Advance TaxĪlso referred to as ‘pay as you earn Scheme in ’ in contrast to the scheduled annual tax payment tax procedures, Advance Tax is paid on a Presumptive basis. TDS is an ideal mechanism for the government to ensure timely Income Tax payment as well as curb tax evasion. The other person/corporation must, however, abide by the prevalent IT laws. The tax is paid by a third person/corporation who/which happens to be the source of income for the taxpayer if the payment exceeds certain threshold limits at the rate prescribed by the government of India. TDS, as it is commonly known as Tax Deducted at Source. Income Tax is further subdivided into many categories but there are three main categories of income tax based on the category of payee and time of payment. In addition to these Income Tax also acts as a fiscal deficit stabilizer as well as minimizing the impact of Global Economic Cycles. Like all taxes, accrues from Income Tax also constitute a good portion of the country/state treasury. Income tax due dates come every year in March ending must be followed strictly for safeguarding financial interest.Ī popular example in this regard would be the GST or the VAT.
Indirect tax is levied on goods and services. There are different types of taxes and they can all be categorized into two main groups i.e Direct tax and Indirect Tax.Ī direct tax is levied on the income or profit of an individual. Tax is a pivotal arm for the good governance of a state or nation.
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