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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