XX Taxation in Securities Markets - 23
XX Taxation in Securities Markets - 23
Q 1. How long can non-speculative business losses be carried forward to set off against subsequent years' business income?
5 Assessment Years
6 Assessment Years
7 Assessment Years
None of the above
Q 2. What is the effect of the relaxation provided under Section 9 for the indirect transfer of capital assets held by non-residents through investment in Category-I FPIs?
Income derived from such investments is exempt from taxes in India
FPIs are liable to pay capital gains tax in India on the transfer of their shareholding in Indian companies
Non-residents are exempt from capital gains tax in India on the transfer of their investments in Category-I FPIs
Non-residents are liable to pay capital gains tax in India on the transfer of their investments in Category-I FPIs
Q 3. How is the conversion ratio defined in the context of convertible bonds?
The ratio of bond value to face value
The ratio of equity shares to bond value
The ratio of bond value to conversion price
The ratio of bond value to market price
Q 4. Under what circumstances do the GAAR provisions not apply?
If the tax benefit does not exceed Rs. 3 crores for all parties involved in the arrangement
When a foreign institutional investor has invested in listed securities without taking benefit of a tax treaty
When a non-resident person has made investments through offshore derivative instruments
None of the above
Q 5. What is the significance of distinguishing between short-term and long-term capital assets for taxation purposes?
It determines whether the gains are subject to tax or not
It affects the tax rate applicable to the gains
It affects the method of computation of gains
All of the above
Q 6. How does the tax treatment of dividend income contribute to shareholders' overall tax liabilities?
This reduces the overall tax liability
This increases the overall tax liability
It does not affect the overall tax liability
It depends on the company's profitability
Q 7. Which section of the Income-tax Act provides tax exemption for dividend income received by REITs from SPVs?
Section 10(23FC
Section 10(23FC)
Section 10(23FD)
Section 56(2)(xii)
Q 8. What distinguishes Preference Shares from Equity Shares in the securities market?
Preference shares represent ownership of a company, while equity shares represent debt.
Preference shares carry a fixed rate of dividend and get preference over equity shares in dividend distribution and surplus distribution while winding up.
Equity shares are redeemable after a specific period, while preference shares are not.
None of the above
Q 9. Which mutual funds invest in debt securities such as government bonds and debentures?
Equity Oriented Funds
Debt Oriented Funds
Money Market Funds
None of the above
Q 10. Question: What are the trading timings in an IFSC stock exchange?
- (23:50 Hours
- (06:30 Hours
- (09:00 Hours
- (16:00 Hours
Q 11. Question: Is commodity trading allowed in an IFSC stock exchange?
- (Allowed
- (Not Allowed
- (Allowed by restrictions
- (Allowed only for foreign companies
Q 12. When does income not arise under the provision regarding transactions not regarded as transfers?
Upon buying the property
Upon inheritance of assets
Upon company merger
Upon transferring assets in a divorce settlement
Q 13. What is the treatment of interest income from securities held as an investment?
Always exempt from taxation
Taxable under the head "Income from salaries"
Taxable under the head "Income from business or profession"
Taxable under the head of "Capital gains"
Q 14. What income is a resident or ordinary resident assessee liable to pay tax on in India?
Only income received in India
Only income accrued in India
Income received or accrued in India
Income received or accrued in India and outside India
Q 15. What is the consequence if a company opts to treat its listed shares as stock-in-trade?
You are now eligible for MAT exemption
It becomes ineligible for MAT exemption
They become eligible for concessional tax rates
You are now eligible for tax refunds
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