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If you have just started earning and are hearing the term ITR for the first time, you are not alone. Many freshers, especially salaried employees or freelancers in their first job, are unsure about how income tax returns work and whether filing is even necessary. The good news is, it is not as complicated as it sounds.
Filing your Income Tax Return is not just about compliance. It helps build your financial record, supports visa applications, allows refund claims and sets the base for responsible money habits early in your career. Whether your income is taxable or not, filing ITR can be a smart move.
In this guide, we will walk you through the basics of ITR filing for freshers – when you need to file, which form is applicable, how to file it, and why it matters even if you are earning just above the exemption limit.
Latest updates
- ITR filing Due date for FY 2024-25 (2025-26) has been extended from 31st July 2025 to 15th September 2025
What is ITR filing?
Income Tax Return (ITR) filing is the process of submitting your income details to the Income Tax Department of India for a financial year from 1st April to 31st March. It includes information about your earnings, investments, deductions and the taxes paid or payable. Filing ITR helps the government calculate whether you have paid the correct amount of tax. It is an annual compliance activity and must be done before the due date to avoid penalties and interest.
What is Previous year?
The “Previous year” refers to the 12-month period from April 1st to March 31st of the following year, regardless of when you start your job. Planning taxes for each financial year is crucial as the tax year closes on March 31st, and a new one starts on April 1st. Previous year is same as the financial year.
What is Assessment year?
The “Assessment Year” follows the “Previous year” and is the financial year in which you calculate and file your return for the previous year. For example, the assessment year 2025-26 corresponds to the previous year 2024-25. So, if you start a job on October 1st, 2024, your previous year is 2024-25 and your Assessment Year is 2025-26.
Benefits of ITR Filing for Freshers
Helps build your financial history from an early stage
Useful for visa and higher education applications
Acts as proof of income for home loan, personal loan, business loan, credit card approvals, term insurance, etc
Enables you to claim refunds if excess TDS is deducted
Allows you to carry forward losses to future years
Keeps you compliant and avoids late filing penalties
Builds a habit of financial discipline
Useful for freelancers and gig workers with no formal salary slips
Can support proof of income for government tenders
Income Sources
Income under income tax laws is categorized into five heads:
Income from Salary: Earned through employment, including basic salary and allowances. Form 16 or salary slips provided by employers helps determine taxable salary income with certain allowances being deductible.
Income from House Property: Comprises rental income from properties. Sale proceeds of houses are not considered here, only rental income. A standard deduction of 30% is applicable to rental income.
Income from Business or Profession: Applicable if you run a business or practice a profession. Business expenses can be claimed as deductions from sales.
Capital Gains: Income generated from the sale of capital assets such as property, gold, equity shares, bonds, and mutual funds. Personal movable assets like furniture or cars are excluded.
Income from Other Sources: Includes income not covered in the above heads, like interest from bank deposits, dividends from companies and commissions or tuition fees.
Totaling these incomes gives the Gross Total Income (GTI) for income tax purposes.
What are Deductions and exemptions available to freshers?
Deduction under Section 80C upto Rs. 1.50 lakhs for investments like ELSS, PPF, LIC premium, and EPF
Deduction under Section 80D upto Rs. 50,000 for health insurance premium paid for self or parents
Standard deduction of Rs 50,000 for salaried employees
Deduction under Section 80TTA for savings bank interest up to Rs 10,000
Exemption for HRA (House Rent Allowance) if living in rented house
Exemption for conveyance and telephone reimbursement, if part of salary structure
Exemption for education loan interest under Section 80E (if applicable)
LTA (Leave Travel Allowance) exemption if claimed as part of salary
Deduction under Section 80G for eligible donations to charitable institutions
What is TDS?
Tax Deduction at Source (TDS) ensures income tax payment by deducting tax at the source. Employers, banks and businesses deduct TDS from income payments and remit it to the government. Salaried employees have tax deducted by their employers, while banks deduct tax on interest exceeding Rs. 40,000 annually for FD. TDS is also deducted from commission and professional fees income. Form 26AS provides details of TDS deducted. It can be accessed through the TRACES website, e-filing portal. Checking Form 26AS helps ensure accurate ITR filings and prevents tax discrepancies.
What is Advance tax?
Advance tax is a system of quarterly payment of income tax by taxpayers on their estimated income, rather than paying it all at the end of the financial year. It is also known as “pay-as-you-earn” tax. Individuals, including salaried employees and self-employed professionals as well as corporates, are required to pay advance tax if their total tax liability after TDS exceeds Rs. 10,000 in a financial year.
Advance tax payments are made in installments, typically scheduled at specific intervals throughout the financial year. The payment amounts are based on the taxpayer’s estimated income and tax liability for the year.
Calculating Tax payable or refundable
Calculating tax payable involves applying tax rates to your taxable income based on predefined tax slabs (discussed later). This final tax payable figure can be reduced by the total TDS and advance tax throughout the year resulting in either a balance tax payable or a refund due to the taxpayer. If there is any balance tax payable then you have to it (known as self assessment tax). If tax is refundable then it will credited to your bank account.
Income tax slab rates for freshers
Old tax Regime
| Income | Tax rates |
| Upto ₹ 2.50 lakh | 0% |
| ₹ 2.50 lakh – ₹ 5 lakh | 5% |
| ₹ 5 lakh – ₹ 10 lakh | 20% |
| Above ₹ 10 lakh | 30% |
You Can claim deduction under Section 80C, 80D, 80G, etc
For senior citizen (age between 60 & 80 years), tax rate is 0% upto ₹ 3 lakhs. Rest of the rates are same.
For super senior citizen (age above 80 years), tax rate is 0% upto ₹ 5 lakhs. Rest of the rates are same.
In Old tax regime, a maximum tax rebate under section 87A of Rs. 12,500 is available for income upto Rs. 5 lakhs meaning your income is totally tax free till Rs. 5 lakhs. The rebate under section 87A is not allowed to a Non-resident.
New tax Regime (FY 23-24)
| Income | Tax rates |
| Upto ₹ 3 lakh | 0% |
| ₹ 3 lakh – ₹ 6 lakh | 5% |
| ₹ 6 lakh – ₹ 9 lakh | 10% |
| ₹ 9 lakh – ₹ 12 lakh | 15% |
| ₹ 12 lakh – ₹ 15 lakh | 20% |
| More than ₹ 15 lakh | 30% |
New tax Regime (FY 24-25)
Income | Tax Rate |
Upto ₹ 3 lakh | 0% |
₹ 3 lakh – ₹ 7 lakh | 5% |
₹ 7 lakh – ₹ 10 lakh | 10% |
₹ 10 lakh – ₹ 12 lakh | 15% |
₹ 12 lakh – ₹ 15 lakh | 20% |
Above ₹ 15 lakh | 30% |
New tax Regime (FY 25-26)
| Income Range (₹) | Tax Rate |
|---|---|
| Upto ₹ 4 lakh | Nil |
| ₹ 4 lakh – ₹ 8 lakh | 5% |
| ₹ 8 lakh – ₹ 12 lakh | 10% |
| ₹ 12 lakh – ₹ 16 lakh | 15% |
| ₹ 20 lakh – ₹ 20 lakh | 20% |
| ₹ 20 lakh – ₹ 24 lakh | 25% |
| Above ₹ 24 lakh | 30% |
Which ITR form is applicable for freshers?
For most freshers who are salaried employees with income below Rs 50 lakh and no business or capital gains income, ITR-1 is the applicable form. It covers income from salary, one house property, and other sources like bank interest.
However, if you are a freelancer, gig worker, or have income from multiple sources including capital gains or foreign assets, then ITR-2 or ITR-3 may apply depending on the case. Choosing the correct form is important to avoid rejection or notices from the department.
Documents required for ITR filing for Freshers
For freshers filing their Income Tax Return (ITR) for the first time, here is a checklist of documents typically required:
Process of ITR filing for freshers
Visit the Income Tax Portal
Go to www.incometax.gov.in/iec/foportal/ and log in using your PAN and password.Go to File Return
After logging in, click on e-File > Income Tax Return > File Income Tax Return.Select Assessment Year
Choose the correct assessment year. For income earned in FY 2024-25, the assessment year will be 2025-26.Choose Online or Offline Mode
Select the online mode (recommended for freshers) and proceed.Select ITR Form
Choose the correct ITR form (usually ITR-1 for salaried freshers) and click continue.Enter Required Details
Your personal and pre-filled details will appear. Verify your salary, bank interest, TDS, and other income details. Make changes if needed.Claim Deductions
Go to the deduction section and enter eligible deductions like 80C, 80D, or 80TTA.Tax Calculation
The portal will auto-calculate your tax liability or refund.Preview and Validate
Review all information carefully. Click on Preview Return to validate before submission.Submit and e-Verify
Once you are sure, click Submit. Then e-verify using Aadhaar OTP, net banking, or DSC. E-verification completes the filing process.
What is the last date to file ITR for freshers?
The Due date to file Income tax return for FY 2024-2025 (AY 2025-2026) is 31st July,2025 which is extended to 15 th September, 2025.
In case you miss this deadline then you can file belated ITR till 31st December, 2025 with late fees.
Also for any mistake made while filing ITR before due date, you can make corrections by filing Revised ITR any number of times till 31st December, 2025
If you miss deadline of Belated income tax return filing then you can file Updated ITR (ITR U) till 4 years from the end of relevant assessment year with late fees and additional taxes.
What are the Consequences of non-payment of Tax and non-filing of ITR?
Failing to pay taxes and file your Income Tax Return (ITR) has severe consequences. Firstly, unreported income is deemed illegal, equating to tax evasion, and can result in a penalty of 100% to 300% of the evaded tax under Section 271(C). Secondly, a penalty ranging from 10% to 90% of the undisclosed amount may be imposed under Section 271AAB, depending on the circumstances. Lastly, if you miss the filing deadline, a 1% interest per month or part thereof will be charged on the unpaid tax amount as per Section 234A.
Looking for help?
Just started earning? Unsure how to file your income tax return? Let us handle it for you. At A R Dhorajiya & Co., we make ITR filing simple, accurate and stress free for freshers and first time filers. Whether you are salaried or a freelancer, we make sure your return is filed correctly and on time.
Get expert help today. Call us or WhatsApp to get started with your ITR filing.
Contact us today at +91 9769647582 for a consultation or to get started with your ITR filing
Frequently Asked Questions
A beginner can file a ITR by registering on the Income Tax Portal, choosing the correct ITR form (usually ITR-1), filling in income and deduction details, and submitting it online with e-verification. Most details are pre-filled from Form 16 and AIS, making it easier for first-time filers.
You need to file ITR if your total income before deductions exceeds Rs 2.5 lakh under the old regime or Rs 3 lakh under the new regime. Even if income is below this limit, filing is recommended for refund claims and record purposes.
Go to www.incometax.gov.in/iec/foportal/, click on “Register”, select “Individual”, enter your PAN, name, DOB, address, mobile and email. Complete OTP verification and set a password. Once registered, you can log in and file ITR.
Yes, you can file your ITR yourself through the income tax portal. The system is user-friendly and pre-fills most data. If you are unsure, you can take help from a CA.
Log in to the income tax portal, go to “e-file > Income Tax Returns > View Form 26AS”. It will show TDS deducted by employers, banks, or clients.
ITR-1 is not applicable to individuals with:
Total income above Rs 50 lakh
More than one house property
Foreign income or foreign assets
If your income is above the basic exemption limit and you do not file ITR, you may receive a notice, face late fees, interest or even penalty. Delayed filing also affects your ability to carry forward losses or claim refunds.
For FY 2024-25, the minimum income requiring ITR filing is Rs 2.5 lakh under the old regime and Rs 3 lakh under the new regime for individuals below 60 years of age.
You start paying income tax once your total income exceeds Rs 2.5 lakh under the old regime or Rs 3 lakh under the new regime, after considering deductions.
Under the new tax regime upto FY 24-25, income up to Rs 7 lakh gets a full rebate under Section 87A, so no tax is payable. Under the old regime, taxes apply unless you claim sufficient deductions to bring taxable income below Rs 5 lakh.
Yes, Rs 12 lakh annual income is tax-free from FY 25-26 onwards.
No, Rs 12 lakh annual income is not tax-free till FY 24-25.
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