The 'Section 194R' requires TDS on: MCQ with Answer and Explanation

The 'Section 194R' requires TDS on:
A. Benefits or perquisites arising from business or profession
B. Salary
C. Dividends
D. Interest
Answer: Option A
Solution (By JKSSB Mock Tests)
TDS at 10% on any benefit or perquisite exceeding ₹20,000 in a year from business/profession.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct?
A. S1 only
B. S2 only
C. Both S1 and S2
D. Neither S1 nor S2

Correct Answer: Option A


Explanation:
S1 is correct; e-invoicing generates an IRN and QR code. S2 is incorrect because the IRN is generated by the Invoice Registration Portal (IRP) of the government, not locally by the taxpayer's software without validation.

Question #2
According to the Companies Act, which financial statement details cash inflows and outflows?
A. Balance Sheet
B. Statement of Changes in Equity
C. Statement of Profit and Loss
D. Cash Flow Statement

Correct Answer: Option D


Explanation:
The Cash Flow Statement provides historical information about changes in cash and cash equivalents, categorized into operating, investing, and financing activities.

Question #3
If closing stock is given inside the Trial Balance, it will be shown only in the:
A. Balance Sheet
B. Trading Account
C. P&L Account
D. Both Trading Account and Balance Sheet

Correct Answer: Option A


Explanation:
If it appears inside the trial balance, the double entry is already complete (adjusted against purchases). It appears only as an asset in the Balance Sheet.