Filing your first ITR — a complete beginner's walk-through

Step 1 Decide: do you need to file?

For FY 2025-26 (AY 2026-27), you must file an ITR if your gross total income (before deductions) exceeds the basic exemption limit:

• Under 60 years: ₹3,00,000 (new regime — same as 0% slab) or ₹2,50,000 (old regime)
• Senior citizen (60-79): ₹3,00,000 (old regime)
• Super-senior (80+): ₹5,00,000 (old regime)

Even if you fall below these thresholds, you must file if:

• You deposited > ₹1 Cr in current accounts or ₹50 L in savings accounts
• You spent > ₹2 L on foreign travel
• You paid > ₹1 L in electricity bills
• You hold any foreign asset or have foreign income
• Your TDS deducted exceeds ₹25,000 (₹50,000 for seniors) — file to claim refund
• You want to carry forward a capital loss

Step 2 Gather your documents

Collect these before you sit down to file. Half the filing time is hunting for paperwork.

Step 3 Choose your regime — old vs new

From AY 2024-25 onwards, the new regime is the default. You have to actively opt for the old regime if you want it.

Quick decision rule:

• If your total deductions (80C + 80D + HRA + home-loan interest + 80CCD-1B) are under ~₹2 L → new regime wins
• If above ~₹4 L → old regime usually wins
• In between → model both and pick the lower

The Finance Act 2025 increased the Sec 87A rebate in the new regime such that taxable income up to ₹12 L pays zero tax (effectively gross up to ₹12.75 L for salaried, after standard deduction of ₹75K).

Use our free income-tax calculator to model both — it does the math automatically and tells you which regime saves more for your specific numbers.

Step 4 Pick the right ITR form

Picking the wrong form means your return is treated as "defective" and you'll have to file a revised one. Use our ITR Form Picker if unsure, or follow this quick guide for salaried first-timers:

If you have…	File…
Only salary + one house property + interest + agri income ≤ ₹5K, total income ≤ ₹50 L	ITR-1 (Sahaj)
Capital gains (shares, MF, property), or income > ₹50 L, or > 1 house property, or foreign assets	ITR-2
Business or professional income (consulting, freelance) + maybe salary	ITR-3
Small business / profession under presumptive scheme (Sec 44AD / 44ADA / 44AE), total income ≤ ₹50 L	ITR-4 (Sugam)
Non-resident or RNOR	Cannot use ITR-1 or ITR-4 — use ITR-2 or ITR-3

Step 5 Reconcile AIS / 26AS against Form 16

This is the single highest-leverage step. Mismatches cause Sec 143(1) intimations.

Cross-check these three documents line-by-line:

1. Form 16 from your employer — shows salary paid + TDS
2. Form 26AS — shows TDS as reported by deductors
3. AIS — shows everything else: SB interest, FD interest, dividend, broker P&L, mutual-fund sales, GST T/O (if applicable), foreign remittances

Common mismatches:

• Employer didn't file 24Q on time → 26AS shows ₹0 TDS even though Form 16 shows ₹X
• AIS double-counts broker sales (sale value AND P&L)
• Mutual-fund redemption proceeds shown but not the cost basis (looks like all gain)
• Bank SB interest reported separately for each account — totals may surprise you

Use the free AIS reconciler in our toolkit. If AIS shows wrong data, file AIS feedback via the portal before filing the ITR.

Step 6 Compute taxable income and pay any balance

For a typical salaried filer:

1. Total income = Salary + Other (interest / dividend / CG) − Exemptions (HRA / LTA if old)
2. Less: Standard deduction (₹75K new / ₹50K old)
3. Less: Chapter VI-A deductions (80C / 80D etc. — old regime only)
4. = Taxable income
5. Apply slab rates → tax
6. Less: Sec 87A rebate (if eligible)
7. Plus: Surcharge (if income > ₹50 L)
8. Plus: 4% Health & Education cess
9. Less: TDS already deducted (Form 16 + 26AS)
10. = Balance to pay (or refund if negative)

If there's a balance, pay it via Challan 280 on the e-filing portal before filing the ITR. Tax type: "Self Assessment Tax (300)". Save the BSR code + challan number — you'll enter these in the ITR.

Step 7 File the ITR online + e-Verify

Log into incometax.gov.in with your PAN. The portal pre-fills most fields from AIS / 26AS / Form 16. Review every pre-filled number. Make any corrections (especially regime selection, capital gains, deductions).

After submission, you have 30 days to e-verify:

• Aadhaar OTP — most common (your mobile linked to Aadhaar gets the OTP)
• Net banking — login from your bank's portal
• DSC — Digital Signature Certificate (for businesses)
• Send physical ITR-V by post to CPC, Bengaluru (slowest, avoid if possible)

5 most common first-time mistakes

1. Forgetting bank account pre-validation — refund won't be issued to an unvalidated bank. Validate on the portal under Profile.
2. Wrong PAN-Aadhaar status — if not linked, PAN becomes inoperative. Pay ₹1,000 and link before filing.
3. Skipping AIS feedback — if AIS is wrong but you file based on actual, CPC sees mismatch and sends intimation.
4. Picking ITR-1 with capital gains — defective return. Use ITR-2 instead.
5. Not e-verifying within 30 days — return treated as never filed. ₹5,000 late fee when you finally do.

What happens after you file

The CPC processes your return automatically. Possible outcomes:

• Intimation u/s 143(1) — within 2-8 weeks. Confirms your numbers or notes adjustments. Read carefully.
• Refund credited — usually 4-12 weeks after filing, paid to your pre-validated bank account.
• Notice u/s 143(2) — scrutiny (rare for salaried first-timers). 6-12 months later. Engage a CA if this happens.
• Defective notice u/s 139(9) — if you used the wrong form or skipped mandatory disclosure. 15-day response window.

When should you hire a CA?

For pure salaried filing with no capital gains or foreign assets, you can DIY through the e-filing portal or use platforms like ClearTax / Quicko. It works.

Get professional help (us or any reputable CA) if you have:

• Capital gains from property / equity / mutual funds
• Foreign income / assets / RSUs
• Business or professional income
• NRI status / DTAA claim
• Multiple house properties
• Income > ₹50 L
• Got a notice from CPC
• Need help with regime planning

A CA's fee for a complex ITR (₹3-10 K depending on situation) almost always saves multiples in tax and avoided penalties.