Briefly discuss the provisions of tax deducted at source and compute the amount of TDS under the Income-tax Act, 1961 assuming that the deductees…
CA Intermediate · Taxation · MTP · September 2025
Briefly discuss the provisions of tax deducted at source and compute the amount of TDS under the Income-tax Act, 1961 assuming that the deductees are residents and having a PAN which they have duly furnished to the respective deductors. (i) Payment of 1,51,000 by a transport company to Ms. Asha, a resident individual as interest on compensation awarded by the Motor Accidents Claims Tribunal. (ii) Mr. Narsimha won - 15,00,000 as prize money for winning a television serial contest in the financial year 2024-25. (4 Marks)
Suggested Answer and Working Notes:
(i) Tax has to be deducted at source by the transport company @10% under section 194A on payment of 1,51,000 to Ms. Asha, a resident individual, as interest income on compensation awarded by Motor Accidents Claims Tribunal, since the interest paid exceeds the specified threshold of 50,000. Tax to be deducted = 1,51,000 x 10% = 15,100. (ii) Tax has to be deducted @30% under section 194B on payment of 15,00,000 to Mr. Narsimha for winnings in a TV Serial contest. Tax to be deducted = 15,00,000 x 30% = 4,50,000
Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax
Related Questions in this Topic
- Who is liable to collect TCS (collection of tax at source) under section 52 of the CGST Act, 2017? Briefly explain the p...
- Answer the following questions, assuming that suppliers are registered under GST: (a) Bhagwati Roadlines is a registere...
- Determine the place of supply in each of the following independent circumstances: (i) Ms. Kavya, Delhi is a passenger t...
- Nakshatra Comforts Ltd. is engaged in providing various services in Delhi. It obtained registration under regular scheme...
- Stellar Orbit Appliances Pvt. Ltd., a registered person in Pune, Maharashtra, is engaged in supplying a bouquet of goods...