Many believe that it is optional to file Income tax returns and therefore end up being non-compliant with the country’s most stringent tax law, The Income Tax Act, 1961. Income Tax returns are an annual event and are the moral and social obligation of all responsible citizens.
Income Tax is a direct tax that is charged on the income of individuals or entities who are required to pay taxes to the government. The tax is calculated on the next taxable income of the entity based on the Income slabs which are notified by The Finance Act every year during union budgets.
Income tax is commonly taken off your pay by your employer, or of the service recipient, and sent directly to the account of the central government in the form of TDS.
Individuals or entities like HUF, sole proprietorships are required to calculate their taxes and file an Income Tax return if no more tax is payable after TDS (Tax deduction at source)
Each year, one should file a tax return with The Income Tax department, to: