XX Taxation in Securities Markets - 3

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Q 1. In what scenario would the receipt of shares of a company in exchange for shares of another company be considered a transfer?

When the shares are received as a gift

When the shares are received as an inheritance

When the shares are received as part of a business reconstruction

None of the above
 
Q 2. What is the tax rate applicable to long-term capital gains from the transfer of GDRs in other cases for residents in India?

5%

10%

15%

Variable based on total income
 
Q 3. How is the tax treatment of interest income earned by REITs from SPVs different from interest income earned from other sources?

Interest income from SPVs is exempt at the REITs level, while interest income from other sources is taxable at the REITs level.

Interest income from SPVs is taxable at the REITs level, while interest income from other sources is exempt at the REITs level.

Interest income from SPVs is tax-exempt, while interest income from other sources is taxable.

There is no difference in tax treatment between interest income from SPVs and other sources.
 
Q 4. When is the due date for filing a return of income if an individual is the spouse of a person whose accounts are required to be audited?

31st July

31st October

30th November

None of the above
 
Q 5. How are payments for coupons and redemptions settled for Masala Bonds?

Settled in Indian currency

Settled in foreign currency

Settled in gold

None of the above
 
Q 6. What is the time limit allowed for investment under Section 54B for availing exemption on capital gains from the transfer of agricultural land?

1 year after the date of the transfer

2 years after the date of the transfer

3 years after the date of the transfer

No time-limit specified
 
Q 7. How can short-term capital losses be set off?

Only against long-term capital gains

Only against short-term capital gains

Against any capital gain, whether short-term or long-term

Against income from other sources only
 
Q 8. How is the effective tax rate calculated for an individual with an income of Rs. 20 lakhs?

20%

21.45%

30%

25%
 
Q 9. What is the primary criterion for determining whether income from a property is taxable as business income or income from house property?

Type of property (residential or commercial)

The amount of rental income earned

The intention of the owner while letting out the property

The location of the property
 
Q 10. What is the main intention behind the provisions of Section 94(8)?

Encourage bonus stripping

To discourage bonus stripping

To simplify tax calculations

None of the above
 
Q 11. Under what conditions is the concessional tax regime of Section 112A available for long-term capital gains from specified securities?

Payment of Goods and Services Tax (GST) at the time of transfer

Payment of Securities Transaction Tax (STT) at the time of transfer

Payment of Value Added Tax (VAT) at the time of transfer

None of the above
 
Q 12. In the case where an individual receives a sum from more than one ULIP, how is the exemption under Section 10(10(D) determined?

Exemption is automatically granted regardless of the premium amount

Exemption is granted if the aggregate premium payable on all ULIPs does not exceed Rs. 2.5 lakh

Exemption is granted if the sum assured exceeds a certain threshold

Exemption is not granted under any circumstances
 
Q 13. What happens if the tax payable as per the provisions of MAT exceeds the tax calculated as per the normal provisions?

The excess amount will be refunded to the company

The excess amount is considered MAT credit

The excess amount will be carried forward for 5 years

The excess amount is transferred to a government welfare fund
 
Q 14. How is rental income distributed by REITs to its unit-holders taxed under TDS provisions?

Taxed at 20%

Taxed at 10%

Taxed at 30% for non-residents

Exempt from TDS
 
Q 15. Which method of accounting can be followed by market intermediaries for computing their business income?

Accrual basis of accounting

Cash basis for accounting

The tax basis for accounting

Mercantile system of accounting

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