XX Taxation in Securities Markets - 18

Explore Additional Mock Tests Here

Q 1. How many types of adjustments are mentioned to set off capital losses?

One

Two

Three

Five
 
Q 2. When did the Income Computation and Disclosure Standards (ICDS) come into effect?

1/1/2010

1/4/2015

1/4/2016

1/4/2020
 
Q 3. How was dividend income taxed before the abolition of the Dividend Distribution Tax (DDT)?

Shareholders and unit-holders were exempt from paying tax on dividend income

Dividend income was taxed at a flat rate of 10%

Dividend income is taxed at the same rate as regular income

Dividend income is taxed only by non-resident shareholders
 
Q 4. How should other securities (not listed on a recognized stock exchange) be valued when held as inventories, according to ICDS-VIII?

Historical cost

Net realizable value

Fair market value

None of the above
 
Q 5. What is the tax rate applicable to long-term capital gains from the transfer of GDRs covered under section 115ACA for residents in India?

5%

10%

15%

Variable based on total income
 
Q 6. What is the purpose of the primary market?

Trading of existing securities

Issuance of new securities

Hedging financial risks

None of the above
 
Q 7. What are the two types of capital losses?

Short-term and medium-term

Short-term and long-term

Long-term and extended-term

Short-term and extended-term
 
Q 8. What activities are NOT performed by Registrars for an Issue?

Collecting applications from investors

Maintain proper records of applications and monies received

Determining the basis of allotment of securities

None of the above
 
Q 9. Which of the following is true regarding deductions for expenditure under the Mercantile System?

All deductions are allowed only on an accrual basis

Deductions are allowed only for expenses paid in cash

Deductions are allowed for expenses on both accrual and payment basis

Deductions are not allowed for any expenses
 
Q 10. What is the applicable tax rate on long-term capital gains from the transfer of listed equity shares if STT is not paid at the time of transfer?

5%

10%

15%

Varies depending on the duration of the holding
 
Q 11. What type of income arising from derivative transactions can be set off against any normal business income?

Speculative income

Non-speculative income

Capital gains

None of the above
 
Q 12. How are marked-to-market losses on the subsequent valuations of listed securities treated for tax purposes?

Allowed as a deduction under Section 36(1)(xviii)

Disallowed under Section 40A(13)

Taxable as business income under Section 28

Exempt from tax
 
Q 13. Under what conditions is a non-resident or foreign company exempt from filing a return of income?

If there is any income from investment in Category-I AIF

If there is any income from investment in Category-II AIF

If there is any income from investment in Category-I and Category-II AIF

If there is any income from investment in Category-IV AIF
 
Q 14. What is the rate of MAT applicable to companies?

10%

15%

18%

25%
 
Q 15. How is income earned in a Previous Year assessed for taxation?

Through tax payments in the Assessment Year

Through tax deductions in the Previous Year

Through tax payments in the Previous Year

Through tax deductions at source (TDS) in the Previous Year

Explore Additional Mock Tests Here