Why is IT Filing Mandatory in India

Why is IT Filing Mandatory in India


The Income Tax Department is the central government body in charge of monitoring the collection of taxes. This includes both Voluntary payments like Advance tax and Self-assessed tax as well as Taxes Deducted at Source (TDS), which is deducted from your monthly salary before you receive it. This income is collected to pay off state and central government employees, as well as to meet the country's various infrastructural expenditures.

Whether you're an individual or a company, you must file your taxes if your income exceeds the basic exemption limit set by the government. You must also file if you have taxable investments that require TDS, or you're planning to claim any tax deductions or rebates. Regardless of how much or how little you earn, e-filing your taxes is essential to avoid fines and other penalties.

With a new and improved Income Tax portal, filing taxes has become more accessible and convenient than ever. E-filing, or electronic filing, is the process of submitting your returns via the Internet using a pre-approved software program. It's a popular choice for both individuals and companies, and the benefits it offers are numerous.

Before filing, you must ensure that your return is accurate and complete. You can do this by e-verifying your return, which involves dispatching the ITR-V, or acknowledgment slip, within 120 days of your e-filing date. Previously, you had to send the ITR-V physically by post, but now you can e-verify your return through either EVC or Aadhar OTP. If you do not e-verify your returns, you may be subject to severe penalties.

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