Every July, a set of first-time filers sit down with the portal open and discover problems that the portal cannot fix. A PAN that is inoperative. A refund bank account that was never validated. An old savings account from college quietly earning interest that the department knows about and they don't. A regime they told HR about in April without understanding it.
None of these is solved on the portal. All of them are solved months earlier, in ten-minute pieces.
Your first return is due in 2027 — for most salaried people filing ITR-1 or ITR-2, by 31 July 2027. That is a long runway. Use it.
# Right now: the three identity checks
# 1. Your PAN must be operative, not just issued
A PAN that is not linked to Aadhaar becomes inoperative. An inoperative PAN is not a paperwork problem — it means higher TDS, a return you may not be able to file, and refunds that will not be issued.
Most people who got a PAN recently have it linked automatically at the time of issue. Many people who got a PAN years ago as students, often through an agent, do not. The last extended deadline, for PANs obtained using an Aadhaar enrolment ID, was 31 December 2025.
Check your PAN-Aadhaar link status on the e-filing portal today. It is a public service and takes a minute. If it is not linked, linking now involves a fee — but that is a small price against a year of blocked TDS credit.
# 2. Your name must match everywhere
The name on your PAN, your bank account and your employer's payroll should match — same spelling, same order, same initials. A mismatch between PAN and bank account name is one of the classic reasons a refund fails. If your PAN has your father's name as middle name and your bank does not, fix one of them now, not in July.
# 3. Register on the e-filing portal with your own mobile and email
Register now, while nothing is urgent. Use your personal email, not the college one you will lose access to, and a mobile number you will still have in 2027. Every notice, intimation and OTP comes to these. A surprising number of first-time filers cannot receive their own e-verification OTP because the number on record belongs to a parent.
# At joining: what you tell your employer
# Give payroll your PAN — correctly
If your employer does not have your PAN, TDS is deducted at a higher rate and your credit may not map to you. Check that the PAN on your first payslip is yours, digit for digit.
# The regime declaration is not your final choice
HR will ask you to choose between the new and old regimes for TDS purposes. The new regime under Section 202 (old Section 115BAC) is the default.
What you tell your employer only decides how much TDS is deducted each month. For someone without business income, the actual choice is made in the return. The Income Tax Department's own FAQ is explicit that the intimation to the employer does not amount to exercising the option. But the option to move to the old regime can only be exercised in a return filed by the due date — file late and you are in the new regime whether you like it or not.
This is why the old habit of collecting rent receipts and buying last-minute tax-saving products makes little sense for most people starting out. Run your own numbers once — our old vs new regime decision guide has the break-even logic — and then stop worrying about it for the year.
# Forms have new numbers
From 1 April 2026, the Income-tax Rules, 2026 renumbered most forms. The investment declaration you may be asked for is Form 124 (it replaced Form 12BB). The salary TDS certificate you will receive in 2027 is Form 130 (it replaced Form 16). The tax credit statement is Form 168 (earlier Form 26AS). Same substance, new labels. Our Form 130 vs Form 16 guide covers what changed on the certificate itself.
# During the year: the habits that make July easy
# Keep every payslip, and decode the first one properly
Save each month's payslip as a PDF in one folder. Then read your first one line by line: basic, HRA, special allowance, employer and employee PF, professional tax, TDS. Most first-timers have never looked at the difference between CTC and in-hand, and the payslip is where you first learn which components are taxable.
# If you switch jobs, tell the new employer
Job switches in the first year are common. The trap is that each employer computes TDS as if its salary were your only income, so both may deduct too little — and you discover a tax payable in July. Declare your previous employer's salary and TDS to the new one. If you don't, budget for the shortfall.
# Count every other rupee that comes in
Salary is rarely the only income, even for a fresher:
- Savings account interest — including that old account you opened for a scholarship. Under the old regime there is a deduction for savings interest (old Section 80TTA); under the new regime there is none, and it is simply taxable.
- FD and recurring deposit interest — taxable every year as it accrues, even if the FD has not matured and even if the bank deducted no TDS.
- Internship stipend or freelance payments received during the tax year.
- Mutual fund redemptions, share trades, crypto — any of these can move you out of the simplest form. Check which ITR form applies before you start, not halfway through.
The department already sees most of this. It is better that you see it first.
# Check AIS and TIS twice — not once
The Annual Information Statement (AIS) and its summary, the Taxpayer Information Summary (TIS), show what banks, employers, mutual funds and brokers have reported against your PAN. Check them twice:
- Around January 2027, once two quarters of TDS returns have been filed. If an entry is wrong — interest from an account that is not yours, a duplicate transaction — submit feedback on the AIS itself. Reporting entities need time to correct.
- In June 2027, just before you file, to pick up everything that came in late.
Our guide on downloading AIS and TIS walks through the screens.
# Check TDS credit quarterly in Form 168
Your employer deducts TDS monthly but reports it quarterly. After each quarter's TDS return is filed, the credit should appear in Form 168 against your PAN. If a quarter is missing, ask payroll then — not in July, when every HR team in the country is fielding the same question.
# Before you file: the June 2027 checklist
# Pre-validate a bank account for the refund
On the e-filing portal, add and pre-validate at least one bank account in your own name. Refunds go only to a pre-validated account. Validation can take a few days and occasionally fails on a name mismatch, so do it in April or May, not the evening you file.
# Reconcile three documents
| Document | What it tells you | What to check |
|---|---|---|
| Form 130 (from employer, by 15 June 2027) | Salary, exemptions allowed, TDS | Salary total matches your 12 payslips; regime used |
| Form 168 | TDS credited to your PAN | Every quarter's TDS appears |
| AIS / TIS | Everything reported about you | Interest, dividends, trades, any other income |
If these three agree with each other and with your own records, the return is mostly arithmetic.
# Decide the regime — finally
Now you choose, with real numbers. If you have stayed in the new regime at payroll and it is better, nothing to do. If the old regime is better, you must opt out in a return filed by the due date. If you told payroll one regime and file under the other, TDS and final tax will differ — you either get a refund or pay the balance as self-assessment tax before filing.
# After you file: the step people forget
Filing is not the end. The return must be e-verified within 30 days of filing. According to the Income Tax Department's FAQ, a return verified after 30 days is treated as filed on the date of verification, with late-filing consequences. A return never verified is invalid.
Aadhaar OTP is the fastest route. Do it the same day, before you close the laptop. Our e-verification guide covers the other methods if your Aadhaar mobile number is not current.
After that, watch your email for the processing intimation. Read it. It compares what you declared with what the department computed — and it is the best tax education a first-time filer will ever get for free.
# The whole year on one page
| When | Do this |
|---|---|
| This month | PAN-Aadhaar link status; name match across PAN, bank, payroll; register on portal with your own mobile and email |
| At joining / any job change | Give PAN to payroll; choose TDS regime knowingly; declare previous employer's salary |
| Monthly | Save payslip |
| Every quarter | Check TDS credit in Form 168 |
| January 2027 | First AIS/TIS review; raise feedback on wrong entries |
| April–May 2027 | Pre-validate refund bank account |
| June 2027 | Collect Form 130; reconcile Form 130, Form 168 and AIS; final regime choice |
| By 31 July 2027 | File (ITR-1/ITR-2 due date for non-audit individuals); e-verify the same day |
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# References (verified 23 September 2026)
- Income Tax Department — ITR-V FAQs / 30 days' timeline for e-verification of returns
- Income Tax Department — FAQs on New Tax vs Old Tax Regime
- Income Tax Department — Section 156, Income-tax Act, 2025 (rebate)
- Mondaq — Income Tax Rules, 2026 notified: HRA, allowance and form changes
- TaxGuru — Form 130: new TDS certificate for salary replacing Form 16
- Business Today — PAN-Aadhaar linking deadline of 31 December 2025 and consequences
- ClearTax — Budget 2026 highlights (ITR due dates for non-audit cases)
Disclaimer: This article is educational and general in nature and is not tax advice for your specific situation. The worked example uses illustrative salary figures and assumptions, not any client's data. Rates, due dates and form numbers are as understood on the date below for Tax Year 2026-27; ITR forms for Tax Year 2026-27 had not been notified at the time of writing and details may change. VittSphere ONE is not a SEBI-registered Investment Adviser. Please confirm your own position with a qualified Chartered Accountant before filing. Data verified 23 September 2026.
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