Tax declaration

A tax declaration is the process through which a taxpayer provides the government with details of their income, expenditures, deductions, and other financial information for a given period. These disclosures allow the tax department to compute the person’s or business’s actual tax obligation. Tax declarations are generally made by filing statutory returns such as income tax returns, GST returns, or other required statements.

Example: When an employee files their annual Income Tax Return, they disclose their salary, interest earned on savings, deductions they are eligible for under Section 80C, and any TDS already paid. This enables the tax authority to check whether further tax is due or whether a refund should be issued.