How to File ITR for the First Time – Beginner's Guide 2025

How to File ITR for the First Time – Beginner's Guide 2025

Filing your income tax return for the first time can seem overwhelming, but it is simpler than you think. Whether you just started your first job, began freelancing, or earned income from investments, this beginner-friendly guide will walk you through the entire process from registration to e-verification.

When Should You File an ITR?

You are required to file an income tax return if:

• Your gross total income exceeds the basic exemption limit (Rs 2.5 lakh under old regime or Rs 3 lakh under new regime)
• You want to claim a tax refund for excess TDS deducted
• You want to carry forward losses from investments or business
• You need ITR as proof of income for visa applications or loan processing
• You are a resident with foreign assets or signing authority in foreign accounts

Even if your income is below the exemption limit, filing a return creates a compliance history that is useful for future financial transactions.

Step 1: Gather Required Documents

Before starting, collect these documents:

• PAN Card – Your 10-digit alphanumeric tax ID
• Aadhaar Card – Must be linked with PAN
• Form 16 – TDS certificate from your employer (for salaried individuals)
• Bank statements – All savings accounts and FD interest certificates
• Investment proofs – PPF, ELSS, LIC, NPS, health insurance receipts
• Form 26AS / AIS – Available on the income tax portal after login
• Rent receipts – If claiming HRA exemption

Step 2: Register on the Income Tax Portal

1. Visit incometax.gov.in
2. Click "Register" on the home page
3. Select "Individual" as taxpayer type
4. Enter your PAN number – this becomes your user ID
5. Fill in basic details – name, date of birth, contact information
6. Set your password and complete OTP verification on your mobile and email
7. Your account is now active

Step 3: Choose the Right ITR Form

If you are a salaried employee with no capital gains or business income, ITR-1 is most likely the right form for you.

Step 4: Select Your Tax Regime

Choose between the old and new tax regime:

• New regime (default) – Lower tax rates, minimal deductions. Best if you do not have significant investments or HRA claims.
• Old regime – Higher rates but allows deductions under 80C, 80D, HRA, home loan interest, etc. Best if your total deductions exceed Rs 3.75 lakh.

Step 5: Fill in Your Income Details

The income tax portal provides prefilled data. Verify and enter:

• Salary income – As per Form 16
• Other income – Savings interest, FD interest, dividends
• House property income – If applicable
• Capital gains – If you sold investments during the year

Step 6: Claim Deductions

Under the old regime, enter your deductions:

• Section 80C – PPF, ELSS, EPF, LIC, home loan principal
• Section 80D – Health insurance premium
• Section 80TTA – Savings account interest (up to Rs 10,000)

Step 7: Verify Tax Computation

The portal computes your tax after all deductions. Check:

• Is the total income correct?
• Are all deductions properly claimed?
• Does the TDS credit match your Form 26AS?
• Is there tax payable or refund due?

Step 8: Pay Outstanding Tax (if any)

If tax is due, pay through e-Pay Tax on the portal before submitting your return.

Step 9: Submit and e-Verify

After reviewing, click Submit. Then e-verify immediately using Aadhaar OTP – it takes just 30 seconds. Without e-verification, your return is not considered filed.

What Happens After Filing?

• You receive an ITR acknowledgment (ITR-V) via email
• The CPC processes your return within 15-45 days
• If a refund is due, it will be credited to your pre-validated bank account
• If there are any discrepancies, you will receive a notice – respond through the portal

File Your First ITR with FileWithUs.ai

Confused by the income tax portal? FileWithUs.ai provides a beginner-friendly interface designed specifically for first-time filers. Our platform guides you through every step with simple language, auto-populates your data, and ensures nothing is missed. File your very first return accurately and confidently.