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Advanced Wealth Management Course (IIBF) - Paper 4

Part II: Ch 5: Taxation

Q1.

The EPF Act of 1952 says that investments in provident fund or approved superannuation or gratuity schemes may be treated as expenses and exempted from tax.

True

False

Q2.

Providers of fund management services are governed by:

AMC

RBI

SEBI

Both (a) & (c)

Q3.

Under Section 10 (33)/10(35) of the I.T. Act, for investments held for less than one year the tax is equal to _________ of the capital gain.

25%

30%

10%

Q4.

(I) The taxation of gratuity is handled by section 10(33) of the Income-tax. (II) Interest earned on G-Secs is not taxable.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q5.

The EPFO is a Government body that operates the largest retirement funds in the country but is not subject to supervision by an independent regulator.

True

False

Q6.

The final amount payable at the age of retirement to a beneficiary of provident funds recognized under ___________ of the Income-tax Act, 1961.

Schedule 3

Schedule 4

Schedule 5

Schedule 2

Q7.

The taxation of commuted pension is dealt with under ____________.

Section 10 (10)

Section (33)

Section (35)

Section 10(10A)

Q8.

A mutual fund has to pay a withholding tax of ___________ on the dividends distributed by it under the revised provisions of the I.T. Act, putting them at par with corporates.

10%

20%

25%

Q9.

Which section/s of the Income-tax Act is/are relevant for mutual funds?

Section 80C of the I.T. Act

Section 54EC of the I.T. Act

Section 115R of the I.T. Act

Both (b) & (c)

All of the above

Q10.

If a person earns Rs. 2000 as interest on G-Secs, is this interest tax exempt?