Welcome to our CA Final Direct Tax Laws and International Taxation quiz page! Our quiz covers questions from the ICAI MCQ booklet for MAY 2023 Question No. 1-10 to help you prepare for your upcoming exam. Test your knowledge and see how well you perform. Good luck!

1. Mr. Rajesh and Mr. Brijesh, resident individuals, are due to receive ₹ 13 lakhs each on 1.4.2022 on maturity of life insurance policy taken on 31.3.2012 and 1.4.2012, respectively, the sum assured of which is ₹ 10 lakhs. They had paid an annual premium of ₹ 1.10 lakhs each. Are provisions of tax deduction at source attracted on maturity proceeds received by Mr. Rajesh and Mr. Brijesh?

2. ABC Ltd. took on sub-lease a building from Ms. Jhanvi with effect from 1.7.2022 on a rent of ₹ 20,000 per month. It also took on hire machinery from Ms. Jhanvi with effect from 1.10.2022 on hire charges of ₹ 15,000 per month. ABC Ltd. entered into two separate agreements with Ms. Jhanvi for sub -lease of building and hiring of machinery. Which of the following statements is correct with reference to ABC Ltd.'s liability to deduct tax at source, assuming that one-month's rent was received as security deposit, which is refundable at the end of the lease period?

3. Mr. Vallish, employed as Manager with ABC Ltd., pays rent of ₹ 50,000 per month to his landlord. Which of the following statements is correct?

4. Mr. Hari is an interior decorator declaring profits under 44ADA in the P.Y.2022 -23 and the earlier previous years. Mr. Hari has to pay brokerage of ₹ 10 lakhs to Mr. Lal, a broker, to buy a residential house, and ₹ 50 lakhs to Mr. Shyam, a contractor for reconstruction of the residential house. Are TDS provisions attracted in the hands of Mr. Hari in respect of the above transactions?

5. Mr. Sanjay, a salaried individual, pays brokerage of ₹ 40 lakhs to Mr. Harish, a broker, on 5.1.2023 to buy a residential house. His father, Mr. Hari, a retired pensioner, makes contract payments of ₹ 15 lakhs, ₹ 25 lakhs and ₹ 12 lakhs on 28.9.2022, 3.11.2022 and 15.2.2023 to Mr. Rajeev, a contractor, for reconstruction of residential house. With respect to the above payments made by Mr. Sanjay and Mr. Hari, which of the following statements is correct?

6. Kunal & Co LLP engaged in manufacturing business withdrew from its bank account ₹ 125 lakhs by cash (each individual withdrawal does not exceed ₹ 2 lakhs) in the P.Y.2022-23. The purpose of withdrawal from bank was for buying agricultural produce, being raw material required for manufacture for finished products by it. Kunal & Co LLP always files its return of income before the due date. Are TDS provisions applicable on such withdrawals? If yes, what is the amount of tax to be deducted?

7. The following are details of cash withdrawals from Canara Bank by Mr. Ravish during the P.Y. 202223: – ₹ 16 lakhs on 27.05.2022 – ₹ 55 lakhs on 07.09.2022 – ₹ 28 Lakhs on 12.02.2023 Mr. Ravish has not filed his return of income for A.Y. 2020-21, A.Y. 2021-22 and A.Y. 2022-23. What is the amount of tax required to be deducted at source by Canara Bank on such withdrawals during the P.Y. 2022-23?

8. Mr. Ganesh is running a steel factory. The total turnover of the factory during the F.Y. 2021-22 amounted to ₹ 2.5 crores. The estimated turnover for F.Y. 2022-23 is likely to exceed ₹ 3 crore. On 10-04-2022, he availed consultancy services from a Delhi based chartered accountant. The consultancy fees amounted to ₹ 1,84,000. Should Mr. Ganesh deduct tax from consultancy fees of ₹ 1,84,000? If yes, then what shall be the amount of tax to be deducted and by when should the same be deposited with Government?

9. Mr. Harsh has to pay ₹ 3 lakhs on 3.3.2023 to “Plan your trip”, a travel agency, for a holiday package in Singapore and Malaysia for himself and his wife. He obtained a loan of ₹ 10 lakhs for higher education of his son studying in Columbia University, New York, on 20.3.2023 from SBI, and remitted, under LRS of RBI, the said sum through the same bank, SBI, which is also an authorised dealer. Is tax required to be collected at source from Mr. Harsh by travel agency and the bank? If so, how much?

10. Mr. Mahesh engaged in the business of trading of car accessories. His turnover for F.Y. 2021 -22 and F.Y. 2022-23 was ₹ 11.5 crore and ₹ 9.75 crore, respectively. XYZ Ltd. placed order for purchase of car accessories for ₹ 90 lakhs on 01.06.2022. Mr. Mahesh delivered the order within 15 days of receipt of order and received the payment within 7 days from the date of delivery. Is Mr. Mahesh required to collect tax at source on the consideration received by him from XYZ Ltd., if the turnover of XYZ Ltd. during the F.Y.2021-22 and F.Y.2022-23 was 15 crores and ₹ 17 crores, respectively? If yes, what is the amount of tax which he is required to collect at source? You may assume that XYZ Ltd. complies with all its TDS obligations.