Procedural Compliance

(c)Explain the provisions relating to deduction of tax at source on payment of Transfer of Virtual Digital Assets u/s 194S and exception thereon under the Income Tax Act, 1961.

(ii)Examine the applicability of Tax Deduction at Sources (TDS) or Tax Collection at Source (TCS) as per the Income Act, 1961 for the assessment year 2025-26 in the following independent situations :

(a)PQR Pvt. Ltd sells two cars to Mrs. Anjna costing ₹ 4,00,000 and ₹ 12,00,000 respectively on 01.05.2024 and 25.12.2024. Mrs. Anjna has furnished her PAN to PQR Pvt. Ltd. and filed her return of income regularly before the due date.

(b)MNO Ltd. paid rent of ₹ 75,000 + 18% GST per month to Rakesh for the office premises from 01.04.2024 to 31.03.2025. Rakesh has furnished his PAN to MNO Ltd. and also filed his return of income before due date regularly.

A person is deducting TDS under Section 194C for an Individual whose PAN is not linked with AADHAR. The TDS rate will be :

(A)1%

(B)2%

(C)10%

(D)20%

The TDS Certificate issued by an employer to his employees in case of salary income is :

(A)Form 16

(B)Form 16A

(C)Form 27Q

(D)Form 26A

For making TAN application online, a person shall file his application in Form No :

(A)49A

(B)49B

(C)49C

(D)49D

(b)Briefly outline the procedural requirements relating to TDS returns which are required to be filed by a taxpayer who has deducted the TDS.

( i )In each of the following independent situations, you are required to examine whether these persons are mandatorily required to file income tax return for A.Y. 2024-25 :

(a)Ashwani, aged 55 years, has only Salary Income of ₹ 2,40,000 during the financial year 2023-24. Further, he withdraws cash of ₹ 35,00,000 from his saving account in Axis Bank out of his accumulated income of earlier years. Ashwani has not filed his income tax return in any of preceding three financial year.

(b)Manish, aged 65 years, has retail trader of handicraft goods. His gross receipt during the financial year 2023-24 from such business is ₹ 25,00,000 and net profit from business is ₹ 2,75,000. He has no other income during the current financial year. Manish has regularly filed his income tax return from preceding three financial years.

What will be the TDS deduction rate under Section 194C for a deductee (Individual) having inoperative PAN for non-linking with AADHAR ?

(A)1%

(B)2%

(C)10%

(D)20%

(ii)Briefly state the applicability of TDS provision and the effective rate of TDS in the following cases :

(a)Rent paid for business premises by a partnership firm to individual X resident in India ₹ 3,60,000.

(b)Call Centre charges paid by a company in Mumbai to another company located in Bengaluru ₹ 60,000.

(c)Carton boxes manufactured by ALT & Co, Sivakasi with logo of MN Co Ltd and amount paid ₹ 5 lakh is inclusive of materials.

(d)Purchase agent commission paid to Lal of Delhi ₹ 70,000 by AMC Pvt. Ltd, Goa.

(e)Directors sitting fees ₹ 20,000 each paid to 5 directors by Rama Pvt. Ltd, Chennai.

A buyer purchases goods liable for TCS for being used in manufacturing processing. The provisions of TCS shall not apply if the buyer gives declaration in duplicate to the seller in FORM NO :

(A)27B

(B)27C

(C)27E

(D)28C

(i)Examine the applicability of tax deduction at source provision, the rate and amount of TDS in the independent following cases for the assessment year 2023-24 under the Income-tax Act, 1961. Assume that all payments are made to residents :

(a)Payment made by a company to Shanti Lal, sub-contractor, ₹ 3,50,000 with outstanding balance of ₹ 1,50,000 shown in the books as on 31st March 2023.

(b)Fee paid on 1st January, 2023 to Dr. Bhanawat by Kishan (HUF) ₹ 40,000 for surgery performed on a member of the family.

(c)Dhanpal wishes to purchase a residential house costing ₹ 60,00,000 from Priya. The house is situated at Mumbai. Both the buyers as well as the sellers are residents in India.

(d)Arun has paid ₹ 5,00,000 on 12th October, 2022 to Cool Cold Storage Pvt.. Ltd. for preservation of fruits and vegetables. He is engaged in the wholesale business of fruits & vegetable in India having turnover of ₹ 4 crore during the previous year 2022-23.

(e)Ravi, a salaried individual, has paid rent of ₹ 65,000 per month to Rajiv from 1st August, 2022 to 31st March, 2023. Rajiv has not furnished his Permanent Account Number.

Allen & Co. Ltd. used to deduct tax at source promptly and remit the same within time. For the quarter ended December, 2022 what is the due date for filing statement of tax deducted in respect of salaries and other payments made to residents in India without payment of late fee ?

(A)31st January, 2023

(B)31st December, 2022

(C)31st March, 2023

(D)15th January, 2023

KSR & Co., a practicing Company Secretary firm at Pune. It rendered professional service to Bond Ltd and raised a bill of ₹ 2, 36,000 mentioning GST @ 18% separately i n the bill raised. How much must be the tax deductible at source in respect of such payment?

(A)₹ 23,600

(B)₹ 20,000

(C)₹ 4,720

(D)₹ 4,000

Purushotam has transferred 250 equity shares of TCS Ltd. (a listed company) on 1st March, 2022 @ ₹ 3,200 per share and paid securities transaction tax on the same. He purchased these shares on 1st January, 2017 @ 2400 per share. The Quoted Price of TCS Ltd. share on 31st January, 2018 was ₹ 2,550 per share. What will be the taxability in hands of Purushotam for assessment year 2022-23 ?

(Cost inflation index for F.Y. 2016-17 = 264, 2017-18 = 272 and 2021-22 = 317)

(A)₹ 1,62,500 is taxable @ 10%

(B)₹ 79,545 is taxable @ 20%

(C)₹ 62,500 is taxable @ 10%

(D)₹ 57,031 is taxable @ 20%

Raja Ltd. makes the following payments to Rani, a contractor, for work contract during the Previous Year 2021-22 :

₹ 25,000 on 10th May, 2021

₹ 22,000 on 10th August, 2021

₹ 27,000 on 10th December, 2021

₹ On 10th March, 2022, a payment of ₹ 30,000 is due to Rani on account of a work contract. Determine the liability of Raja Ltd. to deduct tax at source under section 194C from payments made to Rani on 10th March, 2022.

(A)₹ 1,040

(B)₹ 300

(C)₹ 2,080

(D)Nil

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

TDS u/s 194 N is to be made by a bank from an account holder for cash withdrawal exceeding ₹ 20 lakhs if the account holder has not furnished the return of income for last :

(A)1 assessment year

(B)2 assessment year

(C)3 assessment year

(D)None of the above

ABC Ltd. pays the following amounts to Mr. J, a resident, during the previous year 2020-21 : ₹ 16,000 for Professional services and ₹ 20,000 as royalty. What percentage of TDS is to be deducted by ABC Ltd. for Assessment Year 2021- 22 ?

(A)10% of ₹ 36,000

(B)10% of ₹ 16,000

(C)10% of ₹ 20,000

(D)No TDS is to be deducted

Mr. R, an individual responsible for paying ₹ 20,000 to XYZ Private Limited by way of commission for procuring insurance business. What rate of TDS is required to be deducted by Mr. R ?

(A)2%

(B)5%

(C)20%

(D)No TDS is required to be deducted

The tax to be collected by an authorized dealer u/s 206C(1G) on the amount of remittance exceeding ₹ 7 lakh from the buyer is:

(A)1%

(B)5%

(C)10%

(D)20%

Mr. R whose accounts are not liable to audit u/s 44AB(a)/(b) in preceding financial year is required to deduct TDS u/s 194-IB if he is responsible for paying to a resident rent for land or building in excess of ₹ ............... per month or part of a month.

(A)30,000

(B)40,000

(C)50,000

(D)1,80,000

TCS under sub-section (1H) of section 206(c) is applicable during 2020-21 if turnover during previous year (2019-20) is :

(A)₹ 5 crore

(B)More than ₹ 5 crore

(C)₹ 10 crore

(D)More than ₹ 10 crore

What is the applicability of TDS provision for ₹ 14,000 paid as sitting fees to director of a Company during financial year 2020-21 ?

(A)10% TDS

(B)Threshold limit of ₹ 30,000 up to which the provision of tax deducted at source are not attracted

(C)It is of a contract nature so only 1% TDS deduction is required

(D)None of the above

As per section 192A of the Income Tax Act, 1961 premature withdrawal made from recognized P.F. would attract TDS at the rate of :

(A)5%

(B)20%

(C)10%

(D)0%

Tax deducted is deemed to be income received for the purpose of computing the income of an assessee as per section 198 of the Income Tax Act, 1961. However, tax deducted ................... is an exception and would not be deemed to be an income received during the previous year chargeable to tax under the Act.

(A)u/s 194 N

(B)u/s 194 M

(C)u/s 194 LA

(D)u/s 194 I

The person responsible for paying the income/ amount which is subject to TDS/ TCS is under obligation to deduct/collect the Tax at Source and therefore, as per provisions under the Income Tax Act is required to apply for Tax Deduction Account Number (TAN) in the application to be filed online in Form No. ................................

(A)49A

(B)48A

(C)49B

(D)48B

Quarterly return of TDS in Form No. 24Q, 26Q or 27Q is required mandatory to be filed as E-TDS return in electronic media only where .........................

(A)Deductor is an Office of the Government

(B)Deductor is a person not covered u/s 44AB

(C)The number of deductees record are less than 20

(D)None of the above

As per section 194N, if any assessee withdraw the amount of from banks, post office or co-operative society engaged in banking business more than ______ during the previous year 2020-21 then the tax will be deducted at rate ______on the amount in excess withdrawn. (Assuming the cash withdrawn before May, 2020)

(A)One crore; 1%

(B)One crore; 2%

(C)Two crore; 1%

(D)Two crore; 2%

As per section 192A, where amount is payable to the employees from the Employee Provident fund, 1952 and such payable amount or aggregate amount which has become due is more than by ______, then the tax will be deducted at source at the rate _______ on amount paid. (Assuming TDS deduction for the period June, 2020 to March, 2021).

(A)₹ 50,000; 10%

(B)₹ 50,000; 7.5%

(C)₹ 1,00,000; 10%

(D)₹ 1,00,000; 7.5%

The person responsible for paying to any person any amount referred to in section 80CCA(2)(a) shall, at the time of payment thereof, deduct income-tax at the rate of 20%. No deduction shall, however, be made under section 194EE where the amount of such payment or the aggregate of such payment to the payee during the financial year is less than _______.

(A)₹ 1,500

(B)₹ 2,500

(C)₹ 5,000

(D)₹ 10,000

Botham Mfg. (P) Ltd paid ₹ 4,25,000 to LMN Services (P) Ltd who is engaged in operation of call centre for the company for the period from 01.09.2020 to 31.03.2021. How much is the amount of tax deductible at source by Botham Mfg (P) Ltd out of the amounts paid to LMN Services (P) Ltd ?

(A)₹ 42,500

(B)₹ 6,375

(C)₹ 8,500

(D)₹ 4,250

Manoj (age 45) earned ₹ 5,20,000 from business and ₹ 32,000 as interest on fixed deposits held with Canara Bank for the year ended 31st March, 2021. How much would be the amount of tax deductible at source by the bank on the said deposit?

(A)NIL

(B)₹ 3,200

(C)₹ 6,400

(D)₹ 9,600

Zubin is intending/going to purchase agriculture lands in the rural area located in Gujrat for ₹ 70,00,000 in the previous year 2019-20. He wants to know whether there is any obligation on him to deduct tax at source from the payment to be made and if so at what rate ?

(A)deduct tax @ 1%

(B)deduct tax @ 2%

(C)deduct tax @ 5%

(D)not to deduct tax at source

Person paying any sum on which tax is collectible at source as per provisions of section 206CC shall furnish his PAN to the person responsible for collecting such tax at source. A lower tax collection certificate under this section shall not be granted unless application in ________ made contains his ________ .

(A)Form no. 10, PAN

(B)Form no. 10, TAN

(C)Form no. 13, PAN

(D)Form no. 13, TAN

XYZ Ltd during the previous year 2019- 20 has made payments for Professional Services of ₹ 15,000 and of ₹ 20,000 towards Royalty to Mahesh Kumar. TDS required to be deducted by XYZ Ltd for Assessment Year 2020-21 out of such payments shall be ________

(A)NIL being not required

(B)10% of ₹ 35,000

(C)10% of ₹ 15,000

(D)10% of ₹ 20,000

The payer as per section 194N of Income tax Act, 1961 is required to deduct tax at source at the rate of ________ on the cash payments, if aggregate of withdrawals during the financial year from any account maintained with a banking company or cooperative bank or post office exceeds _______ .

(A)1%, ₹ 1 crore

(B)2%, ₹ 1 crore

(C)1%, ₹ 2 crore

(D)1%, ₹ 5 crore

Any person being an individual or a HUF (other than those who are not required to deduct tax under section 194C or 194H or 194J) paying any sum to any resident contractor or professional required to deduct tax at source under section 194M at the rate of _______, if aggregate payment during the year exceeds _________.

(A)10%, 20 lakh

(B)5%, 20 lakh

(C)5%, 50 lakh

(D)10%, 50 lakh

DAB Builders entered into a registered agreement with Lallu Ram Yadav owning a land located at Jaipur under Joint Development Agreement to develop a real estate project on such land and in consideration of his share of being land in such project on the date of entering in the Joint Development Agreement paid an amount of ₹ 50 lakh by Account Payee Cheque in January, 2020. The amount of TDS to be deducted by DAB Builders on such payment shall be ₹ _______

(A)5,00,000

(B)50,000

(C)2,50,000

(D)1,00,000

CK & Company is engaged in the diversified business of sale of Indian made foreign liquor, tendu leaves, forest produce neither being timber nor tendu leaves required to collect TCS as per section 206C of the Income Tax Act on the amount of sale proceeds of these products/items during the previous year ended on 31.03.2020 at the rate of -----------

(A)1% on all the three

(B)1%, 5% & 2.5%

(C)2.5%, 1% & 5%

(D)5%, 1% & 2.5%

Anyway (P) Ltd. paid sitting fees to directors, who attended the Board Meeting. S was paid ₹ 5,000 per meeting and he attended 7 meetings during the year. The amount of tax deductible at source on the sitting fees would be ....................... if S has not furnished his PAN.

(A)₹ 7,000

(B)₹ 3,500

(C)₹ 1,750

(D)NIL

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 2018-19 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

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%

A house property owned by Nitin, a nonresident, 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

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

Prakash maintained a recurring deposit by paying 20,000 per month in a bank. The interest accrued and credited during 2018-19 on such deposit is ₹ 15,000. The amount of TDS required to be deducted by the bank would be :

(A)NIL

(B)₹ 1,500 @ 10%

(C)₹ 3,000 @ 20%

(D)₹ 500 @ 10% over ₹ 10,000

Sagar engaged in a business, booked a marriage hall of Yash having PAN for conducting mega sale during festival season of F.Y. 2018-19 and paid rent of ₹ 55,000 for 3 days period. His total turnover for financial year 2018-19 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

Ashish, director of PQR Ltd. is eligible for board sitting fees of ₹ 10,000 for every meeting attended by him. During the year 2018-19, he had attended six meetings. 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%

The time limit for filing an appeal by person denying liability to deduct tax in respect of payments payable to non-resident or a foreign company as provided in section 249(2)(a) of the Income Tax Act 1961 is within :

(A)30 days from the date of payment of tax deducted at source to the credit of Central Government

(B)35 days from the date of payment of tax deducted at source to the credit of Central Government

(C)45 days from the date of payment of tax deducted at source to the credit of Central Government

(D)60 days from the date of payment of tax deducted at source to the credit of Central Government

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)

D an individual resident of India, aged 62 years, received after TDS of professional fees of ₹ 2,50,000 on 1st July, 2017 and ₹ 3,00,000 on 1st March, 2018 for rendering services in Hong Kong on which TDS of ₹ 50,000 and ₹ 60,000 have been deducted respectively. He incurred ₹ 2,60,000 as expenditure for earning this fees. He deposited ₹ 1,00,000 in PPF account. His income from other sources is ₹ 1,50,000. Tax liability including cess of D for Asst. Year 2018-19 will be assuming that India do not have any tax treaty with Hong Kong :

(A)₹ 10,300

(B)Nil

(C)₹ 7,725

(D)None of the above

(c)Updated return under section 139(8A) cannot be filed if original return is a loss return under section 139(3). Explain the validity of above statement in the context of Income Tax Act, 1961.

(b)What is the time limit for filing of Updated Return u/s 139(8A) of the Income Tax Act, 1961 ? Also explain the situations where Updated Return u/s 139(8A) cannot be filed.

( a )Gangotri Files Ltd. filed its return of income for the assessment year 2024-25, on 15th December 2024. On 2nd March, 2025, the accountant of Gangotri Files Ltd. realised that he had forgotten to claim a genuine business expenditure amounting to ₹ 15,00,000. He wants to file revised return on 2nd March, 2025, to claim such expenditure as the assessment is not yet completed. State with reason whether the action of the accountant of Gangotri Files Ltd. is valid ?

(f)What is the due date for filing its return u/s 139(1) in the following cases ?

(i)If firm opts to pay tax under presumptive taxation scheme u/s 44ADA.

(ii)If firm does not opt to pay tax under presumptive taxation scheme u/s 44ADA.

Mr. D, a resident in India, has gross total income of ₹ 2,30,000 comprising of interest on saving A/c and rental income during the previous year 2023-24. He incurred expenditure of ₹ 2,00,000 for his son for a study tour to Europe. Whether he is required to file return of income for the assessment year 2024-25 ? If yes, what is the due date ?

(A)Yes, 31st July of A.Y.

(B)Yes, 30th September of A.Y.

(C)Yes, 31st October of A.Y.

(D)No, he is not required to file return of income

Political parties are required to submit their Income Tax Return under which Form ?

(A)ITR-5

(B)ITR-6

(C)ITR-7

(D)ITR-8

What is the time limit for filing updated return of Income U/S 139(8A) of the Income Tax Act, 1961 ?

(A)Within 12 months from the end of the Relevant Assessment Year

(B)Within 18 months from the end of the Relevant Assessment Year

(C)Within 24 months from the end of the Relevant Assessment Year

(D)Within 36 months from the end of the Relevant Assessment Year

Any person who has not filed a return of Income within the time allowed under Section 139(1) or within the time allowed under a notice issued under Section 142(1) may file a return u/s 139(4) :

(A)Before 31st December of the relevant Assessment year or before the completion of the Assessment whichever is earlier

(B)Before three months prior to the end of the relevant assessment year

(C)Before the completion of the Assessment

(D)None of the above

(c)Deepak furnished his return of income for the assessment year 2023-24 on 22nd July, 2023. Due to missing information for payment of taxes in the return of income, the Assessing Officer considers it defective under section 139(9) of the Income-tax Act, 1961 :

(i)What are the consequences if defect is not rectified within the time allowed ?

(ii)Specify the remedies available if defect not rectified within time allowed by the Assessing Officer ?

Mini Ltd. filed its return of income before the due date specified in section 139(1) of the Income Tax Act, 1961. The return was found to be defective by processing unit of Income Tax department. A notice was given for rectifying the defect on 1st June, 2023. What is the time limit within which the defect has to be rectified by the assessee ?

(A)Within 6 months from the date of intimation of such defect

(B)Within 3 months from the date of intimation of such defect

(C)Within 1 month from the date of notice

(D)Within 15 days from the date of intimation of such defect

Marvel (P) Ltd. filed its return for the assessment year 2022-23 on 20th December, 2022 declaring total income of ₹ 4, 70,000. How much it should pay by way of fee for the delayed filing of ITR under section 234F of the Income Tax Act, 1961?

(A)₹ 1,000

(B)₹ 5,000

(C)₹ 10,000

(D)₹ 500 per day

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

Which of the following returns can be revised under section 139(5) of Income Tax Act, 1961 ?

(i)A return of income filed u/s 139(1)

(ii)A belated return of income filed u/s 139(4)

(iii)A return of loss filed u/s 139(3)

Choose the correct answer :

(A)Only (i)

(B)Only (i) and (ii)

(C)Only (i) and (iii)

(D)(i), (ii) and (iii)

If you want to file income tax return for the Asst. Year 2021-22 of a Political Party registered with the Election Commission of India, which ITR form will be used for filling of Income Tax Return.

(A)ITR Form-4

(B)ITR Form-5

(C)ITR Form-6

(D)ITR Form-7

Where a return of income is furnished after due date then period for which the interest is payable under section 234 A commences from :

(A)The date immediately following the due date for filing the return and ending on the date of furnishing of the return

(B)First day of relevant Assessment Year to ending on the date of furnishing of the return

(C)First day of relevant Assessment Year to due date for filing the return

(D)The date immediately following the date of filing the return and ending on the end of relevant Assessment Year.

Net Profit of Honey Sugar Ltd Jalgaon for the year ended 31.03.2021 is ₹ 8,60,000 after charge of the following expenses to Profit and Loss account :

(i)Interest on loan payable to SBI of ₹ 45,000 (shall be paid on 10.10.2021)

(ii)License fees to Maharashtra Government of ₹ 50,000 (was paid on 25.05.2021)

Honey Sugar Ltd during the previous year 2020-21, made payments of the following expenses pertaining to earlier years which have not been debited to Profit & Loss Account for the period 01.04.2020 to 31.03.2021 :

(i)Interest on loan payable to SBI of ₹ 30,000 for the P.Y. 2019-20 (was paid on 10.10.2020)

(ii)License fee to Maharashtra Government of ₹ 60,000 for the P.Y. 2019-20 (was paid on 25.05.2020)

Compute the total income of Honey Sugar Ltd for A.Y. 2021-22 by taking that due date for submission of Return of Income (ROI) is Sep. 30th of the A.Y.

(A)₹ 8,15,000

(B)₹ 8,75,000

(C)₹ 9,25,000

(D)₹ 8,65,000

Which of the ITR Form is used by association of persons (AOP) for filling income tax return ?

(A)ITR-4

(B)ITR-5

(C)ITR-6

(D)ITR-7

What is the decision of Supreme Court in the case of Apollo Tyres Ltd. V. CIT (2002) 255 ITR 273(SC) that regarding the power of Assessing Officer to examine correctness of net profits shown in P&L Account.

(A)The Assessing Officer does not have the power to question correctness of P&L A/c prepared by assessee and certified by the statutory auditors of the company as having been prepared in accordance with the provision of Parts II and Schedule VI to the Companies Act.

(B)The Assessing Office has the power to question correctness of P&L A/c prepared by assessee and certified by the statutory auditors of the company as having been prepared in accordance with the provision of Parts II and Schedule VI to the Companies Act.

(C)After permission of the assessee, the Assessing Office has the power to question correctness of P&L A/c

(D)None of the above

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)End of relevant assessment year

(B)Six months from the end of the relevant assessment year

(C)One year from the end of the relevant assessment year

(D)Two months from the end of the relevant assessment year

For which of the following, the filing of return of income is mandatory ?

(A)Acquired jewellery for ₹ 2,10,000

(B)Made foreign travel and incurred expenditure of ₹ 2,05,000

(C)Made aggregate cash deposit in a savings bank account of ₹ 10,01,000 in the previous year

(D)Paid electricity bill of ₹ 56,000 in the previous year

A return of income filed by the assessee was found defective by the CPC, Bengaluru. The assessee was intimated of the defect on 02.04.2020. What is the time limit within which the defect has to be rectified by the assessee ?

(A)30.04.2020

(B)17.04.2020

(C)30.09.2020

(D)31.03.2021

A assessee has admitted total income of ₹ 5,50,000 and filed return of income in the month of January of the assessment year (i.e. for asst. year 2020-21 in March 2021). How much is the fee payable under section 234F ?

(A)₹ 10,000

(B)₹ 5,000

(C)₹ 1,000

(D)NIL

A return of income where furnished after the due date than the period for which the interest is payable under section 234A commences from __________

(A)first day of relevant Assessment Year to ending on the date of furnishing of the return

(B)the date immediately following the due date for filing the return and ending on the date of furnishing of the return

(C)first day of relevant Assessment Year to due date for filing the return

(D)the date immediately following the date for filing the return and ending on the end of relevant Assessment Year

Ram Nath a resident individual having income of salary and interest on deposits has computed his total income at ₹ 9,00,000 for assessment year 2020-21. He wants to furnish his return of income for assessment year 2020-21 after the due date as prescribed under section 139(1) likely on or by 30.01.2021. As per section 234F of Income Tax Act, 1961, he is liable to pay fee of __________

(A)₹ 1,000

(B)₹ 5,000

(C)₹ 10,000

(D)₹ 15,000

The return of income for the previous year 2019-20 required to be filed by an individual who is not a senior citizen as per section 139(1) of the Act by 30th September, 2020. However, the assessee finds that he cannot file the return as per 139(1) within the due date. Can he file his return of income after the due date and if yes, by which date/time ?

(A)On or before 31st December, 2020

(B)On or before 31st March, 2021

(C)On or before 31st March, 2022

(D)On or before 30th June, 2021

Kayalvizhi employed in a private company, having only salary income, filed her return of income of assessment year 2019-20 on 10-9-2019. Her total income is ₹ 4,10,000. The amount of fee payable by her under section 234F would be :

(A)₹ 10,000

(B)₹ 5,000

(C)₹ 1,000

(D)NIL

The total income of Ram is ₹ 4,90,000 and due date of filing the return of income for A.Y. 2019-20 is 31st July, 2019. The return by Ram shall be filed on 20th September, 2019. The late fee payable for late filing of return of income shall be:

(A)₹ 1,000

(B)₹ 5,000

(C)₹ 10,000

(D)No late fee upto income of ₹ 5 lakh

A non-resident is not required to furnish return of income under section 139(1) if his total income during the previous year consists of:

(A)Income from Technical fee

(B)Income from Interest/Dividends

(C)Income from Royalty

(D)Income from House Rent

(i)Indicate three situations where the Return of Income has to be compulsorily filed under section 139(1) of the Income Tax Act, 1961.

(b)(i) The Assessing officer has the power to make an assessment to the best of his judgment, in certain situations. What are they ?

(ii)Explain the quantum of late fees under section 234 F for delay in furnishing return of income within the prescribed time limit under section 139(1) for A.Y. 2019-20.

The assessee who has filed a return of income for A.Y. 2018-19 as per section 139(1) can file revise return any time :

(A)before 1 year from the end of the relevant assessment year

(B)before the end of the relevant assessment year or before the completion of assessment whichever is earlier

(C)before the expiry of the relevant assessment year or before the completion of assessment whichever is later

(D)before the completion of the assessment year

The due date for e-filing of return of income by a Charitable Trust claiming exemption u/s 11 and 12 for assessment year 2018-19 is :

(A)31st March, 2018

(B)30th September, 2018

(C)31st August, 2018

(D)Between any time specified in (B) and (C)

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

(a)Specify the persons who are not required to pay advance tax as per the provisions of the Income-tax Act, 1961. Is advance tax payable on capital gains and lottery income ? Give your answer with reference to the relevant provisions of the Income Tax Act, 1961.

The assessee fails to pay the advance tax in 4th instalments in due time. The interest to be calculated in this case for .............. months.

(A)1

(B)2

(C)3

(D)4

Mr. R (a non-resident and aged 65 years) is a retired person, earning rental income of ₹ 40,000 per month from a property located in Delhi. He is residing in Canada. Apart from rental income, he does not have any other source of income. Is he liable to pay advance tax in India ?

(A)Yes, he is liable to pay advance tax in India as he is a non-resident and his tax liability in India exceeds ₹ 10,000.

(B)No, he is not liable to pay advance tax in India as his tax liability in India is less than ₹ 10,000.

(C)No, he is not liable to pay advance tax in India as he has no income chargeable under the head “profits and gains of business or profession” and he is of the age of 65 years.

(D)Both (B) and (C)

(b)Explain the provisions relating to advance payment of income-tax and its due date under Income Tax Act, 1961 .

Advance tax is not required to be paid by :

(A)a firm of individuals

(B)company giving donations to political parties

(C)an individual of age 60 years or more and not having any income from business profession

(D)Limited Liability Partnership

Santa, aged 50 years, provides the following details for P.Y. 2021-22.

What shall be the net tax payable (refundable) as per regular provisions of Income Tax Act, 1961 for the Assessment Year 2022-23 for Santa ? (Assessee has not opted for section 115BAC).

(A)₹ 9,400

(B)₹ 2,71,400

(C)₹ 2,09,400

(D)₹ 3,83,800

From the following information compute the amount of interest payable by the income tax department u/s 244A:

Tax paid by way of advance tax and tax deducted at

(A)₹ 45

(B)₹ 40

(C)₹ 90

(D)No interest is payable

Compute the advance tax payable by Banshi (not a senior citizen) for the Assessment year 2021-22, if he has not been assessed to tax previously. His estimated taxable income for the financial year 2020-21 is ₹ 4,68,000

(A)10,900

(B)11,336

(C)65,400

(D)NIL

Ramesh (age 75) engaged in business has total income of ₹ 8,00,000 for the year ended 31st March, 2021. How much of advance tax, he must have paid before 15th December, 2020 ? Ignore section 115BAC.

(A)NIL

(B)₹ 72,800

(C)₹ 54,600

(D)₹ 43,680

As per section 234B, where the advance tax paid during the previous year 01.04.2019 to 31.03.2020 on or before March, 2020 is less than 90% of the assessed tax as reduced by the amount of tax deducted at source, the assessee shall be making payment of simple interest on the amount of shortfall per month at the rate of __________.

(A)1%

(B)1.25%

(C)1.50%

(D)1.75%

Where the advance tax paid on or before March, 2019 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%

(c)(i) Discuss whether the following payments are subject to Tax Deducted at Source (TDS). If so, find out the amount of tax to be deducted at source :

(1)Payment of ₹ 4,00,000 to a resident catering contractor. PAN is intimated.

(2)LIC of India makes a payment of ₹ 6,00,000 as rent to the Central Government for a building in which one of its branches is situated. PAN is intimated.

(3)Payment of winning from lottery ₹ 2,00,000 to K who has not furnished PAN.

(ii)Who is liable to pay advance tax ? Who are exempted from payment of advance tax ?

It is obligatory for an assesse to make payment of tax under section 208 of Income Tax Act, 1961 .............

(A)Where the advance tax payable is ₹ 10,000 or more

(B)Where the advance tax payable is ₹ 2,500 or more

(C)Where the advance tax payable is ₹ 5,000 or more

(D)Where the advance tax payable is ₹ 1,000 or more

Star Ltd in whose case the due date of filing the return of income for the A.Y. 2020-21 was 30.09.2020 failed to file its return of income despite of notices issued by the A.O. The A.O. completed the assessment as per section 144 on 24.12.2021 and determined a tax liability of ₹ 2,20,000 without giving credit of advance tax and TDS but before charge of interest as per sections 234A, 234B and 234C. Star Ltd. had paid advance tax of ₹ 40,000 and TDS of Rs. 18,000. Determine the amount of interest payable in this context as per section 234B of the Act, by Star Ltd :

(A)₹ 9,720

(B)₹ 34,020

(C)₹ 51,030

(D)₹ 46,200

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

The self-assessment tax computed u/s 140A by Gaurav is ₹ 65,000 which includes ₹ 30,000 as interest for late filing of return. The assessee deposited ₹ 35,000 as selfassessment tax. In this case :

(A)₹ 35,000 shall be adjusted towards tax due

(B)₹ 30,000 shall be adjusted towards interest due and balance 5,000 shall be adjusted towards tax due

(C)₹ 35,000 shall be adjusted in the proportion towards tax and interest

(D)No adjustment of tax is possible

(v)Briefly mention the concept of Self-Assessment tax u/s 140A of the Income Tax Act 1961 and its components.

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

EXE Automobiles (P) Ltd a dealer in motor car sold one motor car to A (having PAN) for ₹ 12,60,000 on 05.03.2021. How much is the amount of tax collectible at source ?

(A)NIL

(B)₹ 9,450

(C)₹ 12,600

(D)₹ 63,000