Paying taxes vs Filing taxes

Forums Tax Filing Paying taxes vs Filing taxes

Paying taxes vs Filing taxes

What is the difference between paying of income tax and filing it.
Why is it that just paying them is not enough? What does govt gain out of filing of income taxes?

Profile photo of Gaurav Mishra Asked By: Gaurav 2 replies 2 helpful answers Last Updated: 7 months ago
  • Profile photo of Gaurav MishraGaurav
    Participant

    What is the difference between paying of income tax and filing it.
    Why is it that just paying them is not enough? What does govt gain out of filing of income taxes?

  • Profile photo of Roohi RasheedRoohi Rasheed
    Moderator

    In India, the tax payable by an individual is based on his own assessment of income earned by him in a given Financial Year. When you file the return of income after paying your taxes, you are communicating to the Income Tax Department details like the various sources from which the income declared has been earned, TDS Credit availed and self-assessment tax paid if any. Only when you file the return of income the government assumes right over the taxes paid by you. Hence filing a return of income is a communication/ proof to the Government of the self-assessment of tax liability assumed and discharged by the individual.

  • Profile photo of saurav kumarsaurav
    Participant

    What if I do not declare my other sources of Income? How would the government know, If I have any?
    What If someone frauds about other income?
    Is there any course of action on that?

You must be signed in to reply to this question.