🌟 Step-by-Step Guide for First-Time Tax Filers in India (2025-26) – With Latest Tax-Free Income Updates
🌟 Step-by-Step Guide for First-Time Tax Filers in India (2025-26) – With Latest Tax-Free Income Updates
Filing taxes for the first time in India can feel overwhelming — but don’t worry! With the right guidance, the process is smooth and even rewarding.
✅ Big Update: As per the Union Budget 2025-26, income up to ₹12 lakh is now tax-free under the new regime — giving huge benefits to salaried individuals and simplifying tax filing.
Let’s walk through this step-by-step guide to help you file confidently, avoid mistakes, and maybe even get a refund!
⏰ Quick Reminder: Key Deadlines
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Filing Deadline: July 31, 2025 (for most individuals)
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Verification Deadline: Within 30 days after filing
Step 1: Understand If You Need to File
Even if your income is below ₹12 lakh, you may need to file if:
✅ You want to claim a refund (if excess tax deducted)
✅ You have multiple income sources (salary + rent + capital gains)
✅ You need to carry forward losses
✅ You made high-value transactions
✅ You own foreign assets
Step 2: Choose Between Old vs. New Tax Regime
💡 Example:
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₹10 lakh salary → New Regime = ₹0 tax
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₹10 lakh salary → Old Regime (with ₹1.5 lakh 80C + ₹50k NPS deduction) = still some tax payable
Tip: For incomes under ₹12 lakh, the new regime is often better.
Step 3: Select the Correct ITR Form
| ITR Form | Who Should Use It? |
|---|---|
| ITR-1 | Salaried, income < ₹50 lakh, no business |
| ITR-2 | Capital gains, rental income |
| ITR-3 | Freelancers, business owners |
| ITR-4 | Presumptive tax scheme users |
Step 4: Gather These Documents
✅ PAN & Aadhaar Card (mandatory for e-filing)
✅ Form 16 (from employer)
✅ Bank statements (for interest income)
✅ Investment proofs (if using old regime deductions)
✅ Loan certificates (home, education loan interest)
✅ Capital gains statements (stocks, property)
✅ Form 26AS (TDS summary)
Tip: Create a checklist to avoid missing anything!
Step 5: Register & File Online
1️⃣ Go to Income Tax e-Filing Portal
2️⃣ Register using your PAN
3️⃣ Select File Income Tax Return → Assessment Year 2025-26
4️⃣ Choose old or new tax regime carefully
5️⃣ Fill in income, deductions (if any), and validate details
6️⃣ Submit online
Step 6: Check Tax Payments & Refund Eligibility
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Review Form 26AS to confirm taxes paid (like TDS) match your calculations
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If excess tax was deducted, claim a refund in your return
💡 New Regime Advantage: With ₹12 lakh tax-free, many salaried individuals may be due a refund!
Step 7: Verify Your Return
After filing, you must verify within 30 days:
✅ Aadhaar OTP
✅ Net banking
✅ Electronic Verification Code (EVC)
✅ Or send signed ITR-V to CPC Bengaluru
Step 8: Track Refund & Check Notices
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Track your refund status on the portal
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Watch for notices or updates — respond promptly if you receive any
Common Mistakes to Avoid 🚫
❌ Choosing the wrong tax regime or ITR form
❌ Forgetting to declare all income sources
❌ Skipping available deductions (if using old regime)
❌ Missing the July 31 deadline
❌ Not verifying your return after submission
Final Thoughts: Make Tax Filing Work for You!
For first-time tax filers, the 2025-26 new regime offers significant tax savings, especially if your income is below ₹12 lakh. But everyone’s financial situation is unique — analyze your income, deductions, and long-term goals to pick the right strategy.
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