XX Taxation in Securities Markets - 24
XX Taxation in Securities Markets - 24
Q 1. What is the difference between the face value and issue price of a Commercial Paper (CP) treated for tax purposes?
Taxable as interest income
Taxable as dividend income
Taxable as rental income
Exempt from tax
Q 2. How is the tax rate applied to gains or losses arising from derivative transactions for Foreign Portfolio Investors (FPIs)?
10%
20%
30%
None of the above
Q 3. How is rental income from real estate assets owned by REITs taxed in the hands of unit-holders?
Taxes at the REIT level
Taxes at the maximum marginal rate
Taxes at the government level
Exempt from tax
Q 4. Which regulatory body oversees derivative transactions in India?
RBI
SEBI
IRDAI
None of the above
Q 5. What is the role of a Depository Participant (DP) in the securities market?
Offering investment advice to clients
Provide credit ratings for listed securities
Maintaining records of holders of securities and offering depository services
None of the above
Q 6. What is considered the cost of acquisition for the conversion of bonds/debentures/debenture-stock/deposit certificates into shares or debentures of the same company?
The price paid for the acquisition of original bonds, debentures, or debenture certificates
Average market price during the holding period
Fair Market Value as of date of conversion
None of the above
Q 7. What is the tax rate for long-term capital gains from the transfer of units from REIT if the units are listed?
Taxable at 10%
Taxable at 20%
Taxable at 15%
Taxable at the maximum marginal rate
Q 8. What is the last date for filing a revised return (or belated return) for any previous year?
31st July
31st October
30th November
None of the above
Q 9. What is the role of the Income-tax Rules, 1962?
Collection of Securities Transaction Tax (STT)
Imposition of Goods and Services Tax (GST)
Administering Direct Taxes
Issuing circulars to clarify tax provisions
Q 10. What is the relationship between the closing stock of one year and the opening stock of the next year?
They are valued independently based on market conditions
Next year's opening stock of the next year is always valued at the cost price
The closing stock of the year becomes the opening stock of the next year
Next year's opening stock next year is always valued at net realizable value
Q 11. In what scenarios should the difference in reverse trades be included in turnover computation?
Always
Never
Only when favorable
None of the above
Q 12. What provision allows the reduction of long-term capital gains from an individual's or HUF's total income to fully claim the maximum exemption limit?
Section 80C
Section 112A
Section 111A
None of the above
Q 13. What does CGST stand for?
Central Government Sales Tax
Central Goods and Services Tax
Central General Sales Tax
None of the above
Q 14. What is the primary investment focus of Equity Oriented Mutual Funds?
Real estate assets
Gold and precious metals
Equity shares in domestic companies
Infrastructure projects
Q 15. How are EGRs classified in terms of capital gains taxation based on their holding period?
Held for more than 3 months for short-term capital gains and less than 1 year for long-term capital gains
Held for more than 1 year for short-term capital gains and less than 3 years for long-term capital gains
Held for more than 1 year for long-term capital gains and less than 3 years for short-term capital gains
Held for more than 36 months for long-term capital gains and less than 12 months for short-term capital gains
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