Tax Deduction at Source – Test 1

The taxpayer is in receipt of interest on debentures from ABC Ltd. The taxpayer wants to submit From No. 15G for non-deduction of tax. Out of the following taxpayers who can submit this form if other condition of section 197A are satisfied.

Out of the followings, which section deals with the provisions relating to deduction of tax at source on interest other than interest on securities paid to a resident?

Out of the followings, which payment is subject to tax deduction under section 194J?

No tax is required to be deducted if the amount of professional fees or technical fees or royalty or non-compete fees (excluding director’s fees) paid during the financial year unless such payment exceeds prescribed limit. Such prescribed limit is______.

Tax deducted during the month other than March shall be paid to the credit of the Central Government on or before ___________ from the end of the month in which such deduction is made.

As per section 201(1A) of the Act, interest shall be charged at ___________ per month or part of month, if there is a delay in deduction and __________ per month or part of month in case there is a delay in remittance after deduction.

Where the tax is collected by an office of the Government, it shall be paid to the credit of the Central Government ________.

In respect of contract payments, when is tax to be deducted at source from the payment made to the contractor?

Under section 194C, at which rate, tax is to be deducted if the payee is an individual or HUF?

Under section 194C, at which rate, tax is to be deducted if the payee is any person other than individual or HUF?

Mr. Raj is required to deduct tax at source under section 194C. However, payee has not furnished PAN to Mr. Raj. In this case, at what rate Mr. Raj shall deduct tax at source assuming that payee
is a proprietor?

Under section 194C of the Act, If any person being ________ or _______ or ____ or ________is liable to audit of accounts under clause (a) or clause (b) of section 44AB during the financial year
immediately preceding the financial year in which contract payments are credited or paid, then they are required to deduct tax at source.

No tax is to be deducted under section 194C if the single payment does not exceed Rs. 30,000.

During the previous year, ABC Ltd. gave an annual maintenance contract for maintenance of air conditioners to Mr. Kirit. As per the agreed terms, the annual contract value is Rs. 58,000 and
same shall be paid to Mr. Kirit in two equal instalments on the interval of six months in a financial year.
Find out the amount tax to be deducted by ABC Ltd. under section 194C?

During the previous year, ABC Ltd. gave an annual maintenance contract for maintenance of air conditioners to Mr. Kirit. As per the agreed terms, the annual contract value is Rs. 62,000 and
same shall be paid to Mr. Kirit in two equal instalments on the interval of six months in a financial year.
Find out the amount tax to be deducted by ABC Ltd. under section 194C?

During the previous year, Mr. Kirti Soni, a chartered accountant and subject to tax audit under section 44AB(b) gave an annual maintenance contract for maintenance of air conditioners to ABC
Ltd.. As per the agreed terms, the annual contract value is Rs. 62,000 and same shall be paid to ABC Ltd. in two equal instalments on the interval of six months in a financial year.
Find out the amount tax to be deducted by ABC Ltd. under section 194C?

Out of the followings, which section governs the TDS on rent payment?

MT Agro, a partnership firm, is required to pay rent of Rs. 1,90,000 in respect of office furniture. Find out the rate at which TDS is required to be deducted.

MT Agro, a partnership firm, is required to pay rent of Rs. 1,90,000 in respect of office buidling. Find out the amount on which TDS is required to be deducted.

MT Agro, a partnership firm has taken office on rent. The annual rent is Rs. 1,80,000 plus GST. Find out the amount of TDS to be made by MT Agro.

A partnership firm is under contractual obligation to hire charges in respect of Machinery to Mr. Shyam. As per agreement, firm is required to pay Rs. 8,00,000 annually. Find out the amount of
TDS assuming that Mr. Shyam is resident.

ABC Ltd. is required to pay hire charges of Rs. 1,70,000 in respect of equipments hired from Mr. Shyam. Find out the amount of TDS to be deducted assuming that Mr. Shyam is resident.

There is no liability to deduct tax under section 194I, if the payer being an individual or HUF was not liable to audit of accounts under clause (a) or clause (b) of section 44AB during the __________ in which the rent is paid or credited.

In respect of contractual payments, identify the time-limit for deposit of tax with the Central Government when tax is deducted in the month of March?

In respect of contractual payments, the deductor is required to issue Form No. 16A to the payee on _____ basis.

Tax is required to be deducted at ……….. from payment made to a resident on winning from lottery

No tax is required to be deducted under section 194C of the Act if transport operator furnishes a declaration that he does not own more than ___ goods carriage.

Tax is required to be deducted at ____ from interest payable to a resident. (Assuming PAN details are available)

TDS is not required to be deducted u/s 194A if the amount of interest paid or payable does not exceed:

TDS is not required to be deducted u/s 194B unless the payment in respect of winnning from lotteries exceeds Rs.__________________

TDS is not required to be deducted u/s 194BB unless the payment in respect of winnning from horse race exceeds  Rs.__________________

TDS is not required to be deducted u/s 194H unless the payment of commission or brokerage exceeds Rs.__________________

If resident payee is an individual than rate of TDS applicable under section 194H shall be _________

Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited _________ to deduct tax at source on any commission or brokerage payable by them to their public call office franchises.

No deduction shall be made under section 194 I where the amount of rent credited or paid or likely to be credited or paid during the financial year to the account of the payee, does not exceed ________.

No tax is deductible under section 194-IA where the consideration paid or payable for the transfer of an immovable property is less than Rs.________.

The rate of TDS applicable under section 194IA is ___________

The provisions of section 194 IB shall not be applicable to _________ who are liable to deduct tax at source under section 194-I.

The rate of TDS applicable under section 194IB is ___________

The tax is deductible under section 194-IB if rent is exceeding Rs.______ for a month or part of a month during the previous year.

The rate of TDS applicable under section 194IC is ___________

The tax is deductible under section 194-IC if amout paid or payable exceeds Rs.____

The rate of TDS applicable under section 194 LA is ___________

The tax is deductible under section 194 LA if amout paid or payable exceeds Rs.______.

Mr. CA earned gross interest of Rs. 59,199 on fixed depsoits with State Bank Of India. What would have been the amount of TDS, if any?

A Ltd. failed to deduct tax at source while making payment to Company Secretary. The TDS Officer issued notice to A Ltd. asking to show cause that why it shall not be treated as assesseein- default? The contention of A Ltd. is that the company secretary has already incorporated this payment while determining his taxable income and paid appropriate tax and furnished the certificate in Form no._______ and requested assessing officer not to pass order under section 201 (1) of the Act.

Mr. A-resident, purchased property located at Delhi from Mr. N, non-resident. Under which section, Mr. A is required to deduct tax at source?

Continuing above problem, advise Mr. A to file statement on tax deduction at source in Form No. _____

Section 192(2A) provides that deduction of tax at source is to be made after allowing ______ and after considering the _________agreed to be borne by employer.

As per the provision of section 192(3), the person responsible for paying the salary may, at the time of deducting tax at source, _______ or ________ the amount to be deducted for the purpose of adjusting any _____ or _______ arising out of previous deduction or non-deduction.

Section 192A deals with the tax deduction from the payment to be made to the employee of accumulated sum of PF. Out of such accumulated sum, which component is not subject to TDS?

In continuation of the above, what shall be the threshold limit for tax deduction and what shall be the rate of TDS?

Interest of Rs.4,800 paid by BBC Ltd. to Ms. Mohini by way of account payee cheque on account of debentures of the company held by her. The BBC Ltd. is a company in which public are substantially interested. However, its debentures are not listed. How much is the tax to be deducted by BBC Ltd. under section ____ of the Act?

ABC & Co. paid interest and salary to its resident partners in accordance with the provisions of section 40(b) of the Act. Advise partnership with regard to its TDS obligation in this regard.

No Tax is required to be deducted where the amount of interest paid on compensation awarded by the Motor Accidents Claims Tribunal or the aggregate amount of such income paid during financial year does not exceed _______;

Identify the situation where tax is required to be deducted under section 194A of the Act.

Alap Ltd. has made following payments on various dates to Vilambit Ltd. towards work done
under different contracts
Contract Number Date of Payment Amount (Rs.)
1. 05.05.2018 20,000
2. 06.06.2018 15,000
3. 08.08.2018 25,000
4. 10.12.2018 25,000
5. 29.01.2019 17,000
Identify the obligation of Alap Ltd. to deduct tax at source under section 194C, if any.

Dabur Ltd. has entered into a contract to buy plastic bottles from Packaging Pvt. Ltd as per the designs and specification given to it. For this purpose, Dabur Ltd. sold necessary raw material to
Packaging Pvt. Ltd. For the previous year 2018-19, Packaging Pvt. Ltd. has raised following invoices on Dabur Ltd.
Date Invoice no. Qty. Value of Raw Material Labour ChargesTotal Bill
14/10/18 1020/18-19 10,000 – – 60,000
31/11/18 1255/18-19 20,000 80,000 45,000 1,25,000
Identify the obligation of Dabur Ltd. to deduct tax at source under section 194C, if any.

Times of India Ltd. is required to make payment of Rs. 1,00,000 to Imaran Khan (non-resident), former captain of the Pakistan Cricket Team, for contributing articles relating to game in the magazine published by the company. Then, Times of India Ltd. is required to deduct TDS u/s. _____________ @ _______.

A commission of Rs.50,000 was retained by the consignee ‘XYZ Agency, a partnership firm’ and not remitted to the consignor ‘ABC Packaging Ltd. ‘, while remitting the sale consideration.
Examine the obligation of the consignor to deduct tax at source.

Ramesh, resident, gave a building on sub-lease to Mac Ltd. with effect from 1-7-2018 on a rent
of Rs. 15,000 per month. The company also took on hire machinery from Ramesh with effect from 1-11-2018 on hire charges of Rs. 10,000 per month. Discuss the liability for tax deduction of Mac Ltd under section 194 I of the Act.

Ramesh, Mahesh and Naresh are the equal co-owners of commercial premise which was given
on rent to Jack Ltd. on annual rent of Rs. 4,80,000. Total income of Naresh including rental income does not exceed exemption limit. Discuss the liability for tax deduction of Jack Ltd. under
section 194 I of the Act.

Mr. X, a resident, acquired a house property at Mumbai from Mr. Y for a consideration of Rs. 90 lakhs (stamp duty value Rs. 98 lakhs), on 20.6.2018. On the same day, Mr. X made two separate
transactions, thereby acquiring an urban plot in Kolkata from Mr. C for a sum of Rs. 49.50 lakhs (stamp duty value Rs. 54 lakhs) and rural agricultural land from Mr. D for a consideration of Rs.
60 lakhs.
Identify the obligation of Mr. X to deduct tax at source assuming that Mr. Y, Mr. C and Mr. D are
residents.

Mr. Madhukant is an employee of M/s. PQR Ltd. He had taken property on rent from Mr. Suresh, resident, for his residential purpose for the monthly rent of Rs. 70,000 w.e.f. 1st February, 2019. He claims that he is not required to deduct tax at source since (i) he is not an assessee covered by tax audit under section 44AB(a)/(b) (ii) rent for the financial year 2018-19 does not exceed Rs. 1,80,000 (limit prescribed under section 194-I). Advise him with suitably.

BCD Ltd. credited Rs. 28,000 towards fees for professional services and Rs.27,000 towards fees for technical services to the account of HG in its books of account on 6.10.2018. The total sum of Rs. 55,000 was paid by cheque to HG on 18.12.2018. Examine the obligation of BCD Ltd. in respect of tax deduction at source.

KD, an independent director of DAF Pvt. Ltd. was paid an amount of Rs. 22,500 sitting fees for attending the various meetings held during the financial year. Examine the obligation of DAF Pvt
Ltd. in respect of tax deduction at source.

Ma Agro Fresh Ltd. regularly stores fruits with Thanda Cold Storage Pvt. Ltd. It seeks your advice with regard to tax deduction at source.

A television company (TC) pays Rs. 80,000 annually to a cameraman for shooting of a documentary film on a contract basis. Discuss the liability for deduction of tax.

Taxpayer can apply in __________ to the Assessing officer to give him a certificate authorizing the payer not to deduct tax or deduct tax at lower rate, as may be appropriate.

Loddha Properties Ltd. has deducted tax of a civil engineer u/s 194J of the Income- tax Act on 19th January, 2019. Identify the due date of deposit of tax deducted by Loddha Properties Ltd.

In continuation of the above, under which Form, the return of TDS would be filed and what shall be the due date of submitting return?

A motor car of the value of Rs.11 lakhs was sold by a dealer to a customer. The customer paid Rs.2 lakhs in cash while balance by an account payee cheque. Advise motor car dealer with regard
to tax collection at source in this transaction.

Out of the followings, sale of which item is subject to TCS at the rate of 5%?

As per section _____________of Income Tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of Tax Collection Account Number (TAN). Such TAN
is a_____ alpha-numeric number issued by the Income-tax Department

First 3 alphabets of TAN represent the_________.

Section _____ deals with the penalty for failure to obtain TAN and such penalty is __________.

Which form is to be used for applying for TAN?

A person required to deduct tax under section __________ has to obtain PAN instead of TAN.

Generally, TDS shall be made at the time of payment or at the time of credit to the payee whichever is earlier. Out of the followings payments, which payment is not subject to this general rule?

Section 194 A requires payer to deduct TDS from interest other than interest on securities. Out of the followings, which payment is subject to TDS under this section?

Out of the followings, which payment is not subject to TDS Provisions?

” Work ” as defined under section 194 C does not Include:

” Commission or Brokerage ” as defined under section 194 H does not include:

Section 206C provides for __________.

As per section 194C, work includes:

Under section 194-I, out of the followings, which component is not subject to TDS?