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Income Tax Filing Tips for First-Time Taxpayers

It may be overwhelming to file income tax for the first time. It includes knowing the tax laws and all the documents to be submitted followed by the submission procedure. However, by following the correct guidance, you can get it done easily. Therefore, through this guide, we are covering easy steps for first-time taxpayers in India. By the end, you’ll feel confident to file your return correctly and in time.

Why Filing Income Tax Matters?

Every earning individual in India who meets the taxable income threshold is required to file an income tax return (ITR). Filing is not just a legal obligation. It also builds financial credibility, enables access to loans, and ensures compliance with the law.

For first-time taxpayers, these basics constitute the first step towards responsible financial management.

  • Knowing Your Sources of Income

Before filing, know your sources of income. These are income sources like salary, business income, freelance earnings, and money from other investments. Income sources fall into distinct categories. These categories dictate how your money will be taxed.

For salaried employees, an employer gives a Form 16. This summarizes salary details and taxes deducted at the source, making tax calculations easier. So, ensure you receive this document.

  • Select the Appropriate ITR Form

The Income Tax Department offers various ITR forms depending upon the nature of income and source. For a first-time tax payer, typically, the taxpayer would use ITR-1 for an income up to ₹50 lakhs or ITR-2, if the individual has other sources of income, like capital gains.

It is also important to select the right form. You could end up facing rejection or even penalties for filling the wrong form. It’s always safe to consult experts at Saptax Hub about selecting the right form.

  • Be aware of Deductions and Exemptions

The income tax law has numerous deductions and exemptions available under sections such as 80C, 80D, and 10(14), which can be deducted from your taxable income.

 

For example, you can consider investing in ELSS mutual funds or PPF/insurance premiums where you can claim an exemption under Section 80C. Premium for health insurance allows exemption under Section 80D. Don’t miss claiming all these exemptions to cut down your tax outgo.

Still unsure? You can access Sap Tax Hub for exclusive support.

You’ll need some documents for filing taxes. Pre-prep these well in advance:

  • For salaried people: Form 16.
  • Bank statements.
  • Investment proofs.
  • Rent receipts (in case you file HRA).
  • Loan statements, if you need interest deduction.

All these proofs ensure that the return is correctly and completely presented. Without some of this information, there will be errors and the tax department may query these.

Online Tax Filing Sites

The Indian government has an e-filing site. The advantage here is you can file the return directly through the portal. First-time filers may be perplexed about what all the terms and calculations really mean.

This is where professional services like Saptax Hub come in. They ensure error-free filings, accurate calculations, and compliance with tax laws. With their assistance, even first-time taxpayers can complete the process with ease.

Be Mindful of Deadlines

The deadline for filing income tax returns in India is typically July 31st of the assessment year. Filing late may result in penalties and loss of certain benefits, such as carrying forward losses.

 

Avoid Common Mistakes

New taxpayers frequently create avoidable missteps when filing their taxes. These include:

  • Incorrect personal details: You must verify every piece of information including name, PAN and contact information twice.
  • Mismatch in income reporting: Your tax documents must match exactly what you report to the tax department.
  • Missing deductions: Don’t overlook tax-saving investments.
  • Wrong bank details: The money refund from taxes is processed through your designated bank account. Verify account details carefully.

Saptax Hub takes measures to stop these common filing mistakes from occurring. Our team will help you complete your filing while building your confidence in the accuracy of your submission.

After filing your return you can download its completed version

A digital backup of your ITR acknowledgment should be saved after completing your filing process. The acknowledgment document serves as a record of compliance which future financial transactions including loan applications or visa requirements may need.

How Saptax Hub Makes Tax Filing Simple?

For first-time taxpayers, the process of understanding tax laws and filing returns can be quite daunting. At Saptax Hub, we make it easy for you. Our team of experts will guide you step by step to ensure a smooth  Income Tax Filing Services in Delhi.

Our team handles all aspects of tax preparation including deduction identification and return submission. Our intuitive platform lets you prevent mistakes and save time while ensuring complete compliance.

Conclusion

Nobody needs to feel anxious about their first time filing income tax. By using appropriate preparation methods along with the right resources you can file your taxes accurately and with confidence.

Saptax Hub stands as the top CA Firm in Delhi to help you with your tax needs. Our team of experienced professionals exists to provide a smooth tax preparation journey for you. Start your journey toward responsible financial management at Saptax Hub through a visit today.

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