Taxation in Securities Markets Cert. Free Demo Test 2 /10 Taxation in Securities Markets Cert. Free Demo Test 2 1 / 10 1. The lending fees on lending of securities are liable to GST on the reverse charge mechanism. a. True b. False Explanation:Securities lending fees are subject to GST under the reverse charge mechanism. This means the recipient of the lending service is responsible for paying the GST directly to the government, rather than the supplier. 2 / 10 2. The employer will not be treated as an assessee-in-default if the employee has paid the tax due and furnishes a certificate from an accountant in ________. a. Form 26A b. Form 21C c. Form 12D d. Form 4B Explanation:If the employee pays the tax due and provides a certificate from an accountant in Form 26A, the employer will not be treated as an assessee-in-default. 3 / 10 3. The employer will not be treated as an assesses-in-default if the employee has furnished his return of income under ________. a. Section 134 b. Section 112 c. Section 191 d. Section 139 Explanation:If the employee has furnished their return of income under Section 139, the employer will not be treated as an assessee-in-default. 4 / 10 4. The Category-II FPIs shall include ________. a. Charitable organizations b. University funds c. Sovereign wealth funds d. Only 1 and 2 Explanation:Category-II Foreign Portfolio Investors (FPIs) include charitable organizations and university funds among their constituents. 5 / 10 5. ________ create a plan of action for the benefit of clients. a. Portfolio manager b. Investment advisor c. Distributor d. Depository Explanation:Investment advisors create a plan of action for the benefit of clients, providing personalized financial advice and strategies to meet their investment goals and objectives. 6 / 10 6. COE is derived based on the CAPM as a function of the risk-free rate _______. a. Alpha b. Gamma c. Delta d. Beta Explanation:Cost of Equity (COE) is derived based on the Capital Asset Pricing Model (CAPM) as a function of the risk-free rate and beta. Beta represents the systematic risk of an investment relative to the overall market. 7 / 10 7. The shareholders or unit-holders were exempt from paying tax on the dividend income. a. True b. False Explanation:Shareholders or unit-holders were indeed exempt from paying tax on dividend income. This exemption was applicable until the Finance Act of 2020 introduced tax on dividend income in certain cases. 8 / 10 8. The payments of coupons and redemptions in the case of masala bonds are settled in foreign currency. a. True b. False Explanation:In the case of masala bonds, payments of coupons and redemptions are settled in foreign currency, typically the currency of issuance (like US dollars or euros), rather than in Indian rupees. 9 / 10 9. In the case of a Non-resident which of these is NOT taxable? a. Income received or is deemed to be received in India b. Income accrues or arises or is deemed to accrue or arise in India c. Income accrues or arises outside India if it is derived from a business controlled in India or from a profession set up in India d. None of these Explanation:For non-residents, income that accrues or arises outside India and is not derived from a business controlled in India or from a profession set up in India is not taxable in India. 10 / 10 10. For a non-resident Indian, the interest received from bonds of an Indian PSU is taxable at _______. a. 10% b. 15% c. 20% d. 25% Explanation:Interest received from bonds of an Indian Public Sector Undertaking (PSU) by a non-resident Indian is taxable at a rate of 10%. Your score is 0% Restart quiz Exit