Going through the Procedural Compliance – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.
Procedural Compliance – Tax Laws CS Executive MCQs
Question 1.
The form for applying Permanent Account Number (PAN) is ……
(a) Form 49
(b) Form 49A
(c) Form 49AA
(d) Form 49B
Answer:
(b) Form 49A
Question 2.
A foreign citizen has to apply for PAN in ………..
(a) Form 49
(b) Form 49A
(c) Form 49AA
(d) Form 49B
Answer:
(c) Form 49AA
Question 3.
A person must obtain PAN, if Pan has not already been allotted to him, if he has:
(a) Income assessable during the P.Y. exceeds the maximum amount not chargeable to tax.
(b) Carries on business or profession whose turnover or gross receipts likely to exceed ₹ 5,00,000 in P.Y.
(c) A Person who is required to furnish return of income u/s 139(4A)
(d) All of the above.
Answer:
(d) All of the above.
Question 4.
When should a person apply for Pan if his income is likely to exceed the maximum amount not chargeable tax or turnover likely to exceed ₹ 5,00,000.
(a) Before the end of Accounting year
(b) Before the due date of furnishing the return.
(c) Before 31st May of the assessment year
(d) Before 30th June of the assessment year.
Answer:
(c) Before 31st May of the assessment year
Question 5.
The Pan is required to be quoted in the following cases, except:
(a) In returns or correspondence with the Income-tax authorities.
(b) In all challans for the payment of any sum.
(c) Sale/Purchase of immovable property of value exceeding ₹ 5,00,000.
(d) Sale or purchase of shares in a company not listed in recognised stock exchange where the value exceeds 1 1,00,000 per transaction.
Answer:
(c) Sale/Purchase of immovable property of value exceeding ₹ 5,00,000.
Question 6.
A person who enters into transactions where Pan is required to be quoted but he does not have Pan has to make a declaration in Form:
(a) 14
(b) 49
(c) 49A
(d) 60
Answer:
(d) 60
Question 7.
When payment is deposited in a bank exceeding ₹ in cash, quoting of ……….. PAN is required
(a) 50,000
(b) 60,000
(c) 90,000
(d) 1,00,000
Answer:
(a) 50,000
Question 8.
Quoting of Aadhaar Number is mandatory:
(a) In the application for the Allotment of PAN
(b) In the income tax return
(c) If Pan is allotted, Aadhaar No. should be intimated to the prescribed authority.
(d) All of the above
Answer:
(d) All of the above
Question 9.
Aadhaar is not required to be quoted if:
(a) the person is residing in the states of Assam, Jammu & Kashmir, and Meghalaya.
(b) A non-resident or not a citizen of India
(c) The age of the individual is 80 years or more, at any time during the previous year.
(d) All of the above.
Answer:
(d) All of the above.
Question 10.
A person liable to deduct TDS is required to apply for:
(a) PAN
(b) Aadhaar
(c) TAN
(d) None of the above.
Answer:
(c) TAN
Question 11.
Tan is a 10 digit alphanumeric No. to be quoted in all TDS returns. It is:
(a) Tax deduction Number
(b) Tax Collection Number
(c) Tax deduction and collection Account Number.
(d) None of the above.
Answer:
(c) Tax deduction and collection Account Number.
Question 12.
Who is compulsorily required to file returns
(a) Individual whose total income exceeds the maximum exemption limit
(b) Partnership firm
(c) Company
(d) All of the above
Answer:
(d) All of the above
Question 13.
The due date of filing return for a company with a business loss for A.Y. 2021-22 is-
(a) 31st July, 2021
(b) 30th September, 2021
(c) 31st October, 2021
(d) 31 st August, 2021
Answer:
(c) 31st October, 2021
Question 14.
As per section 139(1) .filing of returns is compulsory whether or not profit is earned or loss is incurred, in case of –
(a) Companies only
(b) Firms only
(c) Both companies and firms
(d) All assessees
Answer:
(c) Both companies and firms
Question 14A.
A person who is not required to furnish a return under section 139(1) and who during the previous year has deposited an amount or aggregate of the amounts exceeding in one or more current accounts maintained with a banking company or a cooperative bank will have to file the return on or before the due date.
(a) fifty lakhs rupees
(b) one crore rupees
(c) one and a half crore rupees
(d) two crore rupees
Answer:
(a) fifty lakhs rupees
Question 14B.
A person who is not required to furnish a return under section 139(1) and who during the previous year has incurred expenditure of an amount or aggregate of the amounts exceeding for himself or any other person for travel to a foreign country will have to file the return on or before the due date.
(a) one lakh rupees
(b) three lakh rupees
(c) two lakh rupees
(d) five lakh rupees
Answer:
(c) two lakh rupees
Question 14C.
A person who is not required to furnish a return under section 139(1) and who during the previous year has incurred expenditure of an amount or aggregate of the amounts exceeding towards consumption of electricity will have to file the return on or before the due date.
(a) three lakh rupees
(b) two lakh rupees
(c) five lakh rupees
(d) one lakh rupees
Answer:
(d) one lakh rupees
Question 14D.
Mr. Yuvraj is a partner in a firm whose accounts are required to be audited u/s 44AB. The due date for filing return for the partner is 31st October of the relevant assessment year.
(a) non-working
(b) working
(c) working/non-working
(d) none of these.
Answer:
(c) working/non-working
Question 15.
An assessee can file a revised return of income at any time before the completion of assessment or before expiry of the following period, whichever is earlier
(a) Before the end of the relevant assessment year
(b) Before 2 years from the end of the relevant assessment year
(c) Before 3 years from the end of the relevant assessment year
(d) Before the end of the relevant previous year
Answer:
(a) Before the end of the relevant assessment year
Question 16.
The returns of a company has to be verified by …………
(a) The Managing Director or any other Director
(b) The Principal officer
(c) The Secretary
(d) The Manager
Answer:
(a) The Managing Director or any other Director
Question 17.
In the case of an individual assessee, the return of income must be signed and verified by following, except……..
(a) Individual himself
(b) Where he is absent from India, by some person duly authorized by him in this behalf.
(c) Where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competed to act on his behalf
(d) Spouse
Answer:
(d) Spouse
Question 18.
It is not mandatory for an assessee to file a return of loss if it pertains to …….. if he wants to carry forward the loss
(a) Loss under the head‘profits and gains from business or profession’
(b) Loss from maintenance of race horses
(c) Loss under the head ‘capital gains’
(d) Loss under the head ‘income from house property’
Answer:
(d) Loss under the head ‘income from house property’
Question 19.
Any person who has not filed the return within the time allowed under section 139(1) or within the time allowed under a notice issued by the Assessing officer under section 142(1), may file a belated return u/s 139(4)
(a) Before the end of relevant assessment year
(b) Before the completion of the assessment
(c) (a) or (b) above, whichever is earlier
(d) (a) or (b) above, whichever is later
Answer:
(c) (a) or (b) above, whichever is earlier
Question 20.
A partnership firm whose sales turn-over is ₹ 90 lakh has derived income from an industrial undertaking entitled to deduction u/s 80IB. The due date for filing thee return of income for the A.Y. 2021-22 will be:…….
(a) 31st July, 2021
(b) 30th September, 2021
(c) 31st October, 2021
(d) None of the above.
Answer:
(a) 31st July, 2021
Question 21.
The due date specified u/s 139(1) for filing the return of income in case of companies engaged in international transactions and who have to furnish a report u/s 92 E is-
(a) 31st July
(b) 31st August
(c) 30th September
(d) 30th November
Answer:
(d) 30th November
Question 22.
A return of income when notified as defective, has to be rectified within
(a) 15 days
(b) 30days
(c) 45 days
(d) 60 days
Answer:
(a) 15 days
Question 23.
Chatterjee filed his return of income for the assessment year 2021 -22 on 10.6.2021. He is eligible to revise his return:
(a) Up to the end of the assessment year 2022-23
(b) Before the end of the assessment year 2021-22
(c) Before completion of assessment u/s 153
(d) Before issue of notice u/s 148
Answer:
(b) Before the end of the assessment year 2021-22
Question 24.
Zeet & Co. is a partnership firm whose turnover for the previous year 2021 -22 was ₹220 Lakhs. The “due date” for filing the return of income of the firm is:
(a) 31st July, 2021
(b) 31st Oct. 2021
(c) 31st Oct. 2021
(d) 31st March, 2021
Answer:
(b) 31st Oct. 2021
Question 25.
An apparent error in the assessment order passed u/s 143(3), dated 15.11.2019, was noticed by the assessee in February, 2020. The time limit for seeking rectification of mistake is available up to:
(a) 31.3.2024
(b) 31.3.2023
(c) 31.3.2020
(d) 31.3.2021
Answer:
(a) 31.3.2024
Question 26.
A return filed by Ms. Mala was found to be defective. The assessing officer gave notice of the defect to the assessee. The time-limit for rectification of the defect is ………….
(a) 30 Days
(b) 15 Days
(c) 45 Days
(d) 60 Days
Answer:
(b) 15 Days
Question 27.
Chand Ltd. filed its return of income on 7th December 2019 declaring loss of ₹ 3,50,000. Later, it noticed a claim of expenditure omitted in the return filed. The revised return
(a) Must be filed before 31 st March, 2021
(b) Cannot be filed
(c) Must be filed before 31 st March 2020
(d) Can be filed before completion of the assessment.
Answer:
(c) Must be filed before 31 st March 2020
Question 28.
Zeet Ltd. engaged in manufacturing of cement also had wind mills to generate power. Entire power generated by it was used by its wholly owned subsidiary Zoom Ltd. The amount received for the said power supply was ₹ 7 crores. Zeet Ltd. disclosed total income of ₹ 10 crore for the assessment year 2021 -22. The due date for filing return of income by Zeet Ltd. is ……..
(a) 31st July, 2021
(b) 30th September, 2021
(c) 31 st October, 2021
(d) 30th November, 2021
Answer:
(b) 30th September, 2021
Question 29.
As per Section 139(1), an individual other than an individual of the age of 60 years or more shall have to file the return of income if …..
(a) His total income exceeds ₹ 2,50,000
(b) His total income exceeds ₹ 3,00,000
(c) His total income exceeds ₹ 2,00,000
(d) His total income before allowing deduction under sections 80C -80U exceeds ₹ 2,50,000
Answer:
(a) His total income exceeds ₹ 2,50,000
Question 30.
If there is an apparent error in the intimation dated 11th June, 2018 issued u/s 143(1), the time limit for filing application for rectification u/s 154 is available up-to
(a) 31.3.2022
(b) 31.3.2023
(c) 31.3.2019
(d) 31.10.2018
Answer:
(b) 31.3.2023
Question 31.
ABC Limited has filed its return of income for A.Y. 2021-22 as per section 139(l)buthad failed to make the payment of tax on the returned income as per section 140A. The return so filed by ABC Limited shall be treated as:
(a) A defective return u/s 139(9)
(b) A valid return
(c) A nonest return
(d) None of the above
Answer:
(b) A valid return
Question 32.
Any person who has not filed the return within the time allowed under section 139(1) may file a belated return :
(a) at any time before the end of the relevant previous year
(b) at any time before the end of the relevant assessment year
(c) before the completion of assessment
(d) at any time before the end of the relevant assessment year or before the completion of the assessment whichever is earlier
Answer:
(d) at any time before the end of the relevant assessment year or before the completion of the assessment whichever is earlier
Question 33.
The assessee can file an application for rectification of mistake as per section 154 of the Act when it is …………
(i) a mistake of fact
(ii) a mistake of law
(iii) glaring obvious or apparent from the records
(iv) a decision on debatable point of law
(a) (i) and (iii)
(b) (i), (ii) and (iv)
(c) (i), (ii) and (iii)
(d) all of the above
Answer:
(b) (i), (ii) and (iv)
Question 34.
What are the items taken into consideration by Assessing Officer (AO) while processing a return at Centralised Processing Centre (CPC)?
(a) the total income or loss after making adjustments for any arithmetical error in the return
(b) an incorrect claim, if such incorrect claim is apparent from any information in the return
(c) the fee payable under section 234F (fee for default in furnishing return of income) in computing the tax
(d) All of the above
Answer:
(d) All of the above
Question 34A.
Non-resident is not required to furnish its return of income under sub-section (1) of section 139 of the Act, if its total income, consists of:
(a) certain dividend or interest income and the TDS on such income has been deducted.
(b) any income by way of royalty or fees for technical services other than income referred to in sub- section (1) of section 44DA, the TDS on such income has been deducted.
(c) both (a) or (b).
(d) Either (a) or (b).
Answer:
(d) Either (a) or (b).
Question 35.
Hindu Undivided Family (HUF) of Vinay consisted of himself, his major son, minor son and his wife. At the time of filing of return of income of the HUF for A.Y. 2021-22. Vinay was out of country. The return of income of the HUF can be signed in this case by:
(a) Karta
(b) Authorised Tax Consultant
(c) Major son
(d) Minor Son
Answer:
(c) Major son
Question 36.
An HUF, not subject to tax audit in the earlier year, paying fees of ₹ 35,000 to a Practising Company Secretary shall-
(a) Not deduct TDS
(b) Deduct TDS @10%
(c) Deduct TDS @ 20%
(d) Deduct TDS @ 10.3%
Answer:
(d) Deduct TDS @ 10.3%
Question 36A.
The rate of TDS in case of fees for technical services u/s 194J is
(a) 2%
(b) 5%
(c) 7.5%
(d) 10%
Answer:
(a) 2%
Question 36B.
The rate of TDS on E-commerce Transactions u/s 194-0 is:
(a) 2%
(b) 5%
(c) 1%
(d) 10%
Answer:
(c) 1%
Question 36C.
The rate of TDS on E-commerce Transactions u/s 194-0 is applicable from:
(a) 1st day of October, 2021
(b) 1st day of October, 2020
(c) 1st day of April, 2020
(d) 1st day of April, 2021
Answer:
(b) 1st day of October, 2020
Question 36D.
The E-commerce operator made a gross sale of ₹ 7,25,000 on behalf of a E-commerce participant. The participant also received a direct payment from customers to the tune of ₹ 30,000. The TDS u/s 194-0 will be:
(a) ₹ 15,100
(b) ₹ 14,500
(c) ₹ 7,250
(d) ₹ 7,550
Answer:
(d) ₹ 7,550
Question 36E.
Any person responsible for paying to a resident any income in respect of units of a Mutual Fund specified under clause (23D) of section 10 or units from the Administrator of the specified undertaking or units from the specified company, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent u/s:
(a) 194 J
(b) 194 K
(c) 194-0
(d) 194-M
Answer:
(b) 194 K
Question 36F.
The provisions of section 194K will not be applicable in case:
(a) the income does not exceed ₹ 5,000 during the financial year.
(b) in case of capital gains.
(c) the income does not exceed ₹ 10,000 during the financial year.
(d) Both (a) & (b).
Answer:
(d) Both (a) & (b).
Question 37.
Payment of ₹ 2,00,000 was made to Krishna Roadways Pvt. Ltd. owning nine heavy goods carriages and having PAN which was furnished by them to the payer of freight GG Carriers. The amount of tax to be deducted by the payer on such amount is ……………. as per section
(a) ₹ 2,000, 194C
(b) ₹ 10,000, 194C
(c) ₹ 4,000, 194C
(d) Nil because PAN furnished, 194C(6)
Answer:
(d) Nil because PAN furnished, 194C(6)
Question 38.
Prakash maintained a recurring deposit by paying ₹ 20,000 per month in a bank. The interest accrued and credited during 2020-21 on such deposit is ₹15,000. The amount of TDS required by the bank would be:
(a) Nil
(b) ₹ 1,500 @ 10%
(c) ₹ 3,000 @20%
(d) ₹ 500 @10% over₹ 10,000
Answer:
(a) Nil
Question 39.
Sagar engaged in a business booked a marriage hall of Yash having PAN for conducting mega sale during festival season of F.Y. 2020-21 and paid rent of ₹ 55,000 for 3 days period. His total turnover for financial year 2020-21 is ₹ 85 Lakh. The amount of Tax Deduction at Source (TDS) to be made by Sagar on the amount of rent paid will be:
(a) Nil
(b) ₹ 5,500
(c) ₹ 2,750
(d) ₹ 11,000
Answer:
(c) ₹ 2,750
Question 40.
Ashish, director of PQR Ltd. is eligible for hoard sitting fees of ₹ 60,000 for every meeting attended by him. The amount of tax required to be deducted from such sitting fees to be paid to Ashish by the company shall be:
(a) ₹ 12,000 @ 20%
(b) ₹ 1,200 @ 2%
(c) ₹ 3,000 @5%
(d) ₹ 6,000 @ 10%
Answer:
(d) ₹ 6,000 @ 10%
Question 41.
Laxmi &Co. paid ₹ 6, 10,000 as contract payments to Monu Ltd. during the financial year 2020-21. It did not deduct tax at source u/s 194C. The amount liable for disallowance is –
(a) ₹ 6,10,000
(b) ₹ 3,05,000
(c) ₹ 12,200
(d) ₹ 1,83,000
Answer:
(d) ₹ 1,83,000
Question 42.
The person responsible for paying any income by way of winnings from lottery an amount exceeding ₹ 10,000, but not exceeding ₹ 50,00,000 shall deduct-
(a) TDS@ 30.996
(b) NoTDS
(c) TDS@ 31.296
(d) TDS @ 3096
Answer:
(d) TDS @ 3096
Question 42A.
A person, being an eligible start-up referred to in section 80-IAC, responsible for paying any income to the assessee being perquisite of the nature specified in clause (vi) of sub-section (2) of section 17 in any previous year relevant to the assessment year, beginning on or after the 1st day of April, 2021, shall deduct or pay, tax on such income within fourteen days:
(a) after the expiry of fortyeight months from the end of the relevant assessment year
(b) from the date of the sale of such specified security or sweat equity share by the assessee
(c) from the date of the assessee ceasing to be the employee of the person
(d) Earliest of the above options.
Answer:
(d) Earliest of the above options.
Question 43.
The electronic payment of taxes is mandatory for
(a) All corporate assessees
(b) Other assessees subject to compulsory audit u/s 44AB
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)
Question 44.
The time limit for deposit of TDS by Non-government deductor is:
(a) 7th of next month in which TDS is deducted for the months from April to February
(b) 30th April of next financial year in case the month is March
(c) Both (a) or (b)
(d) None of the above
Answer:
(c) Both (a) or (b)
Question 45.
The person deducting TDS must furnish a certificate to the payee to the effect. The due date of issue of certificate is
(a) Within 15 days from the due date of furnishing the statement of tax deducted in case of Form 16A
(b) 31st may of the next financial year in which tax is deducted in case of Form 16.
(c) Both (a) or (b)
(d) None of the above
Answer:
(a) Within 15 days from the due date of furnishing the statement of tax deducted in case of Form 16A
Question 46.
The person responsible for paying any income by way of winnings from lottery an amount exceeding ₹ 50,00,000, but not exceeding ₹ 1,00,00,000 shall deduct………
fa) TDS @ 30.996
(b) TDS @ 3096
(c) TDS @31.296
(d) TDS @ 3396
Answer:
(d) TDS @ 3396
Question 47.
Pradip acquired an urban land from Chitra for ₹ 70 lakh on 10th October 2020. At what rate, tax is deductible at source in respect of such transaction
(a) 296
(b) 596
(c) 196
(d) 3%
Answer:
(c) 196
Question 48.
Deduction of tax from salary as per Section 192 shall be at-
(a) 1096 of salary
(b) The average rate of income tax computed on the basis of rates in force for the financial year in which the payment is made
(c) The maximum marginal rate of 3096
(d) None of the above
Answer:
(b) The average rate of income tax computed on the basis of rates in force for the financial year in which the payment is made
Question 49.
Rohan won a State Government lottery of ₹ 1,00,000 on 11th October 2020. The government should deduct tax on such winning amounting to
(a) ₹ 30,000
(b) ₹ 33,000
(c) ₹ 33,990
(d) ₹ 30,900
Answer:
(a) ₹ 30,000
Question 50.
Suresh won a sum of ₹ 2,50,00,000 from a crossword puzzle during the Previous year 2020-21. The T.D.S will be deducted @
(a) 30%
(b) 30% + 25% surcharge + 4% HEC
(c) 30% + 25% surcharge
(d) 30% + 37% surcharge.
Answer:
(c) 30% + 25% surcharge
Question 51.
If a payee eligible for commission exceeding ₹ 50,000 does net furnish his PAN to the payer, tax is deductible at source at-
(a) Nil rate
(b) 20%
(c) 10%
(d) 30%
Answer:
(b) 20%
Question 52.
The liability to deduct tax at source on insurance commission will arise when the commission paid or payable to an agent for the year exceeds –
(a) ₹ 5,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) ₹ 20,000
Answer:
(c) ₹ 15,000
Question 53.
Any person responsible for paying to a resident any sum under a life insurance policy should deduct income-tax thereon at the rate of ……….on the amount of income comprised therein:
(a) 1%
(b) 2%
(c) 5%
(d) 10%
Answer:
(c) 5%
Question 54.
No deduction of tax is required under section 194DA on payment of a sum under the life insurance policy if the sum does not exceed:
(a) ₹ 10,000
(b) ₹ 50,000
(c) ₹ 1,00,000
(d) ₹ 2,00,000
Answer:
(c) ₹ 1,00,000
Question 54A.
Tax is required to be deducted at source in the case of income of investors from securitization trust u/s 194LBC at the time of payment or credit to the account of payee whichever is earlier at the rate of ………….. % where the investor is a resident other than Individual and HUF.
(a) 25%
(b) 30%
(c) 35%
(d) Rates in force
Answer:
(b) 30%
Question 54B.
Tax is required to be deducted at source in the case of income of investors from securitization trust u/s 194LBC at the time of payment or credit to the account of payee whichever is earlier at the rate of % where the investor is a non-resident non-corporate assessee or a foreign company.
(a) 25%
(b) 30%
(c) 35%
(d) Rates in force
Answer:
(d) Rates in force
Question 55.
If a person responsible for deduction of tax at source, after deduction, fails to deposit the same into the Government treasury, be will be liable to pay interest @ -…………
(a) 1% p.m. or part of the month
(b) 1.5% p.m. or part of the month
(c) 2% p.m. or part of the month
(d) 15% p.m. or part of the month
Answer:
(b) 1.5% p.m. or part of the month
Question 56.
When an employee makes premature withdrawal from employees provident fund account, the requirement of the deduction is attracted when the quantum of withdrawal exceeds –
(a) ₹ 10,000
(b) ₹ 30,000
(c) ₹ 50,000
(d) None of the above
Answer:
(c) ₹ 50,000
Question 57.
Mr. Nitin after serving Lion Ltd. for 4 years resigned his job to commence a business of his own. His provident fund account consisted of his own contribution ₹ 50,000; employer’s contribution ₹ 50,000 and interest of ₹ 20,000 being attributable equally to the said contributions. How much would be the amount deductible at source under section 192A
(a) ₹12,000 being 10% of total withdrawal
(b) ₹10,000 being 10% of total contributions
(c) ₹ 6,000 being 10% of employer’s contribution and interest thereon
(d) ₹ 2,000 being 10% of interest on the contributions
Answer:
(c) ₹ 6,000 being 10% of employer’s contribution and interest thereon
Question 58.
A Co. Ltd. made payments to B Co. Ltd. towards contracts executed during the financial year 2020-21. They are
(i) Contract-1 ₹ 15,000 on 15.6.2020
(ii) Contract-2 ₹ 22,000 on 29.9.2020
(iii) Contract-3 ₹ 27,000 on 30.12.2020
(iv) Contract-4 ₹ 29,000 on 13.3.2021
The tax deductible at source would be:
(a) ₹ 1,560 @ 2% on ₹ 78,000
(b) ₹ 1,860 @ 2% on ₹ 93,000
(c) ₹ 780 @ 1 % on ₹ 78,000
(d) Nil
Answer:
(d) Nil
Under Section 194C, No tax is deductible if the aggregate of the amount of payments to a Contractor do not exceed ₹ 1,00,000 during the financial year. In this question, the total payments are ₹ 93,000 ie. (15,000 + 22,000 + 27,000 + 29,000). Therefore no tax is deductible. Hence the answer is (d).
Hint: No TDS was applicable on the withdrawal of ₹ 1,20,00,000 as section 194N is applicable from 1.9.2019. However the withdrawal after 1.9.2019 is subjected to TDS as the total withdrawal during the P.Y. 2019-20 exceeded ₹ 1 crore. (CBDT clarification vide press release dated 30.8.2019.
Question 59.
P&Co. a partnership firm whose turn-over was ₹ 42,60,000 in the previous year 2019- 20 and ₹ 1,01,30,000 in the previous year 2020-21 paid brokerage of ₹ 21,000 to Mr. Ashwin during the financial year 2020- 21. Mr. Ashwin furnished his PAN to the firm. The amount of tax deductible at source on such brokerage payment would be:
(a) ₹ 2,100 @10%
(b) ₹ 1,050 @ 5%
(c) Nil
(d) ₹ 4,200 @2096
Answer:
(b) ₹ 1,050 @ 5%
Question 60.
LM, a co-operative society, has paid interest of ₹1,05,000 to PQ, another co-op-erative society. The tax to be deducted at source u/s 194A is :
(a) ₹ 10,500
(b) ₹ 10,815
(c) ₹ 5,250
(d) Nil
Answer:
(d) Nil
Question 61.
Mr. Rajesh had a turnover of ₹ 3 crore during the year ended 31st March, 2020. During the F.Y. 2020-21, he paid a sum of ₹ 10 lakh to E, an Engineer for construction of his self-occupied residence and ₹ 25 lakh to E, for construction of office building. The amount of tax to be deducted at source from payments made to E is :
(a) ₹ 3 lakh
(b) ₹ 50,000
(c) ₹ 2.5 lakh
(d) None of the above
Answer:
(d) None of the above
Question 61 A.
A Resident senior citizen received certain interest from time deposit from a Banking company. The bank wanted to deduct tax @10% u/s 194A. The representative of the assessee claimed that the limit up to which the tax is not deductible at source in the present case is:
(d) 5,000
(b) 30,000
(c) 40,000
(d) 50,000
Answer:
(d) 50,000
Question 61B.
The deduction of TDS @ 2% on cash withdrawals in excess of ₹ 1 crore from a banking company or Cooperative bank engaged in banking business or a post office is covered u/s :
(a) 194N
(b) 192N
(c) 194M
(d) 195M
Answer:
(a) 194N
Question 61C.
The deduction of TDS @ 2% on cash withdrawals in excess of ₹ 1 crore during a previous year from a banking company or Cooperative bank engaged in banking business or a post office is applicable from:
(a) 1.10.2019
(b) 1.9.2020
(c) 1.9.2019
(d) 1.7.2019
Answer:
(c) 1.9.2019
Question 61D.
Arshad Kumar withdrew ₹ 1,20,00,000 from the Bank up-to 31st August 2019. He later on also made a withdrawal of ₹ 50,00,000 on 29.11.2019. The amount of TDS required to be deducted under section 194N is
(a) ₹ 1,00,000
(b) ₹ 1,40,000
(c) ₹ 3,40,000
(d) Nil
Answer:
(a) ₹ 1,00,000
Question 61E.
Section 194N is not applicable on:
(a) Cash Replenishment Agencies (CRA’s) and Franchise agents of White Label Automated Teller Machines Operators (WLATMO’s)
(b) Commission agent or trader operating under Agriculture Produce Market Committee (APMC) registered under any law related to agricultural produce.
(c) The Authorized dealer or his franchise agent or subagent or Full -Fledged Money changer licensed by RBI.
(d) All of the above.
Answer:
(d) All of the above.
Question 62.
Every person being Banking company or a Co-operative Society engaged in carrying on business of banking or a post-office shall deduct tax @ 2%, where the aggregate of sum in cash exceeds ………. during the previous year.
(a) ₹ 1,00,000
(b) ₹ 1,00,00,000
(c) ₹ 10,00,000
(d) ₹ 5,00,000
Answer:
(b) ₹ 1,00,00,000
Question 63.
Rakesh entered into a Joint Development Agreement with Reality Builders Pvt. Ltd. for developing a project on the land owned by him during the previous year 2020-21 and the builder who agreed to make the payment of ₹ 50 lakh to Rakesh paid the same to him on execution of the Joint Development Agreement. The amount of TDS u/s 194-IC required to be deducted on the amount of ₹ 50 lakh shall be
(a) ₹ 50,000
(b) ₹ 2,50,000
(c) ₹ 5,00,000
(d) ₹ 10,00,000
Answer:
(c) ₹ 5,00,000
Question 64.
Wealth Maximization Fund Limited had paid an amount of interest of ₹ 20 lakh in respect of money borrowed outside India on rupee denominated bonds to a foreign Institutional Investor. Wealth Maximization Fund Limited is required to deduct tax at source out of such payment of interest on these bonds at the rate of
(a) 10%
(b) 15%
(c) No TDS
(d) 5%
Answer:
(d) 5%
Question 65.
A house property owned by Nitin, a non-resident, at Delhi was agreed to be sold to Ramesh for a consideration of ₹ 70,00,000. Ramesh has stated to Nitin that the payment of sale consideration shall be subject to TDS and the amount of TDS on the sale consideration will be @ ……….. as per section of the Income-tax Act,1961.
(a) 34.32%, 195
(b) 10%, 194-IC
(c) 5.72%, 194-LBA
(d) 1%, 194-IA
Answer:
(d) 1%, 194-IA
Question 66.
The quarterly return of TDS relating to payments made to non-resident and the foreign company being a unit holder of mutual funds is to be filed in return Form number:
(a) 24Q
(b) 27Q
(c) 26Q
(d) 22Q
Answer:
(b) 27Q
Question 67.
Mr. Rajan (a trader in furniture items) acquired a motor car for ₹ 11 lakhs by availing loan from a nationalized bank. The amount was paid by demand draft. The amount of tax collectable at source by the car dealer who sold the car is:
(a) Nil
(b) ₹ 22,000 @ 296
(c) ₹ 11,000(5) 196
(d) ₹ 1,10,000 @ 1096
Answer:
(c) ₹ 11,000(5) 196
Question 68.
Tax is to be collected at source in the following cases except:
(a) Sale of alcoholic liquor for human consumption
(b) Tendu leaves
(c) Grant of lease licence of parking lot, toll plaza, mining and quarrying
(d) All of the above
Answer:
(d) All of the above
Question 69.
State whether tax is required to be collected at source (TCS) under the provision of section 206C of Income-tax Act, 1961 by a person making
(a) Payment of dividend
(b) Winning from horse races
(c) Sale of motor vehicle of the value exceeding ₹ 10 lakh by a dealer to the customer
(d) Payment to non-resident
Answer:
(c) Sale of motor vehicle of the value exceeding ₹ 10 lakh by a dealer to the customer
Question 70.
When a motor vehicle exceeding ₹……….. is sold the provisions of TCS are attracted.
(a) ₹ 5,00,000
(b) ₹ 8,00,000
(c) ₹ 10,00,000
(d) ₹ 12,00,000
Answer:
(c) ₹ 10,00,000
Question 71.
Samar purchased a “Honda Accord” Car for ₹ 28,00,000 from a dealer. The dealer should collect tax at source of …………..
(a) ₹ 56,000
(b) ₹ 1,40,000
(c) ₹ 28,000
(d) ₹ 5,600
Answer:
(c) ₹ 28,000
Question 72.
The Honda company sold Motor Vehicles to its Dealer “Honda Star” worth Rs. 8,00,00,000. The amount of TCS to be collected by the company will be:
(a) ₹ 8,00,000
(b) ₹ 16,00,000
(c) Nil
(d) ₹ 40,00,000
Answer:
(c) Nil
Question 73.
TCS is collected at the time of sale of certain goods other than Motor Vehicle when:
(a) Debit of the amount payable by the buyer
(b) At the time of receipt of such amount
(c) (a) or (b) whichever is earlier
(d) None of the above
Answer:
(c) (a) or (b) whichever is earlier
Question 74.
The rate of collection of TCS on Tendu leaves is:
(a) 196
(b) 596
(c) 2.596
(d) 296
Answer:
(b) 596
Question 75.
A buyer purchases goods liable for TCS for being used in manufacturing, processing. The provisions of TCS shall not apply if buyer gives declaration in duplicate to seller in FORM No.
(a) 27C
(b) 27E
(c) 26EQ
(d) 28C
Answer:
(a) 27C
Question 76.
The Form for filing TCS return is ………..
FORM :
(a) 27C
(b) 27EQ
(c) 26EQ
(d) 28EQ
Answer:
(b) 27EQ
Question 77.
Advance tax will not be paid if tax payable after TDS is not more than or equal to –
(a) ₹ 10,000
(b) ₹ 15,000
(c) ₹ 20,000
(d) ₹ 25,000
Answer:
(a) ₹ 10,000
Question 78.
Where the advance tax paid on or before March, 2021 is less than 100% of the tax due on the total income declared in the return of income, as reduced by tax deducted at source, the assessee shall he making payment of interest on the amount of shortfall on the returned income so dedared at the rate of per month for the period of delay.
(a) 2%
(b) 1%
(c) Nil
(d) 1.596
Answer:
(b) 1%
Question 79.
Interest is payable under sectionfor non-payment or short payment of advance tax –
(a) 234A
(b) 234B
(c) 234C
(d) 234A, 234B and 234C
Answer:
(b) 234B
Question 80.
Interest is payable for the deferment of advance tax under section –
(a) 234A
(b) 234B
(c) 234C
(d) 234A, 234B and 234C
Answer:
(c) 234C
Question 81.
An assessee has opted for presumptive taxation scheme under section 44AD for A.Y. 2021-22. He is liable to pay advance tax.
(a) On or before 15th March of the Previous year in 1 instalment only.
(b) In 2 instalments
(c) In 4 instalments
(d) Not liable to pay Advance tax
Answer:
(a) On or before 15th March of the Previous year in 1 instalment only.
Question 82.
Due date of advance tax for non-cor-porate assessee are –
(a) 15th June, 15th September, 15th December, 15th March
(b) 15 th September, 15 th December, 15th March
(c) 30th June, 30th September, 31st December, 31st March
(d) 30th September, 31st December, 31st March
Answer:
(a) 15th June, 15th September, 15th December, 15th March
Question 83.
If 4th instalment of advance tax is not paid within specified period, interest is calculated for……….. months
(a) 1
(b) 2
(c) 3
(d) 4
Answer:
(a) 1
Question 84.
U/s 208, it is obligatory for an assessee to pay advance tax where the tax payable is –
(a) 10,000 or more
(b) 20,000 or more
(c) 5,000 or more
(d) 8,000 or more
Answer:
(a) 10,000 or more
Question 85.
Steam (P.) Ltd. reports total income of ₹ 20 lakh for the year ended 31st March, 2020. The total tax liability payable before 15th September, 2019 by way of advance tax is-
(a) ₹ 92,700
(b) ₹ 1,85,400
(c) ₹ 2,80,800
(d) ₹ 3,09,600
Answer:
(c) ₹ 2,80,800
Question 86.
Raghu, aged 62 years, has pension income ₹ 2,40,000 and rental income (computed) of ₹ 3,60,000 for the financial year 2019-2020. How much amount be must have paid as advance tax in September, 2019
(a) ₹ 12,000
(b) ₹ 10,000
(c) ₹ 30,000
(d) Nil
Answer:
(d) Nil
Question 87.
A senior citizen is not liable to pay advance tax if he does not have income from –
(a) Interest on securities
(b) Capital gains
(c) profits and gains from business or profession
(d) All of the above
Answer:
(c) profits and gains from business or profession
Question 88.
What is the percentage of advance tax that needs to be paid for each instalment for all assessees
(a) 15, 45,75, 100
(b) 15, 30, 60, 100
(c) 30, 45, 75, 100
(d) 30, 60, 90, 100
Answer:
(a) 15, 45,75, 100
Question 89.
At least ……… % advance tax should be paid so as to avoid levy of interest u/s 234C in various instalments.
(a) 12% of the assessed tax in the first instalment, 36% in the second instalment 75% in 3rd and 100% in last instalment.
(b) 15% of the assessed tax in the first instalment, 36% in the second instalment 75% in 3rd and 100% in last instalment.
(c) 15% of the assessed tax in the first instalment, 45% in the second instalment 75% in 3rd and 100% in last instalment.
(d) 10% of the assessed tax in the first instalment, 36% in the second instalment 75% in 3rd and 100% in last instalment.
Answer:
(a) 12% of the assessed tax in the first instalment, 36% in the second instalment 75% in 3rd and 100% in last instalment.
Question 90.
Interest payable u/s 234C is computed at
(a) Compound interest @1% p.m.
(b) Simple interest @1% p.a.
(c) Compound interest @1% p.a.
(d) Simple interest @1% p.m.
Answer:
(d) Simple interest @1% p.m.
Question 91.
Interest for default in payment of instalments of advance tax is levied u/s
(a) 234A
(b) 234B
(c) 234C
(d) 234D
Answer:
(c) 234C
Question 92.
Interest is payable to an assessee on the amount of refund under the Income-tax Act, 1961 where the amount of refund is ………..
(a) more than ten per cent of the tax as determined on regular assessment
(b) more than five per cent of the tax as determined on regular assessment
(c) more than fifteen per cent of the tax as determined on regular assessment
(d) more than twenty per cent of the tax as determined on regular assessment
Answer:
(a) more than ten per cent of the tax as determined on regular assessment
Question 93.
The self-assessment tax computed u/s 140 A by an individual assessee is ₹ 1, 50,000 which includes ₹ 15,000 as interest for late filing of return as per section 234A. The assessee has deposited ₹ 75,000 as self-assessment tax. In this case :
(a) ₹ 75,000 so deposited shall be adjusted in the proportion of 9:1 towards tax and interest
(b) ₹ 15,000 shall be adjusted towards interest due and balance of ₹ 60,000 shall be adjusted towards tax due
(c) ₹ 75,000 so deposited shall be adjusted towards tax due
(d) None of the above
Answer:
(b) ₹ 15,000 shall be adjusted towards interest due and balance of ₹ 60,000 shall be adjusted towards tax due
Question 94.
Interest for deferment in payment of advance tax u/s 234C is calculated on the tax liability computed on –
(a) Assessed income
(b) Returned income
(c) Disputed income
(d) Appealed income
Answer:
(b) Returned income
Question 95.
Where the advance tax paid on or before March, 2021 is less than 100% of the tax due on the total income declared in the return as reduced by the amount of tax deducted at source, the assessee shall be making payment of interest on the amount of shortfall for the tax due on the returned income so declared per month at the rate of …………….
(a) 2%
(b) 1%
(c) Nil
(d) 1.5%
Answer:
(b) 1%
Question 96.
An assessee is required to make payment of interest where he failed to make the payment of demand before the expiry of 30 days from the service of notice of demand @ -…………
(a) 1% for every month or part thereof till the date of payment
(b) 2% p.m. till the date of payment
(c) 1.5% p.m. till the date of payment
(d) 1.25% for every month or part thereof till the date of payment
Answer:
(b) 2% p.m. till the date of payment
Question 97.
Wherever any tax, interest, penalty or other sum under the I.T. Act is payable, the Assessing Officer has to serve upon the assessee a notice of demand as per Rules 15 and 38 under section of the I.T. Act, 1961.
(a) 156
(b) 143(3)
(c) 153
(d) 220
Answer:
(a) 156
Question 98.
Interest is payable to assessee on refund under the Income-tax Act, 1961 at the rate of-
(a) 5% per annum
(b) 6% per annum
(c) 9% per annum
(d) 12% per annum
Answer:
(b) 6% per annum
Question 99.
When an assessee has paid advance tax more than the tax due on the returned income and the return is filed before the “due date” specified in Section 139(1), the refund amount is eligible for interest –
(a) @12% p.a.
(b) @ 6%p.a.
(c) @ 9% p.a.
(d) @ 8% p.a
Answer:
(b) @ 6%p.a.
Question 100.
The liability to pay interest u/s 234B would arise when the advance tax plus TDS/TCS to the credit of the assessee is less than –
(a) 75% of the assessed tax
(b) 90% of the assessed tax
(c) 60% of the assessed tax
(d) 100% of the assessed tax
Answer:
(b) 90% of the assessed tax
Question 101.
Finance Act, 2017 has inserted the provision for charging of fees for delay in furnishing the return of income and as per this section, what will be the amount of fee payable for the return declaring income of ₹ 25 lakh filed by ‘X’ on 28th January, 2022 instead of due date of filing of return u/s 139(1) for A.Y. 2021-22:
(a) ₹ 1,000
(b) ₹ 5,000
(c) ₹ 10,000
(d) ₹ 3,000
Answer:
(c) ₹ 10,000
The return is filed beyond 31st December and Income exceeds ₹ 5,00,000. The fees will be ₹ 10,000.
Question 102.
Mr. ₹ has a total income of ₹ 7 lakhs for A.Y. 2021 -22. He files return of income for A.Y. 2021-22 on 13th January, 2022. He is liable to pay fee of –
(a) ₹ 1,000 under section 234F
(b) ₹ 5,000 under section 234F
(c) ₹ 10,000 under section 234F
(d) Not liable to pay any fee
Answer:
(c) ₹ 10,000 under section 234F
The return is filed beyond 31st December and Income exceeds ₹ 5,00,000. The fees will be ₹ 10,000.
Question 103.
Mr. Y has a total income of ₹ 4,50,000 for A.Y. 2021-22. He furnished his returns of income for A.Y. 2021 -22 on 2nd December, 2021. He is liable to pay fee of – ……….
(a) ₹ 1,000 under section 234F
(b) ₹ 5,000 under section 234F
(c) ₹ 10,000 under section 234F
(d) Not liable to pay any fee
Answer:
(a) ₹ 1,000 under section 234F
The return is furnished within 31st December and the income does not exceed ₹ 5,00,000. The Fee will be ₹ 1,000
Question 104.
Mr. Z, a salaried individual, has a total income of ₹ 8 lakhs for A.Y. 2021-22. He furnished his return of income for A.Y. 2021 -22 on 28th August, 2021. He is liable to pay fee of –
(a) ₹ 1,000 under section 234F
(b) ₹ 5,000 under section 234F
(c) ₹ 10,000 under section 234F
(d) Not liable to pay any fee
Answer:
(b) ₹ 5,000 under section 234F
The return is furnished within 31st December but the income exceeds ₹5,00,000. The Fee will be ₹ 5,000