n NISM Certifications
NSM General NISM
Medium

What is the tax implication if an investor sells an investment product offering lower tax on returns before its maturity or a certain minimum period?

Practice question from Taxation Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The investment returns may become taxable.

    Correct answer

  2. B

    The investor receives an additional tax benefit.

  3. C

    The tax rate remains the same

  4. D

    The investment is considered tax-free.

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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