XX Taxation in Securities Markets - 20
XX Taxation in Securities Markets - 20
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Q 1. What does the effective tax rate include?
Only income tax
Income tax and surcharge
Income tax, surcharges, and health & education cess
None of the above
Q 2. Which entity usually determines the method of computation of capital gains for FPIs?
Securities and Exchange Board of India (SEBI)
Central Board of Direct Taxes (CBDT)
Reserve Bank of India (RBI)
None of the above
Q 3. What type of income is exempt from tax under Section 10(23(FBC) for unitholders of specified funds?
Income from employment
Income from rental properties
Income from the transfer of units in the specified fund
Income from freelance services
Q 4. Which provision of the Income-tax Act excludes the transfer of property made about the relocation of the original fund to the resultant fund?
Section 10(4E)
Section 10(4F)
Section 47(viiac)
Section 56(2)(x)
Q 5. What is the tax rate applicable to dividend income received by the investment division of Offshore Banking Units?
5%
10%
15%
None of the above
Q 6. According to Circular No. 751, dated February 10, 1997, what is the treatment of FMP rollover for taxation purposes?
It is considered a transfer
It is not considered a transfer
It is partially considered as a transfer
It is not subject to taxation
Q 7. How are Security Receipts (SRs) defined under the SARFAESI Act?
Receipts issued by banks for deposits
Receipts issued by ARCs to retail investors
Receipts issued by SEBI for regulatory compliance
Receipts issued by RBI for monetary policy operations
Q 8. What is the consequence of triggering the provisions of Section 94(7)?
The investor loses the dividend income
Short-term capital loss is disallowed for tax purposes
The investor incurs long-term capital gains
None of the above
Q 9. What does the term 'Indexed Cost of Acquisition' represent?
The original cost of acquiring a capital asset adjusted for inflation
Current market value of the capital asset
The depreciation value of the capital asset
None of the above
Q 10. How is the tax treatment of dividend income from preference shares compared to equity shares?
Different tax treatment
exempt from tax
- Taxed at a flat rate of 20%
Taxes at normal tax rates
Q 11. How is an artificial juridical person classified as a resident or non-resident in India?
With its annual turnover
By its industry sector
by the location of its subsidiaries
By the nationality of its members
Q 12. In which cases does a non-resident person have the option to pay tax either at the rate of 20% with indexation or 10% without indexation?
Bonds listed on a recognized stock exchange in India
Unlisted securities
Government securities
Rupee-denominated bonds of an Indian company
Q 13. Which entities are included in Category-II FPIs according to the SEBI (FPI) Regulations, 2019?
Government and Government-related investors
Appropriately regulated funds not eligible for Category-I FPIs
Pension funds and university funds
Insurance and reinsurance entities
Q 14. Which benefit is not allowed from long-term capital gains taxable at the rate of 20%?
Benefits of indexation
Foreign currency computation
Deduction under Sections 80C to 80U
None of the above
Q 15. Which of the following is NOT included in the definition of capital asset exclusions?
Goodwill
License to manufacture
Route Permit
All of the above are included