n NISM Certifications
V-A NISM Series V-A
Medium

Which tax is payable on the redemption of units of an Equity Oriented Fund?

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Dividend distribution tax

  2. Securities transaction tax

    Correct answer

  3. C

    Wealth tax

  4. D

    Alternate dividend tax

Why this is the answer

Securities Transaction Tax (STT) is applicable on the sale of units in an equity-oriented mutual fund.

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