XX Taxation in Securities Markets - 25

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Q 1. What is the primary purpose of FCCBs?

To issue debt in foreign currency

Funding infrastructure projects in foreign countries

Converting foreign currency into local currency

Provide tax-deductible dividends
 
Q 2. What are Pass-Through Certificates (PTCs) also known as?

Mortgage-Backed Securities

Asset-Backed Securities

Debt security

Treasury bonds
 
Q 3. Under what circumstances are securities held by Foreign Portfolio Investors (FPI) considered stock-in-trade?

When held for investment purposes

When held for trading purposes

When held for charitable purposes

None of the above
 
Q 4. When are unquoted bonus shares treated differently in terms of sale consideration?

If the shareholder is a new investor

When a shareholder is a company

When the consideration is less than the fair market value

If the shareholder is a foreign entity
 
Q 5. What action can an assessee take if they fail to file the return on time and want to carry forward their business loss?

File the return anytime within the assessment year without any consequences.

Apply to the Assessing Officer or CBDT for condonation of delay.

Carry forward the loss without any further steps.

None of the above
 
Q 6. Which of the following is NOT subject to GST regarding mutual funds?

Purchase of mutual funds

Sale of mutual funds

Exit load

All of the above are subject to GST
 
Q 7. Which transactions are excluded from the scope of 'transfer' under Section 47 of the Income-tax Act?

All types of transactions.

Only transactions involving immovable properties.

Only transactions involving money.

None of the above.
 
Q 8. Under Section 54D, what is the nature of the original asset that can be exempted if it's transferred by way of compulsory acquisition?

Residential House Property

Agricultural Land

Industrial Undertaking

Bonds of NHAI or REC
 
Q 9. What is the primary objective of CBDT's principles regarding the treatment of income from the transfer of shares and securities?

How to maximize tax revenue

Minimizing investor losses

Reduce litigation and maintain consistency

Encourage stock market volatility
 
Q 10. How are GDRs and ADRs similar?

Both are denominated in US dollars

Both represent ownership of non-US companies

Both are listed on the Indian stock exchanges

None of the above
 
Q 11. How is income from securities earned in foreign currency converted into Indian rupees for taxation purposes?

At the exchange rate on the date of receipt

At the exchange rate on the date of investment

At SBI telegraphic transfer the buying rate is on the last day of the month preceding the month in which income is due

None of the above
 
Q 12. In the computation of exemption for income from transfer of securities in a category-III AIF specified fund, what factor is used to calculate the daily AUM?

Period of holding of the security

Daily total AUM of the specified fund

Aggregate the daily AUM held by non-resident unit-holders

Date of receipt of income from securities
 
Q 13. What is the GST rate applicable to portfolio management services?

6%

12%

18%

None of the above
 
Q 14. What is the determining factor for the existence of an 'Agency PE' according to DTAA?

Ownership relationship between companies

Dependency and obligation of the principal for all the acts of an agent

Number of employees working in the host country

Annual revenue generated by the agency
 
Q 15. How does the FIFO method apply when an investor has multiple Demat accounts?

FIFO method is not applicable in such cases

The FIFO method is applied across all accounts simultaneously

FIFO method is applicable account-wise

The FIFO method is applied based on the Average holding period

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