Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate? MCQ with Answer and Explanation

Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
A. Section 194J at 10%
B. Section 194IA at 1%
C. Section 194IA at 10%
D. Section 194C at 1%
Answer: Option B
Solution (By JKSSB Mock Tests)
Section 194IA mandates TDS at 1% on the transfer of immovable property (other than agricultural land) if the consideration exceeds ₹50,00,000.

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Practice More Accountancy and Book Keeping Questions

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'AS 22' covers:
A. Earnings per share
B. Impairment of assets
C. Borrowing costs
D. Accounting for Taxes on Income

Correct Answer: Option D


Explanation:
AS 22 deals with deferred tax and current tax.

Question #2
The term 'Capitalisation' of reserves means:
A. Utilising reserves for issue of bonus shares
B. Transfer of reserves to capital account
C. Distributing reserves as dividend
D. Writing off fictitious assets

Correct Answer: Option A


Explanation:
Capitalisation of reserves refers to converting reserves into share capital, i.e., bonus issue.

Question #3
In the context of PFMS, what is the role of the 'Controller General of Accounts' (CGA)?
A. To audit state governments
B. To maintain the accounts of the Union Government
C. To collect taxes
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Correct Answer: Option B


Explanation:
The CGA is the principal accounts adviser to the Government of India and is responsible for maintaining the accounts of the Union Government.