XX Taxation in Securities Markets - 2

XX Taxation in Securities Markets - 2

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Q 1. What type of trust is registered under SEBI (Real Estate Investment Trusts) Regulations 2014?

Hedge fund

Mutual fund

REIT

Pension trust
 
Q 2. How is the period of holding determined for shares of an amalgamated company in case of demerger?

Date of holding shares in the demerged company to date of allotment in the resulting company

Date of allotment of the resulting company to date of sale

Date of demerger to date of sale

None of the above
 
Q 3. Under which scheme are the services of lending securities subject to a reverse charge?

Securities Lending Scheme, 2000

Securities Lending Scheme, 2010

Securities Lending Scheme, 1997

None of the above
 
Q 4. What legislative act regulates trading in derivatives, including commodity derivatives, in India?

Securities and Exchange Board of India Act, 1992

Securities Contract (Regulation) Act, 1956

Forward Contracts (Regulation) Act, 1952

None of the above
 
Q 5. In the case of taxation of bonus shares, which provision is applied to determine the cost of acquisition of long-term capital assets?

Section 80C

Section 10

Section 112A

Section 80D
 
Q 6. Question: In which scenario is the condition of payment of STT relaxed for transactions involving specified securities?

- (Transactions undertaken by foreign residents

- (Transactions reported to the Financial Action Task Force (FATF)

- (Transactions conducted through electronic trading platforms

- (Transactions involving government securities only
 
Q 7. To what extent do the provisions of Section 115AD apply to Specified Funds?

For all income generated by the fund

Income attributable to units held by non-resident individuals only

Income attributable to units held by non-residents, excluding those who are PEs in India

Income attributable to units held by corporations
 
Q 8. Who can join the National Pension System (NPS) as per eligibility criteria?

Only Indian citizens residing in India

Only Indian citizens residing outside of India

Only Non-Resident Indians (NRIs)

Indian citizens, Non-Resident Indians (NRIs), and Person of Indian Origin (PIO) cardholders
 
Q 9. What is the maximum maturity period for Commercial Papers (CPs) in India?

3 months

6 months

9 months

24 months
 
Q 10. How is the indexed cost of acquisition calculated for determining long-term capital gains on gold ETFs?

It is calculated by subtracting the purchase price from the selling price

It is calculated by multiplying the purchase price by the Consumer Price Index (CPI)

It is calculated by multiplying the purchase price by the Capital Investment Index (CII)

It is calculated by multiplying the purchase price by the Cost of Inflation Index (CII) ratio
 
Q 11. How is "Asset Reconstruction" defined under the SARFAESI Act?

Acquisition of assets by ARCs from banks and financial institutions

Liquidation of assets by ARCs

Issuance of bonds by ARCs

Management of assets by ARCs
 
Q 12. When is the fair market value of the capital asset on the date of receipt considered as the full value of consideration?

When a partner or member receives a capital asset in connection with the reconstitution of a Firm or other AOP or BOI

When securities are transferred as a gift or under an irrevocable trust

When a non-resident redeems rupee-denominated bonds

None of the above
 
Q 13. What is the main aim of Tax Alpha?

Reduce tax liabilities

Increase tax complexity

Minimize investment returns

None of the above
 
Q 14. Under what circumstances does Section 60 of the Income-tax Act apply?

When a person transfers assets without transferring income

When a person transfers income without transferring assets

When a person transfers both assets and income simultaneously

When a person receives gifts from relatives
 
Q 15. What is the distinguishing feature of Exchange-Traded Funds (ETFs)?

They are actively managed by fund managers

They invest exclusively in government securities

They can only be traded on international exchanges

They are suitable for aggressive traders

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