n NISM Certifications
X NISM Series X
Medium

Gains from the transfer of securities by Foreign Portfolio Investors (FPIs) are taxed under which head?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Profit and Gain from business or profession

  2. Capital Gains

    Correct answer

  3. C

    Other sources

  4. D

    None of the above

Why this is the answer

Securities held by FPIs are treated as capital assets, and gains from transfer or sale are taxed as capital gains.

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