Any body plz tell me that how increase or reduction in advance tax effects growth?
Any body plz tell me that how increase or reduction in advance tax effects growth?
Advance tax is payable on the tax liability arising from the estimated total earnings of the year. When advance tax collected by the Government goes up, it indicates the increased production/service output. But in caculating real GDP, inflation is also factored in.
More advance tax collected during the period, indicating growth of output because of higher earnings, more government spendings facilitating better infrastructure, development, and subsidies, etc.
ok bt sry for a silly quetion ,might be! How More advance tax indicates more subsidiary?
There are many goods/products which are subsidised by the government because a part of the total expenses is borne by the government, which comes from tax collection.
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