NISM Series X-B: Investment Adviser (Level 2) 'Last Day Revision' Test

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NISM Series X-B: Investment Adviser (Level 2) ‘Last Day Revision’ Test

1 / 120

Ravi, who follows the Hindu religion, wants to find out which law decides how his father’s property will be shared if his father passes away without leaving a will.

a) Indian Contract Act

b) Hindu Succession Act, 2005

c) Transfer of Property Act

d) Indian Succession Act, 1925

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What is accurate about a will among the options below?

a) A WILL has to be compulsorily registered

b) A WILL cannot be revoked by the testator before his death.

c) WILL will come into effect once the Testator registers it.

d) The WILL comes into effect only after the death of the testator.

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Who gets the benefits of the Reverse Mortgage Scheme among the following?

a) Persons belonging to BPL Category

b) Persons belonging to Priority Sector

c) Senior Citizens

d) Government Employees

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Section 87A of the Income-tax Act offers a tax rebate of up to _______ to a resident individual if their total income in the previous year is less than Rs. 5,00,000.

a) Rs. 21,500

b) Rs. 25,500

c) Rs. 31,500

d) Rs. 12,500

5 / 120

What expenses are not covered by a Mediclaim policy?

a) Spectacles

b) Hearing aids

c) Lenses

d) All of the above

6 / 120

Section ______ of the Income-tax Act lists all types of income included in business income that are subject to taxation.

a) Section 28

b) Section 16

c) Section 32

d) Section 25

7 / 120

What is the basic need for a risk to be insurable among the following options?

a) Intentional loss

b) Loss should be fortuitous

c) Loss must be catastrophic

d) Non homogenous Exposure

8 / 120

Which section in the tax laws exempts agricultural income from taxation?

a) Section 10(2A)

b) Section 10(1)

c) Section 10(10D)

d) Section 10(5)

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_______ refers to a trust that obtains debt or receivables using funds it raises through the issuance of securitized debt instruments.

a) Special purpose distinct entity

b) Non banking financial companies

c) Asset reconstruction companies

d) Asset management companies

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10.

Profits earned from Infrastructure Bonds are exempt from taxes. State whether True or False.

a) True

b) False

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11.

Health Insurance and Motor Insurance supplement _________needs of an Investor.

a) Asset Protection needs

b) Income replacement needs

c) Income Protection needs

d) All of the above

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12.

If an investor is in a 30% tax bracket, then a post-tax return of 8.4% is equivalent to ________ in pre-tax terms.

a) 14%

b) 13%

c) 15%

d) 12%

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13.

Which of the following financial instruments, covered under Section 80C, has an EEE (Exempt-Exempt-Exempt) status?

a) PPF

b) NSC

c) NPS

d) SCSS (Senior Citizen Saving Scheme)

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14.

Which of the following statements is/are true regarding Securities Lending and Borrowing (SLB)?

a) Securities traded in F&O segment and liquid Index Exchange Traded Funds (ETFs) are eligible

b) SLB executed on automated, screen-based, order-matching platform

c) Both (a) and (b)

d) None of the above

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15.

If a taxpayer owns a capital asset for more than 36 months before transferring it, it is considered a long-term capital asset. However, for specific assets like listed shares (equity or preference), units of equity-oriented mutual funds, and shares of listed companies on a recognized stock exchange in India, the holding period is reduced to 12 months instead of 36 months.

a) False

b) True

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16.

A standard deduction of _________% of the Net Annual Value is permitted for _________ properties.

a) 30%; Self occupied properties

b) 30%; Let out properties

c) 20%; Self occupied properties

d) 20%; Both let out and self occupied properties

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17.

Losses from the sale of mutual funds cannot be offset against:

a) income from salary

b) income from dividends and interest

c) income from residential property

d) All of the above

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18.

What is included in capital assets among the following?

a) Agricultural land in India

b) Route permit

c) Goodwill

d) Only 1 and 2

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19.

A partial withdrawal is permitted from the accumulated pension wealth in the NPS A/c, not exceeding _________ of the contributions, excluding any contribution made by the employer, if applicable.

a) 10%

b) 25%

c) 50%

d) 30%

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20.

Pure risk is a type of risk that involves:

a) Chances of loss

b) Chances of gain

c) Chances of no loss or partial loss

d) Either A or B

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21.

Prabhat’s Debt Mutual Fund portfolio has yielded returns of 11% p.a. over a 2-year period. He is interested in understanding the real return of his portfolio, considering a 30% income tax rate and an annual inflation rate of 6%.

a) 1.60% p.a.

b) 1.70% p.a.

c) 3.50% p.a.

d) 4.70% p.a.

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22.

The individual mentioned in the will, entrusted with the responsibility to manage the deceased’s estate, is referred to as________.

a) Nominee

b) Legatee

c) Testator

d) Executor

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23.

Choosing the deductible method is a way to __________.

a) having right sum insured

b) reduce cost of premium

c) increase the cost of premium

d) reinsurance management

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24.

What is the longest duration allowed for the Reverse Mortgage Scheme?

a) 20 years

b) 25 years

c) 30 years

d) For the life of the borrower

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25.

Human Life Value is the economic cornerstone of:

a) Miscellaneous insurance

b) Property insurance

c) Life insurance

d) Liability insurance

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26.

If the accumulated corpus at the time of exit (Exit and Withdrawal before retirement) is equal to or less than ________ , the NPS subscriber has the option to withdraw the entire amount in a lump sum.

a) Rs. 1 lakh

b) Rs. 4 lakhs

c) Rs. 3 lakhs

d) Rs. 2.5 lakhs

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27.

Section 45 of the Insurance Act 1938 stipulates that no life insurance policy can be contested __________ from the policy issue date, the date when the risk begins, or the revival date (whichever is later). Additionally, a death claim cannot be rejected on any grounds whatsoever.

a) 1 year

b) 5 years

c) 3 years

d) 2 Years

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28.

A bond offers a 10% annual interest rate, and the inflation rate for the year is 5%. What is the real return?

a) 0.15

b) 0.045

c) 0.05

d) 0.0476

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29.

Who is excluded from the definition of an “Assessee” according to the Income Tax Act?

a) Any person who does not have any income during the year but has refund due with respect to last year

b) A person who is not liable to pay tax during the year but a case is pending under IT Act during the year

c) A minor having income during the year

d) A deemed assessee

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30.

Mahesh has purchased an endowment plan with a Sum Assured of Rs. 25,00,000 for 20 years, and he has also added a Critical Illness Rider. In the fifth year, he was diagnosed with Kidney Failure, and in the eighth year, he was diagnosed with a Stroke. What is true regarding the statements above?

a) Mahesh will receive the Rider benefit in both cases and the policy will cease thereafter.

b) Mahesh will receive a lumpsum amount payable under the rider for the first instance and the rider benefit ceases thereafter

c) Mahesh will receive lumpsum in both the occasions

d) Insurance company will pay the lumpsum amount during the first time and will close the policy

31 / 120

31.

Mr. Bhadra is concerned that in the event of his premature death, his property might be subject to legal disputes with creditors. To safeguard his property for his wife and children, he can establish a trust under ____________.

a) Indian Succession Act

b) Indian Trust Act

c) Income Tax Act

d) Married Women Property Act

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32.

The overall deduction under Section 80C, 80CCC, and 80CCD(1) is capped at ___________.

a) Rs.2,50,000

b) Rs.2,00,000

c) Rs.1,50,000

d) Rs.1,00,000

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33.

In which situation are the provisions of GAAR not applicable?

a) A FPI who has taken the benefit of tax treaty and has invested in listed securities

b) To any income accruing from the transfer of investments made before 01-04-2017

c) An arrangement where tax benefit in relevant assessment year arising to all the parties to the arrangement exceeds Rs. 3 crore

d) All the options given here

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34.

In which situation are the provisions of GAAR not applicable?

a) Asset Allocation

b) Financial Advising

c) Investment Strategy

d) NFinancial Planning

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35.

Which funds can be bought and sold at real-time prices instead of Net Asset Value (NAV)?

a) Exchange traded fund

b) Debt funds

c) Hybrid fund

d) Value funds

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36.

___________ is defined as a copy of a will certified under the seal of a court or competent jurisdiction.

a) Legatee

b) Trustee

c) Probate

d) Testator

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37.

What is one advantage of delaying retirement among the following options?

a) The longevity risk increases

b) The effect of inflation on the income required in retirement comes down

c) The period in retirement which has to be funded by the corpus comes down

d) All the options given here

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38.

Which of the following statements about nomination is not true?

a) Nomination has been spelt out in Section 39 of Insurance Act

b) Nominee is the person who receives the benefit in case of death of Life Assured

c) Only Individuals can be appointed as Nominee

d) Transfer of right, Title and Interest in the Policy is called Nomination

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39.

Simran, before relocating to Australia, has officially granted Sameer the authority to act on her behalf in all matters. What type of Power of Attorney (POA) has Simran chosen?

a) General POA

b) Limited POA

c) Specific POA

d) None of the above

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40.

What is true regarding the setoff of losses among the following options?

a) Short term capital loss can be set off against short term or long term capital gain

b) Long term capital loss can only be set off against long term capital gain

c) Capital loss, short term or long term, cannot be set off against any other head of income

d) All of the above

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41.

Which of the following expenses can be reduced or streamlined?

a) Loan repayments

b) Taxes

c) Entertainment expenses

d) All of the above mentioned expenses

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42.

A policy that not only provides life coverage but also guarantees a periodic cash payment of a certain percentage of the sum assured is called __________.

a) Endowment Policy

b) Term Plan

c) Whole Life Policy

d) Money Back Policy

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43.

A maximum loss of ___________ from the head of house property can be offset during the year against income taxable under business income.

a) Rs.5 lakhs

b) Rs.2 lakhs

c) Rs.3 lakhs

d) Rs.1 lakh

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44.

Which of the following is a defined benefit plan?

a) Pension

b) Annuities

c) Provident Fund

d) Gratuity

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45.

The return on equity stock for a year is 23%. The rate of inflation during the year is 5%. Calculate the real total return.

a) 17.14%

b) 19.5%

c) 20%

d) 17%

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46.

The rebate under Section 87A is not available from tax payable as per section 112A in respect of ___________.

a) Short-term capital gains arising from transfer of equity shares

b) Short-term capital gains arising from sale of fixed assets

c) Long-term capital gains arising from sale of fixed assets

d) Long-term capital gains arising from the transfer of equity shares

47 / 120

47.

Your client is uncertain about the meaning of the term “codicil.” A codicil is:

a) A term used to cover grants of probate to the legal personal representative

b) A gift of land or real estate in a will

c) The statement made at the end of a will that it has been duly attested

d) A document use to make an alteration to a will

48 / 120

48.

Which of the following statements is NOT TRUE in the case of a Power of Attorney?

a) Power of Attorney is a process of mutation

b) Powers of Attorney gives an authorization to act on behalf of a person in respect of all matters or specific matters

c) For executing a Power of Attorney, both the parties should have attained majority

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49.

What is a result of initiating retirement savings early among the following options?

a) Accumulation of large corpus due to compounding effects

b) Shorter period for which savings have to be allocated to retirement goal

c) Higher returns guaranteed over the longer investment period

d) The contribution required from savings to create the corpus is higher

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50.

When the assessee is a non-resident or a foreign company, interest received from a notified Infrastructure Debt Fund is taxable at the rate of ___________.

a) 10 percent

b) 15 percent

c) 5 percent

d) 20 percent

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51.

Which income is exempt in the hands of REIT?

a) Interest income from loan given to employees

b) Rental income from investment made by REIT in properties

c) Capital gains from transfer of shares in SPV

d) Dividend income from investment made in companies other than SPV

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52.

As per the Income-tax Act of 1961, the term ‘Assessment Year’ refers to _________.

a) Starts from April 1 every year and ends on March 31 next year

b) Starts from June 1 every year and ends on May 31 next year

c) Starts from January 1 and ends on December 31

d) Starts from Sept 1 every year and ends on Aug 31 next year

53 / 120

53. Long Term Capital Gain Tax in Debt Scheme is chargeable at:

a) Investor need to pay the least of the above two methods

b) 10% with out Indexation

c) No tax is payable for Debt schemes

d) 20% after Indexation

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54. An investor who decides to go overweight on equities is taking a:

a) Tactical asset allocation call

b) Strategic asset allocation

c) Fixed asset allocation

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55.

What statement is correct regarding share consolidation?

a) Increases the market value of the shares

b) Decreases the number of shares

c) Decreases the market price per share

d) Both 1 and 2

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56.

___________ was inserted under the Income-tax act to curb the practice of dividend stripping.

a) Section 94(7)

b) Section 36(7)

c) Section 21(4)

d) Section 16(6)

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57.

What kind of retirement benefit does the National Pension System offer to its subscribers?

a) Voluntary pension

b) Guaranteed pension

c) Defined benefit

d) Defined contribution

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58.

After paying premiums for five years on a 25-year life insurance policy with a sum assured of Rs. 10,00,000, and with premium payments made on a half-yearly basis, Surinder is unable to continue paying. Determine the Paid-Up Value.

a) Rs 5 lakhs

b) Rs 2 lakhs

c) Rs 60,000

d) Rs 3 lakhs

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59.

Senior Citizens’ Savings Scheme is available for the retired personnel of the Defence Services (excluding Civilian Defence employees) attaining the age of 50 years, subject to fulfilment of other terms & conditions. State whether True or False.

a) False

b) True

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60.

In a bonus-stripping transaction, units of mutual funds are purchased and sold near to the ________.

a) Record date

b) Exercise date

c) Allotment date

d) Issue date

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61. The taxpayer shall opt for the presumptive taxation scheme under section 44AD of IT act if his total turnover does not exceed _______.

a) Rs.1 crore

b) Rs.2 crores

c) Rs.5 crores

d) Rs.3 crores

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62. A will can be revoked or altered by the testator any number of times. The instrument through which a Will can be altered is known as:

a) Probate

b) Trust deed

c) Codicil

d) Any one of the above

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63. What is the tax benefit available on the Senior Citizen Savings Scheme?

a) Investment gives Section 80C benefits

b) Maturity value is exempt from tax

c) Interest is exempt from tax

d) All of the above

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64. Which one of these is included in ‘Capital Asset’ ?

a) Immovable Property

b) Leasehold Right

c) Movable Property

d) All of these

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65. What is the difference between Mutual Funds, Alternative investment funds and Portfolio Management schemes ?

a) Alternative investment funds and Portfolio Management schemes are regulated by RBI whereas Mutual Funds are regulated by SEBI

b) The minimum amount to be invested in Alternative investment funds and Portfolio Management schemes is very high as compared to Mutual Funds

c) Only institutional investors can invest in Alternative investment funds and Portfolio Management schemes while a common man can invest in Mutual Funds

d) All of the above

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66. Who amongst the following is not a Class I her heir according to the Hindu Succession Act?

a) Son of a Predeceased Daughter

b) Father

c) Mother

d) None of the above

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67. What is the maximum deduction that one can claim u/s 80 DD in case of severe disability

a) Rs.40,000

b) Rs 1,25,000

c) Rs.50,000

d) Rs.75,000

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68. __________ is a concept that adds value to a person’s portfolio by implementing sound tax strategies.

a) Jensen Alpha

b) Tax delta

c) Tax alpha

d) Tax beta

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69.

What accounting methods are permitted under the Income-tax Act?

a) Mercantile system

b) Either mercantile or cash system whichever is followed regularly

c) Cash system

d) All of these

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70. Akshay wants to know, what would happen to the No Claim Bonus on his car insurance after he sells his car.

a) No Claim Bonus is lost after sale of old car

b) He can avail benefit of No Claim Bonus on premium paid for Insurance taken for other purposes from same Insurer

c) He can enjoy the No Claim Bonus on the premium for his new car if he buys it within a specified period from the date of sale of his old car

d) He can enjoy only 50% benefit of the No Claim Bonus on the premium for his new car if he buys it within a specified period from the date of sale of his old car

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71.

The effective tax rate refers to a rate that includes _______ and is applicable to the income of a taxpayer.

a) Health and education cess

b) Surcharge

c) Capital gains

d) Both 1 and 2

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72.

What types of income are included in the category of ‘Income from other sources’?

a) Employees’ contribution towards staff welfare scheme

b) Deemed Income of a closely held company

c) Dividend Income

d) All of these

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73.

Point out the elements that are regarded as wages when calculating gratuity from the options below:

1. Gross income

2. Basic

3. Dearness allowance

a) Only 1

b) Only 2

c) Only 3

d) Only 2 and 3

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74.

An Indian citizen, who is not a resident under Section 6(1), will be considered a resident in India for the previous year if his Indian income during that year exceeds _______ and he is not obligated to pay tax in any other country.

a) Rs. 20 lakhs

b) Rs. 10 lakhs

c) Rs. 25 lakhs

d) Rs. 15 lakhs

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75.

Under the presumptive taxation scheme, _________ of the total turnover from business is considered as presumptive income.

a) 8%

b) 7%

c) 5%

d) 6%

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76.

Which of the following statements about endowment is not accurate?

a) If death occurs during the term of the policy then the total amount of insurance and any bonus accrued are paid out.

b) At maturity, a lump sum is paid out equal to the sum assured (plus bonus)

c) Endowment insurance is a popular plan providing protection to self and family.

d) Endowments are considerably cheaper (in terms of annual premiums) than either whole life or universal life

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77.

Mr. Mohit, currently earning Rs. 8.75 Lakh annually, expects an 8% annual increase until he retires at 60 (his current age is 36). He spends 20% of his income on himself and professional development. To provide for his family’s financial needs in case of his demise, he wants to buy insurance. Assuming the claim proceeds are invested at a 9% annual return, calculate the required insurance cover to replace his family’s income needs.

a) Rs.1.44 crores

b) Rs.2 crores

c) Data insufficient

d) Rs.1.51 crores

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78.

Which of the following is not a characteristic of personal financial planning?

a) Risk profiling of client

b) Monitoring achievement of goals periodically

c) Churning investment portfolio often to achieve best returns

d) Defining a basic asset allocation for the client

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79.

The primary goal of insurance is to ___________.

a) secure retirement income

b) save systematically

c) cover the financial impact of risk

d) build long-term wealth

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80.

Life expectancy has a direct impact on which aspect of the retirement goal?

a) Period in retirement

b) Remaining working years

c) Monthly expenses in retirement

d) Returns earned on the retirement corpus

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81. Long-term capital gains of a Debt Scheme without indexation are taxable at 10%. State whether True or False.

a) True

b) False

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82. The maximum tenure of a Reverse Mortgage Loan scheme will be __________.

a) 10 years

b) 30 years

c) 20 years

d) Till the end of the life of the borrower

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83. Capital assets like equity shares which are listed in a recognized stock exchange in India will be treated as short-term capital assets if they are held by the taxpayer for a period of not more than _________ months immediately preceding the date of its transfer.

a) 48

b) 12

c) 24

d) 36

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84. Long-term capital loss can be carried forward up to:

a) 4 assessment years

b) 8 assessment years

c) Can be carried forward without any time limit

d) Cant be carried forward

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85. Claim under the critical illness policy is payable if during the policy period the Insured is found to have contracted a critical illness and survives such critical illness for at least ___________ days from the date of its discovery.

a) 45 days

b) 30 days

c) 60 days

d) 15 days

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86. If the real rate of return is 2.83% and inflation is at 6%, then what is the investment return?

a) 9%

b) 9.50%

c) 8.83%

d) None of the above

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87. An asset allocation that is in line with an investor’s life stage, wealth stage, risk appetite, and goals is an __________.

a) Strategic asset allocation

b) Optimal Asset Allocation

c) Tactical asset allocation

d) Both 1 and 3 above

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88. All the receipts under Reverse Mortgage Loan shall be exempt from income under section 10(43) of IT Act 1961

a) TRUE

b) FALSE

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89. In case of interest rate movement, the price change is more for ________maturity bonds and less for __________maturity bonds?

a) Short; Short

b) Long; Long

c) Short; Long

d) Long; Short

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90. If an investment provides tax benefit at all three stages, it will fall under the category of _______.

a) TTE

b) ETE

c) EET

d) EEE

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91.

Who computes and announces the Cost of Inflation Index every year?

a) State Board of Direct Taxes

b) Reserve Bank of India

c) SEBI

d) Central Board of Direct Taxes

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92.

_____________ are bonds or debt securities generated from a specific pool of assets, typically, the debts or receivables of a business.

a) Plain vanilla bonds

b) Pass-through certificates

c) Unsecured debentures

d) Zero coupon bonds

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93.

The highest investment in sovereign gold bonds for trusts is ___________.

a) 15 kg

b) 10 kg

c) 20 kg

d) 5 kg

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94.

Raghuveer sold some units of a Debt Mutual Fund scheme in the financial year 2021-22. What is the amount of Security Transaction Tax he is required to pay?

a) 0.13%

b) 0.03%

c) 0.25%

d) NIL

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95.

If all transactions are conducted through a bank account, the presumptive income shall be _______ of the turnover.

a) 7%

b) 5%

c) 8%

d) 6%

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96. ________ is the rate of Income-tax applicable to the highest slab of income in the case of an individual.

a) Maximum cap rate

b) Maximum marginal rate

c) Maximum effective rate

d) Maximum floor rate

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97. The retirement corpus may require review:

a) Every year

b) Closer to the distribution period

c) Every time there is a significant change in financial situation

d) Not at all

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98. Who among the following are Insurance Intermediaries?

a) Insurance Brokers

b) Insurance Consultants

c) Insurance Surveyors and Loss assessors

d) All of the above

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99. Harishs father has given him general power of attorney. What does that mean?

a) He has given Harish the immediate right to make decisions in all matters and take action on his behalf

b) He has disinherited Harish, but Harish has the right to decide who will inherit his father's estate

c) He has given Harish the right to make decision to deal with the renting out of an apartment only

d) He has given Harish the right to appoint himself as the sole beneficiary of estate

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100.

Raj, who served for 35 years and 2 months with a company under the Payment of Gratuity Act, 1972, received a gratuity amounting to Rs. 12.57 lakh. At the time of retirement, his monthly basic salary was Rs. 36,000, and dearness allowance was Rs. 22,500. What portion of his gratuity will be taxable?

a) Rs. 75,750

b) Rs. 5,30,077

c) Rs. 2,33,250

d) Nil

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101. Which is true in case of liquidation of the company?

a) All the liabilities are paid off firstx

b) Remaining assets are distributed among the equity shareholders

c) Such distribution of assets not treated as transfer for capital gains

d) All of these

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102. An active portfolio management strategy that rebalances the percentage of assets held in various categories in order to take advantage of market fluctuations or strong market sectors?

a) Strategic

b) Tactical

c) Fixed Asset Allocation Strategy

d) None of the above

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103. In case of ULIP Insurers must provide Benefit Illustrations giving two scenarios of interest at _____ and _______

a) 6% and at 8%.

b) 4% and at 10%.

c) 6% and at 10%.

d) 4% and at 8%

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104. Raghuveer redeemed certain units of Debt Mutual Fund scheme . What is amount of Security Transaction Tax that he needs to pay?

a) 0.13%

b) 0.25%

c) 0.03%

d) NIL

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105. Unlisted Zero Coupon Bonds shall be considered as long-term capital asset if they are held for _____ months.

a) 12

b) 36

c) 24

d) 32

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106. The principle of _____________ ensures that an insured does not profit by insuring with multiple insurers

a) Subrogation

b) Contribution

c) Co-insurance

d) Utmost Good Faith

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107. The restriction in active choice of NPS is that the proportion invested in alternative investment products shall be maximum of ________.

a) 10%

b) 8%

c) 5%

d) 12%

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108. The premium payable on a ULIP is higher for the same sum assured as a term policy because

a) The period of cover is shorter

b) A portion of the premium is used for investment

c) The pool of insured is smaller

d) The risk is higher

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109. A Car Insurance Policy has a deductible of Rs. 1,000 and Co-Pay of 10%. The ascertained claim amount is Rs. 40,000/-. In this case, Car Insurance Policy will pay

a) Rs 40,000

b) Rs 39,000

c) Rs 35,000

d) Rs 35,100

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110. The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to

a) Cancel a health-based exclusion after a symptom-free period

b) Include his parents under the policy

c) Increase cover when a key life event occurs without any Medical Examination

d) Maintain cover despite a fall in investment value

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111. Which of the following is a requirement of insurable risk?

a) Small number of exposure units

b) Loss must be non-accidental

c) Loss must be fortuitous and unintentional

d) Loss can be indeterminable

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112. EMI for a loan can be worked out using the _____ function in MS Excel.

a) PV

b) NPV

c) EMI

d) PMT

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113. Which of the following is/are key features of Sovereign Gold Bonds (SGBs).

a) Denominated in grams of gold

b) Issued by RBI on behalf of Government of India (GoI)

c) Redeemed at the market price

d) All of these

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114. Which of the following statements about reverse mortgage is not true?

a) The rate of interest and the nature of interest (fixed or floating) will be decided by the lender.

b) All receipts under RML shall be taxable under Section 10(43) of the Income-tax Act, 1961.

c) The residual life of the property should be at least 20 years

d) The Reverse Mortgage loan can be prepaid at any time during the currency of the loan

115 / 120

115. Aruns taxable yearly income is Rs.15 lakh. He is told that the interest income of Rs.50,000 that he earned from his bank deposits will be taxed at the marginal rate of tax applicable to him. What tax rate does apply for Arun?

a) 10%

b) 20%

c) 30%

d) 40% Since the total income exceeds 15 Lakhs

116 / 120

116. In a critical illness rider the benefit is payable at the time of ______

a) Death of the life insured

b) Diagnosis of the illness

c) Producing the medical bills

d) Discharge from the hospital

117 / 120

117. The clubbing provision will not be applicable in case of Family Settlements

a) False

b) True

118 / 120

118. The period when the annuitant receives the payments is known as the _____________?

a) Accumulation Phase

b) Transition Phase

c) Distribution Phase

d) None of the above

119 / 120

119. In case of post office monthly income scheme, the maximum investment amount is _______ for a singly held account

a) Rs. 5.5 lakhs

b) Rs. 2.5 lakhs

c) Rs. 4.5 lakhs

d) Rs. 3.5 lakhs

120 / 120

120. In case of a Non-resident which of these is NOT taxable?

a) Income received or is deemed to be received in India

b) Income accrues or arises or is deemed to accrue or arise in India

c) Income accrues or arises outside India if it is derived from a business controlled in India or from a profession set up in India

d) None of these

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