NISM Series XIX-C AIF Managers Certification Exam - 8

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Q 1. Which tax is levied on corporates and which on non-corporates according to the ITA?

a) MAT on corporates, AMT on non-corporates

b) AMT on corporates, MAT on non-corporates

c) MAT on both corporates and non-corporates

d) None of the above
 
Q 2. How is income from selling shares of an Indian company taxed for non-resident investors?

a) Taxable under the head 'Capital Gains'

b) Taxable under the head 'Income from Other Sources'

c) Exempt from taxation

d) Taxable under the head 'Income from House Property'
 
Q 3. What factor is considered irrelevant in characterizing income from the sale of securities?

a) Frequency of transactions

b) Motive for purchase

c) Source of funds

d) Number of shareholders
 
Q 4. From which date is stamp duty applicable on the issue, transfer, and sale of units of an Alternative Investment Fund (AIF)?

a) 1 January 2019

b) 1 July 2020

c) 1 January 2021

d) 1 January 2022
 
Q 5. What rate of distribution tax is payable by an Indian company on the buy-back of its shares?

a) 10%

b) 15%

c) 20%

d) 30%
 
Q 6. How is the share of profits from an LLP/partnership firm taxed in the hands of partners according to Indian tax laws?

A) Taxed at corporate tax rates

B) Exempt from tax

C) Taxed at capital gains rates

d) Taxed at a fixed rate
 
Q 7. Which companies are exempt from MAT if they exercise the option under Section 115BAA or Section 115BAB of the ITA?

a) Pharmaceutical companies

b) Life insurance companies and certain other companies

c) Start-up companies

d) None of the above
 
Q 8. According to the ITA, how is income chargeable as capital gains computed?

a) Difference between the acquisition cost and market value

b) Difference between the purchase price and selling price

c) Difference between full value consideration and cost of acquisition

d) Sum of purchase price and market value
 
Q 9. What is the tax treatment of gains arising on the buy-back of shares by a company?

a) Exempt from taxation

b) Taxable at a flat rate of 10%

c) Taxable at a flat rate of 20%

d) Subject to double taxation
 
Q 10. What deductions can unitholders claim for interest expenditure incurred for earning income from mutual funds?

a) 10% of gross income from mutual funds

b) 20% of gross income from mutual funds

c) 30% of gross income from mutual funds

d) No deduction allowed for interest expenditure
 
Q 11. How are long-term capital gains on the transfer of unlisted shares taxed according to Indian tax laws?

A) Taxed at 10%

B) Taxed at 15%

C) Taxed at 20%

d) Exempted from tax
 
Q 12. What is the minimum investment required by an individual investor in an AIF?

a) INR 25 lakh

b) INR 50 lakh

c) INR 1 crore

d) INR 5 crore
 
Q 13. What reporting is required for investors identified as 'U.S. persons' in an AIF?

a) FATCA reporting

b) CRS reporting

c) Both FATCA and CRS reporting

d) None of the above
 
Q 14. Who should handle all information within the AIF related to insider trading on a need-to-know basis?

a) Compliance Officer

b) Board of Directors

c) Designated persons

d) None of the above
 
Q 15. What should be done if there is a suspected leak of unpublished price-sensitive information within an AIF?

a) Ignore it

b) Report it to the Compliance Officer

c) Report it to the Board of Directors

d) None of the above
 
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