Tax · 8 min read

Filing your first ITR in India: a plain walkthrough

You probably need to file even if your employer deducted everything. Here is what you need, which form, and the refunds most first-timers leave behind.

Krish Dalal

Founder and editor, PaisaExpert. Master's in Business Management, SP Jain School of Global Management, London. · Last updated 2026-08-26

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The most common first-year mistake is assuming that because your employer deducted tax, you are done. TDS is an advance payment, not a filing. The return is where you reconcile it, and where you get money back if too much was taken.

What you need before you start

  • Form 16 from your employer, issued after the financial year ends.
  • Your Annual Information Statement and Form 26AS, both downloadable from the income tax portal. These show every rupee of TDS anyone reported against your PAN, and they are how you catch a mistake.
  • Interest earned on savings accounts and fixed deposits. Banks report this whether or not you remember it.
  • PAN linked to Aadhaar. Filing will not proceed without it.
  • Your bank account details for the refund, pre-validated on the portal.

Which form

Your situationFormNotes
Salary, one house, interest income under ₹50 lakh totalITR-1Covers most first-time filers
You sold shares or mutual fundsITR-2Capital gains push you out of ITR-1
Freelance or business incomeITR-3 or ITR-4ITR-4 if you use the presumptive scheme
More than one house propertyITR-2

Frequently asked

Yes, if your gross income before deductions exceeds the basic exemption limit. TDS is an advance payment against your liability, not a substitute for filing. The return is where the two are reconciled, and where you claim a refund if more was deducted than you owed.

What to do next

  1. Download your AIS and Form 26AS first, before touching the return.
  2. Check every TDS entry against your own records; errors are common and correctable.
  3. Pre-validate your bank account so a refund is not held up.

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