NISM-Series-XX: Taxation in Securities Markets Certification Examination

This exam is discontinued now.

NISM Series XX

Taxation in Securities Markets

DISCONTINUED

About the Examination

NISM-Series-XX-Taxation in Securities Markets Certification Examination seeks to create knowledge amongst market participants about the different taxation aspects in the Securities Markets.

It is a voluntary examination and is open to all. This examination can be taken by professionals who want to know about the different taxation aspects in the Securities Markets.

Where to find details?

NISM Exam Dates & Schedule

How to do NISM Exam registration?

Find NISM Study Notes & Material

NISM Training Videos on YouTube

What is the Assessment Structure for NISM XX Taxation in Securities Markets Certificate Exam ?

Multiple Choice Questions [50 questions of 1-mark each]	50 x 1 = 50 marks
Multiple Choice Questions [25 questions of 2-marks each]	25 x 2 = 50 marks
Total [75 questions]	100 marks
Negative Marks	0.25 marks in case of a 1-mark 0.50 marks in case of a 2-marks question
Total Duration	2 hours
Passing score	60%
Certificate Validity	3 years
Certificate Renewal	Attend NISM CPE Session or Take NISM Exam again

What are the Chapterwise Weightages for Taxation in Securities Markets Certification Exam ?

Unit No.	Unit Name	Weightage (%)
Unit 1	Introduction to Securities Markets	5%
Unit 2	Concepts in Taxation	15%
Unit 3	Capital Gains	7%
Unit 4	Income from Other sources	2%
Unit 5	Taxation of Debt Products	21%
Unit 6	Taxation of Equity Products	21%
Unit 7	Taxation of Other Products	10%
Unit 8	Business Income	5%
Unit 9	Taxation in the hands of Intermediaries	2%
Unit 10	Taxation - In the hands of Foreign Portfolio Investors (FPIs)	3%
Unit 11	Tax Implications of IFSC	2%
Unit 12	Tax provisions for special cases	5%
Unit 13	Indirect Taxes in Securities Markets	2%

Syllabus for Taxation in Securities Markets Certification Exam

Part 1- Introduction and Basic Concepts

Chapter 1: Introduction to Securities Markets

1.1 Know the Securities Market and Securities: Definitions and Features
1.2 Know the Securities Markets: Structure and Participants
1.3 Understand the Securities Markets: Products and Features
- 1.3.1 Cover all securities market products (various types of equity, debt, derivatives, commodities etc.)
- 1.3.2 Masala Bonds
- 1.3.3 FCCBs
- 1.3.4 ADRs, GDRs
- 1.3.5 Security Receipts (ARC)/Securitisation/PTC
- 1.3.6 REITs and InvITs
- 1.3.7 AIFs
1.4 Know the Sources of Tax Regulations in Securities Markets (Sources: GST Council, CBDT Circulars, IT Act, IT Rules)

Chapter 2: Concepts in Taxation

2.1 Learn about Assessment Year
2.2 Learn about Previous Year
2.3 Learn about Person
2.4 Learn about Assessee
2.5 Learn about Residential Status
2.6 Know the Scope of Income
2.7 Understand the different heads of Income (giving examples of securities markets under the different heads)
- 2.7.1 Salary Income
- 2.7.2 House Property Income
- 2.7.3 Profits and Gains of Business or Profession (To be dealt in detail)
- 2.7.4 Capital Gains (LTCG & STCG) (To be dealt in detail)
- 2.7.5 Income from Other Sources (To be dealt in detail)
2.8 Know the Deductions
2.9 Learn about the Exemptions (add all exemptions in annexure with cross reference)
2.10 Know the Rebates
2.11 Know the Gross Taxable Income
2.12 Know the Taxable Income
2.13 Know the Tax Payable
2.14 Learn about the Clubbing of income
2.15 Know the Set off and Carry Forward of Loss
2.16 Understand the difference between investing and dealing in shares and securities
2.17 Learn about the Alternate Minimum Tax (AMT) and Minimum Alternate Tax (MAT)
2.18 Learn about the Double Tax Avoidance Agreement (DTAA)
2.19 Learn about the General Anti-Avoidance Rules (GAAR)
2.20 Know the Exempt Exempt Tax (EET)
2.21 Know the Exempt Exempt Exempt (EEE)
2.22 Know the Exempt Taxable Taxable (ETT)
2.23 Know the Marginal Rate of Tax
2.24 Know the Effective Rate of Tax
2.25 Know what are Tax alpha

Chapter 3: Capital Gains

3.1 Understand what are Capital Assets
3.2 Know the Transfer of capital asset
3.3 Learn about the Transactions not regarded as transfer
3.4 Understand the tax aspects regarding Gifts and Inheritances
3.5 Understand the Computation of capital Gains

Chapter 4: Income from Other sources

4.1 Know Deemed gift tax
4.2 Learn about the Interest and Dividend
4.3 Income Computation and Disclosure Standards (ICDS)

Part II - Provisions in respect of Investors

Chapter 5: Taxation of Debt Products

5.1 Explain the Sources of Income
- 5.1.1 Interest Income
  - 5.1.1.1 Accrual Basis
  - 5.1.1.2 Receipt Basis
- 5.1.2 Capital Gains
5.2 Describe the Types of debt products
- 5.2.1 Coupon Bond
- 5.2.2 Zero Coupon Bonds & Deep Discount Bonds
- 5.2.3 Convertible Bonds
- 5.2.4 Commercial Papers
- 5.2.5 Government Securities
- 5.2.6 Tax Free Bonds
- 5.2.7 Tax treatment when bonds become Listed from Unlisted
- 5.2.8 Other than equity MFs
- 5.2.9 Masala Bonds and FCCB
- 5.2.10 Security Receipts
- 5.2.11 Pass Through Certificates (PTC)

Part III- Provisions in Respect of Traders

Chapter 8: Business Income

8.1 Know Speculative/Non Speculative Business Income
8.2 Understand the Method of accounting
8.3 Learn about the Valuation of stock-in-trade
8.4 Learn about the Valuation of stock in special cases
8.5 Understand the Actual cost of assets
8.6 Understand the Computation of business income
8.7 Know about Set off and carry forward of Business Loss
8.8 Learn about the Relevance of ICDS

Annexures

A. Compliances by Tax payers
- a. Maintenance of Records
- b. Filing of Returns (due date)
- c. Penalty for non-compliance
B. Summarised tax tables - product wise
C. Summarised tax tables - other products
D. Recent Developments
E. Exemptions and Deductions with cross reference
Cross References