XX Taxation in Securities Markets - 6
XX Taxation in Securities Markets - 6
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Q 1. Which of the following statements regarding circulars issued by CBDT is correct?
Circulars are legally binding on taxpayers.
Circulars are issued to clarify provisions of the Income-tax Act for taxpayers.
Circulars are issued to amend the Income-tax Act.
Circulars are binding on tax authorities but not on taxpayers.
Q 2. What is the consequence of not deducting tax from a securitization trust while distributing income to investors?
Legal action by SEBI
Imposition of additional tax on the trust
Imposition of penalty on the trust
Cancellation of registration of the trust
Q 3. Who are the Qualified Buyers mentioned in the context of taxation of securitization trusts?
Individuals investing in stocks
Banks and financial institutions
Employees of ARCs
Mutual funds
Q 4. What is the primary purpose of the secondary market?
Issuance of new securities
Providing corporate advisory services
Trading of previously issued securities
None of the above
Q 5. Which of the following is NOT eligible for exemption under Section 10(23(FBC) for unitholders of specified funds?
Income from selling units in the specified fund
Income from dividends received from the specified fund
Income from the transfer of units in the specified fund
Income from capital gains on transfer of units in the specified fund
Q 6. Under what circumstances is rental income earned from a property taxable as income from a house property?
When the owner utilizes the property for business or profession
When the owner lets out the property for residential purposes
When the owner lets out the property for commercial purposes
When the owner is engaged in manufacturing on the property
Q 7. Under what conditions is a resident HUF further categorized as Non-Ordinarily Resident in India?
If Karta travels frequently
If the HUF has investments abroad
If the manager has been a non-resident in India for at least 5 years
If the HUF has branches in multiple countries
Q 8. Which category of option gives the buyer the right to buy the underlying asset?
Call option
Add option
Future options
None of the above
Q 9. When are derivative transactions not treated as speculative?
If they are carried out through any intermediary
If they are carried out without a contract note
When they are carried out through a recognized stock exchange and registered intermediary
None of the above
Q 10. Under the Income-tax Act, what is the concessional tax rate for long-term capital gains?
10%
15%
20%
None of the above
Q 11. What is the primary purpose of circulars issued by CBDT?
Enforce tax regulations on taxpayers
To guide tax authorities
Amending provisions of the Income-tax Act
Regulating the securities market
Q 12. What conditions does the Multilateral Convention (MLI) impose regarding the period of shareholding to avail reduced tax rates on dividend income?
180 days
270 days
365 days
No minimum time limit
Q 13. What form is required to be furnished by REITs to its unit-holders and the income-tax department when distributing income to unit-holders?
Form No. 64C
Form No. 64A
Form No. 64B
Form No. 64F
Q 14. What documents are required to open an NPS account through the offline method (POP-SP)?
PAN card only
Aadhaar card only
PRAN application along with KYC documents
Birth certificate only
Q 15. What is the significance of an arrangement lacking substantial commercial purpose according to GAAR?
This indicates the need for further investigation by tax authorities
This suggests a genuine business motive behind the arrangement
It enhances the credibility of the taxpayer
This ensures compliance with international tax standards