Retribution for good and evil is one of the important doctrines of Taoism. Taoism holds that good deeds will be rewarded with good, and evil deeds with evil. The retribution for good and evil follows one like a shadow, leaving no place to escape.

Taoism claims that there are gods in charge of people's merits and demerits between heaven and earth. These gods have a strict organizational structure with countless subordinates, who monitor and record all people's behaviors. There are also numerous gods in each person's body, called "body gods", who will report people's good and evil deeds to the celestial Lord of Life at any time. Additionally, the Kitchen God, who resides in every household, will also go to heaven to report the good and evil deeds of the family members.
In short, "Heaven's observation of people is no different from a mirror". People's every word and action, even their thoughts and intentions, cannot escape the gods' clear inspection. Based on the good and evil deeds, merits and demerits they have grasped, the gods will carry out retribution, rewards, and punishments. Minor faults will reduce one's fortune and longevity; major faults will bring disasters or even take one's life; and great good deeds and merits will increase one's fortune, official rank, and lifespan.

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The retribution for good and evil is absolutely accurate, either in this life or in the next life.