1. Who is considered a taxpayer in India?

Anyone who earns an income that exceeds the basic exemption limit defined under the Income Tax Act is considered a taxpayer.

FAQs for New Taxpayers

This includes:

• Salaried employees

• Freelancers and consultants

• Business owners

• Individuals with rental or investment income

The exemption limit for FY 2024-25 (AY 2025-26) under the new tax regime is ₹3,00,000.

2. Do I need to file an Income Tax Return (ITR) even if my income is below the exemption limit?

You’re not mandated to file if your income is below the exemption limit, but filing can still be beneficial, especially if:

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• You want to claim a refund

• You’re applying for a loan or visa

• You have foreign assets or income

• You want to build a financial history

3. What are the types of ITR forms for individuals?

Here’s a quick guide for new taxpayers:

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• ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh and only one house property

• ITR-2: For individuals with capital gains or more than one house property

• ITR-3: For those earning income from business or profession

• ITR-4 (Sugam): For presumptive income scheme under Section 44AD, 44ADA, or 44AE

4. What documents are required to file my first tax return?

Here’s a checklist for new taxpayers:

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• PAN card

• Aadhaar card

• Bank account details

• Form 16 (for salaried individuals)

• Form 26AS (tax credit statement)

• Interest certificates (from savings or fixed deposits)

• Investment proofs for deductions (LIC, PPF, ELSS, etc.)

• Rent receipts, if claiming HRA

• Loan statements (home/education loans)

5. When is the last date to file my ITR?

For individuals (non-audit cases), the due date is usually July 31st of the assessment year. For FY 2024–25, it will be July 31, 2025.

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Late filing attracts penalties up to ₹5,000 and interest on due tax under Section 234F.

6. Can I file taxes online by myself?

Yes! The Income Tax Department has made e-filing simple through its official portal: https://incometax.gov.in

If your return is simple, you can do it yourself. But if you have multiple income sources or investments, it’s wise to consult a tax expert.

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7. What deductions can I claim to reduce my tax liability?

Some popular deductions under Chapter VI-A include:

• Section 80C: Up to ₹1.5 lakh for LIC, PPF, ELSS, etc.

• Section 80D: Health insurance premium

• Section 80E: Interest on education loan

• Section 80G: Donations to charity

• Section 24(b): Interest on home loan

Note: Deductions are available only under the old tax regime. Choose your regime wisely.

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8. How do I choose between the old and new tax regime?

Old Regime: Higher tax rates but allows exemptions and deductions.
New Regime: Lower tax rates but no deductions.

Compare your tax liability under both regimes before filing.

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9. What happens if I don’t file my ITR?

Not filing your ITR can result in:

• Penalties under Section 234F

• Difficulty in obtaining loans or visas

• Notices from the Income Tax Department

• Loss of refund eligibility

It’s best to stay compliant and file on time.

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10. Can I revise my return if I make a mistake?

Yes. If you filed your ITR before the due date, you can file a revised return to

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correct any mistakes. The deadline for revision is typically December 31 of the assessment year.