🗓️ ITR Season Open — Deadline July 31, 2026
✅ FY2025-26 (AY2026-27)
🎓 First-Time Filer Guide
⏱ 12 Min Read
How to File ITR for the First Time — Complete Step-by-Step Guide for Freshers India 2026
FY2025-26 (AY2026-27) · Which Form to Choose · Documents · New vs Old Regime · Zero to Submission on incometax.gov.in
If you started your first job in FY2025-26 (April 2025 to March 2026), the ITR season has just opened for you. Filing your income tax return for the first time feels intimidating — but for most freshers, the entire process takes under 30 minutes on incometax.gov.in with almost everything pre-filled automatically. This guide takes you from zero to submission: which form to pick, which documents to gather, whether to choose the new or old regime, and every step on the portal — with the July 31, 2026 deadline firmly in mind.
July 31
2026 filing deadline
₹12.75 L
Zero tax for salaried
30 Min
Avg time for freshers
ITR-1
Form for most freshers
₹5,000
Penalty for late filing
📅 FY vs AY — The One Thing Every First-Time Filer Gets Confused About
Financial Year (FY) = Your Working Year
This is the year you actually earned your income. FY2025-26 = April 1, 2025 to March 31, 2026. Also, this is the period your salary slips, Form 16, and TDS were calculated for. If you joined your first job in June 2025, your FY2025-26 income includes everything you earned from June 2025 to March 2026.
Assessment Year (AY) = Your Filing Year
This is the year you report what you earned in the previous FY. AY2026-27 = April 1, 2026 to March 31, 2027. Also, the ITR you file right now (in summer 2026) is for AY2026-27. When the portal asks you to "Select Assessment Year," choose AY 2026-27 for income earned in FY2025-26.
Important Note for AY2026-27 Filing
Even though the new Income Tax Act 2025 replaced the old 1961 Act from April 1, 2026, your ITR for FY2025-26 is still filed under the old Income Tax Act, 1961. Also, the new Act governs income you earn from April 2026 onwards — that will be filed in AY2027-28. So do not let news about the "new tax law" confuse your current filing.
❓ Who Must File
Do You Actually Need to File an ITR? (Even If Your Tax Is Zero)
Many freshers earning below ₹12.75 lakh assume they don't need to file an ITR because their tax is zero. This is a common and costly misconception. Also, "no tax" and "no ITR filing required" are two very different things. Furthermore, there are strong reasons to file even when your income is zero or fully exempt.
🔴 You MUST File ITR If:
✓ Your gross income exceeds ₹3 lakh (new regime basic exemption)
✓ TDS was deducted from your salary and you want a refund
✓ You want to carry forward losses (capital losses, business losses)
✓ You hold assets outside India or have signing authority in foreign accounts
✓ Your annual electricity bill exceeds ₹1 lakh (a proxy indicator)
✓ You deposited more than ₹1 crore in a bank account in FY
✓ You spend more than ₹2 lakh on foreign travel in FY
🟢 Strong Reasons to File Even If Not Mandatory:
✓ Claim TDS refund — if your employer deducted TDS but your total tax is zero, only a filed ITR gets you the refund
✓ Visa applications — US, UK, Canada, Schengen visa applications require 3 years of ITRs as proof of income
✓ Loan applications — home loans, car loans, and personal loans use ITRs to verify income
✓ Avoid higher TDS as non-filer in future — regular filers face lower TDS thresholds (₹1 crore vs ₹20 lakh for non-filers on cash withdrawals)
✓ Building financial track record — every CA, banker, and financial advisor will tell you: start filing from your first income year
💡 The Zero-Tax Fresher Situation: Many freshers who joined in the middle of FY2025-26 (say, June or October 2025) may have earned below ₹12.75 lakh for the partial year and have zero tax liability. Also, their employer may have still deducted some TDS (especially if projected annual salary seemed higher). Furthermore, filing an ITR is the only way to claim this TDS back as a refund. Also, refunds are typically credited to your bank account within 20–45 days of e-verification. Filing a nil ITR (even with zero tax) also keeps you in the "regular filer" category — which protects you from higher TDS/TCS thresholds on other financial transactions in the future.
⚖️ Regime Decision
New Regime vs Old Regime — Which Should a Fresher Choose for FY2025-26?
The new tax regime is the default for FY2025-26 (AY2026-27). Also, you have to actively opt out of the new regime to use the old one. Furthermore, for most freshers with income below ₹12.75 lakh, the new regime is the clear winner — zero tax applies. Here is the complete comparison.
| Income Range | New Regime (Default) ✅ | Old Regime |
|---|
| Up to ₹4 Lakh | Nil | Nil |
| ₹4 – ₹8 Lakh | 5% | 5% (₹2.5L–₹5L) |
| ₹8 – ₹12 Lakh | 10% | 20% (₹5L–₹10L) |
| ₹12 – ₹16 Lakh | 15% | 30% (above ₹10L) |
| ₹16 – ₹20 Lakh | 20% | 30% |
| ₹20 – ₹24 Lakh | 25% | 30% |
| Above ₹24 Lakh | 30% | 30% |
| 🎁 Rebate u/s 87A | Zero tax up to ₹12L income | Zero tax up to ₹5L income |
| 📋 Standard Deduction | ₹75,000 (salaried) | ₹50,000 (salaried) |
| ✅ Net zero-tax limit (salaried) | ₹12.75 Lakh | ₹5.5 Lakh (with deductions) |
✅ Choose New Regime If:
✓ Your gross salary is ₹12.75 lakh or less → zero tax
✓ You haven't made significant 80C investments (PPF, ELSS, LIC)
✓ You don't have HRA exemption or home loan interest deduction
✓ You want simplicity — no need to track investments or collect receipts
✓ You are a first-year fresher and haven't built an investment portfolio yet
Result: Most freshers → New Regime
🔄 Consider Old Regime If:
✓ Your salary is above ₹12.75 lakh AND you have significant deductions
✓ You have invested in PPF, ELSS, LIC etc. under Section 80C (up to ₹1.5 lakh)
✓ You pay rent and your employer didn't fully process HRA
✓ You have a home loan (Section 24b interest deduction up to ₹2L)
✓ You have health insurance premium (Section 80D)
Calculate both before deciding — use the portal's tax calculator
💡 The Switching Rule: If you are a salaried employee, you can switch between new and old regime every year by declaring your choice while filing ITR. Also, if you have business/professional income (freelancers), you can only switch once from new to old, and once switched back, the option is permanently closed. Furthermore, do NOT make the regime decision in a hurry — use the Income Tax Department's tax calculator at incometax.gov.in or ClearTax's free calculator to compute your tax under both regimes before deciding. Also, the portal itself will show you a comparison once you start filling in your income details.
📂 Documents Checklist
Documents to Gather Before You Start Filing
Gather all of these before you sit down to file — the process is much faster when you have everything ready. Also, the good news: for most freshers, the portal pre-fills most of this data automatically from your employer's TDS filings and your bank's SFT reports. Your job is mainly to verify, not manually enter.
📋 Mandatory for All
✅ PAN number (your user ID on the portal)
✅ Aadhaar number (linked to PAN — required for e-verification via OTP)
✅ Bank account number + IFSC for refund credit
✅ Mobile number linked to Aadhaar (for OTP during e-verification)
✅ Date of Birth as per PAN card
💼 For Salaried Freshers (ITR-1)
✅ Form 16 (issued by your employer, usually by June 15) — shows salary and TDS deducted
✅ Salary slips for all months of employment in FY2025-26
✅ Form 26AS — download from incometax.gov.in (shows all TDS credited)
✅ AIS (Annual Information Statement) — download from portal (shows all transactions)
✅ Bank statements for savings/current accounts — for interest income
📈 If You Have Investments (ITR-1 or ITR-2)
✅ Capital gains statement — from Zerodha Console, Groww, or mutual fund platform
✅ FD interest certificates — from bank (FD interest is taxable "other income")
✅ Dividend income details — from mutual fund / stock platform (taxable in your hands)
✅ 80C investment proofs (if old regime) — PPF statement, ELSS purchase, LIC premium receipt
✅ Health insurance premium receipt (Section 80D)
💻 For Freelancers (ITR-3 or ITR-4)
✅ All client invoices / payment receipts for FY2025-26
✅ TDS certificates (Form 16A) — clients who deducted TDS on your payments
✅ Bank statements — all credit entries are income
✅ Business expense receipts (if ITR-3 with actual expenses)
✅ Professional registration details — if applicable (CA, doctor, architect)
💡 What Is Form 26AS and Why You Must Check It First: Form 26AS is your comprehensive tax credit statement — it shows every rupee of TDS that has been deducted from your income and deposited with the government under your PAN. Also, download it from incometax.gov.in → e-File → Income Tax Returns → View Form 26AS. Furthermore, the most important step before filing: cross-check that the TDS amount in your Form 16 matches the TDS shown in Form 26AS under your PAN. Also, if there is a mismatch (your employer deducted TDS but did not deposit it under your PAN), you will need to contact your employer to correct it before filing. Furthermore, a mismatch between Form 16 and Form 26AS is the single most common reason for income tax notices to freshers.
📝 Step-by-Step
Complete Step-by-Step ITR Filing on incometax.gov.in — From Zero to Submission
All ITR filing must be done on the official portal: incometax.gov.in — never on any other website. Also, avoid third-party portals unless you specifically choose a paid service like ClearTax or TaxBuddy — the government portal is free and sufficient for most freshers.
STEP 1
Register on the Portal (First-Time Only)
Go to incometax.gov.in → click "Register." Select user type: Individual. Enter your PAN, full name as on PAN, and date of birth. Also, create a password and add your mobile number and email address. Furthermore, an OTP will be sent to your mobile to complete registration. If you already have an account from a previous year, simply log in with your PAN and password. Also, PAN is your permanent User ID — never changes.
STEP 2
Download and Check Form 26AS and AIS First
Log in → go to e-File → Income Tax Returns → View Form 26AS. Download the PDF. Also, separately go to Services → Annual Information Statement (AIS) and download your AIS. Furthermore, compare the TDS shown in your Form 16 against Form 26AS — they must match. Also, AIS shows all financial transactions reported against your PAN (salary, bank interest, stock sales, dividends). Anything in AIS that you don't recognise must be investigated and marked as incorrect before filing.
STEP 3
Start Filing — Navigate to ITR
After logging in → click e-File → File Income Tax Return → File Now. Also, select Assessment Year: 2026-27 (for income earned in FY2025-26). Select Mode: Online (recommended for freshers — simpler than offline XML). Click Continue. Furthermore, select Status: Individual and click Continue.
STEP 4
Select Your ITR Form
The portal will suggest a form based on your previous filings. Also, for most salaried freshers: select ITR-1 (Sahaj). Furthermore, if prompted to justify why you are using ITR-1 vs ITR-2, select the reason that matches your income (e.g., "income from salary and other sources only"). Also, the portal will show a list of documents needed — note them down. Click Let's Get Started.
STEP 5
Select Reason for Filing
Select the checkbox that best describes why you are filing. Also, options include: "Taxable income is more than basic exemption limit," "To claim a refund of TDS," "Filing as a regular practice even though income is below exemption." Furthermore, most freshers will select "Taxable income exceeds exemption limit" (even if the final tax is zero after rebate) or "To claim TDS refund." Select your applicable reason and click Continue.
STEP 6
Choose Tax Regime — New or Old
The portal will ask you to confirm your tax regime. Also, New Regime is pre-selected (default for AY2026-27). Furthermore, if you want to use the old regime, select "Yes, I want to opt for old regime" and provide the Form 10-IEA acknowledgment number if applicable. Also, the portal will display a comparison of tax payable under both regimes once you have entered your income — use this to make the final decision. For most freshers earning below ₹12.75 lakh: stay with the new regime.
STEP 7
Review and Edit Pre-Filled Data
The portal pre-fills your personal details (name, PAN, address, mobile, email), salary income from your employer's TDS filings, bank interest, and TDS credits from Form 26AS. Also, carefully review every section — do NOT blindly accept pre-filled data. Furthermore, compare with your Form 16 and salary slips. Also, if the salary shown doesn't match your actual earnings (common if you changed jobs mid-year), manually edit the figures. Furthermore, add any income not pre-filled: FD interest, dividend income, freelance income. Also, add your bank account details for refund if not pre-filled.
STEP 8
Add Deductions (If Old Regime)
If you chose the old regime: enter deductions under Section 80C (PPF, ELSS, LIC, tuition fees — up to ₹1.5L total), Section 80D (health insurance premium — up to ₹25,000), HRA if applicable, and any home loan interest (Section 24b — up to ₹2L). Also, the portal has a dropdown for each deduction type — select the specific sub-section. If you chose the new regime: skip this section (no deductions are applicable except employer NPS contribution under 80CCD(2)).
STEP 9
Verify Tax Liability and Pay Any Dues
The portal automatically calculates your total tax liability, applies rebates (87A for new regime up to ₹12L), subtracts TDS already paid, and shows either tax due or refund payable. Also, if tax is due: pay it immediately via Challan 280 through net banking or UPI before submitting. Furthermore, do not submit with outstanding tax dues — this creates a defective return. If the portal shows a refund: you will receive it in your bank account after verification, typically within 20–45 days.
STEP 10
Preview, Submit, and E-Verify (CRITICAL)
Click Preview and Submit — review the entire return one final time. Check that name, PAN, income figures, deductions, and bank account number are all correct. Also, click Submit. Furthermore — and this is critical — e-verify your return immediately after submission. Also, an ITR is NOT considered valid until it is e-verified. Furthermore, without e-verification, your return is treated as not filed. E-verification methods: Aadhaar OTP (fastest — takes 30 seconds), net banking, bank ATM, digital signature. Also, after e-verification, you will receive an acknowledgment number (ITR-V) — save this for your records.
✅ After Submission — What Happens Next
Immediate: Acknowledgment number received, status shows "Successfully Submitted and Verified"
Within 7–30 days: ITR processing begins — portal shows "Processing"
Refund (if applicable): 20–45 days after e-verification, directly to bank account linked in ITR
Notice (rare): If AIS data doesn't match your filing, a Section 143(1) intimation may be sent
Revised return: If you made an error, file a revised ITR anytime before March 31, 2027
📅 Deadlines
All ITR Deadlines for FY2025-26 (AY2026-27)
| Taxpayer Type | ITR Form | Deadline |
|---|
| Salaried individual / fresher ✅ Most common | ITR-1 or ITR-2 | July 31, 2026 |
| Freelancer / small business (presumptive) | ITR-4 | August 31, 2026 |
| Business / professional (actual accounts) | ITR-3 | August 31, 2026 |
| Tax audit cases (turnover above threshold) | ITR-3/5/6 | October 31, 2026 |
| Belated return (with penalty) | Any form | December 31, 2026 |
| Revised return (correct errors) | Any form | March 31, 2027 |
| Updated return (ITR-U, up to 4 years) | ITR-U | March 31, 2031 |
⚠️ Penalty for Late Filing (Section 234F): Miss the July 31 deadline and you pay: ₹5,000 penalty if your income exceeds ₹5 lakh, or ₹1,000 penalty if income is ₹5 lakh or below. Also, interest at 1% per month on any unpaid tax (Section 234A) also accrues from the due date. Furthermore, the biggest cost of late filing is not the penalty — it is losing the right to carry forward capital losses and business losses, which can save you significant tax in future years. Also, do not wait until July 29 — the portal crashes under last-minute traffic every single year without fail.
⚠️ 8 Common Mistakes First-Time Filers Make — And How to Avoid Them
1. Choosing the wrong ITR form. Using ITR-1 when you have capital gains from stocks or mutual fund redemptions. Portal accepts wrong forms initially but sends a defective return notice later. Always check your AIS first.
2. Forgetting to include bank FD interest. FD interest is taxable income under "Other Sources." Banks deduct TDS at 10% but that does not mean it is fully settled — you must declare the full FD interest amount in your ITR.
3. Not e-verifying after submission. An unverified ITR is not a filed ITR. If you miss e-verification within 30 days, the return is treated as not filed and late filing penalties apply. E-verify immediately via Aadhaar OTP after submission.
4. Not adding all bank accounts. You must mention all savings and current accounts held during FY2025-26 in Part E of ITR-1. Missing accounts can trigger AIS mismatch notices.
5. Ignoring AIS data before filing. If your AIS shows a transaction you don't recognise, mark it as "incorrect" on the portal before filing — otherwise, the income tax system assumes you accepted it and expects you to declare it.
6. Entering wrong IFSC or bank account number. Refunds go to the bank account number in your ITR. A single digit error means your refund goes nowhere and recovering it requires writing to the Centralised Processing Centre in Bengaluru.
7. Waiting for Form 16 — then missing the deadline. Form 16 must be issued by June 15. If your employer delays it, don't wait — use your salary slips, Form 26AS, and AIS to reconstruct your income figures and file by July 31.
8. Assuming "zero tax = no need to file." Even if your tax is zero after the 87A rebate, file your ITR if TDS was deducted, if you want the TDS refunded, or if you plan to apply for visas or loans in the next 2–3 years.
💬 Most Asked Questions — ITR Filing for Freshers 2026
I earned only ₹6 lakh in FY2025-26 (joined mid-year). Do I need to file ITR?
Your tax liability is zero — the 87A rebate under the new regime eliminates tax for income up to ₹12 lakh. Also, technically mandatory filing depends on whether your income exceeds the basic exemption limit (₹3 lakh). Furthermore, since ₹6 lakh exceeds ₹3 lakh, you are technically required to file. Also, more importantly: if your employer deducted any TDS on your salary (even a small amount), you must file to claim that TDS as a refund. Furthermore, even if no TDS was deducted, filing a nil ITR builds your financial track record for visas, loans, and the "regular filer" TDS protection in future years. Filing takes under 20 minutes for this income profile — just use ITR-1 online mode.
I sold some stocks and mutual funds in FY2025-26. Can I still use ITR-1?
It depends on the amount. Also, if your total Long-Term Capital Gains (LTCG) from listed equity shares and equity-oriented mutual funds is ₹1.25 lakh or less, AND you have no brought-forward capital losses, you can use the expanded ITR-1 for AY2026-27. Furthermore, this is a new rule for AY2026-27 that was not available in previous years. Also, if your LTCG exceeds ₹1.25 lakh, or you have Short-Term Capital Gains (STCG), or losses to carry forward, you must use ITR-2. Furthermore, check your capital gains statement from Zerodha Console, Groww Tax P&L, or your mutual fund platform before deciding the form.
My employer hasn't given me Form 16 yet. Can I still file ITR?
Yes — you don't need to wait for Form 16. Also, Form 16 must be issued by your employer by June 15, 2026. Furthermore, if your employer is late or you left the company, you can file using your salary slips (to calculate total gross salary), Form 26AS (to find TDS deducted under your PAN), and AIS (which shows employer-reported salary figures). Also, the portal pre-fills salary data from your employer's TDS return (Form 24Q) — so even without Form 16, the data may already be available on the portal when you start filing. Furthermore, never wait past July 31 hoping for Form 16 — a late filing penalty of ₹5,000 is your problem, not your employer's.
Should I use ClearTax, Groww, or the official portal to file my ITR?
All three options are valid. Also, the official portal at incometax.gov.in is completely free and has been significantly improved — it is the recommended option for freshers with straightforward salary income (ITR-1 profile). Furthermore, ClearTax and TaxBuddy are third-party platforms that provide a more user-friendly interface, guided question flow, and live CA support options — useful if you have a complex income profile (multiple jobs, capital gains, freelance + salary combination). Also, Groww and Zerodha Console provide direct capital gains import which simplifies the process significantly for investors. Furthermore, for a first-time filer with only salary income and maybe some FD interest: the official portal is completely sufficient and free.
I filed but made a mistake in my bank account number / income figure. What do I do?
File a Revised ITR as soon as you discover the error. Also, log back into incometax.gov.in, go to e-File → File Income Tax Return → select AY2026-27 → Resume Filing or Start New (for revised). Furthermore, select "Revised Return under Section 139(5)" as the filing type. Also, enter the acknowledgment number from your original filing when prompted. Furthermore, make the corrections and re-submit and re-verify the revised return. Also, you can file a revised return any number of times before the March 31, 2027 deadline. Furthermore, if you made an error that increases your tax liability (underpaid), pay the differential tax with interest before filing the revised return.
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Sources: ClearTax which ITR to file FY2025-26 AY2026-27 (ITR form applicability, ITR-1 eligibility up to ₹50L, LTCG expansion to ₹1.25L in ITR-1), ClearTax ITR-1 Sahaj guide AY2026-27 (expanded scope to 2 house properties, Form 26AS verification steps, deadline July 31 2026), ClearTax ITR due dates FY2025-26 (belated return December 31 2026, revised return March 31 2027, penalties under 234F), BusinessToday CBDT notifies ITR forms AY2026-27 March 30 2026 (ITR-1 expanded, two house properties now eligible), CMAKnowledge ITR forms AY2026-27 new rules deadlines (FY vs AY explanation, filing under old Act 1961 for AY2026-27, August 31 deadline for ITR-3/ITR-4), CMAKnowledge ITR-1 vs ITR-2 guide AY2026-27 (plain-language regime comparison, common questions), DBS Bank ITR filing last date FY2025-26 AY2026-27 (Section 234A interest, carry-forward loss consequences), IndiaFirst Life ITR filing last date 2026 (revised return to March 31 extended rule), IndiaFilings ITR-1 filing guide AY2026-27 (new regime default, budget 2026 zero tax ₹12L, standard deduction ₹75K salaried), JaroEducation ITR deadline FY2025-26 (form-specific deadlines clarification), Godrej Capital how to file ITR online step by step (portal navigation steps), Income Tax Department official user manual ITR-1 (Step 3 to Step 10 portal steps, e-verification methods). All deadlines and rules are for FY2025-26 (AY2026-27). Tax laws and portal features may change — always verify at incometax.gov.in before filing. This article is for educational and informational purposes only and is not professional tax advice. For complex income situations, consult a qualified Chartered Accountant.
