Tax returns are an essential part of our financial responsibilities and play a crucial role in the functioning of our society. Here are some reasons why tax returns are necessary:

1. Compliance with the Law:

- Filing tax returns is a legal requirement imposed by the government. It ensures that individuals and businesses are abiding by the tax laws and regulations set forth by the authorities.

2. Calculation of Tax Liability:

- Tax returns help in determining the amount of tax that an individual or business owes to the government. It involves calculating income, deductions, and credits to arrive at the final tax liability.

3. Receipt of Refunds:

- For individuals who have overpaid their taxes through withholding or estimated tax payments, filing a tax return allows them to claim a refund from the government.

4. Documentation of Income:

- Tax returns serve as a record of income earned by an individual or business during a specific tax year. This information is crucial for financial planning and obtaining loans or mortgages.

5. Aid in Tax Planning:

- By reviewing past tax returns, individuals and businesses can analyze their financial situation and implement strategies to minimize tax liabilities in the future.

6. Compliance with Financial Institutions:

- Many financial institutions, such as banks and lenders, require tax returns as part of the documentation for loan applications or other financial transactions.

7. Contribution to Public Services:

- Taxes collected through tax returns are used by the government to fund public services such as infrastructure development, healthcare, education, and social welfare programs.

In conclusion, tax returns are indispensable for individuals and businesses as they ensure compliance with the law, help in calculating tax liabilities, provide documentation of income, aid in tax planning, and contribute to the functioning of essential public services.