How to File ITR for First Time

ITR (Income Tax Return) is a form that taxpayers in India use to declare their income, deductions, and tax payments to the Income Tax Department. Filing income tax returns is not just a bureaucratic duty, it has several benefits. If you have paid more tax than you owe, first time ITR filing allows you to claim refunds and maintain financial discipline. Whether you are a first-timer or a seasoned taxpayer, understanding how to file ITR for first time and its advantages is always helpful.

By filing your ITR, you are not just fulfilling a legal responsibility but also unlocking benefits like refunds and proof of income. Let us understand how to file income tax return for first time and why it should be done yearly.

Steps to File Income Tax Return for First Time

Filing ITR for the first time can be a smooth process if you understand the steps involved. Here is a simple step-by-step guide to make the process smoother:

Process of Registration

The first step in how to fill income tax return online first time is registering yourself on the official income tax portal. This involves the following steps:

• Go to the official Income Tax Department’s e-filing website.
• Find the “Register” button and click on it.
• Then select ‘Taxpayer’ as your category.
• Enter your PAN (Permanent Account Number) and click on ‘Validate’, then press ‘Continue’.
• Fill in your personal details like your name, date of birth, gender, and address.
• Then, enter your email ID and mobile number. Make sure these are active and accessible, and then click ‘Continue’.
• You will receive an OTP (One-time Password) on your registered mobile number and email ID. Enter it to complete the registration process.
• After verifying the OTP, you will be prompted to confirm the details you entered. If anything needs correction, edit the details and verify again using a new OTP.
• Once everything is correct, create a secure password for your account.
• Click ‘Register’, and you will receive an acknowledgement confirming your successful registration.

Before proceeding, consider your income tax deductions and choose a form based on the category you lie under. After you have successfully registered yourself, you are eligible to file an ITR.

Process of E-Filling

Once you have registered for the ITR, it is time for e-filing. This can be done in the below-mentioned easy steps:

• Go to the official e-filing website.
• Click ‘Login’.
• Enter your PAN, password, and captcha to access your account and click ‘Continue’.
• Once logged in, select ‘e-file’ and then ‘File Income Tax Return’.
• Choose the Assessment Year and proceed by clicking ‘Continue’.
• Select ‘Online’ as your filing mode.
• If you’re an individual, choose ‘Individual’ as your category.
• Select the appropriate ITR form and provide a reason for filing your ITR (such as income above the basic exemption limit).
• Enter your bank account details. If already provided, ensure it is pre-validated.
• Review the details on the new page to file your ITR. Confirm the accuracy of your information and validate your ITR summary.
• Then, validate your return by clicking ‘Proceed’.
• Finally, verify your ITR using one of the available methods, such as Aadhaar OTP, net banking, or sending a physical signed copy to the Income Tax Department.

This is how to file taxes for the first time! Once your return is verified, you will receive a confirmation, and your ITR filing process will be complete.

Why You Should File ITR?

Now that you know how to file income tax return first time, let us move on to why it is important to do so. Filing your ITR is more than just a legal requirement—it is a smart financial move. Here is why you should do it:

Claim Your Refunds

If you have paid more tax than necessary, filing your ITR allows you to claim a refund. Why leave your money with the government when it could be in your pocket?

Proof of Income

Your ITR serves as a comprehensive record of your income. It is essential for applying for loans, visas, or credit cards, as it shows financial stability.

Carry Forward Losses

If you have incurred financial losses in your investments (e.g., in the stock market), filing your ITR lets you carry them forward to offset future gains. This can significantly reduce your tax burden. But, this benefit is only available if you file your ITR on time.

Avoid Penalties

Filing your ITR on time helps you avoid penalties and interest charges. Staying compliant saves you from unnecessary hassles. Even if your income is below the taxable limit, filing ensures you stay on the right side of the law.

Financial Discipline

The process of filing ITR encourages you to maintain organized financial records. It helps you understand your income, expenses, and savings better.

Contribute to Nation-Building

By paying your taxes, you are contributing to the development and infrastructure of the country. By paying your taxes and filing ITR, you are contributing to the nation’s development and being a responsible citizen.

Conclusion

Filing your income tax return is a proactive financial step with numerous advantages. From claiming refunds to contributing to national development, the benefits are substantial. Also, by following the steps outlined above, you will find that the process is not as daunting as it seems. Remember, understanding how to file ITR for first time can help you save money and bring peace of mind.

Embracing this annual responsibility keeps you compliant with the law and reinforces your financial credibility. Make ITR filing a regular part of your financial routine, and enjoy the peace of mind that comes with it.

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