Any citizen having taxable income is supposed to file income tax return. Tax is levied on citizens having income more than INR 2.5 lakhs per annum.The income tax department can refund only if a tax return is filed. In a tax return filling all details regarding income and tax deduction at source (TDS) is provided.A person holding foreign assets and accounts should state the details of the same in their tax return filling. Also completing this procedure comes handy when applying for a home loan. Lenders take this proof of income. Visa authorities also request you to submit details of tax return. Freelancers should also pay tax and they are given certain benefits such as presumptive taxation to ease the paper work.

Salaried class employees have the flexibility of TDS which makes it easier for them to file.To boost the savings of the citizens government also gives incentives for saving money and money spent over education is not taxable. Agricultural income is also completely exempted from paying taxes.Income tax officials do not unnecessarily scrutinize tax payers. However any major discrepancy if found out will lead to penalties and also for non-filling. The income tax department has data regarding your investments and income from various sources. This will let them track your filling.Also avoid filling in the last minute to free yourself from mistakes in the data you provide. A penalty of INR 5,000 will be levied if you miss to fail for particular financial year.