Income Tax Filing in India for 2025: A Complete Guide for Beginners

Hi there, newbie tax filers! Filing income tax for the first time can feel like learning a new language—complicated and full of jargon. But don’t worry; you’re not alone, and I’m here to guide you through it in the simplest way possible.

In this blog, we’ll cover everything you need to know about income tax filing in India for 2025. By the end, you’ll feel confident enough to tackle your taxes like a pro. So grab a cup of chai, and let’s get started!

What Is Income Tax and Why Do You Need to File It?

Let’s start with the basics. Income tax is a percentage of your income that you pay to the government. This money is used to fund public services like roads, education, healthcare, and infrastructure.

In India, if your annual income exceeds the basic exemption limit, you are required to file an income tax return (ITR). Even if your income is below the exemption limit, filing an ITR can be beneficial—we’ll discuss why later.

Here are the basic exemption limits for the financial year 2024-25:

₹2,50,000 for individuals below 60 years
₹3,00,000 for senior citizens (aged 60-80 years)
₹5,00,000 for super senior citizens (above 80 years)

If your income exceeds these thresholds, filing your ITR is mandatory. Simple enough, right? Let’s move on!

New vs. Old Tax Regime: Which One Should You Choose?

Starting 2020, the government introduced the New Tax Regime, which offers lower tax rates but removes most deductions and exemptions. The Old Tax Regime, on the other hand, allows you to claim deductions but comes with higher tax rates.

Here’s a quick comparison:

Income Slab (₹)	Old Regime Tax Rate	New Regime Tax Rate
0 – 2,50,000	Nil	Nil
2,50,001 – 5,00,000	5%	5%
5,00,001 – 7,50,000	20%	10%
7,50,001 – 10,00,000	20%	15%
10,00,001 – 12,50,000	30%	20%
12,50,001 – 15,00,000	30%	25%
Above 15,00,000	30%	30%

Which one should you choose?

If you have multiple deductions like HRA, PPF, NPS, etc., the Old Tax Regime might save you more money.
If you prefer a simpler structure and don’t want to worry about claiming deductions, go for the New Tax Regime.

Pro Tip: Use an online tax calculator to compare both regimes and make an informed decision.

Steps to File Income Tax in India (Beginner-Friendly)

Filing your ITR isn’t as scary as it sounds. Follow these simple steps, and you’ll be done in no time:

1. Gather All Your Documents

Before you start, make sure you have these documents handy:

PAN Card: Your Permanent Account Number is your unique tax ID.
Form 16: Provided by your employer, it shows your salary details and TDS (Tax Deducted at Source).
Bank Statements: To track any additional income like interest.
Investment Proofs: For claiming deductions (PPF, insurance, etc.).
Aadhaar Card: Linking Aadhaar with your PAN is mandatory.

2. Register on the Income Tax Portal

Head over to the official Income Tax Department website. If you’re a first-time filer, you’ll need to register using your PAN, Aadhaar, and mobile number.

3. Choose the Correct ITR Form

The Income Tax Department provides different forms based on your income type. Here’s a quick guide:

ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh.
ITR-2: For individuals with income from capital gains or multiple house properties.
ITR-3: For business income.
ITR-4 (Sugam): For individuals opting for the presumptive taxation scheme.

Most salaried employees can stick to ITR-1.

4. Fill in Your Income Details

Salary income (Form 16)
Interest income (from savings accounts, FDs, etc.)
Income from house property (if any)

5. Claim Deductions and Exemptions

Here’s where you save money! Under the Old Tax Regime, you can claim deductions like:

Section 80C: Investments in PPF, ELSS, insurance, etc. (up to ₹1.5 lakh)
Section 80D: Health insurance premiums
HRA: House Rent Allowance
Standard Deduction: ₹50,000 for salaried employees

6. Review and Verify Your Details

Double-check everything to avoid errors. Once satisfied, submit your ITR.

7. E-Verify Your Return

After submitting your return, you’ll need to e-verify it. The easiest way is using your Aadhaar OTP or net banking.

That’s it—you’re done!

Common Mistakes to Avoid

Filing Under the Wrong ITR Form: Make sure you choose the correct form based on your income.
Missing Out on Deductions: Double-check your eligible deductions to maximize tax savings.
Forgetting to E-Verify: Your return isn’t complete until you e-verify it.
Not Reporting All Income: Even small amounts like interest from savings accounts must be declared.
Filing After the Deadline: The deadline for filing ITR for FY 2024-25 is 31st July 2025. Don’t miss it!

Benefits of Filing ITR

Even if your income is below the taxable limit, filing an ITR has its perks:

Proof of Income: It acts as proof of income for loan applications and visas.
Claiming Refunds: If excess TDS was deducted, filing an ITR helps you claim a refund.
Avoiding Penalties: Filing ensures you’re compliant with tax laws.
Carrying Forward Losses: You can carry forward losses (like capital losses) to offset them against future gains.

Top Tools to Simplify Tax Filing

Income Tax Portal: The official government website for filing ITR.
ClearTax and TaxBuddy: Easy-to-use platforms that simplify tax filing for beginners.
Online Tax Calculators: Tools to compare the Old and New Tax Regimes.

FAQs on Income Tax Filing

Q1. Is it mandatory to file ITR if my income is below ₹2.5 lakh? A: No, but it’s recommended as it helps in building a financial record.

Q2. Can I file ITR after the deadline? A: Yes, but late filing attracts a penalty of up to ₹10,000.

Q3. How long does it take to get a refund? A: Usually, 15-45 days after e-verification, but it can vary.

Q4. Do I need to hire a CA to file my taxes? A: Not necessarily. If your income is straightforward, online platforms or the Income Tax Portal are sufficient.

Conclusion

Filing income tax in India doesn’t have