How To File Your Income Tax Return For The First Time: A Step-By-Step Guide

Filing your Income Tax Return (ITR) can feel overwhelming if it’s your first time. An ITR is a document that allows taxpayers to report their income, deductions and taxes to the authorities.

It’s not just an obligation but a way to maintain financial order, claim refunds and take advantage of various benefits such as applying for loans or insurance.

Let’s take a look at how to file your Income Tax Return, even if it's your first time.

Understanding the basics of ITR

The Income Tax Return serves as an annual statement to the tax department, detailing your income from various sources. This could include salary, business profits, rental income or capital gains, among others. Filing an ITR helps the government track your earnings and taxes, ensuring you are paying the right amount.

Registering on the income tax portal

Before you begin filing, you must register on the official income tax portal. Here’s how:

• Visit the official e-filing website: https://www.incometax.gov.in/iec/foportal
• Click on ‘Register’ and choose the ‘Taxpayer’ option.
• Enter your Permanent Account Number (PAN) and click on ‘Validate’.
• Provide personal details such as your name, address, gender, email ID, and mobile number.
• Verify your details and submit the form.
• An OTP will be sent to your registered email and mobile number for verification. Enter the OTP to proceed.
• Set up a secure login password and complete the registration.
• Once registered, you can begin the process of filing your ITR.

Filing ITR

After registration, follow these steps to file your return:

• Visit the official portal and log in with your credentials.
• On the dashboard, click on ‘e-File’ and select ‘File Income Tax Return’.
• Choose the relevant assessment year and click ‘Continue’.
• Select the ‘Online’ mode of filing.
• For individuals, select the ‘Individual’ option.
• Choose the appropriate ITR form based on your income sources (such as ITR-1, ITR-2, etc.).
• Fill in the necessary details, including your taxable income, deductions, and bank account information.
• Double-check the summary of your return before submitting it.

Verification and submission

Once all details are entered, you need to verify your ITR before submitting it. You can choose from several methods to verify, including Aadhaar OTP, net banking, or physical submission.

Upon successful verification, your ITR will be filed with the Income Tax Department.

Why filing ITR is important

Now that you know how to file an Income Tax Return, it’s essential to understand why it matters.

• Claim refund: If you’ve paid more taxes than required, filing your return allows you to claim a refund. It ensures you get back the extra money you’ve paid to the government.
• Proof of income: Your ITR serves as an official record of your income. This is crucial when applying for loans, credit cards or even visas, as it demonstrates your financial stability.
• Carry forward losses: If you’ve suffered any financial losses (such as from investments), filing your ITR lets you carry those losses forward to offset future gains. This can reduce your tax liability in the long run.
• Avoid penalties: Filing your return on time helps you avoid penalties or interest charges. Meeting deadlines ensures you stay compliant with the law and avoid unnecessary trouble.
• Financial discipline: Filing ITR encourages better financial management. It allows you to keep track of your earnings, spending and savings, helping you make informed financial decisions.
• Contributing to nation-building: Paying taxes is not just a legal requirement—it’s also a civic responsibility. By filing your ITR, you contribute to the country’s infrastructure and development.

Filing your ITR for the first time may seem like a daunting task, but with online tools and guidance, it has never been easier. By following the steps outlined above, you will not only fulfil a legal obligation but also take a significant step towards maintaining your financial health.

This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.