How is income tax collected by the government?

Nine O Six

February 03, 2024 12:05

The government employs three methods for tax collection, which are as follows:

Tax voluntarily paid by the taxpayers through various banks designated by the Government. For example, Advance Tax and Self Assessment Tax.
Tax Deducted at Source [i.e. TDS] paid to the government directly by the payer under specified circumstances.
Tax Collected at Source [i.e. TCS] paid to the government directly by the recipient of such payment under specified circumstances.

It is constitutional obligation of every person to compute his income and pay taxes on such income.

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