Answer: A. Salary and TDS details. Form 16 is the employer’s salary TDS certificate and provides salary and tax-deduction details for the employee.
Who generally issues Form 16 to an employee?
A The employee’s bank
B The employer
C The e-Filing portal
D The housing society
Answer: B. The employer. The employer issues Form 16 for salary and tax deducted at source.
What does Form 16A generally certify?
A Salary and pension
B A property purchase
C TDS on non-salary payments
D A bank account balance
Answer: C. TDS on non-salary payments. Form 16A is a TDS certificate for specified income other than salary, such as interest where tax was deducted.
Which records can help check salary details in Form 16?
A Property advertisements
B Loan sanction letters
C Demat account statements
D Payslips and employer records
Answer: D. Payslips and employer records. Compare Form 16 with salary slips and employer records to identify differences in salary or TDS reporting.
What type of information does Form 26AS help verify?
A TDS and TCS credits
B Every household expense
C All investment receipts
D All rental agreements
Answer: A. TDS and TCS credits. Form 26AS is used to review tax-credit information, including TDS and TCS reflected for the taxpayer.
How is AIS different from Form 26AS?
A AIS reports salary only
B AIS contains broader information
C 26AS lists every expense
D They are identical documents
Answer: B. AIS contains broader information. The Department says Form 26AS displays TDS/TCS information, while AIS includes broader reported information and feedback features.
What does TIS provide within the AIS system?
A A final tax assessment
B A salary TDS certificate
C Source-level transaction summaries
D A bank interest guarantee
Answer: C. Source-level transaction summaries. The Taxpayer Information Summary aggregates information at the information-source level and is available within AIS.
Why compare AIS, Form 26AS, and source documents?
A To avoid reporting income
B To replace the return form
C To change the tax year
D To identify possible mismatches
Answer: D. To identify possible mismatches. Cross-checking helps find missing, duplicate, or incorrect income and tax-credit entries before filing.
What can a taxpayer do when an AIS entry seems incorrect?
A Submit relevant AIS feedback
B Delete the source record
C Ignore every reported item
D Change the PAN number
Answer: A. Submit relevant AIS feedback. AIS provides a facility for taxpayers to give feedback on reported transactions.
Which information is typically shown in Form 16 Part A?
A Property ownership percentage
B TDS deducted and deposited
C Annual rent computation
D Capital loss carry-forward
Answer: B. TDS deducted and deposited. Part A of Form 16 contains the employer and employee details and the TDS information reported for salary.
What can Form 16 Part B help summarize?
A A bank’s deposit rates
B A tenant’s rent schedule
C Salary and tax computation
D A property sale deed
Answer: C. Salary and tax computation. Part B helps summarize salary components, exemptions or deductions reported, and the employer’s tax computation.
Which certificate may support TDS on fixed-deposit interest?
A Form 16 salary certificate
B A property mutation order
C A capital-gain statement
D Form 16A
Answer: D. Form 16A. When a deductor withholds tax on deposit interest, Form 16A is the relevant non-salary TDS certificate.
What can a bank passbook or statement help establish?
A Account transactions and interest
B A taxpayer’s filing eligibility
C An employer’s TAN
D A property title
Answer: A. Account transactions and interest. Bank records help verify deposits, withdrawals, interest credits, and other financial information used in the return.
Which statement can summarize share transactions for capital-gain reporting?
A A salary attendance report
B Broker gain or loss statement
C A rent escalation notice
D A utility bill
Answer: B. Broker gain or loss statement. A broker or securities statement can help calculate share-related capital gains and reconcile reported transactions.
What may support a claim related to rent paid?
A A share contract note
B A loan repayment chart
C Rent receipts and agreement
D A TDS challan
Answer: C. Rent receipts and agreement. Rent receipts and the rental agreement can support a rent-related claim when applicable and not already considered by the employer.
Which records help compute income from a rented property?
A Only a tenant’s PAN
B A salary certificate only
C A stock-market statement
D Rent, tax, and loan records
Answer: D. Rent, tax, and loan records. The return guidance points to tenant details, local-tax payment information, and borrowed-capital interest where relevant.
What can substantiate an eligible donation claim?
A Donation receipt and details
B A bank passbook alone
C A property listing
D A tenant’s rent receipt
Answer: A. Donation receipt and details. Keep donation receipts and transaction details needed for the claimed deduction and current return form.
Which documents may support eligible investment deductions?
A A landlord’s tax notice
B Investment and premium receipts
C A share-price screenshot
D A utility connection request
Answer: B. Investment and premium receipts. Investment and insurance premium receipts can support deductions when the taxpayer is eligible to claim them.
What should be checked for a bank account nominated for a refund?
A Tenant’s address
B Employer’s TAN
C Account number and validation
D Property carpet area
Answer: C. Account number and validation. Ensure the bank details on the portal are correct and the account is eligible and validated for the intended service.
Which document shows details of a self-assessment tax payment?
A Form 16 salary certificate
B A rent agreement
C A broker statement
D Tax challan receipt
Answer: D. Tax challan receipt. The tax challan or payment confirmation helps verify the amount, period, and payment reference.
What can support advance-tax credits claimed in a return?
A Payment challans and tax records
B A donation brochure
C A lease renewal letter
D An employer’s leave sheet
Answer: A. Payment challans and tax records. Use payment challans and portal tax-credit records to reconcile advance-tax credits.
Which record confirms an ITR was submitted online?
A Form 16A
B ITR acknowledgement
C A bank passbook
D A capital asset invoice
Answer: B. ITR acknowledgement. The acknowledgement number and downloaded ITR acknowledgement document the submitted return.
What is ITR-V used for?
A Reporting bank interest
B Claiming rent paid
C Return verification
D Recording salary income
Answer: C. Return verification. ITR-V is used when completing verification through the prescribed signed-verification route.
Must a taxpayer attach proof documents to an ITR?
A Yes, attach every receipt
B Only attach Form 16
C Only attach bank statements
D No, forms are annexure-less
Answer: D. No, forms are annexure-less. The Income Tax Department says ITR forms are annexure-less; supporting documents are not attached to the return.
Why should a taxpayer retain proofs after filing?
A They may be requested later
B They replace e-verification
C They cancel tax liability
D They update the PAN automatically
Answer: A. They may be requested later. Keep supporting records in case they are needed during assessment, inquiry, or another official process.
What is the best use of bank and interest records while filing?
A Avoid reporting small income
B Verify amounts and sources
C Replace AIS feedback
D Choose a tax regime
Answer: B. Verify amounts and sources. Bank statements, passbooks, and interest certificates help verify income values and sources.
Where can a taxpayer usually download Form 26AS?
A A property registrar website
B A stock exchange terminal
C Income Tax e-Filing portal
D A bank’s loan portal
Answer: C. Income Tax e-Filing portal. The Department makes Form 26AS available through its e-Filing portal.
Where can a taxpayer access AIS?
A A salary payroll system
B A demat nomination page
C A land records office
D AIS menu on the portal
Answer: D. AIS menu on the portal. The AIS can be accessed from the AIS functionality on the Income Tax e-Filing portal.
A TDS credit is missing from Form 26AS. What is a useful first step?
A Contact the deductor
B Delete the related income
C Claim any amount desired
D Pay the tax twice
Answer: A. Contact the deductor. For a TDS mismatch, the Department advises informing the employer or deductor so the TDS statement can be corrected.
What should be verified if self-assessment tax is absent from records?
A Tenant’s bank account
B PAN and challan details
C Employer’s leave balance
D Property registration date
Answer: B. PAN and challan details. The Department advises validating the challan number and PAN when self-assessment or advance-tax payment does not appear.
Which document may show taxable salary paid during the year?
A A capital-gain contract note
B A rental property deed
C Employer payslip
D A bank loan schedule
Answer: C. Employer payslip. Payslips help reconcile salary paid with Form 16 and salary figures in the return.
What helps calculate savings or fixed-deposit interest?
A A TDS demand notice
B A rent receipt
C A property sale deed
D Passbook and deposit receipts
Answer: D. Passbook and deposit receipts. The ITR-2 document guidance lists bank passbooks and fixed-deposit receipts for calculating interest income.
Which supporting record may substantiate capital losses from an earlier year?
A Previous return acknowledgement
B A current rent receipt
C A salary increment letter
D A utility payment receipt
Answer: A. Previous return acknowledgement. The Department’s ITR-2 guidance asks for the prior-year return or acknowledgement disclosing a loss claimed forward.
What may support a claim for current-year investment deductions?
A A broker’s promotional email
B Eligible payment evidence
C A home listing
D A tenant’s PAN card
Answer: B. Eligible payment evidence. Keep receipts or certificates showing qualifying payments and amounts, subject to the selected regime and current rules.
Why should PAN and personal details be checked in prefilled data?
A To change the assessment year
B To avoid retaining receipts
C Prevent identity and reporting errors
D To replace AIS
Answer: C. Prevent identity and reporting errors. The Department advises checking PAN, address, contact, and bank-account details in prefilled return information.
Which file can help prove a house-rent claim when required?
A A shareholding statement
B An advance-tax challan
C Prevent identity and reporting errors
D Rent receipts
Answer: D. Rent receipts. Rent receipts can support the rent paid information used for an eligible claim.
What can a housing-loan interest certificate substantiate?
A Interest paid on the loan
B Principal rent received
C TDS on salary
D A property sale price
Answer: A. Interest paid on the loan. The certificate provides interest information needed for a qualifying house-property deduction claim.
How should an investor preserve capital-gain source data?
A Keep only the refund message
B Keep broker and contract records
C Delete the trade history
D Use a salary certificate
Answer: B. Keep broker and contract records. Broker statements, contract notes, and transaction summaries support acquisition dates, sale proceeds, and cost calculations.
What does an AIS entry represent?
A A guaranteed tax deduction
B A final tax demand
C Information reported by a source
D A bank’s interest promise
Answer: C. Information reported by a source. AIS presents information reported to the department and allows the taxpayer to review and provide feedback.
Should AIS automatically replace a taxpayer’s own records?
A Yes, it is always final
B Only for interest income
C Only when TDS exists
D No, reconcile both sources
Answer: D. No, reconcile both sources. AIS is a useful information source, but taxpayers should compare it with bank, employer, and transaction records.
Which details should match a claimed TDS credit?
A Deductor, PAN, amount, period
B Tenant, rent, room, lease
C Bank, branch, interest, term
D Asset, cost, date, broker
Answer: A. Deductor, PAN, amount, period. TDS credit should be consistent across the certificate, taxpayer details, return period, and official tax-credit statement.
What may help reconcile an interest-TDS mismatch?
A A house sale deed
B Form 16A and bank records
C An investment brochure
D A rent escalation letter
Answer: B. Form 16A and bank records. Compare Form 16A, the bank’s interest statement, and the tax-credit statement, then contact the deductor if needed.
Which records help with rental-income calculations?
A A demat account nomination
B A salary deduction chart
C Tenant and local-tax records
D A vehicle insurance policy
Answer: C. Tenant and local-tax records. For house-property income, records can include tenant information, local taxes paid, and interest on borrowed capital.
Do all taxpayers need every document on an ITR checklist?
A Yes, all documents apply
B Only bank records matter
C Only Form 16 is needed
D No, documents depend on facts
Answer: D. No, documents depend on facts. The required supporting records depend on the taxpayer’s income sources, claims, and filing circumstances.
What should happen to supporting records after e-filing?
A Retain them securely
B Upload them publicly
C Discard them immediately
D Email them to the tenant
Answer: A. Retain them securely. Retain supporting material securely because it may be needed for a later inquiry or assessment.
Which documents should be protected from public sharing?
A Public tax-form instructions
B PAN and financial records
C Published due-date notices
D General tax definitions
Answer: B. PAN and financial records. Tax documents contain personal and financial data, so store and share them through secure channels.
Why should a taxpayer compare reported taxes with Form 26AS?
A To estimate property value
B To verify rent escalation
C To match eligible tax credits
D To select an ITR form
Answer: C. To match eligible tax credits. Form 26AS helps check TDS/TCS credits and identify discrepancies that can affect tax paid claims.
What should a taxpayer do if source documents conflict?
A Choose a figure randomly
B Delete both records
C Ignore the discrepancy
D Investigate and reconcile the difference
Answer: D. Investigate and reconcile the difference. Compare original statements and seek correction from the source or deductor before reporting inconsistent values.
Which items should be gathered before starting an ITR?
A Income, credit, and claim records
B Passwords from every bank
C Other taxpayers’ forms
D Unrelated household bills
Answer: A. Income, credit, and claim records. Gather records relevant to income sources, tax credits, deductions, and bank details before preparing the return.
What final document review helps prevent filing errors?
A Wallpaper, theme, and font
B PAN, income, credits, supporting proofs
C Tenant’s password and PIN
D Browser, screen, and keyboard
Answer: B. PAN, income, credits, supporting proofs. Review identity details, income amounts, tax credits, and supporting records before submitting and verifying the return.