XX Taxation in Securities Markets - 9
XX Taxation in Securities Markets - 9
Q 1. How is dividend income taxed if received from a foreign company?
I am exempt from tax
It is taxed at a flat rate
It is subject to withholding tax
It is taxed at the same rate as domestic dividends
Q 2. How are securities held by foreign portfolio investors (FPIs) treated for tax purposes?
Always treated as business assets
Always treated as inventory
Always treated as capital assets
Always treated as intangible assets
Q 3. What type of instrument is excluded from the definition of 'securities' according to the SCRA?
Mutual fund units
Scrips
ULIPs
None of the above
Q 4. What is the definition of "Derivatives" as per the Securities Contracts (Regulation) Act, 1956 (SCRA)?
Securities derived from real estate assets
Contracts based on foreign currency exchange rates
Securities derived from underlying securities or indices
None of the above
Q 5. How is interest income from Masala Bonds taxed for non-resident individuals or foreign companies?
Taxed at a flat rate of 10%
Taxed at a flat rate of 5%
Taxed at a flat rate of 4% for bonds issued before 01-07-2023 and 9% for bonds issued on or after 01-07-2023
None of the above
Q 6. What are the two most common types of equity derivatives?
Mortgage derivatives and perpetual derivatives
Add options and call options
Equity and preference shares
None of the above
Q 7. What is the Minimum Alternate Tax (MAT)?
Taxes are computed at a fixed rate on total income
Taxes are computed at special rates for specific income
Taxes computed at concessional rates for certain taxpayers
Tax computed at maximum rate on capital gains
Q 8. What is the final income under the presumptive scheme of taxation?
Adjusted income
Estimated income
Presumptive income
None of the above
Q 9. Who can avail of exemption under Section 54G(B) by investing in equity shares of an eligible company or eligible start-up?
Only Individuals
Only Hindu Undivided Families (HUF)
Both Individuals and HUF
None of the above
Q 10. How does the securities market facilitate bank lending?
By discouraging banks from offering loans
Limiting access to market information for banks
By enabling banks to easily evaluate the prices of quoted securities
None of the above
Q 11. What is the tax rate applicable to dividend income received by non-residents from GDRs purchased in foreign currency?
5%
10%
15%
25%
Q 12. Is the motive of making a profit a necessary ingredient of business according to taxation laws?
Yes
No
Sometimes
Not mentioned in the law
Q 13. If there is no trading in quoted shares and securities on any recognized stock exchange on the valuation date, how is the fair market value determined?
Based on the highest price on the date immediately preceding the valuation date
Based on the lowest price on the date immediately preceding the valuation date
Based on the average price on the date immediately preceding the valuation date
None of the above
Q 14. What is the Permanent Retirement Account Number (PRAN) in the National Pension System (NPS)?
Temporary identification numbers are assigned to subscribers
A unique number assigned to subscribers that changes over time
A unique number are assigned to subscribers that remain with them throughout their lifetime
A number that is used only for Tier II accounts
Q 15. Under which section of the Income-tax Act are the provisions related to relaxation from obtaining or quoting PAN for non-residents or foreign companies specified?
Section 139A
Section 194LBB
Section 194LC
Section 115ACA