ownership not only provides stability but also offers excellent tax benefits and long-term wealth creation opportunities. Explore your home loan options with Bajaj Finserv and check your eligibility for loans up to Rs. 15 Crore*. You may already be eligible, find out by entering your mobile number and OTP.
