Question 1

In India, which of the following is NOT deducted as TDS?

Accepted Answer

Interest on bank deposits exceeding a specific limit

Answer

Salary income

Answer

Interest on savings account

Answer

Capital gains on stock market investments

Question 2

The primary objective of TDS is to:

Accepted Answer

Collect tax at the source of income

Answer

Reduce the taxpayer's burden of filing tax returns

Answer

Simplify tax calculations for individuals

Answer

Increase government revenue throughout the year

Question 3

TDS is deducted by:

Accepted Answer

The person or entity making the payment

Answer

A government agency

Answer

The recipient of the income

Answer

A third-party intermediary

Question 4

The rate of TDS deduction depends on:

Accepted Answer

The nature of income and the payee's tax bracket

Answer

The total amount of income earned in a year

Answer

The payee's occupation

Answer

A fixed rate for all income types

Question 5

A Form 16 is issued by:

Accepted Answer

The deductor of TDS (payer)

Answer

The income tax department

Answer

The recipient of the income (payee)

Answer

The bank where TDS is deposited

Question 6

TDS can be claimed as a tax credit when:

Accepted Answer

Filing income tax return

Answer

The income is reinvested

Answer

The payee's tax liability is nil

Answer

The TDS deducted exceeds the tax payable

Question 7

Which of the following is NOT a common type of TDS deduction?

Accepted Answer

TDS on rent payments

Answer

TDS on lottery winnings

Answer

TDS on professional fees

Answer

TDS on dividend income

Question 8

Failing to deduct TDS by the deductor can lead to:

Accepted Answer

Penalties and interest charges

Answer

Delayed processing of the payee's tax return

Answer

Reduced tax refund for the payee

Answer

No consequences

Question 9

Individuals with very low income can:

Accepted Answer

Apply for a lower TDS deduction rate

Answer

Avoid TDS altogether

Answer

Not be liable to pay any income tax

Answer

Not claim TDS credit while filing tax return

Question 10

The due date for depositing TDS with the government is:

Accepted Answer

Determined based on the type of income and deduction date

Answer

Not applicable, TDS is automatically deposited

Answer

Dependent on the payee's tax filing deadline

Answer

Same for all types of TDS deductions

Related quizzes

Related quizzes