Practice Set - 2 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

A trader incurs continuous losses in derivatives. These losses can be set off against:

Question 2

A trader incurs speculative loss separately. It can be set off against:

Question 3

Which method ensures correct timing of income recognition?

Question 4

If a trader understates turnover intentionally, it is considered:

Question 5

If losses are not reported in return, consequence is:

Question 6

Which component directly affects taxable income?

Question 7

If a trader does not maintain books of accounts but exceeds turnover limits, the consequence is:

Question 8

A trader switches accounting methods frequently. This may lead to:

Question 9

A trader incurs both speculative and non-speculative losses. Set-off rule is:

Question 10

If turnover is miscalculated, impact is:

Question 11

Which expense is disallowed even if related indirectly to trading?

Question 12

A trader reports only net profit without turnover details. This results in:

Question 13

If turnover is below audit limit but profits are very low, audit may still be required due to:

Question 14

If turnover is high but trader declares loss, tax authority focus is on:

Question 15

If derivative income is treated incorrectly as capital gains, the risk is:

Question 16

Which scenario reflects aggressive tax avoidance?

Question 17

If a trader fails to pay advance tax, consequence includes:

Question 18

Which factor ensures compliance with tax laws?

Question 19

Which scenario leads to under-reporting of income?

Question 20

If audit is required but not conducted, penalty applies under:

Question 21

A trader declares profits but ignores losses. This leads to:

Question 22

Which compliance reduces risk of tax notices?

Question 23

Which scenario increases audit probability?

Question 24

Which document is most critical for verifying trades?

Question 25

A trader carries forward losses beyond allowed years. This results in:

Question 26

Turnover calculation in derivatives ignores:

Question 27

A trader shows low profit despite high turnover. Tax audit applicability depends on:

Question 28

Which factor determines classification as business income?

Question 29

Which scenario may trigger scrutiny from tax authorities?

Question 30

Practice Set - 2