NISM Series XIX-C AIF Managers Certification Exam - 16
NISM Series XIX-C AIF Managers Certification Exam - 16
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Q 1. What is the purpose of the Liquidation Scheme?
- A) To attract new investors to the AIF.
- B) To extend the tenure of the AIF.
- C) To diversify the investment portfolio of the AIF.
- d) To facilitate the liquidation of unliquidated investments in the existing AIF scheme.
Q 2. What is the focus of Principle 2 in the Stewardship Code?
- A) Managing conflicts of interest
- B) Maximizing profits at any cost
- C) Ignoring client interests
- d) Not disclosing conflicts of interest
Q 3. How is income from salary taxed for non-resident investors under the ITA?
a) Taxable under the head 'Income from Other Sources'
b) Taxable at a flat rate of 30%
c) Exempt from taxation
d) Taxable at a flat rate of 10%
Q 4. What is the period of holding for listed securities for them to be treated as capital gains according to CBDT?
a) Less than 6 months
b) Between 6 and 12 months
c) More than 12 months
d) Less than 3 months
Q 5. What is the tax treatment of income from letting out machinery or plants for non-resident investors?
a) Taxable at a flat rate of 15%
b) Taxable under the head 'Income from Other Sources'
c) Exempt from taxation
d) Taxable under the head 'Income from Salaries'
Q 6. Under section 194LBB of the ITA, at what rate is tax withheld on income payable to resident investors by an Investment Fund?
a) 5%
b) 10%
c) 15%
d) None of the above
Q 7. What type of loss can be set off against long-term or short-term capital gains?
a) Speculative business loss
b) Long-term capital loss
c) Inter-head loss
d) Short-term capital loss
Q 8. What type of income arises from the sale, buyback, or transfer of securities held by portfolio entities?
a) Rental income
b) Dividend income
c) Interest income
d) None of the above
Q 9. Under what circumstances are gains on the sale of units of the Fund characterized as business income?
A) When held for more than 12 months
B) When held for less than 12 months
C) When held by a non-resident
d) When held by a charitable trust
Q 10. What rate of tax is deducted by a mutual fund when paying dividends to resident unitholders?
a) 5%
b) 10%
c) 15%
d) 25%
Q 11. At what rate is income from 'Profits or Gains from business and profession' taxed in a Category III AIF structured as an 'Irrevocable Determination Trust'?
a) 30%
b) 35%
c) 40%
d) 45%
Q 12. What is the rate of distribution tax payable by an Indian company on the buy-back of shares according to the ITA?
a) 20%
b) 23.296%
c) 25%
d) 35%
Q 13. How are short-term capital gains on the transfer of listed debentures taxed?
A) 10%
B) 15%
C) 20%
d) Exempted from tax
Q 14. What is the primary intent behind the establishment of Corporate Debt Market Development Funds (CDMDF)?
a) To provide short-term loans to corporations
b) To invest in high-risk corporate debt securities
c) To enhance liquidity in the corporate debt market
d) To encourage long-term investments in corporate debt
Q 15. What type of investment by an Indian Investment Vehicle is considered an indirect foreign investment?
a) Investments in domestic companies
b) Investments in foreign companies
c) Downstream investments
d) None of the above