The taxes are crucial for the overall economic success and social welfare of the country.
Here are four reasons why income tax is so important for the government:
Defaulting in the payment of taxes is a punishable offence. If you make omissions or errors when reporting or paying taxes, you will face penalties. The assessing officer determines the amount to be levied as the penalty. However, this will not exceed the tax in arrears.
The income tax department can prosecute those suspected of tax evasion. A person can land in jail, or face hefty penalties, or even both.
Here is a list of penalties under the Income Tax Act in India.
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Over the past few years, the government has come down hard on tax defaulters. So, it is of utmost importance to file your tax returns on time and with complete accuracy. Defaulting for any reason due to laziness or ignorance is not a viable excuse. In such cases, you will face the wrath of the tax authorities who may not look upon your case very kindly. It is better, therefore, to be cautious and punctual when it comes to filing your income tax returns.
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