Options
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True
Correct answer
- B
False
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X NISM Series X
Medium
#NISM XIX A for AIF Distributors
Profits arising from securities held as stock-in-trade for regular trading purposes are classified as business income, as the intention is to profit from trading activities rather than long-term investment appreciation. Such transactions are taxed under the business head, reflecting active trading rather than capital gains.
Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.