Question

    Section 194 IA provides for deduction of TDS on which of

    the following?
    A Interest Correct Answer Incorrect Answer
    B Rent Correct Answer Incorrect Answer
    C Transfer of immovable property Correct Answer Incorrect Answer
    D Fee for professional services Correct Answer Incorrect Answer
    E Cash withdrawal Correct Answer Incorrect Answer

    Solution

    TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments Some of the key incomes on which TDS is applicable are:

    Section Type of income TDS Rate
    192 Payment of salary Normal slab
    192A Payment of accumulated balance of provident fund which is taxable in the hands of an employee 10%
    193 Interest on securities 10%
    194 Dividend 10%
    194A interest other than interest on Securities 10%
    194C Payment to contractors 1-2%
    194D Insurance commission 5%
    194EE Payment in respect of deposit under National Savings scheme 10%
    194F Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20%
    194 I Rent 2% (plant) 10% (Land or building)
    194 IA Payment on transfer of certain immovable property other than agricultural land 1%
    194 J Fees for professional or technical services: 2%
    194 N Cash withdrawal 2%

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