Practice Set - 2 | Practice Set | NISM Series XXI-B: Portfolio Managers Certification Examination

Question 1

A taxpayer receives dividend income and assumes no tax applies because tax was already paid by the company. This assumption is:

Question 2

Can tax-efficient investing legally involve choosing between dividend-paying and growth-oriented investment options?

Question 3

Can an investor legally reduce taxable capital gains by realizing losses on other investments during the same financial year?

Question 4

A taxpayer realizes gains in one year and matching losses in the next year. Compared to realizing both in the same year, this may:

Question 5

Can frequent buying and selling of shares result in income being classified as business income instead of capital gains?

Question 6

A taxpayer focuses only on pre-tax returns while comparing investments. The most important overlooked factor is:

Question 7

Indexation primarily benefits taxpayers when:

Question 8

A taxpayer has long-term capital loss from debt securities and short-term capital gain from equity shares. The loss can generally be adjusted against:

Question 9

A taxpayer earns both exempt agricultural income and taxable salary income. Agricultural income may still affect:

Question 10

An investor delays selling a profitable equity investment by one month to cross the long-term holding threshold. The main objective is to:

Question 11

A taxpayer incurs capital loss but does not file returns within the prescribed time. The main consequence may be:

Question 12

A taxpayer invests in a tax-saving instrument solely to reduce taxes, despite poor suitability. This highlights the risk of:

Question 13

An investor sells listed equity shares after 11 months at a loss and listed debt securities after 14 months at a gain. The equity loss can generally be adjusted against:

Question 14

Can a taxpayer claim tax deductions and still be required to pay advance tax?

Question 15

A taxpayer sells a profitable investment and immediately reinvests in an eligible exemption instrument. The main tax objective is to:

Question 16

A taxpayer chooses a tax-saving investment with a lock-in period despite lower returns. This decision primarily reflects:

Question 17

Which of the following is most likely to be taxed at slab rates rather than special capital gains rates?

Question 18

Can minimizing taxes ever conflict with maximizing overall investment returns?

Question 19

Can a taxpayer avoid advance tax liability simply by postponing income recognition without legal basis?

Question 20

Practice Set - 2