TDS Mod D Questions
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
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What does TDS stand for and what is its fundamental purpose?
TDS stands for Tax Deducted at Source; it is a mechanism under the Income Tax Act where tax is collected at the point of income generation, ensuring advance tax collection and reducing tax evasion.
What is the threshold limit for TDS deduction on professional fees under Section 194J?
TDS applies when professional fees exceed Rs 30,000 per annum.
Under which section of the Income Tax Act is TDS on salary governed?
TDS on salary is governed under Section 192 of the Income Tax Act, 1961, where the employer is responsible for deducting tax based on the estimated income of the employee at applicable slab rates.
Under Section 194A, what is the enhanced TDS threshold for senior citizens on bank interest?
Senior citizens are exempt up to Rs 50,000 in bank interest per year.
What is the threshold limit for TDS deduction on interest income from banks under Section 194A?
For banks and co-operative societies, TDS under Section 194A applies when interest income exceeds Rs. 40,000 per annum (Rs. 50,000 for senior citizens); for other entities, the threshold is Rs. 5,000.
What is the due date for depositing TDS deducted in the month of March?
TDS deducted in March must be deposited by 30th April.
At what rate is TDS deducted on interest other than interest on securities under Section 194A?
TDS is deducted at 10% on interest other than interest on securities under Section 194A, provided the PAN of the deductee is available; without PAN, the rate is 20%.
Which form is issued by the deductor as a TDS certificate for non-salary payments?
Form 16A is issued as TDS certificate for non-salary payments.
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