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How does the Government collect Income Tax

Taxes are collected by three means:

  • Voluntary payment by persons into various designated Banks. For example, Advance Tax and Self-Assessment Tax
  • Tax Deducted at Source (TDS) on your behalf from the payments receivable by you
  • Tax Collected at Source (TCS) on your behalf at the time of spending. It is the constitutional obligation of every person earning income to compute their income and pay taxes correctly

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