Match the LIST-I with LIST-II
LIST-I LIST-II A. Deduction of Tax at source on fees for professional and technical services I. Section 194 B B. Deduction of Tax at source from income by way of rent II. Section 193 C. Deduction of Tax at source from winnings from lotteries or crossword puzzles, etc. III. Section 194-I D. Deduction of Tax at source from interest on securities IV. Section 194 J
Choose the correct answer from the options given below:
Understanding Tax Deduction at Source (TDS) Provisions
Tax Deduction at Source, commonly known as TDS, is a mechanism under the Income Tax Act where the person making specified payments is required to deduct tax at a prescribed rate before making the payment to the recipient. This ensures timely collection of tax by the government.
Analyzing the Lists for TDS Matching
The question requires matching items from LIST-I (types of payments/income) with corresponding TDS sections from LIST-II.
LIST-I Items Explained:
- A. Deduction of Tax at source on fees for professional and technical services: This refers to tax deducted when payments are made for services like professional consultation, technical expertise, royalties, etc.
- B. Deduction of Tax at source from income by way of rent: This involves tax deduction when rent is paid for the use of land, building, machinery, furniture, or fittings.
- C. Deduction of Tax at source from winnings from lotteries or crossword puzzles, etc.: This applies to tax deducted on prize money received from lotteries, crossword puzzles, card games, or any other game of chance.
- D. Deduction of Tax at source from interest on securities: This covers tax deducted when interest is paid on securities like debentures, bonds, or government securities.
LIST-II Items Provided:
- I. \(\text{Section } 194\)
- II. \(\text{Section } 193\)
- III. \(\text{Section } 194\)
- IV. \(\text{Section } 194 J\)
Correct Matches as Per the Provided Answer
Based on the correct option provided, the following matches are established:
- A (Fees for professional and technical services) is matched with IV (\(\text{Section } 194 J\)). This aligns with the nature of professional or technical service payments.
- B (Income by way of rent) is matched with III (\(\text{Section } 194\)). In the context of this question's correct answer, Section 194 is designated for rent payments.
- C (Winnings from lotteries or crossword puzzles, etc.) is matched with I (\(\text{Section } 194\)). In the context of this question's correct answer, Section 194 is designated for lottery winnings.
- D (Interest on securities) is matched with II (\(\text{Section } 193\)). This aligns with the provision for TDS on interest on securities.
Summary Table of Matches
| LIST-I Item | Description | Corresponding LIST-II Section (as per correct answer) |
|---|---|---|
| A | Fees for professional and technical services | \(\text{Section } 194 J\) |
| B | Income by way of rent | \(\text{Section } 194\) |
| C | Winnings from lotteries or crossword puzzles, etc. | \(\text{Section } 194\) |
| D | Interest on securities | \(\text{Section } 193\) |
Understanding these Deduction of Tax at Source (TDS) provisions is essential for accurate tax compliance.
Important Questions from Deduction and Collection of tax at source
- Identify the person as per Income Tax Act, for whom the Mitakshara School of Hindu law related to succession is applicable to __________.
- Change of Possession of goods from one person to another for some specific purpose is __________.
- Which of the following statements is not correct ?
- Assertion (A) : If the interest is payable outside India, tax must be deducted at source.
Reason (R) : If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.
Select the correct answer from the code given below : Income received and accrued or arisen outside India from a business controlled in or a profession set up in India, is taxed in the hands of which of the following?
a. Every citizen of India
b. Domicile of India
c. Ordinary Resident
d. Non-Ordinarily Resident
e. Non-Resident
Choose the correct answer from the options given below:
