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Which two of the following are correct about TDS Certificates? a) TDS on non-salary payment - Form 16 b) TDS on salary payment - Form 16 A c) TDS on sale of property - Form 16 B d) TDS on rent - Form 16 C Choose the correct option from those given below 

Which two of the following are correct about TDS Certificates? a) TDS on non-salary payment - Form 16 b) TDS on salary payment - Form 16 A c) TDS on sale of property - Form 16 B d) TDS on rent - Form 16 C Choose the correct option from those given below  Correct Answer c) and d)

Tax Deducted at Source
  1. TDS stands for 'Tax Deducted at Source'.
  2. It was introduced to collect tax at the source from where an individual's income is generated.
  3. The government uses TDS as a tool to collect tax in order to minimize tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date.

The following are the correct statements about TDS Certificates:

  1. Form 16:
    •  Form 16 is your salary TDS certificate.
    • If your income from salary for the financial year is more than the basic exemption limit of Rs 2,50,000 your employer is required, by the Income Tax Act, to deduct TDS on your salary and deposit it with the government.
    • If you have also disclosed your income from other heads to your employer, they will consider your total income for TDS deduction.

  2. Form 16 A: Form 16A is also a TDS Certificate. While Form 16 is for only salary income, Form 16A is applicable for TDS on Income Other than Salary. For example, a Form 16A shall be issued to you –

    • when a bank deducts TDS on your interest income from fixed deposits,
    • for TDS deducted on insurance commission,
    • for TDS deducted on your rent receipts.
  3. Form 16 B: 
    • Form 16B for tax deducted at source verifies the volume of tax deducted at source when making a property purchase.
    • This amount is given by the buyer to the Income Tax department.
    • In a nutshell, this is a TDS certificate for all TDS deducted upon a property sale.
  4. Form 16 C:
    • Form 16C is the TDS certificate to be issued by the deductor (Tenant of property) to the deductee (Landlord of property) in respect of the tax deducted and deposited as TDS on rent under section 194-IB of the Income-tax Act, 1961.

Therefore, from the above explanation, Option 2 is the correct answer.

Related Questions

Which two of the following are correct about TDS Certificates?
1. TDS on non-salary payment - Form 16
2. TDS on salary payment - Form 16 A
3. TDS on sale of property - Form 16 B
4. TDS on rent - Form 16 C
Choose the correct option from those given below:
There are five actors S, T, U, V and W in a play. The salary of S is Rs. 10000 and the salary of T is 25% less than the salary of U whose salary is 50% more than the salary of S. The salary of V is Rs. 20000 which is Rs. 6000 more than the salary of W. Average salary of three lowest paid actors is what percent of the average salary of the three highest paid actors?
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow(s) for pursuing. Statement: Soon you would not need to carry original copies of all vehicle papers like driving licence, vehicle registration certificate, insurance, pollution certificate or the permits issued to commercial vehicles with you. According to a ToI report, the Centre plans to amend Motor Vehicles Rules to make it legal for any citizen to carry digital vehicle documents and simultaneously making it compulsory for traffic police to accept digital version of documents. This means that you would not have to carry physical papers in your vehicle as digital copies of the certificates would be valid.  Courses of action: I. The ministry has proposed installation of FASTags on the front windscreens. FASTag is a device that uses radio frequency identification (RFID) technology for making toll payments directly from the user account.  II. To avail the facility, one has to store all the vehicle documents on the government's cloud-based service DigiLocker and when asked he/she can simply display the stored certificates on a smartphone or any other digital devices. These digital copies can be shared with other departments as identity and address proof.  III. The government has increased the maximum load carrying capacity of heavy vehicles, including trucks, by 20-25 per cent besides scrapping the mandatory annual renewal of fitness certificates for freight carriers. Fitness certificates for trucks would now be renewed in every two years not annually.  Which of the following course/courses of action can be said to be said to be a rudimentary course/courses of action?
A', on 9th January, 2015 agrees to sell his immovable property to 'R' and out of the total sale consideration of Rs. 3,00,000/- receives a sum of Rs. 1,00,000/- from 'B' as advance payment and agrees to vacate the property and handover vacant peaceful physical possession thereof to 'B' and to execute the Sale Deed of the property in favour of 'B' on receipt of balance sale 'consideration' on or before 9th July, 2015. 'A' fails to vacate the property or to execute the Sale Deed or to deliver possession of the property to 'B'. 'B' after waiting patiently till 31st January, 2016, on 1st February, 2016 got issued a legal notice to 'A' to take the balance sale consideration and execute the Sale Deed and deliver vacant peaceful physical possession. 'A' vide his reply received by 'B' on 17th February, 2016 denies the agreement. The limitation of three years available to 'B' for instituting a suit for specific performance is:
Monthly salary of six persons A, B, C, D, E and F are 10000, 15000, 20000, 25000, 30000 and 35000 (not necessarily in the same order). Who has the highest salary among all? I. B’s salary is neither 10000 nor 25000. E’s salary is 5000 more than the B’s salary. II. E’s salary is 10000 less than the C’s salary. Salary of C is not 30000.
P's salary is 40% more than Q’s salary. R's salary is ¾ of Q's salary. Now the salary of P and Q is increased by 5% and salary of R is increased by 8%. After increment, what percent of P’s salary is the salary of R?
The pie chart given below shows the salary given by a company to its seven employees. The total salary given by the company to all its employees is Rs. 720000 salaries spent on a particular employee is shown in terms of degree with respect to the total salary spent on all these seven employees. J1 = Values of total salary given to Q, R and S J2 = Value of total salary given to T, U and V J3 = Value of difference of salary of Q and R What is the value of (J2 – J1 – J3)?
Total salary of A, B and C is Rs. 86000. Salary of A is 40% less than salary of B and salary of C is Rs. 5000 less than salary of B. Salary of A is what percent of salary of C?
During a month, Jalil used 1/6 of his monthly salary for a car payment and an amount which is 1.25 times more than the car payment for rent. What fraction of his monthly salary did Jalil use that month the car payment and rent combined?
Out of total monthly salary of Bhaumik spends 30% of his monthly salary on Rent and 15 % on travelling expenses. 35% of the remaining monthly salary for food and while the remaining salary is saved which is equal to Rs. 14300, if his salary is increased by 10% but expense remains same how much money will he save monthly?