Assertion (A): This is correct. Under Section 195 of the Income Tax Act, any person responsible for paying interest (or other sums chargeable to tax) to a non-resident or a foreign company outside India is required to deduct tax at source (TDS) at the rates in force.
Reason (R): This is also correct. According to Section 40(a)(i), any interest, royalty, fees for technical services, or other sums chargeable under the Act which are payable outside India (or in India to a non-resident) will be disallowed as a business expenditure if:
Tax has not been deducted at source, OR
After deduction, it has not been paid to the government on or before the due date of filing the return.
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Question ID: 7688
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Question 2 of 115
Amount payable at the time of closure or opting out of National Pension Scheme referred to in section 80CCD shall be exempt to the extent of total amount payable.
In the context of Indian Income Tax law (Section 5 of the Income Tax Act, 1961), income which accrues or arises outside India and is also received outside India (commonly referred to as "Foreign Income") is taxable only in the case of:
1. Resident and Ordinarily Resident (ROR)
For an individual who qualifies as an ROR, their global income is taxable in India. This includes income earned and received anywhere in the world, regardless of whether it is brought into India or not.
2. Resident but Not Ordinarily Resident (RNOR) - In specific cases
Usually, foreign income is not taxable for an RNOR. However, there is one critical exception:
Foreign income is taxable for an RNOR only if it is derived from a business controlled in India or a profession set up in India.
If the foreign income is from any other source (like foreign rent, interest, or a business controlled entirely outside India), it is not taxable for an RNOR.
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Question 5 of 115
GST is a consumption of goods and service tax based on
GST is a consumption-based tax based on the Destination Principle.
Under this principle, the tax is collected and accrues to the jurisdiction (state or country) where the goods or services are finally consumed, rather than where they were produced or manufactured.
Key Features of the Destination Principle:
Tax Accrual: In a transaction between two states (e.g., from Maharashtra to Karnataka), the tax revenue (specifically the SGST portion) goes to the consuming state (Karnataka), not the producing state (Maharashtra).
Exports: Exports are "Zero-rated." This means no tax is levied on goods leaving the country because the consumption occurs outside the domestic tax jurisdiction.
Imports: Imports are treated as inter-state supplies and are subject to IGST. This ensures that imported goods are taxed at the same rate as domestic goods, as they are being consumed within the country.
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Question ID: 7684
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Question 6 of 115
In a class of 100 students, every student must pick exactly one sport to play. 28 students pick Football, 27 students pick Kho-Kho, 33 students pick Volleyball and 12 students pick Cricket. 23 boys play Cricket, and 13 boys play Volleyball. Meanwhile out of a total of 40 girls, 13 girls play Kho-Kho.
Which of the pairs is/are correctly matched?
Girls Kho-Kho=13, Boys Cricket=23, Boys Volleyball=13, Total boys=60. Correct matching is option A.
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Question 7 of 115
Eight randomly selected college students were asked to state the number of hours they slept the previous night. The resulting data values are 4, 8, 7, 5, 3, 7, 7, 8.
Arrange the following values in decreasing order: