Income-tax returns: Top 10 things first time taxpayers must keep in mind while filing ITR

Income-tax returns: The I-T department has enabled Excel Utility for ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam), ITR-5 and ITR-7 online forms and notified all of them for assessment year 2026-27 i.e. financial year 2025-26 (AY27 / FY26).

Availability of excel utility means that you can prepare your returns offline before filing in the details and uploading the file digitally. You can access them here — https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns

Taxpayers can file ITR using the e-filing portal (https://www.incometax.gov.in/). You must register (you will need Aadhaar, PAN and other details) or log into the website with your User ID and password to do so. The deadline was extended to 31 August and with the date approaching steadily, coupled with concerns over last-minute rush and possibility of technical or calculation glitches, now is the ideal time to file your returns comfortably.

Today, we take a look at the documents required, correct form to fill, among other important things to remember for first time taxpayers filing their returns. While the overall e-filing process has become quicker, the process can be daunting for first-time filers. Salaried individuals overwhelmed by the process can use this simple checklist to ensure that they are properly prepared before filing ITR.

ITR: Top 10 things first time taxpayers should know

1. Who must file ITR? Notably, all Indian residents are required to file their ITR for income tax purpose:

• If the aggregate of your income or salary exceeds the prescribed limits.
• If they hold assets in India or abroad;
• If they have investments in markets, shares, or ESOPs;
• If they have bank deposits exceeding ₹50 lakh combined;
• If they have savings or current account exceeding ₹1 crore total;
• If they have paid electricity bill over ₹1 lakh annually; or
• If they have travelled internationally with expenditure over ₹2 lakh; and
• If the value of their sales (irrespective of income) exceeds ₹60 lakh.

2. What is total taxable income? Your total taxable income is calculated as the gross earnings from salary and other sources (bank fixed deposits and shares, etc.), minus any tax-saving deductions you may have made. Such deductions include investment in public provident fund (PPF), national pension scheme (NPS), insurance, or payments towards loans and rent.

3. Should I opt for old regime or new regime? The answer to the new tax regime vs. old tax regime debate depends completely on how much you earn and what deductible investments you can show. You can use online tax calculators to determine which option minimises your tax liability or consult with a financial planner or your chartered accountant (CA), for the best course of action.

4. What is the last date of filing ITR for FY25-26 (AY26-27)? The deadline for filing your ITR without incurring penalties for delayed returns this year is 31 August 2026. You can still file a delayed ITR till 31 December 2026, but this would cost you upwards of ₹1,000-10,000 fee depending on the duration of the delay and your taxable amount.

5. What documents do I need to file ITR? Before filing your ITR keep the following documents ready as applicable: Form 16 (from current employer and former employer if you changed jobs mid-year), PAN Card, Aadhaar Card (PAN-Aadhaar must be linked), and investment proofs (including bank deposits, PPF deposits, etc.), home loan interest certificate, and insurance premium payment receipts.

6. What is Form 16? What is review Form 26AS? Form 16 is the TDS certificate provided by your employer details your salary, deductions claimed, and exemptions availed, which are essential for filing your ITR. Meanwhile, form 26AS or your Annual Information Statement (AIS) is a document that summarises income on which TDS has been deducted, which is crucial for accurate tax filing. It includes details like interest income, dividends, securities transactions, and foreign remittances, pre-filled in your ITR form for ease.

7. What is e-verification? Is it mandatory? The Income-Tax (I-T) Department has noted that when filing your returns all assessees must complete the process by completing e-verification of their ITR filing. If not done within 30 days, it may result in your ITR refund getting delayed due to “invalid” or “incomplete” process. This can be done via the e-filing portal using Aadhaar OTP, net banking, or electronic verification code (EVC).

8. Can verification be done offline? Yes. After e-filing the return, you can choose to complete verification offline through the manual process. This can be completed by posting the signed physical copy of ITR-V Acknowledgement within appropriate timeline (30 days) of filing the return to the Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).

9. Which ITR form should you choose? Choose the form as per your eligibility mentioned below:

• Choose ITR-1 form: If you are an individual with income from salary, one house property, and other sources.
• Choose ITR-2 form: If you are an individual or Hindu Undivided Family (HUF) without business income.
• Choose ITR-3 form: If you are an individual or HUF with income from business or profession.
• Choose ITR-4 form: If you have presumptive income from business or profession.

If you do not know which return form to choose, click “Help me decide” under which ITR form to file and the portal will display the eligibility conditions for different ITR forms based on your taxpayer status. Read these conditions carefully, select the form that matches your eligibility, and click “Proceed to ITR filing.”

10. Can I file ITR for last 4 assessment years now? Yes, you can file ITR-U, if you have missed filing your previous four years ITRs. For current year (AY 2026-27) you can file your regular ITR. In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return, but you may be required to pay a late filing fee of up to ₹5000. Additionally, you will also be required to pay interest on the tax liability (if any).

Disclaimer: This story is for educational purposes only. We advise readers to check with certified tax or financial experts before making any decisions.