Starting your first job is exciting—your first salary message, new responsibilities, and your first big step into adulthood. But along with this excitement comes one responsibility many first-time earners find confusing: income tax return filing.

If you’ve just started earning and are wondering what income tax returns actually mean, why you need them, or how to file them without stress—this guide is for you. In this blog post, we break everything down in the simplest way possible so you understand exactly what to do, when to do it, and how to avoid mistakes your employer never told you about.

Section 1: What Are Income Tax Returns?

Understanding the basics before you begin

Before you jump into the process, you must know what income tax returns are. In simple words, an Income Tax Return (ITR) is a form where you report:

• Your annual income
• Taxes you have paid
• Deductions you want to claim
• Refunds you expect

Think of it as an annual report card of your finances submitted to the Income Tax Department.

Why new earners MUST file income tax returns

Even if you think your employer has already deducted TDS, filing income tax returns is still important because:

• It helps you claim extra tax refunds.
• It builds your financial identity for loans (home, car, personal loans).
• It avoids penalties for missing filing.
• It helps you carry forward future benefits like capital loss adjustments.
• It keeps your tax records clean from day one of your career.

Section 2: Essential Documents You Need Before Filing

Collect these early to avoid last-minute stress

Your first step in successful income tax return filing is keeping the right documents ready. Most beginners struggle here because they don’t know what to collect. Here’s a complete list:

1. Form 16

Your employer gives you this. It shows your salary, exemptions, and the tax deducted.

2. Form 26AS

This is your annual tax statement. It shows all TDS deducted on your behalf.

3. AIS (Annual Information Statement)

This includes details of:

• Salary
• Interest earned
• Investments
• High-value transactions

4. Bank Statements

Useful to cross-check your income and interest.

5. Investment Proofs

If you claimed deductions like:

• LIC
• EPF
• PPF
• ELSS
• Health insurance
• Tuition fees

you need proof.

6. PAN & Aadhaar

Both are mandatory for filing.

Having these ready helps ensure you don’t make mistakes during income tax return filing and prevents mismatches that could delay your tax refund.

Section 3: Old Tax Regime vs New Tax Regime

Which one should a new earner choose?

As a new employee, you’ll hear your HR team ask, “Old or New Regime?” This confuses most first-job holders, so here is the simplest explanation:

Old Tax Regime

• Higher tax rates
• But you can claim deductions (80C, 80D, HRA, etc.)

New Tax Regime

• Lower tax rates
• But no major deductions allowed

Which one is better for beginners?

• If you don’t have many investments → New Regime works better.
• If you invest heavily in tax-saving options → Old Regime gives more benefits.

Always compare both before choosing. Once you select one while filing income tax returns, you can modify it again next year.

Section 4: Step-by-Step Roadmap for First-Time Income Tax Return Filing

Your simple, stress-free filing checklist

Here is the easiest step-by-step roadmap for beginners:

Step 1: Collect all your documents

Get Form 16, AIS, 26AS, and bank statements ready.

Step 2: Choose your tax regime

Use an online calculator to compare old vs new regime.

Step 3: Log into the Income Tax Portal

Visit: https://www.incometax.gov.in Use your PAN to create an account.

Step 4: Select the right ITR form

For most first-job earners, it is ITR-1 (Sahaj). You should choose ITR-1 if:

• Your income is from salary
• Your income is below ₹50 lakhs
• You have no business income

Step 5: Your details will auto-fill

The portal automatically imports data from:

• Form 16
• 26AS
• AIS

Review everything carefully to ensure there are no mismatches.

Step 6: Add deductions and exemptions (only if using Old Regime)

You can add:

• 80C – Investments
• 80D – Health insurance
• HRA – Rent
• 80TTA – Savings account interest

Step 7: Verify your tax liability

The portal shows:

• Tax already paid
• Total tax due
• Refund amount

Step 8: Submit and e-verify

You can verify via:

• Aadhaar OTP
• Net banking
• Bank account
• Demat account

Your income tax return filing is complete once you e-verify.

Section 5: Common Mistakes First-Time Earners Should Avoid

Save yourself from delays, penalties, and notices

Most new employees unknowingly repeat the same mistakes during income tax return filing. You can avoid them by keeping an eye on the following:

1. Not checking AIS and 26AS

Many people rely only on Form 16, which can cause errors.

2. Selecting the wrong ITR form

Choosing an incorrect form may lead to your return being marked defective.

3. Forgetting to report savings account interest

This is one of the most common mistakes beginners make.

4. Not claiming eligible deductions

If you use the old regime, claim:

• 80C
• 80D
• HRA
• Donations

5. Delaying the filing

Late filing attracts penalties and delays refunds.

6. Not verifying the return

Your ITR is considered invalid if not e-verified.

7. Entering incorrect bank details

This is a common reason tax refunds fail.

Avoiding these simple mistakes ensures your income tax returns are processed smoothly and quickly.

Section 6: Why Filing ITR Early Helps First-Time Earners

Start your financial journey the right way

Filing income tax returns early has many long-term benefits:

1. Faster Refunds

If you’re eligible for a refund, early filers get it quicker.

2. Smooth Visa Processing

Many countries ask for 3–5 years of income tax returns during visa applications.

3. Better Credit Score

Banks consider regular ITR filing when approving loans.

4. Clean Tax History

Maintaining a clear tax record from your first job protects you later.

5. Helps with Financial Planning

You understand your income, expenses, and tax structure better.

Starting your financial life with discipline builds strong long-term habits.

Section 7: Final Tips for Stress-Free Income Tax Filing

Simple reminders to stay confident and compliant

Here are some beginner-friendly tips to remember:

• File your income tax returns before the due date.
• Choose a tax regime wisely each year.
• Keep a folder for all your investment and tax papers.
• Cross-check the auto-filled data before submitting.
• Always e-verify your return within 30 days.

If this is your first time, don’t worry—every year, the process gets easier.

Conclusion

Filing your first income tax return may feel overwhelming, but with a clear roadmap, the right documents, and a step-by-step approach, you can complete the process confidently. Whether it’s understanding Form 16, choosing between tax regimes, or avoiding common mistakes, being informed gives you an advantage.

Start early, stay organized, and treat income tax return filing as a key habit of your financial growth. Your future self will thank you.