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<p>Income tax are deducted at source called withholding tax and are deposited into Government treasury by tax withholding agent.</p>
No, withholding of income tax is infact a benefit to the government as it leads to benefit in terms of time value of money and less tax evasion. It is a method adopted by the government in order to reduce tax evasion due to non payment of tax by issuing wrong bills. It is like a tax deducted at source.
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