A Beginner's Guide to Filing Income Tax Returns (ITR) in India

For many young professionals, the three letters "ITR" can trigger a wave of confusion and anxiety. The idea of "filing taxes" sounds like a complicated chore filled with complex forms and confusing rules. Many even wonder, "My employer already deducted TDS, so why do I need to file a return at all?"

The truth is, filing your Income Tax Return is not just a legal obligation; it's one of the most important financial responsibilities you will undertake. It is a sign of financial maturity and is essential for building a strong financial future. And in 2025, the online process has become simpler and more user-friendly than ever before.

This guide will demystify the ITR filing process for salaried beginners for the Assessment Year (AY) 2025-26. We'll cover why it's crucial, what you need, and the simple steps to get it done.

Why You MUST File Your ITR (Even if You Have No Tax Due)

Many people mistakenly believe that if their taxes are already deducted (TDS), they don't need to file an ITR. This is incorrect. Here’s why filing is mandatory and beneficial:

• It's a Legal Requirement: If your gross total income in a financial year is more than the basic exemption limit (e.g., ₹2.5 Lakhs under the old regime, higher for the new), you are legally required to file an ITR.
• To Claim a Tax Refund: This is a big one! Your employer might have deducted more TDS than your actual tax liability. The only way to get that extra money back from the government is by filing an ITR.
• It's a Crucial Proof of Income: Your ITR acknowledgement is a vital legal document. It is required for all major financial applications, including getting a home loan, a car loan, or applying for a visa for foreign travel.
• To Avoid Penalties: Not filing your ITR on time can lead to a penalty (up to ₹5,000) and other legal consequences.

Ignoring your ITR is one of the biggest financial mistakes you can make.

Key Documents and Information You'll Need 📝

For a typical salaried individual, the process is quite simple. Get these documents ready:

1. PAN Card & Aadhaar Card: The two most essential documents. Make sure they are linked.
2. Form 16: This is the "TDS certificate" provided by your employer. It's the most important document as it contains a summary of your salary paid and the tax deducted by your employer.
3. Bank Statements: To report any interest income you've earned from your savings accounts or fixed deposits.
4. Proof of Investments (for Deductions): If you are using the Old Tax Regime, you will need proof for your tax-saving investments. This includes:
   • ELSS fund statements.
   • PPF passbook.
   • Receipts for insurance premiums.
   • Home loan interest certificate.
   • Details of your NPS contributions.
5. Form 26AS: Think of this as your "tax passbook." It's available on the e-filing portal and shows all the taxes that have been deposited with the government against your PAN. Always cross-check it with your Form 16.

The Online ITR Filing Process: A 5-Step Overview ✅

Here’s a high-level look at how the online filing process works on the official government portal.

1. Register on the E-Filing Portal: Go to the official Income Tax e-filing website: incometax.gov.in. Use your PAN to register and create an account.
2. Choose the Right ITR Form: For most salaried beginners with an income up to ₹50 lakh and one house property, the form you need is **ITR-1 (Sahaj)**.
3. Fill in Your Details: The best part about the new portal is that most of your information (name, address, employer details, salary, TDS) is **pre-filled**. It automatically pulls data from your Form 16, Form 26AS, and other sources. Your job is to verify these details and add any other income (like savings bank interest) and the deductions you want to claim.
4. Calculate and Pay Tax (if any): The portal automatically calculates your final tax liability. If you owe any extra tax, you can pay it instantly online. If you are due a refund, the portal will show the amount.
5. E-Verify Your Return: This is the final and most crucial step. Your return is not considered filed until it is verified. The easiest and quickest way to do this is through **Aadhaar OTP**. You will receive an OTP on your mobile number linked to your Aadhaar, and entering it completes the process instantly.

Important Dates to Remember for AY 2025-26 🗓️

• Financial Year (FY) 2024-25: This is the period from April 1, 2024, to March 31, 2025. This is the year in which you earned the income.
• Assessment Year (AY) 2025-26: This is the year in which you file the return for the income earned in the previous FY.
• ITR Filing Due Date (for most individuals): July 31, 2025. Mark this on your calendar!

Conclusion: A Responsibility That Empowers You

Filing your Income Tax Return is a fundamental duty, but more than that, it's a step towards becoming a financially responsible and empowered individual. The online process has made it easier than ever before. Don't be intimidated by it.

By keeping your documents organized and setting aside a couple of hours, you can complete this essential task with ease and confidence. Taking charge of your taxes is a powerful step in your financial journey.

Is this your first time filing an ITR? What's the one part of the process that seems most confusing to you? Ask in the comments, and we'll try to help!