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CA Final Deduction, Collection and Recovery of Tax — practice questions

Explore 88 free Deduction, Collection and Recovery of Tax questions in CA Final Taxation. Open each question or exercise to read its content, reference answers and available explanation.

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Deduction, Collection and Recovery of Tax questions and exercises with answers

Showing questions 1–30 of 88.

What must the payer do under TDS?Read the answer and worked solution →Which body manages TDS under the Income Tax Act, 1961?Read the answer and worked solution →How often must a deductor file TDS returns stating the tax deducted and paid to the government?Read the answer and worked solution →What is a payee, taxed at source, entitled to at assessment?Read the answer and worked solution →Under section 194IA, what is the rate of TDS on transfer of immovable property covered by it?Read the answer and worked solution →Section 194IA does not apply to the transfer of which type of immovable property?Read the answer and worked solution →Who deducts tax under section 194IA on a property sale?Read the answer and worked solution →Within how long must section 194IA tax be deposited?Read the answer and worked solution →Section 194IB requires TDS on rent paid by which kind of payer?Read the answer and worked solution →Under section 194IB, rent of which month triggers deduction?Read the answer and worked solution →Which challan-cum-statement form is used to deposit tax deducted under section 194IB?Read the answer and worked solution →Which certificate does the deductor issue after depositing tax under section 194IB?Read the answer and worked solution →What section 194C rate applies to an individual or HUF contractor?Read the answer and worked solution →At what rate is TDS deducted under section 194C on payment to a contractor that is a company?Read the answer and worked solution →Which payment is expressly covered by section 194C?Read the answer and worked solution →Which TDS certificate does an employer issue to a salaried employee?Read the answer and worked solution →Form 16A is the TDS certificate for deduction on which kind of income?Read the answer and worked solution →In Form 16, which part holds employer and employee details, PAN, TAN and TDS deposited?Read the answer and worked solution →Which statement lets a taxpayer verify TDS and TCS credited from various income sources, viewable on TRACES?Read the answer and worked solution →Details from Form 16A are fetched on which statement?Read the answer and worked solution →By what other name is the advance tax scheme often known?Read the answer and worked solution →By 15 September, the cumulative advance tax paid must reach what share of the liability?Read the answer and worked solution →Under section 194C, tax is deducted at credit or payment, whichever isRead the answer and worked solution →A sum payable to a contractor is booked in a suspense account. For 194C it isRead the answer and worked solution →Which activity is expressly included in 'work' for section 194C?Read the answer and worked solution →Carriage of goods by which mode is excluded from 'work' under section 194C?Read the answer and worked solution →An individual pays a contractor exclusively for personal purposes. Under 194C he isRead the answer and worked solution →A goods-carriage contractor can escape 194C deduction by a PAN declaration if he ownsRead the answer and worked solution →For 194C(3) work, when material value is shown separately in the invoice, tax applies onRead the answer and worked solution →A product made to a customer's specification from material bought from another person isRead the answer and worked solution →

Worked practice questions

What must the payer do under TDS?

  1. Deposit tax at year end
  2. Claim tax from the payee
  3. Collect tax after filing
  4. Deduct tax before paying
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Correct answer: D. Deduct tax before paying

TDS is a withholding tax: the payer deducts the tax due from the payment and remits it to the revenue authority.

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Which body manages TDS under the Income Tax Act, 1961?

  1. Reserve Bank of India
  2. Insurance Regulatory Authority
  3. Securities Exchange Board
  4. Central Board of Direct Taxes
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Correct answer: D. Central Board of Direct Taxes

TDS is administered by the CBDT, which sits within the Department of Revenue.

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How often must a deductor file TDS returns stating the tax deducted and paid to the government?

  1. Monthly
  2. Half-yearly
  3. Quarterly
  4. Once a year
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Correct answer: C. Quarterly

TDS statements are filed every quarter and report tax deducted and paid in that quarter.

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More Taxation topics

Double TaxationTransfer PricingIncome Tax DepartmentPermanent Account NumberBasic ConceptsAnti-avoidance ProvisionsAppeals, Revision and Dispute ResolutionSpecial Tax Regimes for Companies