The Income Tax Department has recently opened its online portal for the assessment year 2025-26, providing an opportunity for first-time taxpayers to file their returns electronically. For those new to the process, the filing can appear intricate due to various regulations and requirements that must be adhered to. It’s important to remember that any errors in the ITR form could lead to rejection.
When filing for the first time, individuals must select between two different tax regimes with varying deductions and also link their PAN and Aadhaar cards for electronic verification.
Here are five crucial considerations for first-time taxpayers:
- Collect All Sources of Income and Important Documents
It is essential to list every source of income when filing income tax returns. Taxpayers must account for income and assets, even if their earnings fall below the taxable threshold. Additionally, it is necessary to gather all pertinent documents, including PAN and Aadhaar cards, before proceeding with the tax filing. For salaried individuals, obtaining Form 16 and pay slips from employers is crucial. Other important documents include bank interest certificates, capital gains statements, and records of rental income. - Select Your Tax Regime
taxpayers have the option to choose between the old and new tax regimes, each offering different tax slabs and rates. The old regime allows for various deductions and exemptions, while the new regime features lower tax rates but permits fewer deductions. It is advisable to carefully assess both options before making a decision based on individual financial circumstances. - Understand the Available Deductions and Exemptions
First-time taxpayers will discover numerous exemptions and deductions available when filing their returns. It’s vital to check for applicable benefits, especially those under sections 80C, 80D, and 80E during form submission. Salaried individuals may qualify for total or partial exemptions on house rent allowance, leave travel concessions, and more. Taxes deducted at source will be reflected on Form 16 and 16A. - Choose the Correct Form and Verify All Details
Using the appropriate ITR form based on your income type is essential. Ensure that all sources of income and deductible expenses are accurately declared, and double-check every detail before submission. Mismatched or incorrect information can lead to the rejection of your form. - Be Mindful of Deadlines and E-Verification Requirements
Taxpayers have until July 31 to file their returns for the assessment year 2025-26. Additionally, the Income Tax Department mandates e-verification within 30 days from the filing date. E-verification serves as a way for taxpayers to confirm the accuracy of their filed income tax return.