XX Taxation in Securities Markets - 21
XX Taxation in Securities Markets - 21
Q 1. How is the tax on long-term capital gains from the transfer or redemption of bonds determined?
Fixed-rate of 15%
Variable rate based on income brackets
Fixed-rate of 20%
Exempt from tax
Q 2. What is the tax rate for long-term capital gains over Rs 1 lakh from the transfer of units of REIT?
10%
15%
20%
30%
Q 3. Which regulatory body's regulations govern the rollover of Fixed Maturity Plans (FMPs)?
SEBI
RBI
CBDT
PFRDA
Q 4. What constitutes the actual cost of securities acquired by way of purchase, as per ICDS-VIII?
Purchase price only
Purchase price and direct attributable acquisition charges
Fair market value
None of the above
Q 5. What form should be used to furnish the statement of exempt income annually by the investment division of an offshore banking unit?
Form No. 10-IK
Form No. 10-IG
Form No. 11-AIF
Form No. 14-INC
Q 6. Which of the following is NOT among the exceptions to the requirement of paying STT on the acquisition and transfer of specified securities?
Acquisition through a preferential issue approved by regulatory authorities
Acquisition through an employee stock option scheme (ESOP)
Acquisition through a recognized stock exchange in an International Financial Services Centre
None of the above
Q 7. Which entity calculates the Maximum Marginal Rate (MMR)?
Central Board of Direct Taxes (CBDT)
Reserve Bank of India (RBI)
Ministry of Finance
None of the above
Q 8. What is the meaning of "dividend" as per Section 2(22) of the Income-tax Act?
Distribution of profits by a company to its shareholders
Distribution of bonus shares to preference shareholders
Distribution of debentures to shareholders
All of the above
Q 9. Which of the following is NOT considered when determining the cost of acquisition for bonus shares?
Actual cost of acquisition
Fair market value as of 31-01-2018
Full value of the consideration received
Lower of b) and c)
Q 10. What is the requirement for university-related endowments to be eligible for registration as Category-I FPIs?
They must be in existence for more than three years
They must be in existence for more than five years
They must be in existence for more than ten years
They must have a minimum endowment value of $1 million
Q 11. Which provision of the Income-tax Act of 1961 provides relaxation for the indirect transfer of capital assets held by non-residents through investment in Category-I FPIs?
Section 10
Section 9
Section 80C
Section 44AD
Q 12. In which case is a non-resident or a foreign company not required to obtain and quote PAN?
When receiving income from units of specified AIFs
When investing in Indian stocks
When purchasing real estate in India
When opening a bank account in India
Q 13. How is "sale" defined in the context of the transfer of assets?
Passing of property without consideration
Passing of property for an agreed consideration
Passing of property in exchange for another property
None of the above
Q 14. What is the cost of acquisition of securities acquired by an assessee on the total or partial partition of a HUF or under a gift or will or an irrevocable trust, and subsequently sold as stock-in-trade?
Fair market value on the date of sale
Historical cost of the securities to the assessee
Cost of acquisition of securities to the transferor or donor
None of the above
Q 15. Which section of the Income-tax Act specifically excludes certain types of transfers from the scope of the 'transfer' for capital gains tax purposes?
Section 47(xv).
Section 2(47).
Section 47(xb).
Section 10.
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