XX Taxation in Securities Markets - 4

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Q 1. How is the income arising from the transfer of units from REIT taxed?

Taxes under the head of "Capital Gain"

Taxed at a flat rate

Taxes under the head of "Other Sources"

Taxes at the REIT level
 
Q 2. Under what conditions is interest income from Masala Bonds exempt from tax as per Section 10(4C)?

Bonds issued before 01-07-2023

Bonds issued after 01-07-2023

Bonds issued between 17th September 2018 and 31st March 2019

None of the above
 
Q 3. Who administers and regulates the National Pension System (NPS)?

Reserve Bank of India (RBI)

Securities and Exchange Board of India (SEBI)

Pension Fund Regulatory and Development Authority (PFRDA)

Insurance Regulatory and Development Authority of India (IRDAI)
 
Q 4. Which companies are liable to pay MAT?

Only domestic companies

Only foreign companies

all companies, regardless of whether they are domestic or foreign

Only companies with high turnover
 
Q 5. Which of the following transactions is NOT regarded as a transfer for capital gains?

Redemption of zero-coupon bonds

Lending of securities

Selling shares of a foreign company

None of the above
 
Q 6. How is the full value of consideration calculated when securities allotted under ESOPs are transferred as a gift or under an irrevocable trust?

The fair market value of the securities on the date of transfer

Indexed cost of acquisition

Cost of acquisition

None of the above
 
Q 7. What is the default treatment for computing the business income of market intermediaries?

Presumptive taxation scheme

Normal provisions prescribed under Section 28 to Section 44DB

Capital gains taxation

Dividend taxation
 
Q 8. Which type of derivative contract involves an agreement to buy or sell an underlying asset at a fixed price in the future?

Futures contract

Options contract

Forward contract

Currency derivatives contract
 
Q 9. What type of income is specified as ineligible for loss set-off under Section 115BB and Section 115BBJ of the Income-tax Act?

Income from agriculture

Income from speculative activities

Income from rental properties

Income from investments
 
Q 10. How is interest income from SPV taxed in the hands of non-resident or foreign company unit-holders?

Taxed at a flat rate of 20%

Taxed at a flat rate of 30%

Taxed at a flat rate of 5%

Exempt from tax
 
Q 11. Who is required to compute taxable income by the notified ICDS?

Only large businesses with turnover exceeding Rs. 1 crore

Only individuals earning income from salary

Every assessee earning income taxable under specified heads

None of the above
 
Q 12. According to Section 145A of the Income-tax Act, how should the value of securities held as stock-in-trade be determined?

By the Securities Valuation Act

By the Securities and Exchange Board of India (SEBI) guidelines

By Income Computation and Disclosure Standards (ICDS)

By International Financial Reporting Standards (IFRS)
 
Q 13. Among the listed options, which entity is NOT explicitly mentioned as an intermediary in the SEBI regulations?

Merchant bankers

Depositories and depository participants

Clearing members of clearing corporations or clearing houses

Venture Capital Funds
 
Q 14. How are capital gains taxed when shares acquired through an amalgamation are held as capital assets?

Exempt from tax

Taxed at a flat rate of 10%

Added to total taxable income and taxed as per applicable tax rates

Determined by the shareholder
 
Q 15. What is the primary responsibility of Asset Reconstruction Companies (ARCs)?

Issuing bonds to retail investors

Managing NPAs for banks and financial institutions

Regulating the stock market

Facilitating mergers and acquisitions

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