XX Taxation in Securities Markets - 16

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Q 1. Under what residential status are all types of income, whether received in India or abroad, taxable in India?

Resident and Ordinary Resident

Resident but not an ordinary resident

Non-resident

Global resident
 
Q 2. Which entities are included in the definition of a 'Person' according to the Income-tax Act?

Only individuals

Only companies

Individuals and Hindu undivided families (HUFs)

Individuals, HUFs, companies, and partnership firms
 
Q 3. When is the transfer of capital assets between a holding company and its Indian subsidiary not regarded as a transfer?

If the subsidiary is a foreign entity

When the transfer is not approved by SEBI

When certain specified conditions are satisfied

When the transfer is temporary
 
Q 4. What is the distinguishing factor between speculative and non-speculative business transactions?

Profit margin

Tax treatment

Type of commodity traded

Volume of transactions
 
Q 5. What is the standard rate of tax deduction under Section 196 for income in respect of securities paid to Foreign Portfolio Investors?

15%

20%

25%

35%
 
Q 6. What does 'AUM' stand for in the context of computing the exemption under Section 10(23FF)?

Assets Under Maturity

Assets Under Movement

Aggregate Unit Movement

Assets Under Management
 
Q 7. What is the purpose of Income Computation and Disclosure Standards (ICDS)?

To mandate specific accounting software for all businesses.

To reduce the complexity of tax laws.

To bring uniformity in accounting policies for the computation of income.

None of the above
 
Q 8. What is the nature of capital gain arising from the transfer of Zero Coupon Bonds (ZCBs) if held for more than 12 months?

Short-term capital gains

Medium-term capital gain

Long-term capital gains

None of the above
 
Q 9. How are securities classified for valuation at the end of the previous year?

With their market value

With their par value

Due to their historical cost

By their face value
 
Q 10. What is included in the computation of income under the head 'Income from other sources'?

Only interest income

Only rental income

Certain specific income and other income not chargeable under any other head

Only lottery winnings
 
Q 11. Which of the following is not a method of issuing securities in the primary market?

Employee Stock Option

Rights Issue

Initial Public Offering (IPO)

None of the above
 
Q 12. What distinguishes Masala Bonds from other bonds?

They are issued by non-Indian entities

They are denominated in a foreign currency

They can only be traded on Indian stock exchanges

They are convertible into equity at any time
 
Q 13. What is the tax rate for short-term capital gains from the transfer of units of REIT if STT has been paid?

10%

15%

20%

30%
 
Q 14. What does "person resident in India" mean in the context of SGB investments?

Someone who owns property in India

Someone who is a citizen of India

Someone who resides in India for more than 180 days in a financial year

Someone who is defined as per the Foreign Exchange Management Act, 1999
 
Q 15. What is the tax treatment of business income for Category-I and Category-II AIFs?

Taxes in the hands of investors

Exempt in the hands of the AIF

Taxes in the hands of the AIF

Taxed at a concessional rate

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