Income Tax Returns: First-time ITR filers will have to choose one of the two tax systems (old and new). Also, they will have to link their PAN and Aadhaar cards so that e-verification can be done. Here are 5 important tips for first-time taxpayers.
Income Tax Returns: The Income Tax Department opened its portal for AY2025-26 earlier this month. With this, the way has been cleared for taxpayers to file returns online. If you are going to file income tax returns for the first time, then it is very important to keep some things in mind. There are many rules and nuances in it, if not followed, then your ITR form can be rejected.
The tax department has given seven different forms which depend on your income source, amount and other things. People filing ITR for the first time will have to choose one of the two tax systems (old and new). Also, they have to link their PAN and Aadhaar card so that e-verification can be done. Here are 5 important tips for first time taxpayers.
Income Source and Required Documents
While filing income tax return, it is important that you tell the source of all your income, even if your total income is less than the tax limit. Before filing tax, you need to keep all the necessary documents like PAN and Aadhaar card ready. Salaried people need to get Form 16 and salary slip from their employer. Apart from this, bank interest certificate, capital gains statement and records of rental income are also required.
Choose your tax regime
While filing tax, you have to choose between the old and the new tax system. The old system offers more exemptions and deductions, while the new system has lower tax rates but limited exemptions. Therefore, before filing tax, one should make a wise decision by comparing both the systems according to their needs.
Check deductions and exemptions
For first-time tax payers, it is important to check what exemptions and tax breaks they can get. While filling the form, one should keep in mind the exemptions available under sections 80C, 80D and 80E. Salaried people can avail full or partial tax exemption on house rent allowance (HRA), travel allowance, etc. Information about tax deducted at source is available in Form 16 and 16A.
Choosing the right ITR form
While filing tax returns, it is important to choose the right ITR form, which is based on your type of income. Enter every income and expense correctly, which is eligible for any deduction or exemption, and double-check everything before submitting it. Wrong information or mismatches can lead to rejection of the form.
Keep an eye on the deadline and do e-verification
Keep an eye on the last date of filing tax and do e-verification. Tax returns for assessment year 2025-26 can be filed till July 31. The Income Tax Department demands that e-verification be done within 30 days from the date of filing the return. Through e-verification, taxpayers confirm that the income tax return they have filed is correct.