Why is IT Filing Mandatory in India

Why is IT Filing Mandatory in India



Income tax, also known as direct tax, is levied on any person/entity that earns more than the basic exemption limit set by the Indian Government. These taxes are collected by the Government to meet various expenses and investments in the country.

In order to file income tax returns in India, it is compulsory for every individual whose income is above the basic exemption limit of Rs 3 lakhs to submit his/her return. The central government levies this tax to provide the much-needed funds for the development of the nation.

Individuals can file their returns through a variety of ways, including online and offline. However, online filing is the most preferred method for most people as it is more convenient and secure. Moreover, this mode of filing also offers a number of benefits, such as instant processing and a faster refund.

Before you can file your return, it is important to keep all your documents ready. This includes your Form 16 from your employer, investment proofs, and other relevant information. Moreover, it is essential to have an understanding of the basic exemption limits set by the government.

The Income Tax Department of India is a department under the Ministry of Finance and handles monitoring of income tax and expenditure tax, among other financial laws. The department is responsible for the implementation of various direct tax laws that are passed every year in the Union Budget.


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