Under the Income Tax Act, the 'TDS' on payment of professional fees exceeding ₹30,000 in a financial year is governed by which section, and what is the rate for individuals/HUFs? MCQ with Answer and Explanation
Under the Income Tax Act, the 'TDS' on payment of professional fees exceeding ₹30,000 in a financial year is governed by which section, and what is the rate for individuals/HUFs?
A. Section 194J at 10%
B. Section 194Q at 0.1%
C. Section 194J at 2%
D. Section 194C at 1%
Answer: Option A
Solution (By JKSSB Mock Tests)
Section 194J mandates TDS at 10% on fees for professional services (and technical services) if the payment exceeds ₹30,000 in a financial year.
A: The Quick Ratio is more stringent than the Current Ratio. R: The Quick Ratio excludes inventory and prepaid expenses from current assets. Choose the correct option.
A.A is true but R is false
B.A is false but R is true
C.Both A and R are true but R is NOT the correct explanation of A
D.Both A and R are true and R is the correct explanation of A
Explanation:
The Quick (Acid-Test) Ratio is a more stringent measure of short-term liquidity than the Current Ratio. It excludes inventory and prepaid expenses because they are not immediately convertible to cash. R correctly explains why it is more stringent.
A: A Trial Balance agrees when total debits equal total credits. R: An agreeing Trial Balance guarantees the absolute accuracy of the books of accounts. Choose the correct option.
A.Both A and R are true and R is the correct explanation of A
B.A is true but R is false
C.A is false but R is true
D.Both A and R are true but R is NOT the correct explanation of A
Explanation:
A Trial Balance agrees when total debits equal total credits. However, it does not guarantee absolute accuracy, as errors like compensating errors, errors of principle, or complete omissions do not affect the tally. A is true, R is false.
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