XX Taxation in Securities Markets - 8

Get More Mock Tests Here

Q 1. How is rental income treated in InVITs compared to REITs for taxation purposes?

Rental income is exempt from InVITs

Rental income is taxed in the hands of unit-holders in InVITs

Rental income is taxed in the hands of the InVIT itself

Rental income is taxed in the hands of the sponsor
 
Q 2. What is the significance of 'Permanent Establishment (PE)' in DTAA?

It determines the corporate tax rate

This determines the withholding tax rate

It determines eligibility for tax credits

It determines eligibility for tax deductions
 
Q 3. What is commonly known as the 'angel tax' according to the Income Tax Act?

Tax on capital gains from the sale of angel investments

Tax on dividends received from angel investors

Tax on income from other sources arising from the issue of shares at a premium

Tax on profits earned by angel investors
 
Q 4. What is the treatment of the cost of acquisition and holding period of equity shares obtained through the conversion of preference shares?

The cost of acquisition is nil and the holding period starts from the date of conversion.

The cost of acquisition is the same as that of the preferred shares and the holding period starts from the date of acquisition of preference shares.

The cost of acquisition is the market value at the time of conversion and the holding period starts from the date of conversion.

None of the above.
 
Q 5. Question: Are there limitations on the type of securities that can be listed on IFSC stock exchanges?

No limitations

- (Only debt securities are allowed

- (Only equity securities are allowed

- (Only government securities are allowed
 
Q 6. Which market participant provides investment advice to clients for consideration?

Share Transfer Agents

Credit Rating Agencies

Investment Advisors

None of the above
 
Q 7. How is the location of supply determined for GST purposes?

Location of the buyer

Location of the seller

Location of the supplier and place of supply

None of the above
 
Q 8. When can employees exercise their options to acquire shares under an ESOP?

Immediately upon receiving the options

After the company goes public

After the vesting period

None of the above
 
Q 9. How is the period of holding determined for securities held in Demat form?

Last-in-First-Out (LIFO) method

Average Cost Method

First-in-First-Out (FIFO) method

Random selection method
 
Q 10. How long can losses from speculative transactions be carried forward?

2 years

4 years

6 years

Indefinitely
 
Q 11. What is the risk associated with issuing Debt for Equity Swaps from the issuer's perspective?

Increased interest burden

Decreased debt-issuing capacity

Dilution of earnings per share

Tax-deductible dividends
 
Q 12. What is the purpose of disallowing certain benefits from concessional long-term capital gains?

To encourage investment

To discourage tax evasion

To simplify tax calculations

None of the above
 
Q 13. What are the two main ways shares and securities can be held?

As capital assets or as trading assets

as tangible assets or as intangible assets

Like liquid assets or illiquid assets

Listed assets or unlisted assets
 
Q 14. Under which section of the Income-tax Act are losses not allowed to be set off against undisclosed income found during search/survey?

Section 79A

Section 115BB

Section 115BBE

Section 115BBI
 
Q 15. Which assets, even if meant for personal use, are not considered personal effects and are taxed upon sale?

Agricultural land

Precious Stones

Jewellery

Paintings
 
Get More Mock Tests Here