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of <h1>Income-Tax Act: Advance Payments and 'Pay as You Earn' Concept Explained for Regular Fund Flow and Easier Collection.</h1> Taxes on income are finalized after the completion of the previous year, but the Income-tax Act allows for advance payments during the earning year to ensure regular fund flow and ease collection. This is known as the 'Pay as you earn' concept. Taxes are collected by the government through voluntary payments by taxpayers into designated banks (e.g., advance tax, self-assessment tax), taxes deducted at source, taxes collected at source, and the Equalisation Levy.
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