What is the Last Date to File Income Tax Return in 2025?
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The Ultimate ITR Guide for First-Time Taxpayers in India
05/13/2025
Are you filing your Income Tax Return (ITR) for the first time in India??? You can feel overwhelming for many many and many reasons, but it’s one of the essential and mandatory step towards your financial responsibility. Whether you’re a Individual earning Salary or a freelancer engaged into some profession or a business owner or an entrepreneur, or a Non-Resident Indian (NRI) residing outside India, this detailed guide walks you through the whole process of ITR for First Time Taxpayers.
Filing your ITR for First Time Taxpayers can feel overwhelming, but with the right Income Tax Filing Guide for New Taxpayers, the process becomes simple and stress-free. Whether you’re a salaried individual, freelancer, business owner, or NRI, this detailed Income Tax Return Guide for Beginners will help you understand the First Time Income Tax Filing Process and ensure your compliance with tax laws.
What is ITR and Why Do You Need to File It?
An Income Tax Return (ITR) is a form submitted to the Income Tax Department of India to report income earned, deductions claimed, and taxes paid. Filing an ITR for First Time Taxpayer is not just a statutory requirement for eligible Taxpayers but it is also vital for claiming refunds, availing loans, visa processing and maintaining clean financial records. Every person earning Income in India and the Annual Amount of the Income earned crosses the basic exemption limit, then the person needs to file its ITR.
Understanding the Basics of Income Tax Returns (ITR)
ITR is usually filled for reporting the Income earned during a particular Financial Year (FY). Each financial year starting from April 1st to March 31st, individuals and entities must declare their income earned from all sources. The Income Tax Act, 1961 governs these obligations for return filling, and any person failing to comply may lead to penalties under the Act. The Assessment Year (AY) is the year following the financial year in which you file the return.
Who is Required to File an ITR in India?
This is the most important question that one can ask if there are filling ITR for first time Taxpayer in India, As per Income Tax Act, 1961 and rules made thereunder, You must file an ITR if :
- Your Gross Total Income exceeds the basic exemption limit as specified by the Act :
- 2.5 lakh for individuals below age of 60 years
- 3 lakh for senior citizens who is between 60–79 years of age
- 5 lakh for super senior citizens who are 80 years and above
- You wish to claim a refund of TDS deducted or advance tax paid. You can even file your ITR if your Income is below basic exemption limit but there has been TDS deduction on your Income. In order to claim the TDS deducted on your Income, you must file ITR and claim refund.
- You own foreign assets outside India or have some source of foreign income. NRI Be alert!!!!
- You deposited over Rs. 1 crore amount in a bank account during the FY.
- Your electricity bill exceeds Rs. 1 lakh or you’ve spent over Rs. 2 lakh on foreign travel.
- If you are a company, Limited Liability Partners also known as LLP, or a partnership firm.
Key Benefits of Filing Your ITR
There are multiple benefit for filling ITR, some of the key benefits are explained with the help of the Chart above:
- Claim TDS Refunds
- Carry Forward Losses
- Proof of Income
- Avoid Penalties
- Statutory Compliance
Who Should File an ITR in India for the First Time?
Person Earning Above the Basic Exemption Limit:
If your annual Income exceeds the exemption threshold which is explained above, then filing of ITR is mandatory for such person for the said FY. To calculate basic exemption limit, Income of each year is counted.
Freelancers and Self-Employed Professionals:
Freelancers, consultants, and professionals such as doctors, chartered accountants or lawyers must file an ITR based on income from their services, which may fall under presumptive taxation (Sec 44ADA).
NRIs with Income in India:
Mostly, NRIs have Rental Income and Interest Income from India. NRIs earning rental income, interest, capital gains, or business income from India are liable to file ITR for First Time Taxpayers. They also need to declare their Foreign Assets.
Business Owners and Entrepreneurs:
Individuals running sole proprietorships or small businesses must report profits and File ITR, even if under the presumptive tax scheme (Sec 44AD or 44AE).
Newly Incorporated Companies, LLPs and Partnership Firms:
As Filling of ITR is mandatory for Company whether Public Limited or Private Limited, LLPs and Partnership, every newly incorporated Company, LLPs and Partnership Firm need to file their ITR, irrespective of whether they have any Income or not or whether they have not Initiated any business activity during the year.
Choosing the Right ITR Form for Your Income Type:
There are total seven ITR available on Income Tax Portal for filling, The Taxpayer needs to choose their ITR wisely. The basis on which ITR is choose by the Taxpayer depends upon the sources of Income which the taxpayer has earned during the respective financial year.
ITR-1 (Sahaj): For Salaried Individuals
For individuals with Income from salary/pension, One house property and Income from other sources (excluding lottery, race horses, etc.). Additional filter for selecting this form is the Total income should be up to Rs. 50 lakhs.
ITR-2: For Individuals with Income from Other Sources
For individuals/HUFs not having income from business or profession. It includes capital gains, more than one property and foreign income/assets. There is no cap on Income Limit here.
ITR-3: For Self-Employed or Freelancers
Applicable to individuals/HUFs with income from business/profession. This ITR is the mostly used ITR. It includes Taxpayers who are Proprietorships, consultants, freelancers, etc.
ITR-4 (Sugam):
For individuals, HUFs, and firms under presumptive taxation under section 44AD, 44ADA, 44AE should fill this ITR.
ITR-5:
ITR-5 is used by firms, LLPs, AOPs, BOIs, and other non-individual entities not claiming exemption under Section 11. It covers a wide range of non-corporate taxpayers and must be filed electronically, especially if the entity is audited or an LLP.
ITR-6:
ITR-6 is for companies that do not claim exemption under Section 11 of the Income Tax Act, 1961. All regular companies, including private and public limited companies, must use this form and file their ITR. ITR-6 needs to be e-verified digitally with a digital signature. Audit compliance under the Companies Act and Income Tax Act is often applicable.
ITR-7:
ITR-7 is used by entities such as charitable or religious trusts, political parties, educational institutions, and others claiming exemption under Sections 11, 12, 13A, or 10(23C). This form requires you to fill details of exempt income and must be filed online, with or without a digital signature depending on audit requirements.
How to Collect and Prepare Documents for ITR Filing??
Its very important that we should provide and refer proper set of documents for preparing ITR for First Time Taxpayers. For your ease we have listed down some of the essential or you can say common documents required at the time of filling ITR :
- PAN Card
- Aadhaar Card
- Form 16 from your employer
- Bank account statements
- Form 26AS and AIS (Annual Information Statement) available on Income Tax Portal
- TDS certificates (Form 16A, 16B, etc.)
- Proof of deductions (80C, 80D, 80E, etc.)
- Rent receipts (for HRA claim)
- Capital gain statements from mutual funds/stocks
- Interest certificates from banks/post office
- Health insurance premiums under 80D
- Education loan interest under 80E
- Donations under 80G
- Interest Certificate for Home loan interest deduction under 24(b)
Step-by-Step Process to How to File ITR for the First Time:
Step 1: Register on the Income Tax e-Filing Portal
Here we have jotted down the whole process on How to File ITR for the First Time.
- Visit https://www.incometax.gov.in
- Create a new account using PAN, email ID, and mobile number as basic details if Filling ITR for First Time Taxpayers.
- Note down the login credentials for future reference.
Step 2: Select the Correct ITR Form
- Based on your income source and eligibility, choose the respective Income Tax Form.
Step 3: Fill in the Details in Income Tax Form
- Fill in the personal info like PAN, Aadhaar, bank details
- You need to report Income from all sources based on the documents available
- Deductions and tax-saving investments
- Taxes paid (TDS, advance tax)
- Please note that the Form filled should resonate with 26AS, AIS and TIS available on portal.
Step 4: Verify Your ITR
- For verifying Income Tx Return, you can use Aadhaar OTP, net banking, Digital Signature or EVC
- IR Verification is mandatory within 30 days orelse the Income Tax Return is considered as not filled.
Step 5: Submit and Pay Any Tax Due
- Review the form filled thoroughly
- Pay self-assessment tax (if any) after filling all the details
- Submit return online on the Income Tax Portal.
Key Mistakes First-Time Taxpayers Make and How to Avoid Them:
- The most common mistake people do is filling Incorrect personal details (PAN, name, bank account). Giving correct information is must at the time of filling Income Tax Return.
- Another common mistake done is Mismatch in income details. It is very important to reconcile the form filled with the details available on 26AS, AIS and TIS.
- In case if you follow point no 2 as mentioned above then your ITR Return information accuracy with 90%. Still there might be some income which is not reflecting in 26AS, AIS and TIS.
- If you have investments or done any expenses and not claiming eligible deductions, then it will lead you to over paying of Income Tax.
- Another common mistake is Forgetting to e-verify the return. Every ITR Filled needs to be e-verified within 30 days of filling. If not e-verified within 30 days, then the Income Tax Return is treated as good as not filled.
Important Deadlines to Remember for ITR Filing:
The Income Tax Act, 1961 has specified the due date for filling Income Tax Return u/s. 139(1). For your ease we are providing you with the due dates applicable for FY 2024-25 (AY 2025-26) :
Particulars | Due Date |
Non Audit Cases | 31st July, 2025 |
Audit Cases | 31st October, 2025 |
Belated Return | 31st December, 2025 |
Updated Return | 31st March, 2030 |
Penalties for Late Filing:
The relevance of above mentioned due dates is post past these due dates, The Taxpayers need to pay late fees for delay in filling Income Tax Returns.
Income Limit | Late Fees In Rs. |
If Income < Rs. 5 Lakhs | Rs. 1000/- |
If Income > Rs. 5 Lakhs | Rs. 5000/- |
How to Avoid Last-Minute Stress:
It’s the general tendicies of Indians to procrastinate and wait till the last moment for everything. We are practicing since last 8 years, often has seen that people come with documents after 20th July every year, over more than 70% of our Returns are during this period. People often get stressed after providing document and keep following up multiple times in a day till the ITR is filled. In order to avoid such last minute stress, you can Organize documents early starting from May or June.
In case you have some queries or need consultant assistance in filling out your ITR, Consult a CA or tax consultant well in advance. The Income Tax Forms unlike this year is made available by the Government from April only. Hence, better start early then stressing during the Due date time and passing out your stress to your CA or Tax Consultant.
Looking for Top Income Tax Return Filing Expert?
Need professional help from a Chartered Accountant to understand more about ITR of Filling of ITR for First Time taxpayer? Fill out our quick form and let expert tax professionals assist you with accurate and hassle-free ITR filing. Ideal for individuals, freelancers, NRIs, Company, LLP and business owners.
Conclusion:
Your first ITR filing need not have to be stressful at all. We understand that Income Tax Act, 1961 is definitely complex and you will need some Income Tax Filing Guide for New Taxpayers.
With the right guidance and timely action, you can file accurately and confidently. We tried to help with this article to act as Income Tax Return Guide for Beginners. Remember, filing on time is not only a legal duty — it’s also a smart financial habit for a Taxpayer.
Frequently Asked Questions
1. What is an Income Tax Return (ITR)?
A document submitted to the Income Tax Department showing your earnings, deductions, and tax paid. Every Taxpayer when eligible needs to file their ITR.
2. Who is required to file an ITR in India?
Anyone earning above the basic exemption limit or with special transactions like foreign assets or high-value spending needs to file ITR in India.
3. What are the different types of ITR forms?
There are total 7 forms available on the Income Tax Portal i.e ITR-1 to ITR-7 based on the type of income and taxpayer category.
4. When should I file my ITR for the first time?
Before 31st July of the assessment year, or as per applicable deadlines applicable to you based on your Income.
5. What documents do I need to file my ITR?
PAN, Aadhaar, Form 16, bank details, Income details, Bank Statements, investment proofs, Form 26AS, etc. This list of Documents helps First Time Income Tax Filing Process.
6. What deductions can I claim to reduce my taxable income?
The main section of deductions is specified in Chapter VI-A, some of the sections are Sections 80C (investments), 80D (health insurance), 80E, 80TTA, and others. Other deductions from HRA, Interest on Home loan Paid u/s. 24b, etc.
7. How do I calculate my income for ITR filing?
Sum income from all five heads of Income like salary, house property, capital gains, Business and Income from other sources, and deduct applicable exemptions / deductions if any.
8. How can I file my ITR online?
You can file your ITR through the Income Tax e-Filing Portal, manually or with a CA’s assistance.
Need help with your ITR for the FY 2024-25? Reach out today!
Get in touch with our expert team of Chartered Accountants for hassle-free ITR filing, Tax planning, and compliance services. Contact with us now.
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