Income Tax Returns AY 2025-26: 5 Simple Tips for First-Time Taxpayers

Filing your Income Tax Return (ITR) for the first time? The online portal for Assessment Year (AY) 2025-26 is now open, and while the process may seem complicated at first, it can be easy if you know what to do. Here are five important things you should remember when filing your ITR for the first time.

Collect All Income Details and Documents

Before starting, make sure you have a clear picture of all your income—even if it’s below the taxable limit. This includes:

• Salary (Form 16 and pay slips) 
• Bank interest (interest certificates) 
• Capital gains (from stocks or mutual funds) 
• Rent income (if any) 

Also, keep your PAN and Aadhaar cards handy, as they’re required to file the return.

Choose Between Old and New Tax Regimes

You need to pick a tax regime:

• Old Regime: Higher tax rates but offers more deductions (like HRA, 80C, etc.) 
• New Regime: Lower tax rates but fewer deductions allowed 

Compare both regimes and choose the one that helps save more tax based on your income and expenses.

Know the Deductions and Exemptions You Can Claim

There are several deductions that can reduce your taxable income. Some common ones include:

• Section 80C: Investments like PPF, LIC, ELSS 
• Section 80D: Health insurance premiums 
• Section 80E: Education loan interest 

Salaried individuals can also claim exemptions for House Rent Allowance (HRA) and Leave Travel Allowance (LTA).

Select the Correct ITR Form and Fill Carefully

There are 7 types of ITR forms depending on income type and source. Choose the correct one to avoid rejection. While filling the form:

• Declare all your income sources 
• Mention all deductions 
• Cross-check all details (PAN, income, deductions, etc.) 

Even a small mistake can lead to your return being rejected.

Don’t Miss the Deadline and E-Verification

• Last date to file: July 31, 2025 
• E-verification deadline: Within 30 days of filing 

After submitting the return, you must verify it electronically (e-verify) to complete the process. This confirms that the ITR submitted is accurate.

Final Words

Filing your ITR for the first time doesn’t have to be stressful. With the right documents, careful planning, and attention to detail, you can complete the process smoothly. If you’re unsure, it’s always a good idea to consult a tax expert for guidance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.       

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.