CA Kishan Kumar TDS/TCS Divyastra MCQs

C HAPTER 14
TDS/TCS
1 . IC AI M C Q S ( B O O K L E T + R TP S + MT P S )

1. Mr. X, a resident, is due to receive INR 4.50 lakhs on 31.3.2023, towards maturity proceeds of LIC policy taken
on 1.4.2020, for which the sum assured is INR 4 lakhs and the annual premium is INR 1,25,000. Mr. Z, a resident,
is due to receive INR 95,000 on 1.10.2022 towards maturity proceeds of LIC policy taken on 1.10.2013 for which
the sum assured is INR 90,000 and the annual premium is INR 10,000.

a) Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. X and Mr. Z

b) Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. X

c) Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. Z

d) No tax is required to be deducted on income comprised in maturity proceeds payable to either Mr. X or Mr.
Z

2. An amount of INR 40,000 was paid to Mr. X on 1.7.2022 towards fees for professional services without deduction
of tax at source. Subsequently, another payment of INR 50,000 was due to Mr. X on 28.02.2023, from which tax
@ 10% (amounting to INR 9,000) on the entire amount of INR 90,000 was deducted and the net amount was
paid on the same day to Mr. X. However, this tax of INR 9,000 was deposited only on 22.6.2023. The interest
chargeable under section 201(1A) would be:

a) INR 320

b) INR 860

c) INR 1,620

d) INR 540

3. Mr. Ramesh, Mr. Mahesh and Mr. Suresh, jointly owned a flat in Mathura, which was let out to Dr. Rajesh from
01.04.2022. The annual rent paid by Dr. Rajesh for the flat was INR 5,40,000, credited equally to each of their
account. Mr. Rajesh approached his tax consultant to seek clarity in relation to deduction of tax on payment of
the rent. He informed his consultant that he occupied such flat for his personal accommodation and his receipts
from his profession during PY 2021-22 was INR 58 lakhs. As tax consultant, choose the correct answer
____________.

a) No tax at source is required to be deducted since the rental payments are towards flat occupied for personal
purpose

b) Tax is required to be deducted at source since the rent payment exceeds INR 2,40,000 and Dr. Rajesh is an
individual having gross receipts from profession exceeding INR 50 lakh in the preceding financial year.

c) No tax is required to be deducted at source since the rent credited to each co-owner is less than INR
2,40,000

d) No tax is required to be deducted at source since Dr. Rajesh’s gross receipts during the preceding financial
year were less than INR 1 crore

4. Mr. Nihar maintains a Savings A/c and a Current A/c in Mera Bank Ltd. The details of withdrawals on various
dates during the previous year 2022-23 are as follows:

Date of Cash withdrawal Saving Account Current Account

05.04.2022 15,00,000 -
10.05.2022 - 22,00,000

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Date of Cash withdrawal Saving Account Current Account

25.06.2022 20,00,000 -
17.07.2022 - 5,00,000
28.10.2022 35,00,000 -
10.11.2022 - 38,00,000
12.12.2022 25,00,000 -

Mr. Nihar regularly files his return of income. Is Mera Bank Limited required to deduct tax at source on the
withdrawals made by Mr. Nihar during the previous year 2022-23? If yes, what would the amount of tax deducted
at source?

a) TDS of INR 3,20,000 is required to be deducted

b) No, TDS is not required to be deducted as the cash withdrawal does not exceed INR 1 crore neither in saving
account nor in current account

c) TDS of INR 3,00,000 is required to be deducted.

d) TDS of INR 1,20,000 is required to be deducted.

5. Mr. Raj is a professional who is responsible for paying a sum of INR 2,00,000 as rent for use of building to Mr.
Harshit, a resident, for the month of February, 2023. The gross receipts of Mr. Raj are as under:

From 01.04.2021 to 31.03.2022: INR 55,00,000

From 01.04.2022 to 28.02.2023: INR 45,00,000

Whether Mr. Raj is responsible for deducting any tax at source from the rent of INR 2,00,000 payable to Mr.
Harshit?

a) Tax at source is required to be deducted u/s 194-I at the rate of 10%.

b) Tax at source is required to be deducted u/s 194-IB at the rate of 5%.

c) Tax at source is required to be deducted u/s 194-IB at the rate of 10%.

d) No tax is required to be deducted at source.

6. Mr. A has two bank accounts maintained with ICICI Bank and HDFC Bank. From 01.04.2022 till 31.03.2023,
Mr. A withdrew the following amounts as cash from both the said accounts;

HDFC Bank: INR 50 Lakh

ICICI Bank: INR 120 Lakh

What shall be the amount of tax to be deducted at source u/s 194N by HDFC Bank and ICICI Bank, respectively,
while making payment in cash to Mr. A assuming Mr. A has filed his return of income for P.Y. 2019-20, P.Y.
2020-21 and P.Y. 2021-22 respectively?

a) INR 1,00,000 & INR 2,40,000

b) NIL & INR 40,000

c) INR 60,000 & INR 1,00,000

d) INR 50,000 & INR 1,20,000

7. Mr. Ram acquired a house property at Chennai from Mr. Satyam, a resident, for a consideration of INR 85 lakhs,
on 23.8.2022. On the same day, Mr. Ram made two separate transactions, thereby acquiring an urban plot in
Gwalior from Mr. Vipun, a resident, for a sum of INR 50 lakhs and rural agricultural land from Mr. Danish, a
resident, for a consideration of INR 75 lakhs. Which of the following statements are correct assuming that in the
consideration amounts as aforementioned all the charges incidental to transfer of the immovable property are
included?

a) No tax deduction at source is required in respect of any of the three payments.

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b) TDS @ 1% is attracted on all the three payments

c) TDS @ 1% on INR 85 lakhs and INR 50 lakhs are attracted. No TDS on payment of INR 75 lakhs for
acquisition of rural agricultural land

d) TDS @ 1% on INR 85 lakhs is attracted. No TDS on payments of INR 50 lakhs and INR 75 lakhs.

8. Which of the following details/evidences are required to be furnished by an employee to his/her employer in
respect of deduction of interest under the head "Income from house property", when the employer is estimating
the total income of the employee for the purpose of tax deduction at source u/s 192?

(i) Amount of Interest payable or paid

(ii) Rate of interest payable or paid

(iii) Name of the lender

(iv) Address of the lender

(v) PAN or Aadhaar number as the case may be, of the lender

(vi) TAN of the lender

Choose the correct answer:

a) (i), (iii), (v)

b) (i), (iii), (iv), (v)

c) (ii), (iv), (v), (vi)

d) (i), (ii)

9. Mr. X paid fees for professional services of INR 40,000 to Mr. Y, who is engaged only in the business of operation
of call centre, on 15.7.2022. Tax is to be deducted by Mr. X at the rate of –

a) 0.75%

b) 1%

c) 1.5%

d) 2%

10. A firm pays salary and interest on capital to its resident partners. The salary and interest paid fall within the
limits specified in section 40(b). Which of the following statements is true?

a) Tax has to be deducted u/s 192 on salary and u/s 194A on interest

b) Tax has to be deducted u/s 192 on salary but no tax needs to be deducted on interest

c) No tax has to be deducted on salary but tax has to be deducted u/s 194A on interest

d) No tax has to be deducted at source on either salary or interest

11. Mr. X, a resident Indian, wins INR 10,000 in a lottery. Which of the statement is true?

a) Tax is deductible u/s 194B @ 30%

b) Tax is deductible u/s 194B @ 30.9%

c) No tax is deductible at source

d) None of the above

12. Dr. Sargun maintained two bank A/cs, one current A/c with Canara Bank for her profession and a saving bank
A/c with State Bank of India. The following are the details of her withdrawals from these A/cs during the previous
year 2022-23:

Date of withdrawals Canara Bank State Bank of India

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25.04.2022 25,00,000
27.04.2022 15,50,000
31.08.2022 29,00,000
01.09.2022 14,20,000
05.09.2022 14,00,000
07.10.2022 18,21,000
11.12.2022 26,23,000
12.02.2023 7,56,000
25.03.2023 16,13,000

She furnished her return of income for the A.Y. 2022-23 and A.Y. 2021-22 on or before the time limit prescribed
u/s 139(1). However, for the A.Y. 2020-21 and A.Y. 2019-20, she has furnished her return of income belatedly.

Is any tax deductible at source u/s 194N on the withdrawals made by Dr. Sargun from Canara Bank and SBI
Bank? If yes, at what rate and what amount?

a) TDS is deductible at source on INR 1,00,20,000 @ 5% by Canara Bank and tax is deductible at source @
2% on INR 25,63,000 by SBI.

b) TDS is deductible at source on INR 20,20,000 @ 5% by Canara Bank and no tax is deductible by SBI.

c) TDS is deductible at source on INR 20,20,000 @ 2% by Canara Bank and no tax is deductible by SBI.

d) TDS is deductible at source on INR 1,00,20,000 @ 5% by Canara Bank and tax is deductible at source @
5% on INR 25,63,000 by SBI

13. Mr. T, an Indian Citizen and resident of India, earned dividend income of INR 4,500 from an Indian company,
which was declared on 1.10.2022 and paid in cash to Mr. T. What are the tax implications with respect to the
dividend in the hands of Mr. T and Indian Company?

a) Such dividend is taxable in the hands of Mr. T and Indian company is required to deduct tax at source @
7.5%.

b) Such dividend is taxable in the hands of Mr. T and Indian company is required to deduct tax at source @
10%.

c) Such dividend is taxable in the hands of Mr. T. However, Indian company is not required to deduct tax at
source since it does not exceed INR 5,000.

d) Such dividend is exempt in the hands of Mr. T. Hence, Indian company is not required to deduct tax at
source.

14. TPR & Co., a partnership firm selling its product X through the digital facility provided by MKY Limited (an E-
commerce operator). MKY Limited has credited in its books of account, the account of TPR & Co. on 31 st January,
2023 by sum of INR 4,80,000 for the sale of product X made during the month of January 2023. Out of INR
4,80,000, it made payment for INR 4,00,300 on 3 rd February, 2023. Further, Mr. Pawan, who purchased the
product X through the facility provided by MKY Limited, has made the payment of sum of INR 40,000 directly
to TPR & Co. on 15th January, 2023. Which statement is correct regarding requirement of deduction of tax at
source by MKY Limited?

a) No tax is required to be deducted at source.

b) MKY Limited is required to deduct tax at source INR 4,800 under section 194C.

c) MKY Limited is required to deduct tax at source INR 3,900 under section 194-O.

d) MKY Limited is required to deduct tax at source INR 5,200 under section 194-O.

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15. Mr. Vyas, aged 80, is a retired government employee. On 1st April 2022, he received the maturity amount of his
LIC policy amounting to INR 3,50,000. This policy was taken by Mr. Vyas on 1 st April 2014 on which the sum
assured was INR 3,00,000 and the annual premium was INR 40,000. His other income comprised of pension
amounting to INR 85,000. Mr. Vyas furnishes a declaration in Form 15H for non- deduction of tax at source to
the insurance company stating that his net tax liability for the year is NIL.

Choose the correct statement from below:

a) The declaration made by Mr. Vyas is wrong and the insurance company has to deduct tax of INR 3,500
under section 194DA.

b) The claim by Vyas is right and insurance company is not required to deduct tax at source.

c) The insurance company has to deduct tax under section 194DA since declaration in Form 15H cannot be
made for tax deduction under section 194DA.

d) The declaration made by Mr. Vyas is wrong and the insurance company has to deduct tax of INR 1,000
under section 194DA.

16. While deciding liability of an individual to deduct tax on payment of fees for professional services, which of the
following is immaterial:

a) Amount paid to professional

b) Turnover of financial year immediately preceding financial year in which payment made

c) Turnover of financial year in which payment is made

d) Amount of fees for professional services

17. Mr. Prakash is employed with XYZ Ltd. from 05.11.2018. He resigned on 31.03.2023 and wants to withdraw the
accumulated balance of employer’s contribution in his EPF Account i.e., INR 55,000. The tax deducted on such
withdrawal would be -

a. INR 500 u/s 192

b. INR 5,500 u/s 192

c. INR 4,125 u/s 192A

d. INR 5,500 u/s 192A

18. ABC Ltd. wants 400 customized backpacks which will be distributed by the company to its employees on the
annual event. ABC Ltd. hires a local vendor for this task and ABC Ltd. informs the local vendor about its
specifications for the backpacks. The local vendor procures its own raw material and supplies the required
backpacks to the Company. He charges Rs. 1,00,000 for the backpacks from ABC Ltd. While making payment to
the vendor, at what rate ABC Ltd. is required to deduct tax at source?

a. 1%

b. 2%

c. 10%

d. No tax is required to be deducted at source.

19. Mrs. Kajal, the General Manager of M/s Gold Ltd. was paid a salary 4,50,000 per month. The above salary
includes non-monetary perquisite of 50,000 per month. As per the terms of employment, tax on non-monetary
perquisite is to be borne by M/s Gold Ltd. Mrs. Kajal’s contribution towards PPF is 1,50,000. What would be the
amount of tax to be deducted by M/s Gold Ltd. from the salary of Mrs. Kajal if she intimated M/s Gold Ltd. to
opt for provisions of section 115BAC for A.Y. 2023-24?

a. 13,80,427

b. 15,52,980

c. 12,54,936

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d. 13,88,970

20. Mr. Harish is an interior decorator declaring profits under 44ADA in the P.Y.2022-23 and the earlier previous
years. Mr. Harish has to pay brokerage of 15 lakhs to Mr. Patel, a broker, to buy a residential house, and 50 lakhs
to Mr. Suresh, a contractor for reconstruction of the residential house. Are TDS provisions attracted in the hands
of Mr. Harish in respect of the above transactions?

a) No; TDS provisions are not attracted in the hands of Mr. Harish in respect of payments to Mr. Patel and
Mr. Suresh

b) Yes; Mr. Harish has to deduct tax from payment to Mr. Patel and Mr. Suresh

c) Mr. Harish does not have to deduct tax on payment to Mr. Patel but has to deduct tax from payment to Mr.
Suresh

d) Mr. Harish does not have to deduct tax on payment to Mr. Suresh but has to deduct tax from payment to
Mr. Patel.

21. Mr. Ajay Sahu, proprietor of M/s Blue Bird Enterprises having turnover of INR 65 lakhs during P.Y. 2021-22,
has received two bills for payment. The first bill is for INR 42,00,000 from Vijay Associates, an advocate and
property dealer firm, for his daughter’s hearing and INR 21,00,000 from same Vijay Associates for brokerage
service provided in relation to purchase of one property. Both bills were raised on 21-12-2022 but payment were
made in instalments. 1st instalment of INR 5,00,000 as advance was payment on 15-11-2022, 2nd instalment of
INR 45,00,000 on 25.03.2023 and balance amount of 13,00,000 on 11.05.23. Determine the TDS liability for
Mr. Sahu, if any, for A.Y. 2023-24?

a. INR 2,50,000

b. INR 3,15,000

c. INR 65,000

d. Nil

2. A D D I T I O N A L M CQ S F O R P R A C T I C E

22. TDS from salary u/s 192 shall be @ ___________________.

a) 10% of salary

b) Average rate of Income tax including health and education cess

c) Maximum marginal rate of tax

d) Average rate of Income tax excluding health and education cess

23. In which of the following cases, employer requires the employee to furnish evidence for the purpose of estimating
his income or computing the tax deduction of tax at source u/s 192?

a) House Rent Allowance

b) Leave Travel Concession or Assistance

c) Deduction under Chapter VI-A

d) All of the above

24. If employee receives accumulated amount out of recognised provident fund, which is taxable due to non-
fulfilment of conditions given u/s 10(12), then TDS shall be deducted u/s ______________.

a) 192

b) 192A

c) 194A

d) 197A

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25. If employee receives accumulated amount out of recognised provident fund and does not submit PAN, then TDS
shall be deducted @ _______.

a) 10%

b) 20%

c) 30%

d) Maximum Marginal Rate

26. TDS is not deducted from premature withdrawals from recognised provident fund if the accumulated amount
received is less than ___________________.

a) 10,000

b) 20,000

c) 30,000

d) 50,000

27. No tax shall be deducted on interest payable for ____________________.

a) 7-year NSC or National Development Bond/Notified Debentures

b) Interest on Securities of CG/SG/Listed Securities held in DEMAT form

c) Payable to LIC/GIC/Any Insurance company on any securities owned by it

d) All of the above

28. Under section 194A, limit of Rs. 40,000 is computed with reference to _________.

a) Whole bank

b) Each branch of bank

c) Whole bank if CBS is adopted

d) Both (b) and (c)

29. Tax is not required to be deducted by a banking company u/s 194A if aggregate amount of interest paid or payable
on time deposits to resident senior citizen if it does not exceed ________.

a) 40,000

b) 50,000

c) 20,000

d) None

30. In case of Interest on compensation awarded by Motor Accidents Claims Tribunal and paid by Insurance
company, what is the treatment of TDS?

a) No TDS at all

b) No TDS at time of credit

c) No TDS at time of payment if payment is not exceeding Rs. 50,000 in FY

d) Both (b) and (c)

31. What shall be the rate at which TDS on payment to contractor/sub-contractor be deducted u/s 194C when the
payment is made to Individual or HUF?

a) 1%

b) 0.75%

c) 2%

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d) 1.5%

32. What is rate at which TDS on payment to contractor/sub-contractor be deducted u/s 194C when payment is
made to any person other than Individual or HUF?

a) 1%

b) 0.75%

c) 2%

d) 1.5%

33. As per section 194C, tax is not required to be deducted at source if the amount credited/paid to the contractor
during the relevant previous year does not exceed ______.

a) Rs. 30,000

b) Rs. 1,00,000

c) Rs. 1,30,000

d) Rs. 30,000 at one time or Rs. 1,00,000 in aggregate during FY

34. A person makes payment of Rs. 35,000 to contractor who is a transport operator is not subject to TDS if
________.

a) The recipient owns 10 or less than 10 goods carriages at any time during the previous year

b) The recipient is engaged in the business of plying, hiring or leasing of goods carriage

c) The recipient has furnished declaration to this effect along with his PAN to the payer

d) All of the above

35. Mr. Ram an individual, whose turnover of the business for preceding year exceeded Rs. 100 lakhs, has engaged
a contractor Mr. A for building his residential house. On 30.11.2022, he has made a payment of Rs. 10,00,000
to the contractor. Mr. Ram should deduct TDS of __________________.

a) Rs. 20,800

b) Rs. 10,400

c) Rs. 20,000

d) Nil

36. What shall be the rate at which TDS on commission on sale of lottery tickets shall be deducted u/s 194G?

a) 10%

b) 5%

c) 30%

d) 22.5%

37. What is maximum amount upto which TDS on commission on sale of lottery tickets shall not be deducted?

a) 5,000

b) 20,000

c) 1,000

d) 15,000

38. Who shall not be liable to deduct TDS u/s 194H?

a) Any individual

b) Any HUF

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c) Any Individual and Any HUF whose accounts were not liable to audit in preceding FY

d) Any Individual and Any HUF whose total sales, gross receipts or turnover from business or profession do
not exceed INR 1 crore in case of business or INR 50 lakhs in case of profession during the immediately
preceding F.Y.

39. The rate of TDS on rental payments of plant and machinery u/s 194I is __________________.

a) 1.5%

b) 2%

c) 10%

d) 7.5%

40. In case of rent paid to government, tax is deductible at source @ _________

a) 2%

b) 1.5%

c) 7.5%

d) Nil

41. The provisions of 194-I are not applicable to:

a) Cooling charges paid by the customers of cold storage

b) Payment of PSF by an airline to Airport operator

c) Rent paid for using runway

d) All of the above

42. In case of payment on transfer of immovable property, tax shall be deductible u/s 194IA @ ________.

a) 0.75%

b) 1%

c) 10%

d) 7.5%

43. If PAN is not provided by the land lord, the tenant is required to deduct tax at source u/s 194-IB which shall not
exceed the _______________________.

a) 20%

b) 30%

c) 5%

d) Rent payable for the last month of PY or last month of the tenancy, as the case maybe

44. Sec 194-IC casts responsibility on any person responsible for paying to resident any sum by way of consideration,
not being consideration in kind, under a specified agreement u/s 45(5A), to deduct tax @ ________.

a) 5%

b) 3.75%

c) 7.5%

d) 10%

45. What shall be rate of TDS on fees for technical service u/s 194-J?

a) 1.5%

b) 2%

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c) 10%

d) 7.5%

46. The limit of Rs. _______ u/s 194J is applicable separately for fees for professional services, fees for technical
services, royalty and non-compete fees referred to in section 28(VA).

a) Rs. 10,000

b) Rs. 20,000

c) Rs. 30,000

d) Rs. 40,000

47. Section _____ provides for TDS by a person responsible for paying to resident any sum in nature of
compensation or enhanced compensation or the consideration or the enhanced consideration on account of
compulsory acquisition, under any law for the time being in force, of any immovable property (other than
agricultural land).

a) 194LA

b) 194LB

c) 194LC

d) 194LD

48. No declaration u/s 197A shall be _______ unless the person furnishes his _______.

a) Valid, PAN

b) Invalid, PAN

c) Valid, TIN

d) Valid, PIN

49. Which of the following are correct due dates for deductor other than government for filling TDS returns?

a) 31st July; 31st Oct; 31st Jan; 31st May

b) 15th July; 15th Oct; 15th Jan; 15th May

c) 15th July; 31st Oct; 31st Jan; 15th May

d) None of the above

50. An Assessee is deemed to be Assessee in default u/s 201 if __________.

a) Deductor has deducted but not deposited the tax deducted at source

b) Employee has failed to pay the tax wholly or partly, u/s 192(1A)

c) If a Resident Payee has filed ROI u/s 139 and has included such sum in computing his total income in ROI
and has paid tax on such sum

d) Both (a) and (b)

51. A person deemed to be an Assessee-in-default u/s 201(1), for failure to deduct tax or to pay the tax after
deduction, is liable to pay simple interest @ ______% for every month or part of month on the amount of such
tax from the date on which tax was deductible to the date on which such tax was actually deducted.

a) 2

b) 5

c) 1

d) 1.5

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52. A person deemed to be an Assessee-in-default u/s 201(1), is liable to pay simple interest @ _______% for every
month or part of month on the amount of such tax from the date on which tax was deducted to the date on which
such tax is actually paid [Section 201(1A)].

a) 2

b) 5

c) 1

d) 1.5

53. Form 16 is issued by the employer _______________ upto ________.

a) Annually; 15 days before end of following quarter

b) Quarterly; 15 days before end of following quarter

c) Half yearly; June 15

d) Monthly; June 15

54. TDS certificate issued in cases other than salary income is in form _______ within ______________.

a) 16A; 15 days from the due date for furnishing TDS statement

b) 16B; 15 days from the due date for furnishing TDS statement

c) 15; 30 days from the due date for furnishing TDS statement

d) 16A; 30 days from the due date for furnishing TDS statement

55. If PAN is not submitted, TDS will be deducted at _______.

a) 20%

b) 30%

c) Maximum marginal rate

d) Higher of Rate specified in Act or 20%

56. Rate of TCS u/s 206C for alcoholic liquor for human consumption is @ ______%.

a) 1

b) 0.75

c) 5

d) 3.75

57. Rate of TCS u/s 206C for tendu leaves is @ _____%.

a) 1

b) 0.75

c) 3.755

d) 5

58. Rate of TCS u/s 206C for timber obtained under a forest lease is @ ______%.

a) 2

b) 2.5%

c) 5

d) 3.75

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59. Rate of TCS u/s 206C by every person who grants a lease or a license or enters into a contract or otherwise
transfers any right or interest in any parking lot or toll plaza or a mine or a quarry to another person (other than
a public sector company) for the use of such parking lot or toll plaza or mine or quarry for purpose of business
at ______%.

a) 1

b) 0.75

c) 1.5

d) 2

60. Sec 206C provides that every person, being a seller, who receives any amount as consideration for sale of motor
vehicle of value exceeding Rs. 10 lakhs shall collect tax from buyer @ _______________ % of the sale
consideration.

a) 0.75

b) 1

c) 2

d) 1.5

61. Person responsible for collecting tax u/s 206C(1) other than government shall deposit TCS on _________.

a) The same day

b) Within 7 days from the end of the month in which the collection is made

c) Within 1 week from the end of the month in which the collection is made

d) Within 30 days from the end of the month in which the collection is made

62. Which of the following are not subjected to TDS u/s 194H?

i) Commission to employees

ii) Commission for rendering professional services or commission to director

iii) Trade discount on sale

iv) Bank Guarantee commission.

Select the correct answer

a) (i), (ii)

b) (i), (ii), (iii),

c) (i), (ii), (iii), (iv)

d) (i)

63. Statement 1: Tax is deducted on value including reimbursement as per section 194C and 194J

Statement 2: Tax is not deductible as per section 194C and 194J if it is for personal purpose.

a. Only Statement 1 is correct

b. Only Statement 2 is correct

c. Both Statements are correct

d. Both Statements are incorrect

64. Every person, deducting tax at source except ____________ shall apply for tax deducting account number
within ___________ in which tax was deducted for the first time.

a. 194IA and 194IB; one month from the end of the month

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CA Kishan Kumar TDS/TCS Divyastra MCQs

b. 194IA and 194IB; one week from the end of the month

c. 194IA and 194IC; one month from the end of the month

d. 194IA, 194IB and 194M; one month from the end of the month

65. The person deducting tax at source u/s 194 IA, IB and M shall be required to deposit the tax so deducted within
__________________ in which deduction is made.

a. 15 days from the end of the month

b. 30 days from the end of the month

c. 45 days from the end of the month

d. 60 days from the end of the month

66. An individual employee avails services of an individual contractor to construct his personal house and the
aggregate amount of payments is INR 51 lakhs, then ____________

a. No TDS is required to be deducted as service is availed for personal use

b. No TDS is required to be deducted as payer is not liable for tax audit

c. TDS is required to be deducted 10%.

d. TDS is required to be deducted 5%.

67. What are the conditions for deduction of tax under section 194M?

i) Deductor is Individuals not liable to deduct tax u/s 194C, J or H

ii) Value of payment exceeds INR 50 lakhs in aggregate during the year

iii) Services are utilized for personal purpose only

Select the correct answers

a. i, ii, iii

b. i, ii,

c. i

d. ii, iii

68. TCS Ltd paid dividend of 4,000 to Ram in cash, 5,000 to Shyam in cheque and 8,000 to Mohan in cheque. In
this case, TCS Ltd. Is required to deduct tax @ 10% u/s 194 in relation to _____________.

a) Dividend paid to Mohan

b) Dividend paid to Ram and Mohan

c) Dividend paid to Ram, Shyam and Mohan

d) No TDs as dividend is exempt u/s 10(34)

69. Section 194K deals with deduction of tax at source on _________.

a) payment made on account of repurchase of units

b) Payment of any income in respect of units of a Mutual fund, units from Administrator of the specified
undertaking or units from the specified company

c) Both (a) and (b)

d) None of the above

70. A person responsible for paying to any person any amount on account of repurchase of units covered under
section 80CCB (2) shall deduct tax at source at the rate of ______ % at the time of payment of such amount.

a) 10%

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CA Kishan Kumar TDS/TCS Divyastra MCQs

b) 7.5%

c) 15%

d) 20%

71. Ram, an authorized dealer and seller of overseas tour package, receives

➢ 8,00,000, under the Liberalised Remittance Scheme of the RBI, for overseas remittance from Mohan,

➢ 6,00,000, under the Liberalised Remittance Scheme of the RBI, for overseas remittance from Shyam,

➢ 3,00,000, on sale of overseas tour programme package to Sohan.

In this case, he is liable to collect tax @ ______ from ___________

a) 5%; Mohan, Shyam and Sohan

b) 3.75%; Mohan, Shyam and Sohan

c) 5%; Mohan and Sohan

d) 5%; Mohan

72. Lal Ketchup Pvt Limited, whose turnover is preceding PY is 10 crores makes a sale of 52 lakhs to Ram. In such
case, he is required to collect tax @ ____________ on _________.

a) 0.075%; 2 lakhs

b) 0.75%; 2 lakhs

c) 0.075%; 52 lakhs

d) No need to collect tax at source

73. Lal Ketchup Pvt Limited, whose turnover is preceding PY is 12 crores makes a sale of 52 lakhs to Ram. In such
case, he is required to collect tax @ ____________ on _________.

a) 0.1%; 2 lakhs

b) 0.75%; 2 lakhs

c) 0.075%; 52 lakhs

d) No need to collect tax at source

74. Statement 1: TCS on sale of motor vehicle is applicable only to luxury car.

Statement 2: In case of non-deposit of PAN, tax u/s 194O is required to be deducted @ higher of prevailing
rate and 20%.

a. Only Statement 1 is correct

b. Only Statement 2 is correct

c. Both Statements are correct

d. Both Statements are incorrect

ANSWER KEY

1. b. 2. b. 3. c. 4. d. 5. d. 6. b. 7. c.
8. b. 9. d. 10. d. 11. c. 12. 13. 14. d.
15. b. 16. c. 17. d. 18. d. 19. a. 20. a. 21. d.
22. b. 23. d. 24. b. 25. d. 26. d. 27. d. 28. c.
29. b. 30. d. 31. a. 32. c. 33. d. 34. d. 35. d.
36. b. 37. d. 38. d. 39. b. 40. d. 41. d. 42. b.

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CA Kishan Kumar TDS/TCS Divyastra MCQs

43. d. 44. d. 45. b. 46. c. 47. a. 48. a. 49. a.

50. d. 51. c. 52. d. 53. a. 54. a. 55. d. 56. a.
57. d. 58. b. 59. d. 60. b. 61. c. 62. c. 63. c.
64. d. 65. b. 66. d. 67. b. 68. b. 69. b. 70. d.
71. c. 72. d. 73. a. 74. d.

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