Under the Income Tax Act, the 'TDS' on payment of interest on securities (other than 8% taxable government securities) is governed by which section? MCQ with Answer and Explanation

Question
Under the Income Tax Act, the 'TDS' on payment of interest on securities (other than 8% taxable government securities) is governed by which section?
A. Section 194
B. Section 194C
C. Section 194A
D. Section 194J
Answer: Option A
Solution (By JKSSB Mock Tests)
Section 194 of the Income Tax Act mandates TDS on income by way of interest on securities (like debentures, corporate bonds) at the prescribed rates.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
A 'Debit Note' is issued by:
A. Bank to customer
B. Auditor to company
C. Buyer to seller for goods returned
D. Seller to buyer for goods returned
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Correct Answer: Option C

Explanation:
A debit note is prepared by the buyer when returning goods, informing the seller that his account is debited.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is considered a Direct Expense?
A. Salary to office clerk
B. Carriage outwards
C. Wages paid to factory workers
D. Advertising
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Correct Answer: Option C

Explanation:
Direct expenses are directly linked to the purchase or manufacturing of goods. Factory wages are a prime example.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Business Intelligence Unit' in tax department uses:
A. Physical surveillance
B. Data analytics to identify tax evasion
C. Manual intelligence
D. Only newspaper reports
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Correct Answer: Option B

Explanation:
BIU uses big data and analytics to detect non-compliance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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