Your first income tax e-filing experience should primarily be about matching three things correctly, which are your income details, your tax credits, and your tax regime choice. If even one of these is not correct, you may either overpay, lose a refund, or get a notice later. The good news is that steps on the portal are straightforward once you know what to keep open in parallel.
Step 1: Get your basics ready on the portal
If your PAN is not registered on the e-Filing portal, register using PAN and complete the subsequent validation steps that will be suggested by the Income Tax Department.
Also ensure the following are in place before you begin:
● PAN linked with Aadhaar, because Aadhaar OTP is one of the easiest verification methods.
● A bank account you want the refund to fall in, preferably pre-validated on the portal.
● Access to your registered mobile number and email for OTPs and alerts.
Step 2: Check before entering numbers
Do not start typing figures from memory. Use the system records first.
● Check AIS, because it shows income-related information reported to the tax department and helps you spot missing interest, dividends, or sale transactions.
● Check Form 26AS, because it is your tax credit statement and helps you confirm TDS and taxes already paid.
If AIS or 26AS shows something you did not include, your return can get flagged. If your employer or bank missed reporting, you can catch it early instead of fixing it later.
Step 3: Pick the correct ITR form
If you are a resident individual with total income up to ₹50 lakh from salary or pension, one house property, and other sources like interest, you may be eligible for ITR-1, subject to the detailed conditions and exclusions.
If you have capital gains beyond allowed limits, multiple house properties, business income, or other complex income types, you will need a different form such as ITR-2, ITR-3, or ITR-4 depending on your case.
Step 4: Decide your tax regime using an income tax calculator
From AY 2024-25 onward, the new tax regime is treated as the default for individuals and certain other taxpayers, and you choose the old regime only if you opt out.
This is where a new regime income tax calculator comparison helps, because it quickly shows whether giving up deductions is worth the lower slab structure for you.
● If you do not have business or professional income, you can generally opt out directly while filing the return.
● If you have business or professional income and you want the old regime, you must file Form 10-IEA within the due date under section 139(1), as per the Income Tax Department guidance.
Step 5: File the return online
On the portal, the typical path is Dashboard → e-File → Income Tax Returns → File Income Tax Return, then select assessment year, mode, and your ITR form.
Use pre-fill where available, but treat it like a draft, not the final submission. Compare every number against Form 16, AIS, and 26AS.
Before you submit, double-check these basics:
● Your name, PAN, address, and bank details.
● TDS numbers from 26AS.
● Selection of regime, especially if you are opting out of the default new regime.
Step 6: e-Verify your return
You must e-verify (or submit ITR-V) within 30 days from the date of filing.
You can e-verify using Aadhaar OTP, net banking, EVC through a pre-validated bank or demat account, or a digital signature certificate, among other permitted methods.
If you skip verification, it is like submitting a form without signing it.
How the power of compounding fits into ITR filing
Your ITR is not only compliance. It also shows you your real surplus. If you get a refund or you discover you saved tax under the right regime, treat that amount as investable cash instead of “bonus money.” Plug it into a power of compounding calculator as a yearly investment, and you will see how even a consistent amount, say Rs. 10,000 to Rs. 25,000, can become meaningful over 10 to 20 years.
Your first income tax e-filing goes smoothly when you stop guessing and start validating, which means you match your income with AIS, your tax credits with 26AS, and your regime choice with a quick new regime income tax calculator comparison. File, submit, and e-verify within 30 days, then keep the acknowledgement safe for future reference. If you also use the process to identify surplus cash and run it through a power of compounding calculator, your tax filing can become a yearly financial checkpoint, and not a yearly headache.
