How to File ITR for the First Time: A Simple Step-by-Step Guide

Filing your Income Tax Return (ITR) can feel overwhelming for the first time, but it has become simpler and easier because of the online medium.! The right information and guidance help in this process simpler than ever. Whether you’re a salaried employee, freelancer, or business owner, this article will walk you through every step in an easy-to-understand way, and you can file your ITR properly and efficiently.

If you’ve never filed taxes before, don’t worry—we’ll break it down so you can file confidently and avoid common mistakes.

What is an Income Tax Return (ITR)?

An Income Tax Return (ITR) is a form that is used by individuals, businesses, and other entities to report their income, expenses, tax deductions, investments, and other financial information to the Income Tax Department. Filing an ITR is mandatory whose income exceeds the basic exemption limit. So, An ITR is an annual statement you submit to the Income Tax Department, declaring your income, deductions, and taxes paid. It has earnings from:

• Salary
• Business/profession
• House property (rent)
• Investments (interest, dividends, capital gains)
• Other sources

Why is Filing an ITR Important?

✔ Legal Requirement: It is proof of your revenue and also it is mandatory if your income exceeds ₹2.5 lakh (₹3 lakh for seniors).

✔ Financial Proof: It is important when you need loans, visas, or high-value transactions.

✔ Refund Claims: You get back extra tax deducted (TDS).

✔ Avoid Penalties: Late filing attracts fines and interest.

Documents You’ll Need

When you start the ITR (Income Tax Return) filing process, then you ensure and have the following documents:

• PAN card: Permanent Account Number (PAN) is a unique identifier.
• Aadhaar card: Mandatory for filing ITR in India.
• Bank statements: It has detailed information on all your financial transactions.
• Form 16: It provides details of your salary and tax deductions.
• Form 26AS: Your consolidated annual tax statement and it shows TDS/ advance tax paid.
• Investment proofs: Documents for investments made under Section 80C, 80 D (PPF, NSC, medical insurance etc.), and other deductions.
• Loan certificates: Interest certificates for home or education loans if applicable.
• Salary slips: Detailed records of your monthly salary.
• Rent receipts (if claiming HRA)

Not sure which documents apply to you? D A R & CO LLP can help manage your records.

Step-by-Step Guide How to File ITR

Step 1: Register on the Income Tax e-Filing Portal

1. Visit https://www.incometax.gov.in/
2. Click ‘Register’ → Select ‘Individual’ → Enter PAN (it acts as your username).
3. Fill in personal details (name, DOB, address).
4. Provide your mobile number and email (linked to Aadhaar).
5. Set a password and complete OTP verification.
6. You’re registered! Log in with your PAN and password.

Step 2: Choose the Correct ITR Form

Picking the wrong form is a common mistake. Here’s how to choose:

Who Should Use It?

ITR-1 (Sahaj) Salaried individuals with income up to ₹50 lakh (from salary, one house, interest).

ITR-2 Income from salary, multiple houses, capital gains (stocks, property), or foreign assets.

ITR-3 For business owners, freelancers, or professionals (like doctors, consultants).

ITR-4 (Sugam) Small businesses/self-employed under the presumptive taxation scheme.

Confused about the right form? D A R & CO LLP offers free consultations.

Step 3: Fill in Income Details

• Salary: Enter details from Form 16 (provided by your employer).
• House Property: Declare rent received or home loan interest paid.
• Other Income: Interest from savings accounts, FDs, or dividends.
• Capital Gains: Profits from selling stocks, mutual funds, or property.

Tip: Cross-check with Form 26AS to ensure all TDS is reflected.

Step 4: Claim Deductions

Reduce your taxable income by adding:

• Section 80C: ₹1.5 lakh (PPF, ELSS, life insurance premiums).
• Section 80D: Health insurance premiums.
• HRA: Rent paid (if salaried).
• Education Loan Interest (80E): No upper limit.

Pro Tip: Keep investment receipts handy to avoid errors.

Step 5: Calculate Tax & Pay Dues (If Any)

The portal auto-calculates your tax liability. If you owe tax:

1. Click ‘Pay Tax’ → Select ‘Challan 280’.
2. Choose payment mode (net banking/debit card).
3. Pay and save the receipt (BSR code needed for verification).

Step 6: Submit & E-Verify

1. Preview your ITR to check for errors.
2. Click ‘Submit’.
3. E-Verify within 30 days (mandatory to complete filing):
   • Aadhaar OTP (easiest method).
   • Net banking or Digital Signature (DSC).
   • Send signed ITR-V to CPC Bengaluru (if not e-verified).

Note: Without verification, your ITR is invalid.

Common Mistakes to Avoid

•  Missing the Deadline: July 31 (usually) for most individuals. Late fees apply.
• Incorrect PAN/Aadhaar: Ensure they’re linked to avoid rejection.
•  Choosing the Wrong ITR Form: Leads to notices from the tax department.
•  Not Reporting All Income: Even small interest income must be declared.

Why File on Time?

• No Penalties: Save up to ₹10,000 in late fees.
• Faster Refunds: Processed within 3–6 months if filed early. Smooth Loan/Visa Approval: Banks/embassies often ask for ITR receipts.

Some Tips for ITR filing first-time

1. Double-check documents: Confirm all personal details and income figures are correct.
2. Claim all deductions: Make sure to claim all qualified premises to lower your tax liability.
3. Cross-verify with Form 26AS: Always cross-verify TDS details with Form 26AS to avoid differences.
4. Keep records: Keep all supporting documents for investments, deductions, and other revenues.
5. File before the deadline: File your Income Tax Return (ITR) before the deadline to avoid fines and interest.

Need Help? D A R & CO LLP is Here!

At first time filing taxes can be tricky. Our experts can:

• Help you pick the right ITR form.
• Maximize deductions to save tax.
• Handle e-filing and verification.
• Respond to tax notices (if any).

Contact us today for stress-free tax filing!

Frequently Asked Questions

Conclusion

Filing your first ITR is a milestone in financial responsibility. With this guide and the right documents, you can do it effortlessly. For personalized assistance, trust DAR & CO LLP—your reliable tax partner.

File smart, and stay compliant!