XX Taxation in Securities Markets - 5
XX Taxation in Securities Markets - 5
Explore Additional Mock Tests Here
Q 1. Under what conditions is a transfer of FCCBs by a non-resident to another non-resident outside India not treated as a transfer?
If the bonds were purchased in Indian currency
If the bonds were purchased under a scheme approved by the Central Government
If the bonds were purchased from a recognized stock exchange located in India
None of the above
Q 2. What are the consequences of GAAR if an arrangement is declared impermissible?
The assessing officer may disregard or re-characterize any step of the arrangement
The impermissible arrangement is treated as if it had not been entered into
Expenses and income may be reallocated between the parties involved
All of the above
Q 3. What is the due date for filing a return of income if an individual is a spouse of a person required to furnish a report of Transfer Pricing (TP) Audit in Form No. 3CEB?
31st July
31st October
30th November
None of the above
Q 4. What type of institution's receipt of money or property would not trigger tax liability under specific circumstances?
Charity organization
Political organization
Social club
Business association
Q 5. What is the primary purpose of distributing dividends by a company?
To reduce the company's profits
To increase the company's profits
Attract investors and reward shareholders
Fund charitable activities
Q 6. When is the presumptive income under Section 44AD reduced to 6%?
When payment is received in cash
When payment is received by cheque or bank draft or through prescribed electronic modes
When payment is received after the due date of furnishing return of income
None of the above
Q 7. What is the minimum percentage of equity share capital or interest that a REIT holds in Holdco?
10%
25%
50%
100%
Q 8. What happens in case of a conflict between the provisions of the Income-tax Act or Rules and ICDS?
ICDS provisions shall prevail
Income-tax Act and Rules provisions shall prevail
CBDT provisions shall prevail
None of the above
Q 9. Are residents of India allowed to deduct expenses such as commission or remuneration paid to realize dividend income from GDRs?
Yes, without any limitation
No, no deduction is allowed for such expenses
Yes, with a limitation of 10% of the total dividend income
Yes, with a limitation of 30% of the total dividend income
Q 10. What distinguishes ESOPs from other forms of employee compensation?
They are provided as a replacement for salaries
They give employees the option to purchase company shares at a discounted price
They are taxed at a higher rate
None of the above
Q 11. What activities are primarily associated with Research Analysts in the securities market?
Maintaining records of holders of securities
Providing investment advice to clients
Issuing research reports and analyses on listed securities
None of the above
Q 12. How is an 'Assessee' defined under the Income-tax Act?
Any person earning income
Anyone paying taxes
Any person liable for payment of taxes or any other sum of money under the Act
Anyone who has paid advance tax
Q 13. Which participant in the securities market is responsible for the refund of application monies?
Bankers to an Issue
Portfolio Managers
Debenture Trustees
None of the above
Q 14. What types of taxes are deducted from the gross tax liability to arrive at the net tax liability during the calculation of advance tax?
TDS deducted only
TCS collected only
MAT Credit or AMT Credit only
MAT Credit or AMT Credit and Tax relief under Section 89
Q 15. What is the applicable tax rate on long-term capital gains from the transfer of equity shares if STT is paid at the time of transfer?
5%
10%
15%
Varies depending on the duration of the hold