XX Taxation in Securities Markets - 17
XX Taxation in Securities Markets - 17
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Q 1. What is the GST implication on transactions involving mutual fund units?
GST is applicable on the purchase and sale of mutual fund units
GST is applicable only for the sale of mutual fund units
GST is not applicable on the purchase or sale of mutual fund units
None of the above
Q 2. Under which section of the Income-tax Act are special tax rates provided for certain income earned by a non-resident or foreign company?
Section 80LA
Section 115BA
Section 115A
Section 142(1)
Q 3. What is the primary focus of the Income-tax Act, of 1961?
Regulating the securities market
Collecting indirect taxes
Administering corporate governance
Enforcing accounting standards
Q 4. What are the turnover thresholds for eligibility under the presumptive taxation scheme under Section 44AD?
Rs. 1 crore
Rs. 2 crores or Rs. 3 crores, depending on the case
Rs. 5 crores
None of the above
Q 5. What are Dual Option Warrants designed to provide the buyer with?
Unlimited potential for capital appreciation
Limited potential for capital appreciation and limited downside risk
Fixed income with no risk
None of the above
Q 6. What defines an impermissible avoidance arrangement according to GAAR?
An arrangement designed to minimize tax liability
An arrangement lacking commercial substance
An arrangement deemed to be harmful to the economy
An arrangement aimed at increasing tax compliance
Q 7. How many installments of advance tax can be paid under the presumptive scheme up to 15th March of the relevant financial year?
One
Two
Three
None of the above
Q 8. How is the full value of consideration determined for capital gains tax when GDRs are converted into shares of the issuing company?
The market price of the shares at the time of conversion
Face value of the shares
Net asset value of the issuing company
None of the above
Q 9. What type of income prohibits market intermediaries from opting for the presumptive taxation scheme?
Salary income
Dividend income
Business income
Other sources of income
Q 10. What term is used to refer to an individual deemed a resident of India?
Resident and Ordinary Resident (ROR)
Resident but Not Ordinarily Resident (RNOR)
Deemed Resident
Resident Indian
Q 11. What is the definition of a debenture according to Section 2(30) of the Companies Act, 2013?
A share of ownership in a company
A financial instrument representing the debt of a company, whether secured or unsecured
Types of equity security issued by the company
None of the above
Q 12. When is the payer of income required to deposit the deducted tax to the credit of the Central Government?
Within 7 days of deduction
Within 14 days of deduction
Within 21 days of deduction
Within the prescribed time
Q 13. What is the objective of Tax Alpha?
Minimize tax liabilities
Maximize before-tax returns
Maximize after-tax returns
None of the above
Q 14. What is the tax rate for non-resident or foreign company unit-holders on dividend income received from SPV?
10%
15%
20%
30%
Q 15. What is the tax treatment for profit or loss arising from the withdrawal of an amount from a Tier II NPS account?
Fully-taxable
Exempt from tax
Taxable as per the normal tax rates
Taxable under the head of "Salary"
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