Prepmart | assertion a if the interest is payable outside india tax MCQ with Answer & Explanation

Q Assertion (A): If the interest is payable outside India, tax must be deducted at source.
Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.

A. Both (A) and (R) are correct and (R) is the correct explanation of (A)

B. Both (A) and (R) are correct but (R) is not the correct explanation of (A)

C. (A) is true but (R) is wrong

D. (A) is wrong but (R) is correct

Correct Answer: A

Explanation:
Both assertion and reason are correct, and R correctly explains A. TDS must be deducted on interest payable outside India, else deduction is disallowed.

Taxation - TDS Account Ast. 2024 Report Error

Q Assertion (A): If the interest is payable outside India, tax must be deducted at source.
Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.

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Q Assertion (A): If the interest is payable outside India, tax must be deducted at source. Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.

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Q Assertion (A): If the interest is payable outside India, tax must be deducted at source.
Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.