ITR Filing Guide for First-Time Earners in India (2025)
Introduction
Income Tax Return (ITR) Filing for first-time earners can be a daunting and confusing task. Whether you’re a salaried employee, freelancer, or running a side hustle, understanding your tax obligations early sets you up for smooth financial planning and long-term compliance.
In this blog, the experts at Makwana Sweta & Associates—a trusted name for CA services in Mumbai and across India—walk you through a simple, jargon-free guide to ITR filing for first-time earners in India.
Who Needs to File ITR?
If your annual income exceeds Rs. 2.5 lakh (Rs. 3 lakh for senior citizens, Rs. 5 lakh for super senior citizens), you are legally required to file an ITR. However, even if your income is below the threshold, filing a return helps in:
- Claiming TDS refunds
- Building your credit profile
- Applying for visas, loans, or government tenders
Types of Income You Should Report
You are required to report all taxable income sources, such as:
- Salary (from employment)
- Freelance or consulting income
- Interest from savings, FDs, or bonds
- Capital gains from shares, mutual funds, crypto
- Other income, like gifts or winnings
Choosing the Right ITR Form (2025-26)
| ITR Form | Who Should Use It? |
|---|---|
| ITR-1 | Salaried individuals with income up to Rs. 50 lakh |
| ITR-2 | Capital gains, multiple house properties, NRIs |
| ITR-3 | Professionals, business owners |
| ITR-4 | Presumptive income (Section 44ADA/44AD) |
Most first-time earners use ITR-1 or ITR-4, depending on the income source.
Tip: Freelancers and consultants earning under Rs. 50 lakh annually can use Section 44ADA and file using ITR-4.
Documents You’ll Need
Before starting the process, keep the following documents handy:
- PAN Card
- Aadhaar Card
- Form 16 (from employer)
- Bank account details
- Salary slips
- Form 26AS (Tax Credit Statement)
- Investment proofs (Section 80C, 80D etc.)
- Rent receipts (for HRA deduction)
- Interest certificates from banks/NBFCs
Step-by-Step Guide to File Your ITR (2025)
Step 1: Register on the Income Tax Portal
Visit www.incometax.gov.in and register using your PAN. If already registered, just log in.
Step 2: Select the Appropriate ITR Form
Click on ‘File Income Tax Return’ and choose the right form based on your income.
Step 3: Fill in Personal & Income Details
The portal may auto-fill some details. Verify everything and enter:
- Salary income
- Other income (interest, freelance, etc.)
- Deductions under Sections 80C to 80U
Step 4: Verify Tax Liability or Refund
The system will calculate your tax payable or refund based on your inputs. Pay any balance tax via challan if required.
Step 5: Submit and e-Verify
Once done, submit the return and e-verify using Aadhaar OTP, bank account, or digital signature.
Note: e-verification must be done within 30 days of submission.
Deductions You Can Claim
Make sure to maximise your deductions:
| Section | Deduction Type | Limit |
| 80C | Investments like ELSS, PPF, LIC | Rs. 1.5 lakh |
| 80D | Medical insurance | Rs. 25,000–50,000 |
| 80TTA | Interest from savings account | Rs. 10,000 |
| 80E | Education loan interest | No limit |
| Standard | Salaried individuals | Rs. 50,000 |
Common Mistakes to Avoid
- Using the wrong ITR form
- Not reconciling with Form 26AS
- Missing income sources like interest or freelance gigs
- Forgetting to e-verify
- Not keeping proofs of deductions
Why Filing ITR Matters Even If You’re Below the Limit
- TDS Refunds: Claim back excess tax deducted at source
- Loan Processing: Banks often ask for ITRs
- Visa Applications: Many embassies require 2–3 years of ITR
- Startups/Freelancers: Creates credibility with clients and partners
How Makwana Sweta & Associates Can Help
At Makwana Sweta & Associates, a leading name in Chartered Accountant Services in Mumbai, we simplify tax filing for first-time earners, salaried individuals, and freelancers. Our expert Tax Consultants in Mumbai ensure your ITR is accurate, compliant, and maximises deductions.
Whether you’re a first-time earner or a young entrepreneur, let our experienced team handle your ITR filing smoothly and efficiently.
Final Words
Understanding ITR filing for first-time earners can feel overwhelming—but it doesn’t have to be. With the right knowledge, documents, and guidance, you can file confidently and set a solid financial foundation for your future.
Have questions? Contact Makwana Sweta & Associates, your trusted CA in Mumbai, for professional tax assistance.
Useful Links
- Outbound: Income Tax Portal
- Inbound: ITR Filing Services – Makwana Sweta & Associates