Income-tax and Corporate Tax Planning - Income Tax and Corporate Tax Planning Section 1

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6. 272B provides penalty in case of default by the taxpayer in complying with the provisions of section 139A or knowingly quoting incorrect PAN in any document referred to in section 139A(5)(c) or intimates incorrect PAN for the purpose of section 139A(5A)/(5C). The penalty under section 272B is Rs.

  • Option : D
  • Explanation : 272B provides penalty in case of default by the taxpayer in complying with the provisions of section 139A or knowingly quoting incorrect PAN in any document referred to in section 139A(5)(c) or intimates incorrect PAN for the purpose of section 139A (5A)/(5C). The penalty under section 272B is Rs. 10,000
    Thus, option (d) is the correct option.
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7. Section 272BB(1A) provides for penalty for quoting incorrect Tax Deduction Account Number or Tax Collection Account Number (as the case may be). The penalty under section 272BB is Rs.

  • Option : C
  • Explanation : Section 203A(2) provides that the deductor or collector of tax at source should quote his Tax Deduction Account Number or Tax Collection Account Number (as the case may be) in the challans, certificates, statement, and other documents relating to TDS/TCS. Section 272BB(1) provides for penalty for failure to obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and section 272BB(1A) provides for penalty for quoting incorrect Tax Deduction Account Number or Tax Collection Account Number (as the case may be). The penalty under section 272BB is Rs. 10,000.
    Thus, option (c) is the correct option.
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8. The specified domestic transaction also covers an international transaction.

  • Option : B
  • Explanation : Specified domestic transactions mean few specific transactions described under section 92BA which are not international transactions.
    Thus, the statement given in the question is false and hence, option (b) is the correct option.
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9. The section provides that every person entering into a specified domestic transaction shall keep and maintain such information and documents as may be prescribed in this regard under rule 10D.

  • Option : D
  • Explanation : Section 92D provides that every person entering into a specified domestic transaction shall keep and maintain such information and documents as may be prescribed in this regard under rule 10D.
    Thus, option (d) is the correct option.
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10. Every person entering into specified domestic transactions shall keep and maintain documents relating to such transactions for a period of from the end of the relevant assessment year.

  • Option : C
  • Explanation : In view of Rule 10D, every person entering into specified domestic transactions shall keep and maintain documents relating to such transactions for a period of 8 years from the end of the relevant assessment year.
    Thus, option (c) is the correct option.
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