Tax Glossary Definition
Collection and Recovery of Tax – Collection and recovery of tax encompass the processes adopted by tax authorities to secure payment of taxes legally owed by individuals or organizations. These include measures such as tax deduction at source (TDS), advance and self-assessment payments, issuing demand notices, and enforcing recovery through property attachment or garnishee orders in cases of default.
Example: When the Income Tax Department directs a taxpayer’s bank to remit funds toward unpaid tax dues, it constitutes a recovery action under the tax collection framework.
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