The Income Tax (I-T) department has already released online utilities for ITR-1, ITR-2, and ITR-3. Here, we outline some key points to keep in mind if you are a first-time taxpayer.
Filing ITR: Make note of these key points
I. Seeking an expert’s advice: If you are a first-time taxpayer, it is recommended to seek an expert’s advice – a chartered accountant or an income tax expert. If you only have one source of income, then it may be easy to do it on your own, but if you have multiple sources of income and numerous deductions that you intend to claim, then an expert’s advice is highly recommended.
II. Register on the I-T portal: Before you log in to the Income Tax (I-T) department, you will have to first register on the I-T portal. For this, you will need to have a PAN, which should be linked to Aadhaar.
Visit the Income Tax portal and click on ‘Register’ given at the top right of the page. Then enter your PAN and follow the steps as given.
III. Gather and reconcile comprehensive documentation: Taxpayers must make sure to arrange necessary documents and reconcile necessary information.
“First-time filers must collect several critical documents to ensure accuracy and completeness. These include Form 16 from your employer, Form 26AS and AIS/TIS from the income-tax portal to cross-verify all sources of income and tax credits claimed by employers, banks, and institutions, interest certificates, investment proofs (Section 80C/80D), home-loan statements, capital gains slips,” says CA Shefali Mundra, Tax Expert at ClearTax.
“They also require detail-level information required under the new ITR utility: landlord identity, policy numbers, insurer details, receipt/account numbers for HRA or investment claims—this helps reduce fraudulent or unverifiable deduction claims,” Mundra adds.
IV. Choosing the correct tax return form: There are different income tax return (ITR) forms based on your sources of income. For example, salaried employees can file their return by filing a return with ITR-1, and as these sources increase, tax return forms also change. Read this Livemint article to know more about this.
“Use ITR-1 if you are a salaried individual with total income up to ₹50 lakh etc. Filing with the wrong form may lead to your return being treated as defective or invalid. Choosing the correct form helps ensure proper reporting of all your income sources and eligible deductions, reducing chances of errors or missed benefits. Decide whether to opt for the old tax regime, which allows deductions like 80C and 80D, or the new regime, which offers simpler tax slabs but fewer deductions. Select the one that suits your situation,” says Avnish Arora, Executive Director, Direct Tax, Forvis Mazars in India
V. Choosing the right tax regime: As a salaried employee, you must have already informed your employer about the tax regime that you are opting for. But if you have the option to choose the income tax regime, it is recommended to compare the tax liability under both regimes before you choose the regime you want to go for. Taxpayers can access the tax calculator here.
“First‑time filing is more than just a formality—it’s an opportunity to begin your financial journey with transparency and accuracy. Choosing the right form, syncing all records, understanding your tax obligations, and filing correctly and timely will set you on the path of compliant and confident tax management,” adds CA Mundra.
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