n NISM Certifications
X NISM Series X
Medium

The transaction that will NOT be liable to tax is the transfer of Rupee Denominated Bonds by a non-resident on a recognized stock exchange located in any IFSC, as such transfers by non-residents are exempt from capital gains tax.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Transfer of Rupee Denominated Bonds by a non-resident person to a resident person

  2. Transfer of Rupee Denominated Bonds by a non-resident on a recognized stock exchange located in any IFSC

    Correct answer

  3. C

    The interest received on Rupee Denominated Bonds

  4. D

    The redemption of Rupee Denominated Bonds

Why this is the answer

Transfers by non-residents on recognized exchanges in IFSCs are exempt from capital gains tax under specific provisions.

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