The Indian Income Tax Act provides for chargeability of tax on the total income of a person on an annual basis. The quantum of tax determined as per the statutory provisions is payable as:-
(a) Advance Tax
(b) Self Assessment Tax
(c) Tax Deducted at Source (TDS)
(d) Tax Collected at Source (TCS)
Tax deducted at source (TDS) and Tax collection at source (TCS), as the very names imply aim at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment. The deducted sum is required to be deposited to the credit of the Central Government.
(1) All sums deducted in accordance with the provisions of Chapter XVII?B by an office of the Government shall be paid to the credit of the Central Government ?
(a) On the same day where the tax is paid without production of an income?tax challan
(b) On or before seven days from the end of the month in which the deduction is made or income?tax is due under sub?section (1A) of section 192, where tax is paid accompanied by an income?tax challan.
Tax to be deducted/collected by Govt Office
1 Tax deposited without challan- same day 2 Tax deposited with challan – 7th of next month 3 Tax on perquisites opt to be deposited by the employer – 7th of next month