The certain amount paid by an individual as an advance tax which is withheld in the form of tax deducted at source(TDS) or collected in the form of TCS will take due notice only on completion of self-assessment of his or her income. This self-assessment is communicated to the department of income tax by filling of income tax return. Only on completion of this process the central government gets the rights over pre ?paid taxes as its own revenue. Therefore filing of the income tax returns turns out to be very important for this process and hence it is compulsory of every individual to file an income tax return otherwise in failing to file the income tax return will attract levy of penalty over the individual.
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Why filing of income tax return compulsory for an individual?
