WorksheetsPAN, Tax Deduction at Sources & Advance Tax
Total questions: 93
Worksheet time: 47mins
What does PAN stand for?
Permanent Account Number
Personal Account Number
Public Access Number
Private Authentication Number
How many characters does a PAN have?
10 characters
8 characters
12 characters
15 characters
Which department issues the PAN in India?
Ministry of Finance
Income Tax Department of India
Reserve Bank of India
Ministry of Commerce
Is PAN valid throughout India?
Yes
No
Only in some states
Only in metropolitan cities
List one need for PAN mentioned in the document.
Identification of taxpayers
Issuing driving licenses
Opening a school
Applying for a passport
Which department issues the PAN (Permanent Account Number)?
Reserve Bank of India
Income Tax Department
Ministry of Finance
State Government
How many characters does a PAN (Permanent Account Number) have?
8
10
12
15
Fill in the blank: Each PAN is ______ to an individual or entity (no two taxpayers can have the same number).
unique
shared
temporary
optional
A person/entity can hold more than one PAN.
True
False
What does the 4th character in the PAN show?
The year of issue
The type of holder
The issuing city
The holder's age
Fill in the blank: PAN is needed for filing ______ and for large financial transactions.
Income Tax Returns
Passport Applications
Driving License Renewals
School Admission Forms
Which of the following is NOT a reason for PAN being essential?
Required for GST registration
Required for opening a bank account
Required for buying groceries
Required for investing in mutual funds
Which department allots the PAN card in India?
Income Tax Department
Ministry of Finance
Reserve Bank of India
Election Commission of India
PAN helps link all tax-related information.
True
False
PAN is accepted as a valid ID proof for various purposes such as banks and mutual funds.
True
False
PAN is issued in two forms. Fill in the blanks: 1. ______ card (plastic, laminated) 2. ______ (downloadable soft copy with same legal validity)
1. Physical card 2. e-PAN
1. Digital card 2. m-PAN
1. Virtual card 2. e-TIN
1. Smart card 2. e-Form
What does PAN stand for?
Permanent Account Number
Personal Account Number
Public Access Number
Primary Allocation Number
Which of the following is NOT a document required for PAN application?
Proof of Identity
Proof of Address
Proof of Employment
Proof of Date of Birth
To apply for a PAN card online, which forms are used for Indian and foreign citizens respectively?
Form 49A and Form 49AA
Form 16 and Form 49B
Form 49AA and Form 49A
Form 50 and Form 51
Which of the following is required for the submission and payment process when applying for a PAN card?
Only offline form submission
Upload documents and pay fee
No documents required
Only online form submission
Fill in the blank: The application for a PAN card is processed by the _________.
Income Tax Department
Reserve Bank of India
Ministry of Finance
State Bank of India
PAN serves as a unique identity for all taxpayers including individuals, firms, and companies.
True
False
What is the first step to get your PAN instantly according to the instructions?
Submit PAN request
Log on to e-Filing home page
Enter Aadhaar details
Check PAN request status
List any two situations where quoting your PAN is compulsory.
Opening a bank account and purchasing property
Buying groceries and watching movies
Traveling abroad and applying for a passport
Enrolling in school and getting a library card
Linking transactions with PAN ensures that ______ and tax details of the same person/entity are consolidated.
income
address
phone number
bank account
Which details are displayed after successful verification of Aadhaar OTP during PAN application?
Only name and date of birth
Aadhaar number, name, photo, date of birth, gender, residential address, mobile number, email
Only mobile number
Only email address
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for sale/purchase of motor vehicle (except 2-wheeler)?
Any value
Rs. 1,00,000 or more
Rs. 2,00,000 or more
Rs. 5,00,000 or more
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for opening a bank account (except Basic SB A/c)?
Any value
Rs. 50,000
Rs. 1,00,000
Rs. 10,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for depositing cash in a day in bank/post office?
₹50,000
₹10,000
₹1,00,000
₹5,00,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for credit card application?
Any
Rs. 50,000
Rs. 1,00,000
Rs. 2,00,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for purchase of bank drafts, pay orders, banker’s cheques?
₹50,000 / day
₹1,00,000 / day
₹2,00,000 / day
₹10,000 / day
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for time deposit with bank, post office, NBFC?
≥ ₹50,000
≥ ₹1,00,000
≥ ₹10,000
≥ ₹5,00,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for purchase of immovable property?
₹10,00,000
₹5,00,000
₹15,00,000
₹1,00,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for sale of goods/services (other than above)?
₹2,00,000
₹50,000
₹5,00,000
₹1,00,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for cash payment for foreign travel, hotel/bills?
₹50,000
₹1,00,000
₹2,00,000
₹10,000
According to the table 'Transactions where Quoting of PAN is Compulsory', what is the threshold for opening Demat account?
Any
Rs. 50,000
Rs. 1,00,000
Rs. 5,00,000
Who is at the top of the hierarchy of Income Tax Authorities according to Section 116?
Central Board of Direct Taxes (CBDT)
Chief Commissioner of Income Tax
Income Tax Officer
Commissioner of Income Tax
Who comes after the Central Board of Direct Taxes (CBDT) in the hierarchy of Income Tax Authorities?
Principal Chief Commissioner / Chief Commissioner of Income Tax
Deputy Commissioner of Income Tax
Assistant Commissioner of Income Tax
Income Tax Officer
What are some of the powers of Income Tax Authorities as described in the worksheet?
Assessment, inspection, search, seizure, and recovery.
Issuing driving licenses and passports.
Regulating stock market transactions.
Granting patents and copyrights.
Which officer is responsible for framing policies, issuing circulars, notifications, and rules under the Central Board of Direct Taxes (CBDT)?
Principal Chief Commissioner
Principal Commissioner
Central Board of Direct Taxes (CBDT)
Income Tax Officer
Fill in the blank: The ________ exercises supervision and control over all subordinate officers under the CBDT.
Central Board of Direct Taxes (CBDT)
Ministry of Finance
Income Tax Appellate Tribunal
Reserve Bank of India
Which of the following is NOT a duty of the CBDT?
Implement direct tax laws efficiently
Provide clarification and guidance to taxpayers and officers
Approve prosecution in appropriate cases
Recommend amendments to the Government
The Principal Chief Commissioner is responsible for monitoring the performance of subordinate officers.
True
False
Who is responsible for recommending amendments to the Government regarding direct tax laws?
Principal Chief Commissioner
CBDT
Income Tax Officer
Tax Recovery Officer
Fill in the blank: The Principal Chief Commissioner approves ________ in appropriate cases.
prosecution
promotion
transfer
leave
Which officer is responsible for the transfer of cases between Commissioners or Assessing Officers?
Principal Commissioner
Principal Chief Commissioner
CBDT
Tax Recovery Officer
What is one of the powers of the Director-General / Director of Income Tax?
Conduct investigations, intelligence gathering, and special drives.
Grant approvals for exemptions.
Monitor large assessments.
Perform assessment and reassessment.
Fill in the blank: The Deputy / Assistant Commissioner of Income Tax is responsible for ensuring proper determination of ________ income.
taxable
gross
net
exempted
Which authority is responsible for authorising surveys or searches?
Additional Commissioner
Director-General / Director of Income Tax
Deputy Commissioner
Assessing Officer
Fill in the blank: The Additional / Joint Commissioner or Director provides technical guidance to ________.
AOs
Taxpayers
Auditors
Inspectors
The Deputy / Assistant Commissioner of Income Tax is responsible for protecting revenue without harassment to taxpayers.
True
False
Which authority supervises assessment work and guides AOs on complex issues?
Director-General / Director of Income Tax
Additional Commissioner
Commissioner of Income Tax
Deputy Commissioner
Fill in the blank: The Director-General / Director of Income Tax supports field formations with ________ and analysis.
data
vehicles
medals
uniforms
The Additional / Joint Commissioner or Director issues directions to Assessing Officers, which are binding if within law.
True
False
Which of the following is a power of the Income Tax Officer (ITO)?
Issue notices u/s 142(1), 143(2), etc.
Recover arrears of tax using modes in Second Schedule
Inspect books of accounts
Survey accounts, cash, stock
What is one of the duties of the Income Tax Officer (ITO)?
Ensure timely recovery while following due process
Examine returns and accounts carefully
Assist AOs during surveys or searches
Appointment of receiver
Which of the following is NOT a power of the Tax Recovery Officer (TRO)?
Attachment & sale of property
Arrest & detention
Rectify mistakes (Sec. 154)
Appointment of receiver
Fill in the blank: One of the duties of the Tax Recovery Officer (TRO) is to ______ while following due process.
Ensure timely recovery
Impose new taxes
Draft tax legislation
Audit government accounts
Which authority is responsible for inspecting books of accounts and verifying deductions and investments?
Income Tax Officer (ITO)
Tax Recovery Officer (TRO)
Inspectors of Income Tax
General Authorities
Fill in the blank: Inspectors of Income Tax assist AOs during ______ or searches.
surveys
audits
assessments
appeals
Which of the following is a general power applicable to many authorities?
Issue notices u/s 142(1), 143(2)
Survey (Sec. 133A) – to verify accounts, cash, stock
Appointment of receiver
Rectify mistakes (Sec. 154)
What is one of the powers of the income tax authorities?
Power to take statements on oath
Power to issue driving licenses
Power to conduct medical exams
Power to grant citizenship
Fill in the blank: One of the duties towards taxpayers is to ensure ______ assessments.
fair, transparent, and speedy
delayed and biased
random and inconsistent
secretive and slow
Fill in the blank: The concept of TDS was introduced to collect tax from the very source of ______.
income
expenditure
investment
borrowing
TDS helps in spreading the tax burden by collecting tax in small amounts on every transaction instead of a lump sum at year-end.
True
False
Fill in the blank: TDS improves ______, reduces evasion, and ensures that taxpayers pay tax in advance rather than in one lump sum at the end of the year.
compliance
confusion
delay
expenditure
What is the objective of TDS provisions?
Collect tax at the point of income generation
Collect tax at the end of the year
Collect tax only from businesses
Collect tax only from salaried employees
What is the purpose of advance tax payment?
To pay tax in a lump sum at year-end
To reduce tax evasion and distribute the tax burden throughout the year
To facilitate easy credit of tax to the recipient
To pay tax liability in instalments rather than a lump sum
Advance Tax is also known as ______ tax.
Pay as you earn
Deferred
Luxury
Gift
Which of the following is NOT a step the deductor must follow under Main Provisions (Basics)? Choose the correct option.
Obtain TAN
Deduct tax at the prescribed rate
Deposit TDS to Govt. within due dates
File TDS returns annually
Issue TDS certificates
Advance tax is applicable where total tax liability (after TDS/TCS) is greater than or equal to ______ in a financial year.
₹10,000
₹5,000
₹50,000
₹1,00,000
Who is exempt from paying advance tax? Choose the correct option.
All taxpayers
Senior citizens (≥60 years) with no business income
Companies
Firms
List two consequences if tax is not deducted or not paid by the deductor as per the Main Provisions (Basics).
Interest u/s 201(1A) and Penalty/prosecution
Refund of tax and bonus to deductor
No consequences at all
Deductor gets a tax holiday
What are the two steps involved in the computation of advance tax?
1. Estimate current FY income. 2. Compute tax on such income at applicable slab/rates.
1. File income tax return. 2. Pay tax after assessment.
1. Deduct TDS from salary. 2. Submit Form 16 to employer.
1. Calculate previous year income. 2. Pay tax in next financial year.
According to the table, what percentage of advance tax must be paid by all assessees (non-corporate) by 15 September?
15%
45%
75%
100%
Which section deals with interest for failure to pay advance tax?
Sec 234A
Sec 234B
Sec 234C
Sec 234D
Fill in the blank: Advance Tax is an instalment tax on estimated income, due on ________, 15 Sept, 15 Dec, 15 Mar.
15 June
15 July
15 August
15 October
Which of the following is NOT an advantage of Advance Tax?
A) Avoids year-end burden
B) Increases interest liability
C) Helps Government get regular revenue
D) Reduces interest liability
TDS is tax paid directly by the assessee to the government on estimated income during the financial year.
True
False
What is the meaning of Advance Tax according to the comparison table?
Tax collected at the source of income by the payer
Tax paid directly by the assessee to the government on estimated income during the financial year
Tax paid at the end of the year
Tax paid by employer
Fill in the blank: Sec 234C deals with ________ payment of instalments.
deferment/late
advance
partial
irregular
Who pays TDS (Tax Deducted at Source)?
The payer/deductor (employer, bank, tenant, contractor, etc.) deducts tax and deposits it with the government.
The payee/recipient always pays TDS directly to the government.
Only the government pays TDS on behalf of everyone.
TDS is paid by the auditor during tax filing.
Who pays Advance Tax?
The taxpayer/assessee himself calculates and pays tax in instalments.
Only salaried employees pay advance tax.
Only companies are required to pay advance tax.
Advance tax is paid only by non-resident Indians.
When is TDS collected or paid?
At the time of credit or payment, whichever is earlier, on specified transactions (salary, interest, rent, etc.).
Only at the end of the financial year.
Only after the completion of the transaction.
At the time of filing income tax returns.
When is Advance Tax paid?
Paid on or before due dates (15 June, 15 Sept, 15 Dec, 15 Mar) based on estimated annual income.
Paid only at the end of the financial year.
Paid only after receiving a tax notice.
Paid once every five years.
Coverage: TDS is applicable only on ______ and above prescribed threshold limits.
specified payments
all incomes
foreign transactions
cash withdrawals
Coverage: Advance Tax applies to all ______ if the estimated tax liability (after TDS/TCS) is ₹10,000 or more.
taxable income
capital gains
agricultural income
exempt income
Purpose of TDS is to collect tax at the very point where income arises and ensure steady inflow of revenue.
True
False
Purpose of Advance Tax is to ensure taxpayers discharge tax liability in instalments instead of paying lump sum at year-end.
True
False
What must a deductor do for TDS?
Deductor must obtain TAN, deposit TDS, file TDS returns, issue Form 16/16A to deductee.
Deductor must only deposit TDS and ignore filing returns.
Deductor must only issue Form 16/16A and not obtain TAN.
Deductor must only file TDS returns and not deposit TDS.
What must a taxpayer do for Advance Tax?
Taxpayer uses challan ITNS-280 to pay; shows details in Income-tax Return.
Taxpayer files only TDS return for Advance Tax.
Taxpayer waits for assessment order before paying Advance Tax.
Taxpayer pays Advance Tax only at the end of the financial year.
Impact on Assessee: TDS allows the assessee to claim TDS credit while filing ITR.
True
False
Impact on Assessee: Advance Tax reduces year-end burden by spreading payment of tax; failure attracts interest u/s 234B & 234C.
True
False