Income-tax returns: From what documents are required, to which forms is the one to fill, and what is the last date of filing — we look at the top 10 important things to remember for first time taxpayers filing their income tax returns (ITR).
Notably, while the e-filing process has become quicker and easier over the years, the process can be daunting for for first-time filers. Salaries individuals overwhelmed by the process can use this simple checklist to ensure that they are properly prepared before filing ITR.
Top 10 things to remember for first time taxpayers filing ITR
- Who must file ITR? Notably, all Indian residents are required to file their ITR for income tax purpose:
If the aggregate of your income or salary exceeds the prescribed limits.
If they hold assets in India or abroad;
If they have investments in markets, shares, or ESOPs;
If they have bank deposits exceeding ₹50 lakh combined;
If they have savings or current account exceeding ₹1 crore total;
If they have paid electricity bill over ₹1 lakh annually; or
If they have travelled internationally with expenditure over ₹2 lakh; and
If the value of their sales (irrespective of income) exceeds ₹60 lakh.
- What is total taxable income? Your total taxable income is calculated as the gross earnings from salary and other sources (bank fixed deposits and shares, etc.), minus any tax-saving deductions you may have made. Such deductions include investment in public provident fund (PPF), national pension scheme (NPS), insurance, or payments towards loans and rent.
- Should I opt for old regime or new regime? The answer to the new vs. old tax regime debate depends completely on how much you earn and what deductable investments you can show. You can use online tax calculators to determine which option minimises your tax liability, or consult with a financial planner or your chartered accountant (CA), for the best course of action.
- What is the last date of filing ITR for FY24-25 (AY25-26)? The deadline for filing your ITR without incurring penalties for delayed returns this year is September 15, 2025. You can still file a delayed ITR till December 31, 2025, but this would cost you upwards of ₹1,000 to ₹10,000 depending on the duration of the delay and your taxable amount.
- What documents do I need to file ITR? Before filing your ITR keep the following documents ready as applicable: Form 16 (from current employer and former employer if you changed jobs mid-year), PAN Card, Aadhaar Card (PAN-Aadhaar must be linked), and investment proofs (including bank deposits, PPF deposits, etc.), home loan interest certificate, and insurance premium payment receipts.
- What is Form 16? This TDS certificate provided by your employer details your salary, deductions claimed, and exemptions availed, which are essential for filing your ITR.
- What is review Form 26AS? This document summarises income on which TDS has been deducted, which is crucial for accurate tax filing.
- What is Annual Information Statement (AIS)? Includes details like interest income, dividends, securities transactions, and foreign remittances, pre-filled in your ITR form for ease.
- What is e-verification? Is it mandatory? The Income-Tax (I-T) Department has noted that when filing your returns all assessees must complete the process by completing e-verification of their ITR filing. If not done within 30 days, it may result in your ITR refund getting delayed due to “invalid” or “incomplete” process. This can be done via the e-filing portal using Aadhaar OTP, net banking, or electronic verification code (EVC).
- Which ITR form should you choose? Choose the form as per your eligibility mentioned below:
Choose ITR-1 form: If you are an individual with income from salary, one house property, and other sources.
Choose ITR-2 form: If you are an individual or Hindu Undivided Family (HUF) without business income.
Choose ITR-3 form: If you are an individual or HUF with income from business or profession.
Choose ITR-4 form: If you have presumptive income from business or profession.
