A Beginner's Guide to Filing Your First Income Tax Return (ITR) in India for FY 2024-25

Filing your Income Tax Return (ITR) for the first time can feel like a complex puzzle. But don’t worry! With a little guidance, it’s a straightforward process that is crucial for your financial health. This guide will walk you through everything you need to know for the Financial Year 2024-25 (Assessment Year 2025-26).

Key Takeaways

• Deadline Extended: The due date to file your ITR for FY 2024-25 (AY 2025-26) has been extended to 15th September 2025 for most individuals.
• Filing is Beneficial: Even if your income is below the taxable limit, filing ITR is important for loan applications, visa processing, and claiming tax refunds.
• Choose Your Regime: You can choose between the New Tax Regime (default) with lower rates and fewer deductions, or the Old Tax Regime with higher rates but more deduction options like Section 80C.

Why You Should File ITR (Even with Zero Tax to Pay)

Many people believe that if they don’t have any tax to pay, they don’t need to file an ITR. This is a myth! Filing a ‘Nil Return’ has several significant advantages:

• Proof of Income: An ITR acknowledgement is a universally accepted proof of income, which is essential when applying for any kind of loan (home, auto, personal) or a credit card.
• Claiming Refunds: If Tax Deducted at Source (TDS) has been cut from your income (like interest on fixed deposits), filing an ITR is the only way to claim a refund if your total income is below the taxable limit.
• Visa Applications: Most embassies and consulates require copies of your tax returns for the last few years as a mandatory document for visa applications.
• Carry Forward Losses: If you’ve incurred losses from the stock market (capital losses), you must file an ITR to carry these losses forward. You can then offset them against future capital gains, reducing your tax liability in the coming years.
• Building a Financial Record: Consistent ITR filing creates a strong financial history, demonstrating financial responsibility.

Old vs. New Tax Regime: Which One Is for You?

For FY 2024-25, the New Tax Regime is the default option. This means if you don’t make a choice, your tax will be calculated based on the new slab rates. You have the option to switch to the Old Regime if it’s more beneficial for you.

Here’s a simple comparison:

Feature	Old Tax Regime	New Tax Regime (Default)
Tax Rates	Higher tax rates	Lower, concessional tax rates
Deductions	Allows over 70 deductions & exemptions (e.g., 80C, 80D, HRA)	Most deductions are not available
Key Benefit	Reduces taxable income through investments and expenses	Simpler filing with a lower tax outgo if you don’t have many deductions
Standard Deduction	Available (₹50,000)	Available (₹50,000)
Rebate	No tax if taxable income is up to ₹5 lakh	No tax if taxable income is up to ₹7 lakh

Who should choose which regime?

• Choose the Old Regime if: You make significant investments in tax-saving instruments like PPF, ELSS, pay for health insurance, have a home loan, or receive House Rent Allowance (HRA).
• Choose the New Regime if: You have minimal investments and want a simpler tax filing process with lower rates.

Documents You’ll Need to Get Started

Before you sit down to file, gather these essential documents to make the process smooth:

1. PAN Card: Your Permanent Account Number is your primary identifier.
2. Aadhaar Card: It’s mandatory to link your PAN with Aadhaar for filing.
3. Form 16: If you are a salaried employee, your employer will provide this. It’s a summary of your salary and the TDS deducted.
4. Bank Statements: To report interest income from savings accounts and fixed deposits.
5. Form 26AS / Annual Information Statement (AIS): This is your tax passbook. We’ll discuss this next.
6. Investment Proofs: If you’re using the Old Regime, keep receipts for investments under 80C (like ELSS, PPF, insurance), 80D (health insurance), and donation receipts (80G).

What is Form 26AS and How to Use It?

Think of Form 26AS as your consolidated annual tax statement. It shows all the tax that has been deposited with the government against your PAN. You can access it from the income tax e-filing portal.

Before filing, you must cross-check the TDS amounts mentioned in your Form 16 with the figures in your Form 26AS. It helps you:

• Verify TDS: Ensure that the tax your employer, bank, or any other client has deducted has actually been deposited with the government.
• Claim Correct Credit: It ensures you claim the exact amount of tax already paid, avoiding any discrepancies.
• See All Tax Payments: It also shows details of any advance tax or self-assessment tax you have paid.

A Simple Step-by-Step Guide to e-Filing Your ITR

The government’s e-filing portal has made filing ITR a simple online process. Here’s how you can do it:

1. Register on the Portal: Go to the official Income Tax e-filing website (incometax.gov.in). If you’re a first-time user, click ‘Register’, enter your PAN, and follow the steps to create your account.
2. Log In: Once registered, log in with your User ID (which is your PAN) and password.
3. Start the Filing Process: On your dashboard, go to e-File > Income Tax Returns > File Income Tax Return.
4. Select Assessment Year: Choose the Assessment Year as 2025-26 and the mode of filing as ‘Online’.
5. Choose Your Status: Select your status as ‘Individual’.
6. Select the ITR Form: For most beginners with salary income, income from one house property, and other sources (like interest), ITR-1 (Sahaj) is the correct form. The portal will help you select the right one.
7. Validate Pre-filled Data: The portal auto-populates a lot of your information from your PAN, Aadhaar, and Form 26AS. Carefully check your personal details, income details, and tax paid.
8. Complete the Form: Fill in any remaining details, like income from other sources or deductions you want to claim (if using the old regime).
9. Preview and Submit: Once all sections are confirmed, you’ll see a summary of your tax computation. If there’s tax due, you can pay it online instantly. If a refund is due, it will be shown. Click ‘Preview and Submit’.
10. E-Verify Your Return: This is the final and most crucial step. You must verify your return within 30 days of filing. The easiest way is through Aadhaar OTP. Your return is not considered filed until it is verified.

Common Deductions Under the Old Regime

If you opt for the Old Tax Regime, you can lower your taxable income by claiming these popular deductions:

• Section 80C: You can claim up to ₹1.5 lakh for investments and expenses. This includes contributions to EPF, PPF, investments in ELSS mutual funds, life insurance premiums, children’s tuition fees, and principal repayment on a home loan.
• Section 80D: You can claim a deduction for health insurance premiums paid for yourself, your spouse, children, and parents. The limit is ₹25,000 for self/family and an additional amount for parents.

Deadline and Penalty for Missing It

• Due Date: For FY 2024-25, the deadline for individuals is 15th September 2025.
• Penalty for Late Filing: If you miss this deadline, you can still file a belated return until 31st December 2025. However, you will have to pay a late filing fee under Section 234F. This is typically ₹5,000, but it’s reduced to ₹1,000 if your total income is below ₹5 lakh.

Filing your ITR is a sign of being a financially responsible citizen. It might seem like a chore, but its benefits are long-lasting. Take it one step at a time, and you’ll get it done with ease!

This article is only for information purposes and is not investment advice. Before investing, do your own research.