Under the Income Tax Act, the 'TDS' on payment of rent for plant and machinery exceeding ₹1,80,000 per annum is governed by which section, and what is the rate? MCQ with Answer and Explanation

Under the Income Tax Act, the 'TDS' on payment of rent for plant and machinery exceeding ₹1,80,000 per annum is governed by which section, and what is the rate?
A. Section 194I at 2%
B. Section 194C at 2%
C. Section 194I at 10%
D. Section 194J at 10%
Answer: Option A
Solution (By JKSSB Mock Tests)
Section 194I(a) mandates TDS at 2% on rent paid for the use of plant, machinery, or equipment, provided the rent exceeds ₹1,80,000 in a financial year.

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Practice More Accountancy and Book Keeping Questions

Question #1
In the Trial Balance, a bank overdraft is shown in the:
A. Adjustment column
B. Debit column
C. Credit column
D. Suspense column

Correct Answer: Option C


Explanation:
Bank overdraft is a liability, and all liabilities have a credit balance, thus appearing in the credit column of the trial balance.

Question #2
The 'CGU' is the smallest identifiable group of assets that:
A. Is a legal entity
B. Has most employees
C. Has highest revenue
D. Generates cash inflows independently

Correct Answer: Option D


Explanation:
Definition of CGU per Ind AS 36.

Question #3
The 'Impairment of Assets' (Ind AS 36) applies to:
A. All assets
B. Only fixed assets
C. Only intangible assets
D. All assets except inventories, deferred tax assets, assets arising from employee benefits, financial assets, investment property measured at fair value, and certain others

Correct Answer: Option D


Explanation:
Ind AS 36 has a specific scope excluding certain assets covered by other standards.