📊 NISM Series V-D Chapter 8 of 22 ⚖ 3 of 150 marks weightage

Ch.8: Taxation

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 8: Taxation — covering the classification of equity-oriented vs. non-equity funds for tax purposes, capital gains taxation (including the post-April 2023 debt fund rules and the grandfathering rule for equity LTCG), indexation benefit, TDS for residents and NRIs, ELSS tax benefits and lock-in, and set-off/carry-forward of capital losses. Carries 3 out of 150 marks. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

Classification of funds as equity-oriented or non-equity for taxation purposes, and how this determines the applicable capital gains tax treatment
Capital gains taxation for debt funds (post-April 2023 rules) versus the grandfathering rule for long-term capital gains on equity funds under Section 112A
Indexation benefit for non-equity funds, and Securities Transaction Tax (STT) applicability
Equity Linked Savings Scheme (ELSS) — tax benefits under Section 80C, lock-in period, and its role in tax planning
Tax Deducted at Source (TDS) rules for resident and NRI investors, and set-off/carry-forward provisions for capital losses

Key Terms:Equity-Oriented FundLong Term Capital Gains (LTCG)Grandfathering Rule (Section 112A)IndexationEquity Linked Savings Scheme (ELSS)Tax Deducted at Source (TDS)Securities Transaction Tax (STT)Set-off and Carry ForwardNRI TaxationSection 80C

Free Sample Question

Q1MCQEasyELSS features

What is the mandatory lock-in period for investments made in Equity Linked Savings Schemes (ELSS)?

A1 year

✓3 years

C5 years

DNo lock-in period

💡 Equity Linked Savings Schemes (ELSS) come with a mandatory lock-in period of 3 years from the date of investment. This is the shortest lock-in period among all Section 80C tax-saving instruments.

24 more questions in this chapter

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About this content: These practice questions are based on the NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination Workbook published by the National Institute of Securities Markets (NISM), Mumbai (March 2026 edition). NISM is a SEBI-established institution. Questions cover Chapter 8: Taxation with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 24, 2026.

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