300+ TOP Procedural Compliance MCQs and Answers

Procedural Compliance Multiple Choice Questions

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

Procedural Compliance objective questions with answers pdf download online exam test

Leave a Reply

Your email address will not be published. Required fields are marked *