Arrange the following in the ascending order of the rates of deduction of tax at source specified in…
Under the Tables in section 393 of the Income-tax Act, 2025 (formerly ss.194Q, 194C, 194J and 194E of the Income-tax Act, 1961): B. Purchase of goods by a buyer whose…
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Arrange the following in the ascending order of the rates of deduction of tax at source specified in the Tables in section 393 of the Income-tax Act, 2025:
A. Payment of ₹ 80,000 by a company to a resident as fees for professional services
B. Payment of ₹ 80,00,000 by a company, whose turnover in the preceding tax year exceeded ₹ 10 crore, to a resident seller for purchase of goods
C. Payment of ₹ 5,00,000 to a non-resident sportsman, who is not a citizen of India, for income referred to in section 211
D. Payment of ₹ 35,000 by a company to a resident individual contractor for repair work
E. Payment of ₹ 80,000 by a company to a resident as fees for technical services (not being professional services)
Answer and explanation
Correct answer B
Under the Tables in section 393 of the Income-tax Act, 2025 (formerly ss.194Q, 194C, 194J and 194E of the Income-tax Act, 1961):
B. Purchase of goods by a buyer whose turnover exceeded ₹ 10 crore: 0.1% on the sum exceeding ₹ 50 lakh (section 393(1), Table: Sl. No. 8(ii)).
D. Payment to a resident contractor who is an individual: 1% (section 393(1), Table: Sl. No. 6(i)); ₹ 35,000 exceeds the ₹ 30,000 single-payment threshold.
E. Fees for technical services (not being professional services): 2% (section 393(1), Table: Sl. No. 6(iii)).
A. Fees for professional services: 10% (section 393(1), Table: Sl. No. 6(iii)); both fee payments exceed the ₹ 50,000 threshold.
C. Income of a non-resident sportsman who is not a citizen of India, referred to in section 211: 20% (section 393(2), Table: Sl. No. 1).
The ascending order is therefore B, D, E, A, C. The other sequences misplace the 0.1%, 1%, 2%, 10% or 20% items.
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UGC NET Commerce