XX Taxation in Securities Markets - 22
XX Taxation in Securities Markets - 22
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Q 1. Which of the following is excluded from the definition of capital assets as per Section 2(14) of the Income-tax Act?
License to manufacture
Gold and jewellery
Leasehold rights
Route Permit
Q 2. Which regulations of the SEBI (FPI) Regulations, 2019, outline the categories under which an FPI can seek registration?
Regulation 2
Regulation 3
Regulation 4
Regulation 6
Q 3. Under what circumstances is the condition regarding the minimum number of members relaxed for an eligible investment fund?
When the fund manager is located in an IFSC and has commenced operations
If the fund manager is registered with SEBI
If the fund manager is located outside India
If the fund manager is a publicly listed company
Q 4. What is the tax rate applicable to short-term capital gains from the sale of equity shares if the conditions specified under Section 111A are not satisfied?
-5%
-10%
-15%
Variable rates
Q 5. When must a securitization trust furnish a statement to its investors and the Income-tax department regarding income distribution?
By the end of the financial year
By the end of the assessment year
By 30th June of the financial year following the previous year
Within 7 days of income distribution
Q 6. How are profits from the transfer of right shares held as stock-in-trade taxed?
Taxes as long-term capital gains
Taxes as short-term capital gains
Taxed as business income
Determined by the shareholder
Q 7. What determines whether MLDs are taxed for short-term or long-term capital gains?
The issuer's preference
The investor's preference
Date of issuance of MLDs
Coupon rate for MLDs
Q 8. Which class of persons, as per CBDT notifications, would be exempt from tax liability on receipt of immovable property in unauthorized colonies?
Residents of authorized colonies
Residents of rural areas
Residents of metropolitan cities
Residents of government housing
Q 9. What is the tax treatment for long-term capital gains from the sale of equity shares allotted under ESOPs?
Taxable at the normal income tax rate
Taxable at a concessional rate of 10% plus surcharge and cess
Exempt from taxation
None of the above
Q 10. Are FPIs entitled to claim any deductions under Chapter VI-A for short-term capital gains from securities other than specified securities?
Yes, they can claim deductions under Section 80C to 80U
No, they are not entitled to claim any deductions under Chapter VI-A
They can claim deductions, but only under Section 80D
None of the above
Q 11. What are Secured Premium Notes (SPNs) and what features do they combine?
SPNs are debt instruments with detachable warrants, combining features of debt and equity.
SPNs are equity shares with detachable warrants, combining features of debt and equity.
SPNs are hybrid securities issued without detachable warrants, combining features of debt and equity.
None of the above
Q 12. What should be included in the turnover calculation for derivative transactions?
Premium received on sale of options and separately included premium
Only premium received on sale of options
Only reverse trades
Only separately included premium
Q 13. What is the tax treatment of the sum received from NPS in case the amount is received by the nominee on the death of the subscriber?
Fully-taxable
Exempt from tax
Taxable as per the normal tax rates
Taxable at a flat rate of 20%
Q 14. Which of the following issues is Sovereign Gold Bond (SGB) free from?
Making charges
Storage fees
Purity concerns
Market volatility
Q 15. What happens if the warrant holder does not exercise the option to take equity shares against any of the warrants held within 3 months from the date of payment for full consideration?
The warrant holder can still exercise the option after 3 months with a penalty
The warrant holder loses the right to exercise the option and the consideration made in respect of such warrants is forfeited by the issuer
The warrant holder can transfer the warrants to another person
None of the above