Before we answer this question first we need to know what tax liability is. A tax liability can be defined as the total sum of tax debt payable by an individual, corporation or other entities to the national taxing authority. It’s the summation of the exact amount of tax which you are bound to pay as per your income and expenses in the current assessment year to the taxing authority. Tax liabilities happen because earned income annually, profit made from the sale of the asset or any other types of taxable events.
There are certain slabs set by the taxing authority to decide the percentage one needs to pay as tax. It will be no tax liability for an individual for the prior year when the total tax remains zero or when there is no need to file the income tax return.
In India, after making a claim for all required deductions based on the set current laws of income tax from the annual gross total income, if the net income for taxation does not cross the slab of Rs 5 lakh, then in that case the individual will be considered eligible for any rebate which falls under Section 87A. But this does not mean that such individuals will be free from filing tax. Tax filing is a must if it crosses maximum exemption limit or else penalty will be charged for non-filing. A penalty of Rs.1000 will be charged to the individual not filing the tax and when the income exceeds the amount of Rs.2.5 lakh annually.
Specific dates are given by the taxing authority of India within which the tax needs to file to avoid paying penalty. Delay in payment will attract an unwanted penalty. It is advisable to seek the assistance of taxing experts for hassle-free filing of tax within due time.