TDS MCQ Questions and Answers are covered in this Article. TDS MCQ Test contains 172 questions. Answers to MCQ on TDS are available after clicking on the answer.
TDS MCQ Questions and Answers
1. At the time of deduction of tax at source, surcharge and cess, is added in which of the following cases ?
a) Where the resident assessee receives any income in the nature of salary
b) Where the recipient is an Indian company
c) Both (A) and (B)
d) Neither (A) nor (B)
Answer
Answer: a) Where the resident assessee receives any income in the nature of salary
2. At the time of deduction of tax at source, surcharge and cess, is added in which of the following cases ?
a) Where the non-resident individual assessee receives any income
b) Where the recipient is a foreign company
c) Any other non-resident
d) All of the above
Answer
Answer: d) All of the above
3. No TDS shall be deducted on GST component included in invoice, where the amount of such GST is __________
a) Separately indicated in the invoice
b) Shown as a part of the invoice
c) Only when a separate invoice is issued in respect of such GST
d) None of the above
Answer
Answer: a) Separately indicated in the invoice
4. Any person responsible for paying salaries shall be required to deduct tax at source at the ___________
a) Time of credit of account of employee
b) Time of payment
c) (A) or (B), whichever is earlier
d) None of the above
Answer
Answer: b) Time of payment
5. Any person responsible for paying salaries shall be required to deduct tax at source at the _________ of income-tax, computed on the basis of __________ for the relevant financial year.
a) Maximum marginal rate, rates in force
b) Average rate, rates in force
c) Average rate, 20%
d) Maximum marginal rate, 20%
Answer
Answer: b) Average rate, rates in force
TDS MCQ Questions and Answers
6. Any person responsible for paying salaries shall be required to deduct tax at source at the average rate of income-tax computed on the basis of rates in force for the relevant financial year in which ___________
a) Payment is made
b) Account of employee is credited
c) (A) or (B), whichever is earlier
d) None of the above
Answer
Answer: a) Payment is made
7. Any employer, who has provided non-monetary perquisites, is __________ deduct tax at source at the time of payment.
a) Mandatorily required to
b) Having an option to
Answer
Answer: b) Having an option to
8. The proof obtained by an employer, from an employee in respect of deduction can be in respect of ___________
a) Prescribed claims
b) Set off of loss
c) Both (A) and (B)
d) Neither (A) nor (B)
Answer
Answer: c) Both (A) and (B)
9. Mr. Shyam has resigned from XYZ India Ltd. on September 30, 2022. He has drawn salary of Rs. 30,000 per month and TDS of Rs. 3,000 has been deducted from such income. He has a joined new company ABC India on October 01, 2022 at salary of Rs. 35,000 per month. ABC India should, subject to provision of details from Shyam, deduct tax at source after considering salary of ____________ during the PY 2023-24.
a) Rs. 2,10,000
b) Rs. 3,90,000
c) Rs. 3,60,000
d) None of the above
Answer
Answer: b) Rs. 3,90,000
10. TDS from salaries has to be deducted by which of the following ?
a) Individual and HUF
b) Firms and LLP’s
c) Companies
d) All of the above
Answer
Answer: d) All of the above
TDS MCQ Questions and Answers
11. Once an employee has provided the details of other income to the new Employer (other than house property), it is ___________ for the new employer to deduct TDS, considering such disclosures.
a) Optional
b) Mandatory
c) Mandatory, provided that does not result in reduction of TDS otherwise deductible by the new employer
d) None of the above
Answer
Answer: c) Mandatory, provided that does not result in reduction of TDS otherwise deductible by the new employer
12. From the following details, calculate the TDS which should be deducted by HBL India from salary of one of its employees :
• Salary – Rs. 7,00,000
• Income from other sources declared by the employee – Rs. 1,00,000 on which TDS amounting Rs. 30,000 has been deducted.
a) 52,500
b) 54,600
c) 42,500
d) 45,400
Answer
Answer: b) 54,600
Explanation : In this case, if TDS amounting Rs. 30,000 is considered, the TDS deductible from salary would reduce, and hence it has not been considered for deduction purposes.
13. Alpha Inc. seconded sum of its employees to Beta India, who rendered services exclusively to the Indian Company. Alpha Inc. paid home salary and special allowance outside India to such employees amounting Rs. 300,000, while Beta India paid salary of Rs. 13,00,000 to them in India. The taxable salary in respect of such employee would be _________
a) Rs. 13,00,000
b) Rs. 16,00,000
c) Rs. 23,00,000
d) Rs. 6,50,000
Answer
Answer: b) Rs. 16,00,000
14. Anil, an employee of Chariot Hotels Private Limited, receive a salary of Rs. 23,00,000. In addition to this, he also received tips of Rs. 6,00,000 during the year while working in the Hotel. The employer is required to deduct tax on __________
a) Rs. 17,00,000
b) Rs. 18,00,000
c) Rs. 23,00,000
d) Rs. 29,00,000
Answer
Answer: c) Rs. 23,00,000
15. Mr. Mohan is working as senior manager in HBL India. He is getting salary of Rs. 8 lakhs p.a. HBL India has given him rent free accommodation in Noida. Which of the following form would be given to him ?
a) Only Form 16
b) Only Form 12BA
c) Form 16 along with Form 12BA
d) None of the above
Answer
Answer: c) Form 16 along with Form 12BA
TDS MCQ Questions and Answers
16. A is an employee of ITC Limited. He is required to furnish evidence of tax deduction claimed by him in ___________ to ITC Limited.
a) Form No. 12B
b) Form No 12BA
c) Form No. 10E
d) None of the above
Answer
Answer: a) Form No. 12B
17. Mr. Ramesh withdraws Rs. 80,000 from his Recognised Provident Fund after completion of service of 8 years. Amount of TDS on such payment would be __________
a) Rs. 8,000
b) Rs. 4,000
c) Nil
d) None of the above
Answer
Answer: c) Nil
18. M, made a, premature withdrawal from recognised provident fund . Such a withdrawal would attract TDS @ ________ under Section 192A.
a) 5%
b) 20%
c) 10%
d) 0%
Answer
Answer: c) 10%
19. Mr. Kamlesh withdraws Rs. 60,000 from his Recognised Provident Fund after completion of service of 4 years. Amount of TDS on such payment would be _________
a) Rs. 8,000
b) Rs. 6,000
c) Nil
d) None of the above
Answer
Answer: b) Rs. 6,000
20. In which of the following cases would withdrawal from Recognised provident fund, be not liable to taxation ?
a) Withdrawal after 5 years of continuous services with one employer
b) Withdrawal due to circumstances beyond the control of the employee
c) Withdrawal after 5 years of continuous services with more than one employer both of whom have Recognised provident fund
d) All of the above
Answer
Answer: d) All of the above
TDS MCQ Questions and Answers
21. Mr. Manjan withdraws Rs. 40,000 from his Recognised Provident Fund after completion of service of 3 years. Amount of TDS on such payment would be __________
a) Rs. 8,000
b) Rs. 6,000
c) Nil
d) None of the above
Answer
Answer: c) Nil
22. Mr. Mido is a trustee of a Recognised Provident Fund He shall not deduct TDS from premature withdrawal of provident fund where Miss. Rina, an employee gives declaration in Form ________
a) 15G
b) 15F
c) 15A
d) 15CA
Answer
Answer: a) 15G
23. Mr. Sunil withdraws Rs. 400,000 from his Recognised Provident Fund after completion of service of 3 years. However, he does not provide, his PAN number. The amount of TDS on such payment would be ___________
a) Rs. 120,000
b) Rs. 80,000
c) Nil
d) Rs. 40,000
Answer
Answer: a) Rs. 120,000
24. Interest on securities would attract TDS under Section 193 @ ________
a) 5%
b) 10%
c) 20%
d) None of the above
Answer
Answer: b) 10%
25. What would be the rate of TDS, when interest amounting Rs. 4,000 was paid by an account cheque by a Public Company, in which the public are substantially interested, on debentures issued to individual during the PY 2022-23, assuming PAN of the recipient is available ?
a) 5%
b) 10%
c) 20%
d) Nil
Answer
Answer: d) Nil
TDS MCQ Questions and Answers
26. What would be the rate of TDS, when interest amounting Rs. 14,000 was paid by an account cheque by a Public Company, in which the public are substantially interested, on debentures issued to an individual during the PY 2022-23, assuming PAN of the recipient is available?
a) 5%
b) 10%
c) 20%
d) Nil
Answer
Answer: b) 10%
27. What would be the rate of TDS, when interest amounting to Rs. 1,00,000 was paid on listed debentures issued in a dematerialized form to an Individual during the PY 2022-23 ?
a) 5%
b) 10%
c) 20%
d) Nil
Answer
Answer: d) Nil
28. Which of the following securities of the Central Government are liable for deduction of tax at source u/s 193 ?
a) 7.75% Savings (Taxable) Bonds
b) 7.75% Savings (Non- Taxable) Bonds
c) 7.75% Investment (Taxable) Bonds
d) 7.75% Investment (Non- Taxable) Bonds
Answer
Answer: a) 7.75% Savings (Taxable) Bonds
29. Which of the following are not liable for deduction of tax at source u/s 193 ?
a) Interest on securities beneficially owned by an insurance company
b) Indian Railway Finance Corporation Limited 54ED Capital Gains Bond
c) Power Mortgage Corporation Ltd. 54EC Capital Gains Bond
d) All of the above
Answer
Answer: a) Interest on securities beneficially owned by an insurance company
30. Mr. Jamil has received dividend on shares amounting Rs. 1,00,000 issued by Surekha India Ltd. during the PY 2022-23. Such dividend would be _________
a) Taxable at 10%
b) Exempt from tax in the hands of Mr. Jamil
c) Taxable at 20%
d) None of the above
Answer
Answer: b) Exempt from tax in the hands of Mr. Jamil
TDS MCQ Questions and Answers
31. Mr. Sondesh has received dividend on shares issued by foreign company during the PY 2022-23, in which he owned 20% equity shares. Such dividend would be ____________
a) Taxable at 10%
b) Exempt from tax in the hands of Mr. Sondesh
c) Taxable at slab rate applicable to such Individual
d) Taxable at 20%
Answer
Answer: c) Taxable at slab rate applicable to such Individual
32. MNE India has declared divided to shareholders during PY 2022-23. At what rate would such dividend would attract dividend distribution tax ?
a) 15%
b) 20%
c) 10%
d) 5%
Answer
Answer: a) 15%
33. Sunlight India has given loan to Mr. Ballodia, during the PY 202218-2319, who is holding 15% shares in such company. Such loan would be deemed as dividend in the hands of Mr. Ballodia. Select the correct statement from the following :
a) Such dividend would be taxable in the hands of Mr. Ballodia at maximum marginal rate
b) Sunlight India would charge dividend distribution tax @ 30% on payment of dividend to Mr. Ballodia
c) BC India would charge dividend distribution tax @ 15%
d) Such dividend would be taxable in the hands of Mr. Ballodia at 10%
Answer
Answer: b) Sunlight India would charge dividend distribution tax @ 30% on payment of dividend to Mr. Ballodia
34. Which of the following persons are not liable to deduct TDS on interest payments u/s 194A?
a) Individuals
b) HUFs
c) Individual / HUF who are covered under tax audit
d) None of the above
Answer
Answer: c) Individual / HUF who are covered under tax audit
35. Liability to deduct TDS u/s 194A by banks would arise at the ___________
a) Time of credit to provisioning account on daily/ monthly basis for the purpose of macro monitoring or at the time of payment of interest, whichever is earlier
b) Time of credit of interest income or at the time of payment of interest, whichever is earlier
c) Time of payment only
d) None of the above
Answer
Answer: b) Time of credit of interest income or at the time of payment of interest, whichever is earlier
TDS MCQ Questions and Answers
36. At what rate TDS would be deducted u/s 194A on interest payments made by bank to Individuals, assuming PAN is available and the payment is not exempt from withholding tax ?
a) 5%
b) 10%
c) 15%
d) 20%
Answer
Answer: b) 10%
37. At what rate TDS would be deducted u/s 194A on interest payments made by bank to Indian company, assuming PAN is available, and the payment is not exempt from withholding tax ?
a) 5%
b) 10%
c) 15%
d) Nil
Answer
Answer: b) 10%
38. On April 1, 2022, Mr. Amit made a fixed deposit of Rs. 1,00,000 with ABC Bank, which carries interest rate of 8% p.a. What would be the TDS deducted by bank on such interest payment?
a) Rs. 800
b) Rs. 400
c) Rs. 1,600
d) Nil
Answer
Answer: d) Nil
39. On July 1, 2022, Mr. Lalit has made a fixed deposit of Rs. 1,20,000 with ABC Bank, which carries interest rate of 8% p.a. What would be the TDS amount to be deducted by bank on such interest payment?
a) Rs. 960
b) Rs. 720
c) Rs. 1,920
d) Nil
Answer
Answer: d) Nil
40. On July 1, 2022, Mr. Bharat has made a fixed deposit of Rs. 2,40,000 with PQR Bank, which carries interest rate of 10% p.a. What would be the TDS amount to be deducted by bank on such interest payment ?
a) Rs. 1,800
b) Rs. 3,600
c) Rs. 900
d) Nil
Answer
Answer: a) Rs. 1,800
TDS MCQ Questions and Answers
41. Mr. C has made a recurring deposit of Rs. 10,000 per month for a period of 12 months. The first installment of recurring deposit starts from August 1, 2022. Interest of Rs. 9,000 accrue on such deposit during the PY 2022-23. What would be the TDS deducted by bank on such interest payment on recurring deposit ?
a) Rs. 900
b) Rs. 1,800
c) Rs. 450
d) Nil
Answer
Answer: d) Nil
42. Mr. Remo, a 62-year old person, has made a fixed deposit of Rs. 3,60,000 on May 1, 2022 for 9 months period. It carries interest @ 10% p.a. What would be the TDS amount to be deducted by bank on such interest payment on such fixed deposit?
a) Rs. 2,700
b) Rs. 3,600
c) Rs. 5,400
d) Nil
Answer
Answer: a) Rs. 2,700
43. On April 1, 2022, Mr. Phil has made a fixed deposit of Rs. 50,000 each with three branches of HFC Bank (which is not Core Banking Solution Bank), located at Uttam Nagar, Dwarka and Rajouri Garden. Such fixed deposit are for a period of 12 months. It carries interest @ 10% p.a. What would be the TDS amount to be deducted by bank on interest payment on such fixed deposit ?
a) Rs. 1,500
b) Rs. 500
c) Rs. 3,000
d) Nil
Answer
Answer: d) Nil
Explanation : No TDS would be deducted where the interest credited by an individual branch does not exceed Rs. 10,000, where Core Banking solution have not been implemented.
44. On April 1, 2022, GCC India Ltd. took a loan from Indian Bank of Rs. 50 lakhs and it has to make payment of first EMI of loan, which includes interest of Rs. 5 lakhs. What would be the TDS amount to be deducted by GCC India on such interest payment ?
a) Rs. 50,000
b) Rs. 25,000
c) Rs. 1,00,000
d) Nil
Answer
Answer: d) Nil
45. Mr. Kamlesh is awarded compensation by Motor Accident Claims Tribunal. He is also getting interest of Rs. 20,000 on such compensation. What would be the TDS amount on such interest payment?
a) Rs. 200
b) Rs. 400
c) Rs. 100
d) Nil
Answer
Answer: d) Nil
TDS MCQ Questions and Answers
46. A is a partner in a partnership firm and received and interest on loan amounting Rs. 50,000. At what rate, TDS would be deducted under Section 194A on such interest payments ?
a) 5%
b) 10%
c) 15%
d) Nil
Answer
Answer: d) Nil
47. Mr. K has made interest bearing fixed deposit in the name of Registrar General of Court, on directions of Court. In this case, TDS would be deducted ___________
a) At the time of payment of interest on fixed deposit
b) At the time of payment or credit of interest, whichever is earlier
c) When matter is decided by Court
d) None of the above
Answer
Answer: c) When matter is decided by Court
48. Which of the following recipients can receive, interest other than interest on securities without deduction of tax ?
a) Life Insurance Corporation of India
b) Unit Trust of India
c) Financial Corporation established under a Central Act
d) All of the above
Answer
Answer: d) All of the above
49. Sunita has a savings account with ICICI bank on which she earned an interest of Rs. 15,000 during the year. Such interest would be liable for deduction of tax amounting to _________
a) Rs. 1,500
b) Rs. 750
c) Rs. 1,000
d) Nil
Answer
Answer: d) Nil
50. Alpha Inc., a non-resident received a refund of Rs. 15,00,000 from the Income Tax Department, due to excess withholding tax applied by the Indian payor. It also received an interest on such refund amounting Rs. 350,000. The interest on refund would ________ liable for deduction of TDS.
a) Be
b) Not be
Answer
Answer: a) Be
TDS MCQ Questions and Answers
51. Sukhi India Private Limited received a refund of Rs. 25,00,000 from the Income Tax Department, due to excess withholding tax. It also received an interest on such refund amounting Rs. 450,000. The interest on refund would _________ liable for deduction of TDS.
a) Be
b) Not be
Answer
Answer: b) Not be
52. Sunita is a member of Ganpati Cooperative Bank, and she has time deposit with the society on which she earned an interest of Rs. 15,000 during the year. Such interest would be liable for deduction of tax amounting _________
a) Rs. 1,500
b) Rs. 750
c) Rs. 1,000
d) Nil
Answer
Answer: a) Rs. 1,500
53. Which of the following Institutions are not required to deduct tax on interest on time deposits made with them ?
a) Primary agricultural Credit Society
b) Primary Credit Society
c) Cooperative land mortgage Bank
d) Cooperative land development Bank
e) All of the above
Answer
Answer: e) All of the above
54. Cooperative Bank is not required to deduct tax on interest on time deposits made with them by __________
a) Private limited company
b) Listed company
c) Cooperative Society
d) All of the above
Answer
Answer: c) Cooperative Society
55. On April 1, 2022, Mr. Gill has made a fixed deposit of Rs. 50,000 each with three branches of HDFC Bank (which is a Core Branch Banking Solution Bank), located at Uttam Nagar, Dwarka and Rajouri Garden. Such fixed deposit are for a period of 12 months during the same financial year. It carries interest @ 10% p.a. What would be the TDS amount to be deducted by bank on interest payment on such fixed deposit ?
a) Rs. 1,500
b) Rs. 500
c) Rs. 3,000
d) Nil
Answer
Answer: a) Rs. 1,500
Explanation : TDS would be deducted where the interest credited by an individual branch does not exceed Rs. 10,000, but Core Banking solution have been implemented by the Bank.
TDS MCQ Questions and Answers
56. Chalu Chit Fund paid dividend of Rs. 50,000 to one of its member. The net amount received by him after deduction of TDS u/s 194A (if any) shall be _________
a) Rs. 45,000
b) Rs. 35,000
c) Rs. 40,000
d) Rs. 50,000
Answer
Answer: d) Rs. 50,000
57. Which of the following payments, made to a bank, listed in Second Schedule of The Reserve Bank of India Act, shall not be liable for deduction of TDS ?
a) Bank guarantee Commission
b) Underwriting service charges
c) Depository charges for DEMAT accounts
d) All of the above
Answer
Answer: d) All of the above
58. Mr. Sunil has won lottery of Rs. 5,000. TDS would be deducted @ _____ on such prize money.
a) 10%
b) 30%
c) 20%
d) 0%
Answer
Answer: d) 0%
59. Farah Singh has won lottery of Rs. 1,00,000. TDS would be deducted @ ______ on such prize money.
a) 10%
b) 30%
c) 20%
d) 0%
Answer
Answer: b) 30%
60. Jeenal has won prize money of Rs. 10 lakhs in realty show, Kaun Banega Multi Lakhpati. TDS would be deducted @ ________ on such prize money.
a) 10%
b) 30%
c) 20%
d) 0%
Answer
Answer: b) 30%
TDS MCQ Questions and Answers
61. Saarthak is a 10-year old and has won prize money of Rs. 5 lakhs in a dance realty show. TDS would be deducted @ _____ on such prize money.
a) 10%
b) 30%
c) 20%
d) 0%
Answer
Answer: b) 30%
62. Shubhalakshmi Homes Ltd. organised the lucky draw, under which Suraj won the prize money of Rs. 1,00,000. The net amount received by Suraj after deduction of TDS shall be _________
a) Rs. 1,00,000
b) Rs. 90,000
c) Rs. 70,000
Answer
Answer: c) Rs. 70,000
Explanation : Lucky draw, is in the nature of lottery and would attract TDS @ 30% u/s 194B.
63. Which of the following prize money would be liable to TDS @ 30% u/s 194BB ?
a) Prize money on winning from crossword puzzle
b) Prize money on winning from horse race
c) Prize money on winning from Tambola game
d) All of the above
Answer
Answer: b) Prize money on winning from horse race
64. Every person responsible for paying to _________, any income by way of winning from lottery, crossword puzzle or card game and other game of any sort is liable to deduct TDS @ 30% u/s 194BB ?
a) Resident
b) Non-resident
c) Any person
d) None of the above
Answer
Answer: c) Any person
65. Every person responsible for paying any income by way of horcse race is liable to deduct TDS @ 30% u/s 194BB if the amount of payment exceeds _______
a) Rs. 20,000
b) Rs. 50,000
c) Rs. 10,000
d) Rs. 1,00,000
Answer
Answer: c) Rs. 10,000
TDS MCQ Questions and Answers
66. In April 2022, Sunny, won cash prize of Rs. 1 lakh and a car worth Rs. 6 lakhs in the reality game show. The total TDS liability comes to Rs. 2,10,000. In this respect, select the correct statement from the following :
a) Payer is required to deduct TDS only upto Rs. 1,00,000 and remaining TDS would not be deducted
b) Payer is not required to deduct TDS as the amount of cash available with it is not sufficient to discharge total TDS liability
c) Payer will pay Rs. 1,00,000 of TDS from the cash prize and he will ask Sunny to pay the balance TDS to get the Car
d) None of the above
Answer
Answer: c) Payer will pay Rs. 1,00,000 of TDS from the cash prize and he will ask Sunny to pay the balance TDS to get the Car
67. Bhavesh won prize money of Rs. 30,000 from betting in a horse race. However, the prize money would be paid in three installments of Rs. 10,000 each. Calculate the TDS on such amount under Section 194BB ?
a) Rs. 9,000
b) Rs. 3,000
c) Rs. 6,000
d) Nil
Answer
Answer: a) Rs. 9,000
68. Manish won Rs. 50,000 on betting from a horse race. He also incurred a loss of Rs. 10,000 from such betting. Calculate the amount of TDS.
a) Rs. 15,000
b) Rs. 12,000
c) Rs. 4,000
d) Nil
Answer
Answer: a) Rs. 15,000
69. Section 194C provides for deduction of tax at source on the payments made to ____________ contractors/ sub-contractors?
a) Resident
b) Non-resident
c) Both resident and non-resident
d) None of the above
Answer
Answer: a) Resident
70. Who would be liable to deduct tax at source on payments made to resident contractor u/s 194C ?
a) Individual
b) HUF
c) Individual or HUF liable to tax audit in immediately preceding FY
d) None of the above
Answer
Answer: c) Individual or HUF liable to tax audit in immediately preceding FY
TDS MCQ Questions and Answers
71. Mr. A is engaged in trading business and liable for tax audit for the first time during the PY 2022-23. He has made payment to Mr. C for maintenance of his residential building. At what rate, TDS would be deducted under section 194C during PY 2022-23 ?
a) 2%
b) 1%
c) 0%
d) 10%
Answer
Answer: c) 0%
72. Sunder India Ltd. has to make payment of Rs. 50,000 per month to Mr. Jetha for operation and maintenance of factory premises. At what rate, TDS would be deducted under section 194C ?
a) 2%
b) 1%
c) 0%
d) 10%
Answer
Answer: b) 1%
73. Jannat India Ltd. has to make payment of Rs. 40,000 per month to Jahannum Pvt. Ltd. for operation and maintenance of factory premises. At what rate, TDS would be deducted under section 194C ?
a) 2%
b) 1%
c) 0%
d) 10%
Answer
Answer: a) 2%
74. SV India Ltd. has to make payment of Rs. 20,000 per month to Suresh for maintenance of office building during whole PY 2022-23. At what rate, TDS would be deducted under section 194C ?
a) 2%
b) 1%
c) 0%
d) 10%
Answer
Answer: b) 1%
75. SV India ltd. has made following payments to Suresh for contract work during the PY 2022-23:
i. Rs. 28,000 on May 1, 2022
ii. Rs. 26,000 on July 1, 2022
iii. Rs. 26,000 on September 1, 2022
SV India has to now make further payment of Rs. 25,000 to Suresh on March 1, 2023. Select the correct statement from the following :
a) There would be no TDS liability none of the individual payments exceed Rs. 30,000
b) There would be TDS liability on the last payment amounting to Rs. 500
c) There would be TDS liability on entire amount of Rs. 1,05,000, which comes out to Rs. 2,100
d) There would be TDS liability on entire amount of Rs. 1,05,000, which comes out to Rs. 1,050
Answer
Answer: d) There would be TDS liability on entire amount of Rs. 1,05,000, which comes out to Rs. 1,050
TDS MCQ Questions and Answers
76. Which of the following would be included in the definition of works contract for purpose of Section 194C ?
a) XY India has made contract with YO India for manufacturing a product according to specification of customer. XY India will provide material for manufacturing of such product
b) XY India has made contract with YO India for manufacturing a product according to specification of customer. XY India will not provide material for manufacturing of such product and YO India will purchase material from third party.
c) Both (A) and (B)
d) None of the above
Answer
Answer: a) XY India has made contract with YO India for manufacturing a product according to specification of customer. XY India will provide material for manufacturing of such product
77. TDS can be deducted u/s 194C @ of ___________
a) 2%
b) 1%
c) Either (A) or (B)
d) 10%
Answer
Answer: c) Either (A) or (B)
78. For the purpose of deduction of TDS u/s 194C, contract ________ sub-contract.
a) Includes
b) Excludes
Answer
Answer: a) Includes
79. A manufactured certain toy cars for ABC Private Limited, for which the necessary material was provided by ABC Private Limited. In such a case this payment would be _________ for deduction of TDS u/s 194C.
a) Covered
b) Not covered
Answer
Answer: a) Covered
80. B manufactured certain toy cars for ABC Private Limited, for which the necessary material was provided by AEC Private Limited. In such a case this payment would be __________ for deduction of TDS u/s 194C.
a) Covered
b) Not covered
Answer
Answer: b) Not covered
81. C Limited, manufactured certain toy cars for ABC Private Limited, for which the necessary material was provided by AEC Private Limited. The service charges for such work were Rs. 50,000, which was included in the gross amount of material supplied, worth Rs. 5,00,000. In such a case, the TDS deducted would be _________
a) Rs. 1,000
b) Rs. 10,000
c) Rs. 500
d) Rs. 5,000
Answer
Answer: b) Rs. 10,000
82. D Limited, manufactured certain toy cars for ABC Private Limited, for which the necessary material was provided by AEC Private Limited. The service charges for such work were Rs. 50,000, which was separately mentioned alongwith the gross amount of material supplied, worth Rs. 4,50,000. In such a case, the TDS deducted would be ___________
a) Rs. 1,000
b) Rs. 10,000
c) Rs. 500
d) Rs. 5,000
Answer
Answer: a) Rs. 1,000
83. Sundaram Gas Limited, sold gas for Rs. 10 crores to a private company, and charged Rs.1 crore, towards transportation of such gas to the factory of the purchaser. In such a case, TDS would be required to be deducted, when ___________
a) The cost of transportation is separately indicated in the invoice raised by Sundaram Gas Limited,
b) The cost of transportation is not separately indicated in the invoice raised by Sundaram Gas Limited,
c) Neither (A) nor (B)
d) Both (A) and (B)
Answer
Answer: c) Neither (A) nor (B)
84. Sundaram Gas Limited, sold gas for Rs. 10 crores to a private company. It hired the services of A Limited, who transported the gas to buyer, and charged Rs. 1 crore, towards transportation of such gas. In such a case, TDS that would be required to be deducted by the buyer on transportation shall be Rs. ________
a) Nil
b) 2 lakhs
c) 1 lakh
d) Neither of the above
Answer
Answer: b) 2 lakhs
85. Taj Hotels, provided various amenities to its guests, along with the provision of room like free car, health centre, salon etc. Will the payment made by the customer to the Hotel, be liable for deduction of tax under Section 194C ?
a) Yes
b) No
Answer
Answer: b) No
TDS MCQ Questions and Answers
86. New India Ltd. paid remuneration for renewal of insurance policies to Sunil amounting to Rs. 22,000. What would be the TDS amount u/s 194D on such payment ?
a) Nil
b) Rs. 1,100
c) Rs. 2,200
d) Rs. 440
e) Rs. 4,400
Answer
Answer: b) Rs. 1,100
87. JK Ltd. paid commission for soliciting insurance business to Mr. Sumit amounting to Rs. 33,000. What would be the TDS amount u/s 194D on such payment, in case Sumit does not provides PAN to JK Ltd.?
a) Rs. 3,300
b) Rs. 1,650
c) Rs. 6,600
d) Rs. 9,900
Answer
Answer: c) Rs. 6,600
88. Ankush Ltd. paid commission for soliciting insurance business to Mr. Sumit amounting to Rs. 11,000. Determine the amount of TDS to be deducted u/s 194D ?
a) Rs. 550
b) Rs. 1,100
c) Rs. 2,200
d) Nil
Answer
Answer: d) Nil
89. Which of the following payments are covered u/s 194D ?
a) Commission for soliciting or processing insurance business
b) Commission for promoting traveling business
c) Both (A) and (B)
d) Neither (A) nor (B)
Answer
Answer: a) Commission for soliciting or processing insurance business
90. ABC Ltd. paid commission for soliciting or processing insurance business to Mr. Thomas, a non-resident amounting to Rs. 14,000. Whether ABC Ltd. is liable to deduct TDS, if yes, under which section ABC Ltd. is liable to deduct TDS ?
a) 194D
b) 194H
c) 195
d) Not liable to deduct TDS
Answer
Answer: c) 195
TDS MCQ Questions and Answers
91. IDIDI Ltd. credited commission for renewal of insurance policy on 10.04.2022 to Aman amounting to Rs. 25,000. Actual payment is made on 30.06.2022. On which date, IDIDI Ltd. would be liable to deduct TDS u/s 194D ?
a) 10.04.2022
b) 07.05.2022
c) 30.06.2022
d) 07.07.2022
Answer
Answer: a) 10.04.2022
92. GIC Ltd. paid a sum of Rs. 1,50,000 in respect of life insurance policy at the time of maturity (including bonus of Rs. 50,000) to Mr. Pradeep, which is not exempt u/s 10(10D). Determine the amount of TDS to be deducted u/s 194DA ?
a) Rs. 1,000
b) Rs. 10,000
c) Rs. 1,500
d) Rs. 15,000
Answer
Answer: c) Rs. 1,500
93. LIC Ltd. paid aggregate sum of Rs. 90,000 at the time of maturity of life insurance policy (including bonus of Rs. 50,000), during the FY 2022-23 to Mr. Sandeep. The amount paid to Mr. Sandeep is not exempt u/s 10(10D). Determine the amount of TDS to be deducted u/s 194DA?
a) Rs. 900
b) Rs. 9,000
c) Rs. 400
d) Nil
Answer
Answer: d) Nil
94. BCCI paid match participation fees to Mr. Steve Austin, a non-resident sportsman amounting to Rs. 1,00,000. Determine the amount of TDS to be deducted u/s 194E (excluding surcharge and cess)?
a) Rs. 10,000
b) Rs. 21,000
c) Rs. 20,000
d) Rs. 5,000
Answer
Answer: c) Rs. 20,000
95. BCCI paid Rs. 1,50,000 to Mr. Gilly, a non-resident umpire in respect of service rendered by him. Determine the amount of TDS to be deducted u/s 194E ?
a) Rs. 31,200
b) Rs. 30,000
c) Rs. 5,000
d) Nil
Answer
Answer: d) Nil
TDS MCQ Questions and Answers
96. XYZ Associations India, paid match participation fees to Mr. Bolt, a non-resident athlete amounting to Rs. 2,00,000. Determine the amount of TDS to be deducted u/s 194E (excluding surcharge and cess)?
a) Rs. 41,000
b) Rs. 10,000
c) Rs. 40,000
d) Nil
Answer
Answer: c) Rs. 40,000
97. Jab Tak Association published a magazine, in which Ms. Houston, a non-resident athlete has written an article, in respect of which payment amounting to Rs. 5,00,000 is made to her. Determine the amount of TDS to be deducted u/s 194E (excluding surcharge and cess) ?
a) Rs. 1,00,000
b) Rs. 1,04,000
c) Rs. 50,000
d) Nil
Answer
Answer: a) Rs. 1,00,000
98. Mr. Balsara, a non-resident sportsman, received Rs. 2,25,000 for advertisement of a brand of JJ Ltd. Determine the amount of TDS to be deducted by JJ Ltd. u/s 194E (excluding surcharge and cess) ?
a) Rs. 46,000
b) Rs. 45,000
c) Rs. 11,250
d) Rs. 22,500
Answer
Answer: b) Rs. 45,000
99. ABC Associations credited the match participation fees amounting to Rs. 1,00,000 to Mr. Chilking, a non-resident sportsman on 31.12.2022. Actual payment was made on 31.08.2022. On which date, ABC Associations is liable to deduct TDS u/s 194E ?
a) 31.12.2022
b) 07.09.2022
c) 31.08.2022
d) 07.01.2023
Answer
Answer: c) 31.08.2022
100. XYZ Associations paid Rs. 10,00,000 to ABC Associations, a non-resident sports association in relation to sports played in India. Determine the amount of TDS to be deducted u/s 194E (including surcharge and cess) ?
a) Rs. 2,08,000
b) Rs. 50,000
c) Rs. 20,08,000
d) Nil
Answer
Answer: c) Rs. 20,08,000
TDS MCQ Questions and Answers
101. Government paid Rs. 2,000 standing to the credit of Mr. Maneet under National Saving Scheme. Determine the amount of TDS to be deducted u/s 194EE ?
a) Rs. 200
b) Rs. 100
c) Rs. Nil
d) Rs. 400
Answer
Answer: c) Rs. Nil
102. Government paid interest on the credit under National Saving Scheme to Individual amounting to Rs. 10,000. Determine the amount of TDS to be deducted u/s 194EE ?
a) Rs. 2,000
b) Nil
c) Rs. 500
d) Rs. 1,000
Answer
Answer: d) Rs. 1,000
103. Government paid interest on the credit under National Saving Scheme to son of Suresh after death of Suresh amounting to Rs. 15,000. Determine the amount of TDS to be deducted u/s 194EE ?
a) Rs. 3,000
b) Rs. 750
c) Nil
d) Rs. 1,500
Answer
Answer: c) Nil
104. Government paid interest amount to Rs. 2,000 on the credit under National Saving Scheme to an Individual who has provided Form 15G which does not contain PAN of such Individual. Determine the amount of TDS to be deducted u/s 194EE ?
a) Nil
b) Rs. 400
c) Rs. 200
d) Rs. 100
Answer
Answer: a) Nil
105. Government is required to pay interest on the credit under National Saving Scheme to an Individual. The amount of TDS to be deducted u/s 194EE shall be at the time of ________
a) Accrual
b) Payment
c) Payment or accrual, whichever is earlier
d) None of the above
Answer
Answer: b) Payment
TDS MCQ Questions and Answers
106. AB Agency paid prize money on lottery ticket to Mr. Raj, who is engaged in the business of selling lottery tickets on behalf of AB Agency, amounting to Rs. 15,000. Determine the amount of TDS to be deducted u/s 194G ?
a) Rs. 1,500
b) Rs. 750
c) Nil
d) Rs. 3,000
Answer
Answer: c) Nil
107. BB Agency paid prize money on lottery ticket to Mr. Sahil, who is engaged in the business of selling lottery tickets on behalf of BB Agency, amounting to Rs. 20,000. Determine the amount of TDS to be deducted u/s 194G ?
a) Rs. 4,000
b) Nil
c) Rs. 2,000
d) Rs. 1,000
Answer
Answer: d) Rs. 1,000
108. Yomo Agency paid commission for sale of lottery tickets to Mr. Surma amounting to Rs. 23,600, which also includes GST of Rs. 3,600. Determine the amount of TDS to be deducted u/s 194G ?
a) Rs. 2,360
b) Rs. 1,180
c) Rs. 1,000
d) Rs. 2,000
Answer
Answer: c) Rs. 1,000
109. Yomo Agency paid commission on lottery tickets to Mr. Surma amounting to Rs. 35,400, which also includes GST of Rs. 5,400. Determine the amount on which TDS is required to be deducted u/s 194G ?
a) Rs. 35,400
b) Rs. 30,000
c) Rs. 40,800
d) Rs. 15,000
Answer
Answer: b) Rs. 30,000
110. Hojo India paid commission amounting to Rs. 25,000 on lottery tickets to an Individual who has not provided PAN but furnished an adequate declaration that his income is below Rs. 2,50,000. Determine the amount of TDS to be deducted u/s 194G ?
a) Rs. 5,000
b) Nil
c) Rs. 2,500
d) Rs. 1,250
Answer
Answer: d) Rs. 1,250
TDS MCQ Questions and Answers
111. Bojo India paid commission amounting to Rs. 50,000 on lottery tickets to an Individual who has obtained lower withholding tax certificate as per which his commission would be taxable at 1%. Determine the amount of TDS to be deducted u/s 194G ?
a) Rs. 2,500
b) Rs. 500
c) Rs. 5,000
d) Rs. 7,500
Answer
Answer: b) Rs. 500
112. Mr. Ram, who is running a business of readymade showroom in Delhi paid commission on booking of flight tickets to Travel agent amounting to Rs. 20,000. Determine the amount of TDS to be deducted u/s 194H during the PY 2022-23, when Mr. Ram is not liable for tax audit in preceding year ?
a) Rs. 2,000
b) Rs. 1,000
c) Nil
d) Rs. 4,000
Answer
Answer: c) Nil
113. AGV India Private Ltd. paid commission to sales agent amounting to Rs. 10,000. Determine the amount of TDS to be deducted u/s 194H?
a) Rs. 200
b) Rs. 1,000
c) Rs. 500
d) Nil
Answer
Answer: d) Nil
114. Govo India Private Ltd. paid commission to sales agent amounting to Rs. 20,000. Determine the amount of TDS to be deducted ?
a) Nil
b) Rs. 1,000
c) Rs. 2,000
d) Rs. 4,000
Answer
Answer: b) Rs. 1,000
115. RT India Private Ltd. paid commission during the PY 2022-23 to an agent amounting to Rs. 5,000. Determine the amount of TDS to be deducted u/s 194H when the remaining amount of commission to be paid during the PY 2022-23 is expected to be Rs. 20,000 ?
a) Rs. 250
b) Nil
c) Rs. 500
d) Rs. 1,250
Answer
Answer: a) Rs. 250
TDS MCQ Questions and Answers
116. BSNL paid commission to their public call office franchisee, amounting to Rs. 40,000. Determine the amount of TDS to be deducted u/s 194H ?
a) Rs. 2,000
b) Nil
c) Rs. 4,000
d) Rs. 6,000
Answer
Answer: b) Nil
117. RT India Private Ltd. paid commission during the PY 2022-23 to an employee amounting Rs. 500,000. Determine the amount of TDS to be deducted u/s 194H ?
a) Rs. 25,000
b) Nil
c) Rs. 5,000
d) Rs. 12,500
Answer
Answer: b) Nil
Explanation : Such Commission would be liable for deduction of tax u/s 192.
118. Identify the nature of payments where TDS is required to be deducted u/s 194H ?
a) Brokerage on purchase of securities on stock exchange
b) Underwriting Commission
c) Sub brokerage on public issue of securities
d) Brokerage for commodity transaction
Answer
Answer: d) Brokerage for commodity transaction
119. KAB TV, a renowned television channel paid Commission to XYZ Limited, for procuring advertisement amounting Rs. 50,000. The TDS which is required to be deducted from such payments shall be ________
a) Rs. 500
b) Rs. 2,500
c) Rs. 5,000
d) None of the above
Answer
Answer: b) Rs. 2,500
120. Payment by advertising agency to a Media company ________ for deduction of tax under section 194H.
a) Is liable
b) Is not liable
Answer
Answer: b) Is not liable
TDS MCQ Questions and Answers
121. XYZ is a Media company, and procured certain advertisement through ABC India Private Limited, for which total collection of Rs. 5,00,000 out of which ABC paid Rs. 4,25,000 to XYZ. In such a case, XYZ is required to deduct TDS on _________
a) Rs. 5,00,000
b) Rs. 4,25,000
c) Rs. 75,000
d) Nil
Answer
Answer: d) Nil
122. Bony India Private Limited operated a television channel and hired Khushi India, to produce certain content for them in the area of comedy, and the agreement required that the copyright of such content would also get transferred to Bony India. It paid Rs. 50,00,000 to Khushi India. In such a case, Bony India is required to deduct TDS amounting __________
a) Rs. 5,00,000
b) Rs. 1,00,000
c) Nil
Answer
Answer: b) Rs. 1,00,000
123. Bony India Private Limited operated a television channel, and Khushi India produced and owned certain horror content. Bony India paid Rs. 50,00,000 to Khushi India to acquire the broadcasting right in respect of search content. In such a case, Bony India is ___________ to deduct TDS u/s 194H.
a) Required
b) Not required
Answer
Answer: b) Not required
124. RT India Private Ltd. sold certain airline tickets amounting to Rs. 50,00,000. The airfare fixed by the airlines was Rs. 45,00,000, on which commission was to be given. Determine the amount of TDS to be deducted u/s 194H on the difference between the sale price and the price fixed by the airline agency ?
a) Rs. 5,00,000
b) Rs. 50,000
c) Rs. 25,000
d) Nil
Answer
Answer: c) Rs. 25,000
125. Vodafone Cellular Limited, supplied 10,000 SIM at a cost of Rs. 50 per SIM to its distributors, who sold them for Rs. 100 per SIM. The amount of TDS required to be deducted by Vodafone Cellular Limited is __________
a) Rs. 1,00,000
b) Rs. 50,000
c) Nil
Answer
Answer: b) Rs. 50,000
Explanation : Such payment is liable for deduction of TDS u/s 194H.
TDS MCQ Questions and Answers
126. Mr. Shyam is required to pay monthly rent of Rs. 20,000 to his Landlord during the PY 2022-23. Determine the amount of TDS to be deducted u/s 194I, in case Mr. Shyam is not liable for tax audit during AY 2022-23 ?
a) Rs. 2,000
b) Rs. 1,000
c) Nil
d) Rs. 4,000
Answer
Answer: c) Nil
127. AGV India Private Ltd. has to pay yearly rent for its official premises to Mr. Ram amounting to Rs. 1,50,000. Determine the amount of TDS to be deducted u/s 194I ?
a) Rs. 3,000
b) Rs. 15,000
c) Rs. 7,500
d) Nil
Answer
Answer: d) Nil
128. Lost India Private Ltd. has to pay yearly rent of Rs. 5,00,000 to Mr. Dhanush for machinery taken on hire during the PY 2022-23. Determine the amount of TDS to be deducted u/s 194I ?
a) Rs. 10,000
b) Nil
c) Rs. 50,000
d) Rs. 25,000
Answer
Answer: a) Rs. 10,000
129. Yangshi India Private Ltd. has to pay yearly rent of Rs. 2,36,000 to UI India Private Ltd. for car taken on lease. Determine the amount of TDS to be deducted u/s 194I, when such rent includes GST of Rs. 36,000 which is separately disclosed in the invoice ?
a) Rs. 4,000
b) Rs. 20,000
c) Rs. 4,720
d) Rs. 23,600
Answer
Answer: a) Rs. 4,000
130. FOGO India Private Ltd. has to pay yearly rent for office to Mr. Robin, who is 65 years old amounting to Rs. 2,00,000. Determine the amount of TDS to be deducted u/s 194I, when Mr. Robin has furnished form 15H to the effect that tax on his estimated income would be Nil?
a) Nil
b) Rs. 20,000
c) Rs. 4,000
d) Rs. 10,000
Answer
Answer: a) Nil
TDS MCQ Questions and Answers
131. Indigo Airlines, paid landing and parking charges to airport Authority of India of Rs. 8,00,000. The amount of TDS that is required to be deducted from such payment shall be __________
a) Rs. 80,000
b) Rs. 16,000
c) Nil
Answer
Answer: b) Rs. 16,000
132. Jet Airways, paid Passenger Service Fees, to airport operator to the tune of Rs. 8,00,000. The amount of TDS that is required to be deducted from such payment shall be __________
a) Rs. 16,000
b) Rs. 80,000
c) Nil
Answer
Answer: a) Rs. 16,000
133. BGV India Private Ltd. took official premises on rent from Mr. Ram for an annual rent of Rs. 15,00,000. It also paid a non-refundable security deposit of Rs. 5,00,000. Determine the amount of TDS to be deducted u/s 194I ?
a) Rs. 2,00,000
b) Rs. 150,000
c) Rs. 40,000
d) Nil
Answer
Answer: a) Rs. 2,00,000
134. BGV India Private Ltd. took official premises on rent from Mr. Ram for an annual rent of Rs. 15,00,000. It also paid a refundable security deposit of Rs. 5,00,000. Determine the amount of TDS to be deducted u/s 194I at the time of refund of the security deposit ?
a) Rs. 2,00,000
b) Rs. 150,000
c) Rs. 40,000
d) Nil
Answer
Answer: d) Nil
135. XGV India Private Ltd. took official premises on rent from Mr. Shyam for an annual rent of Rs. 15,00,000. It also paid a refundable security deposit of Rs. 5,00,000. Determine the amount of TDS to be deducted u/s 194I at the time of vacating the office premises on 31.3.2018, if the security deposit was adjusted towards the annual rent not paid by XGV for the last 4 months ?
a) Rs. 2,00,000
b) Rs. 150,000
c) Rs. 40,000
d) Nil
Answer
Answer: b) Rs. 150,000
Explanation : It has been assumed, that out of total rent of Rs. 15,00,000, only Rs. 10,00,000 was paid. Adjustment of security deposit is only payment of rent accrued, on which TDS would have been deducted at the time of accrual.
TDS MCQ Questions and Answers
136. In respect of municipal taxes and ground rent borne by the tenant, TDS ________ be deduction.
a) Has to be
b) is not required to be
Answer
Answer: b) is not required to be
137. Suno India Private Ltd. took official premises on rent from Mr. Manohar for an annual rent of Rs. 15,00,000. It also paid a rent for the month of April of next year, on 31.3.2018. Determine the amount of TDS to be deducted u/s 194I.
a) Rs. 1,50,000
b) Rs. 1,62,500
c) Nil
Answer
Answer: b) Rs. 1,62,500
138. TDS on payment to a hotel is required to be made in which of the following cases ?
a) Employee of a company making direct payment
b) Consultant of a company not covered by tax audit
c) Accommodation taken on a regular basis by a company, where the rent is above specified threshold
d) All of the above
Answer
Answer: c) Accommodation taken on a regular basis by a company, where the rent is above specified threshold
139. Payment for the use of mobile towers, is liable for deduction of tax @ _______
a) 2% u/s 194C
b) 2% u/s 194I
c) 10% u/s 194I
Answer
Answer: b) 2% u/s 194I
140. Mr. Ankush has purchased a residential property in Delhi from Mr. Aman for Rs. 40,00,000. Determine the amount of TDS to be deducted u/s 194IA by Ankush, assuming the Seller has a PAN ?
a) Rs. 40,000
b) Rs. 2,00,000
c) Nil
d) Rs. 4,00,000
Answer
Answer: c) Nil
TDS MCQ Questions and Answers
141. Mr. Kulwinder has purchased a rural agricultural land from Mr. Kisaan for Rs. 60,00,000. Determine the amount of TDS to be deducted u/s 194IA assuming the Seller has a PAN ?
a) Rs. 60,000
b) Rs. 1,20,000
c) Rs. 3,00,000
d) Nil
Answer
Answer: d) Nil
142. Mr. Dhiman has purchased a residential property from Mr. Jojo amounting to Rs. 60,00,000. Mr. Dhiman has deducted TDS of Rs. 60,000 during April 2022. Determine the due date for deposit of such TDS ?
a) 30/04/2022
b) 30/05/2022
c) 07/05/2022
d) 15/05/2022
Answer
Answer: c) 07/05/2022
143. Mr. Sunil, a non – resident, has purchased a residential property in Singapore, from Mr. Aman a Indian resident for Rs. 4,00,00,000. Determine the amount of TDS to be deducted u/s 194IA by Sunil assuming the Seller has a PAN ?
a) Rs. 4,00,000
b) Rs. 2,00,000
c) Nil
d) Rs. 4,00,000
Answer
Answer: a) Rs. 4,00,000
144. Mr. Satwinder has purchased an urban agricultural land from Mr. Kisaan for Rs. 60,00,000. Determine the amount of TDS to be deducted u/s 194IA, assuming the Seller has a PAN ?
a) Rs. 60,000
b) Rs. 1,20,000
c) Rs. 3,00,000
d) Nil
Answer
Answer: a) Rs. 60,000
145. Mr. Satwinder has purchased an urban agricultural land from Mr. Kisaan for Rs. 60,00,000. Determine the amount of TDS to be deducted u/s 194IA, assuming the Seller does not have a PAN ?
a) Rs. 60,000
b) Rs. 12,00,000
c) Rs. 3,00,000
d) Nil
Answer
Answer: b) Rs. 12,00,000
TDS MCQ Questions and Answers
146. Mr. Anil has purchased an urban agricultural land from Mr. Gurwinder and Satwinder, who are equal owner of the property, for Rs. 60,00,000. Determine the amount of TDS to be deducted u/s 194IA from payment to Gurwinder, assuming the Sellers have a PAN ?
a) Rs. 30,000
b) Rs. 12,00,000
c) Rs. 60,000
d) Nil
Answer
Answer: a) Rs. 30,000
147. Mr. Gurwinder and Satwinder have jointly purchased a house from Mr. Anil, for Rs. 60,00,000, for which they would be equal owner of the property. Determine the amount of TDS to be deducted u/s 194IA by Gurwinder, assuming the sellers have a PAN ?
a) Rs. 12,00,000
b) Rs. 60,000
c) Rs. 30,000
d) Nil
Answer
Answer: c) Rs. 30,000
148. TDS deducted u/s 194-IA for transfer of immovable property can be deposited under challan __________
a) Challan ITNS 281
b) Challan ITNS 280
c) 26QB
d) None of the above
Answer
Answer: c) 26QB
149. Mr. Raj has deposited on due date, TDS u/s 194-IA on April 7, 2022. What is the due date for furnishing of certificate in Form No. 16B to payee?
a) 15/05/2022
b) 31/05/2022
c) 30/04/2022
d) 22/04/2022
Answer
Answer: d) 22/04/2022
150. Mr. Yusuf pays monthly rent to Mr. Saryu amounting to Rs. 60,000 per month during PY 2022-23. Determine the amount of TDS to be deducted by Mr. Yusuf who is not liable for tax audit during the PY 2021-22?
a) Rs. 72,000
b) Nil
c) Rs. 36,000
d) Rs. 14,400
Answer
Answer: c) Rs. 36,000
TDS MCQ Questions and Answers
151. Mr. Pathan, a non-resident, has to pay monthly rent to Mr. Irfan for sub-lease amounting to Rs. 70,000 per month during PY 2022-23. Determine the amount of TDS to be deducted by Mr. Pathan who was liable for tax audit during the PY 2021-22 ?
a) Rs. 42,000
b) Rs. 84,000
c) Rs. 3,500
d) Nil
Answer
Answer: a) Rs. 42,000
152. Mr. Rahul, a resident has taken a flat on rent on April 1, 2022 from Mr. Sachin for personal use wherein, the amount of monthly rent is Rs. 60000. In which of the following months TDS shall be deducted by Mr. Rahul ?
a) April, 2022
b) April, 2022 – March, 2023
c) March, 2023
d) None of the above
Answer
Answer: c) March, 2023
153. Mr. Keshav has to pay monthly rental to Mr. Bajaj amounting to Rs. 1,00,000. Mr. Bajaj does not provide his PAN to Mr. Keshav. Determine the amount of TDS to be deducted during the last month of the FY ?
a) Rs. 60,000
b) Rs. 1,20,000
c) Rs. 2,40,000
d) Rs. 1,00,000
Answer
Answer: d) Rs. 1,00,000
154. Mr. Y has deducted TDS under section 194IB during March 2023, on payment of rent to Mr. Z. Determine the due date for deposit of TDS under section 194-IB?
a) April 7, 2023
b) April 15, 2023
c) April 30, 2023
d) March 31, 2023
Answer
Answer: c) April 30, 2023
155. Mr. Sunil, a non – resident, has rented a residential property in Singapore, from Mr. Aman a Indian resident for Rs. 4,00,000 per month. Determine the amount of TDS to be deducted u/s 194IB by Sunil, assuming the Seller has a PAN ?
a) Rs. 240,000
b) Rs. 4,80,000
c) Nil
Answer
Answer: a) Rs. 240,000
TDS MCQ Questions and Answers
156. A deductor is liable to obtain TAN in respect of tax deducted under which of the following sections ?
a) 194IB
b) 194IA
c) Both (A) and (B)
d) None of the above
Answer
Answer: d) None of the above
157. Mr. Sumit has handed over his property to builder during the PY 2021-22, and as per the Joint Development Agreement, the builder will demolish such building and construct four floors on it. As per the agreement the builder will hand over the three floor and he will keep one floor with him. Determine the PY in which capital gain liability would arise on such transfer. The project is completed in the PY 2022-23, but certificate of completion is issued during PY 2023-24 ?
a) 2022-23
b) 2021-22
c) 2023-24
d) None of the above
Answer
Answer: c) 2023-24
158. Mr. Nikhil has handed over his property to a builder under a Joint Development Agreement and he received three floors and additional consideration from builder amounting to Rs. 3,00,000. Determine the amount of TDS to be deducted under section 194-IC ?
a) Rs. 30,000
b) Rs. 15,000
c) Rs. 6,000
d) Rs. 60,000
Answer
Answer: a) Rs. 30,000
159. JJ India Private Ltd. has to make payment under contract to CA firm for tax consultancy amounting to Rs. 50,000. Determine the amount of TDS to be deducted on such payment ?
a) Rs. 1,000
b) Rs. 500
c) Rs. 5,000
d) Rs. 2,500
Answer
Answer: c) Rs. 5,000
160. MN Research India Ltd. has to make payment of royalty to KK India Pvt. Ltd. amounting to Rs. 1,00,000. Determine the amount of TDS to be deducted u/s 194J?
a) Rs. 10,000
b) Rs. 1,000
c) Rs. 2,000
d) Rs. 20,000
Answer
Answer: a) Rs. 10,000
TDS MCQ Questions and Answers
161. Mr. Mahesh has taken services of event manager on the occasion of his marriage and he has to make payment to such event manager amounting to Rs. 1,20,000. Determine the amount of TDS to be deducted by Mr. Mahesh, in case he was liable to tax audit in the preceding PY ?
a) Rs. 12,000
b) Rs. 2,400
c) Rs. 1,200
d) Rs. Nil
Answer
Answer: d) Rs. Nil
162. Raxmann India Private Ltd. has taken services of call centre for its business and it has to make payment to BPO amounting to Rs. 1,50,000. Determine the amount of TDS to be deducted on such payment ?
a) Rs. 15,000
b) Rs. 3,000
c) Rs. 1,500
d) Nil
Answer
Answer: b) Rs. 3,000
163. Which of the following payments made to a Director are liable for deduction of tax u/s 194J ?
a) Employee Director sitting fees, taxable as Salary
b) Non -Employee Director sitting fees
c) Both (A) and (B)
d) Neither (A) nor (B)
Answer
Answer: b) Non -Employee Director sitting fees
164. JIPL has purchased a software from Alpha Inc. for Rs. 60,00,000. Determine the amount of TDS to be deducted assuming the Seller has a PAN ?
a) Rs. 6,00,000
b) Rs. 12,00,000
c) Nil
Answer
Answer: a) Rs. 6,00,000
165. KIPL has purchased a software from an Indian company, for Rs. 50,00,000. Determine the amount of TDS to be deducted u/s 194J, assuming the Seller has a PAN ?
a) Nil
b) Rs. 5,00,000
c) Rs. 10,00,000
Answer
Answer: b) Rs. 5,00,000
TDS MCQ Questions and Answers
166. Which of the following payments are covered under Section 194J ?
a) Umpire and Referee
b) Event managers
c) Commentators
d) Sports authors
e) All of the above
Answer
Answer: e) All of the above
167. Which of the following payments are covered under Section 194J ?
a) Anchors
b) Positions in sports team
c) Sports personnel
d) All of the above
Answer
Answer: d) All of the above
168. XYZ is a third-party administrator and made payment of Rs. 10,00,000, to hospital in respect of Insurance claim for medical treatment of certain persons. Determine the amount of TDS to be deducted on such payment ?
a) Nil
b) Rs. 1,00,000
c) Rs. 50,000
Answer
Answer: b) Rs. 1,00,000
169. A Inc. is a US company and it is exploring, whether it should make investments into India. To study, the Indian market, it employed the services of a chartered accountant and a solicitor, to whom it paid Rs.100,000 and Rs.500,000 respectively. The amount of TDS required to be deducted, assuming A Inc. does not have any business connection in India is __________
a) Nil
b) Rs. 60,000
c) Rs. 50,000
Answer
Answer: a) Nil
170. Government has to make payment for compulsory acquisition of land to Mr. Umar, amounting to Rs. 1,00,000. Determine the amount of TDS to be deducted on such payment ?
a) Rs. 2,000
b) Rs. 1,000
c) Nil
d) Rs. 10,000
Answer
Answer: c) Nil
TDS MCQ Questions and Answers
171. Government has to make payment for compulsory acquisition of land to Mr. Samar amounting to Rs. 5,00,000. Determine the amount of TDS to be deducted on such payment ?
a) Rs. 2,000
b) Rs. 1,000
c) Nil
d) Rs. 50,000
Answer
Answer: d) Rs. 50,000
172. Mr. Sanket has to pay interest to Government amounting to Rs. 1,00,000. Determine the amount of TDS to be deducted on such payment?
a) Rs. 2,000
b) Rs. 1,000
c) Nil
d) Rs. 10,000
Answer
Answer: c) Nil
