ITR Filing in India Step-by-Step Guide for First-Time Filers :
Filing an Income Tax Return (ITR) is a crucial responsibility for every earning individual in India. For first-time filers, the process may feel daunting, but with simplified steps and the enhanced user experience of the 2026 e-filing portal, it’s easier than ever to be compliant, responsible, and financially savvy. This guide covers all aspects—eligibility, preparation, documents, online filing, and verification—so any first-time filer can confidently complete their ITR.
What is Income Tax Return?
An Income Tax Return (ITR) is a declaration to the income tax department detailing one’s yearly income, deductions, tax payments, and investments. It’s mandatory for those whose gross total income exceeds the basic exemption limit (₹2.5 lakh for most), but it’s recommended for financial transparency, even if not required.
Benefits of Filing ITR:
- Enables claim of tax refunds.
- Serves as legal proof of income—helpful for loan applications, visa approvals, and government documentation.
- Prevents tax notices and penalties.
- Allows carry-forward of losses for future deduction.
- Eases compliance, especially with evolving tax structures.
Key Changes in 2026
A) New Tax Act and Simplified Forms:
From April 2026, the government’s new tax act and portal have further simplified forms for individual taxpayers. Expect pre-filled smart forms that auto-import much personal and salary information, smoother navigation, and clearer language.
B) Default New Tax Regime:
For AY 2026-27, the new tax regime is the default. It offers lower slab rates but removes many traditional deductions. Taxpayers may opt out and choose the old regime with more deductions if they wish. First-time filers should assess which regime benefits them more.
C) Revised Income Slab Structure:
2026 Tax Slabs under the New Regime:
| Annual Income | Tax Rate |
|---|---|
| ₹0 – ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Eligibility & ITR Forms
Who Needs To File?
Any resident individual with an annual income above the threshold, or who meets special criteria (high bank deposits, expensive travel, electricity bills, foreign assets), must file ITR. Even those below the limit might need to file to:
- Claim a refund for deducted TDS.
- Report large transactions.
- Document assets or foreign income.
- Choosing Your ITR Form
Most Common Forms:
ITR-1 (Sahaj): For salaried individuals, pensioners, and income from one house property or interest. Income should not exceed ₹50 lakh, and capital gains must be below ₹1.25 lakh for the year.
ITR-2, ITR-3, ITR-4: For those with business/professional earnings, multiple properties, or complex assets.
List of Required Documents
Before logging onto the portal, gather these essential documents:
- PAN Card
- Aadhaar Card (actual number needed; enrolment ID no longer accepted)
- Bank account details: IFSC, branch, account number
- Form 16: Provided by employer, details salary and TDS
- Form 26AS: A summary of taxes paid/deducted, available on the portal
- Annual Information Statement (AIS/TIS): A consolidated statement including interest, dividends, stocks, MFs
- Salary slips/monthly payslips
- Investment proofs (PPF, PF, LIC, NSC, FDR, tuition fees, etc.) if claiming deductions
- Details of high-value transactions (deposit, travel, electricity etc.)
- Proof of advance tax or self-assessment tax, if paid
- Details of unlisted shares or directorships, if applicable
Step-by-Step ITR Filing Process
Here is the complete online filing process for AY 2026-27, along with visual references from the updated portal.
Step 1: Registration on the Portal
- Visit the official income tax e-filing portal (www.incometax.gov.in).
- Click ‘Register’. Enter PAN, identity details, contact info, and set a password.
- Verify with OTP sent to email/mobile.
- Receive an acknowledgement—your account is now active.
Step 2: Login & Dashboard
- Login using PAN and password.
- On your dashboard, click ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’.
- Select the Assessment Year (2026-27).
- Choose Online as the mode (recommended for individuals).
Step 3: Filing Status & Form Selection
- Confirm filing status (usually “Individual”).
- Select relevant ITR form—ITR-1 is shown for most first-time/salaried filers.
- If eligible, portal suggests the simplest form; otherwise, choose based on instructions.
Step 4: Input Basic Details
- Personal data (name, DOB, PAN, Aadhaar, address, phone, email) is auto-filled from your profile—verify each field!
- Enter employer details (Govt/PSU/Private), if applicable.
- Fill in any missing or incorrect details with supporting documents.
Step 5: Income Details
- Salary (from Form 16), interest, pension, rental—most income fields are auto-captured. You may manually enter data if not auto-populated.
- Include all income sources, taxable or exempt—rent, interest, investments.
- Confirm every section for accuracy.
Step 6: Deductions & Exemptions
- Choose whether to opt out of the New Tax Regime (default is new regime). If opting for old regime, deduction fields (80C, HRA, 80D, 80E, etc.) become available:
- Enter eligible investments and expenses for deduction computation.
- Compare tax calculations under both regimes; select the regime most beneficial.
Step 7: Tax Calculation Preview
- The portal automatically computes your gross income, deductions, taxable amount, and tax due.
- Check the summary; preview the return for errors or omissions.
- If additional tax is due (TDS shortfall), pay online (net banking, UPI, debit card). Enter challan number and BSR code.
Step 8: Bank and Other Details
- Validate bank account info (for refunds).
- Enter all Indian bank accounts, choose one as primary for refund.
- Update directorship/unlisted equity/shareholding, or asset schedules if applicable.
Step 9: Attachments & Verification
- Attach Form 16, AIS/TIS, and other supporting documents as prompted.
- Confirm that you have reviewed all details.
- Submit the return.
Step 10: E-verification
- Upon submission, you must e-verify the ITR within 30 days—it’s mandatory.
- Use Aadhaar OTP, net banking, dmat/ATM OTP, or other available methods.
- If unable to e-verify, send signed ITR-V acknowledgment form to CPC Bengaluru.
Step 11: Receive Acknowledgement
- After e-verification, a success message appears.
- Download and save the ITR-V acknowledgment.
- Email/SMS confirmation is sent by the Income Tax Department.
Important Deadlines and Penalties
- ITR due date for FY 2025-26 (AY 2026-27): July 31, 2026 for most, September 30, 2026 for audits/businesses.
- Late filing incurs a penalty up to ₹5,000 (₹1,000 if income < ₹5 lakh).
- E-verification must be completed within 30 days of filing, else return is treated as invalid
Pro Tips for First-Time Filers
- Start Early: Last-minute rush leads to errors and missing deadlines.
- Compare Regimes: Use calculators on the portal to assess both regimes before filing.
- Cross-check Documents: Always verify auto-filled data and uploaded documents.
- Track Refunds: Use the portal’s Track Refund tool, especially if expecting a refund.
- Save Evidence: Keep a digital and paper copy of all filed documents and acknowledgments
The ITR e-filing experience for AY 2026-27 is now more intuitive, faster, and transparent thanks to the upgraded Income Tax e-Filing Portal. By following the step-by-step process, preparing documents in advance, and carefully evaluating whether the new tax regime (default, ₹3 lakh exemption limit) or the old tax regime (₹2.5 lakh exemption limit with deductions) suits you better, even first-time taxpayers can file accurately and on time.
Filing your Income Tax Return is not only a legal and civic responsibility, but it also offers important advantages—such as smoother loan approvals, easier visa processing, tax refunds, and documented proof of income.
To stay compliant and avoid last-minute issues:
- Start early and keep required documents handy.
- Refer to the official ITR forms and instructions before filing.
- Use the portal FAQs and help section for common queries.
Filing on time ensures peace of mind, financial transparency, and a strong record with the Income Tax Department. File your 2026 ITR with confidence and clarity.