Back to Learn
    Series XXTaxation

    NISM Series XX:
    Taxation in Securities Markets.

    The taxation specialist certification. For professionals advising on capital gains tax, securities transaction tax, dividend taxation, and DTAA provisions in the Indian securities market context.

    Rohit Singh
    Rohit SinghMr. Chartist
    April 13, 2026
    13 min read
    100
    Total Questions
    MCQs
    100
    Total Marks
    1 mark each
    2 Hours
    Duration
    120 minutes
    60%
    Passing Score
    Standard threshold
    25%
    Negative Marking
    0.25 per wrong
    ₹1,500
    Exam Fee
    + GST
    3 Years
    Validity
    CPE renewal
    For Advisers
    Mandatory
    Complementary cert

    Tax is the single most misunderstood aspect of investing in India. Retail traders routinely pay lakhs in unnecessary taxes because they don't understand the difference between **intraday income (business income)** and **F&O income (speculative)**, or the grandfathering provisions in LTCG.

    **NISM Series XX** is designed specifically for this knowledge gap. It certifies professionals in the intersection of taxation and securities markets — covering STCG/LTCG, STT, TDS on dividends, DTAA for NRIs, and the taxation of mutual funds, derivatives, and REITs.

    While not strictly mandatory for any single role, this certification is incredibly valuable for **investment advisers, wealth managers, CAs advising traders, and compliance officers** who need to understand the tax implications of every financial product.

    "

    The difference between a smart investor and a frustrated one is often just understanding how taxes work on their portfolio. Series XX closes that gap professionally.

    01. Complete Syllabus

    Chapter-by-Chapter Breakdown

    CH 1

    Income Tax Framework for Securities

    HIGH15%
    • Classification of income from securities• Business income vs capital gains• Speculative vs non-speculative income• Head of income — salary, business, capital gains• Residential status and taxability• Assessment year vs financial year
    CH 2

    Capital Gains Taxation

    HIGH22%
    • STCG and LTCG — holding period rules• Section 111A — STCG on listed securities (15%)• Section 112A — LTCG on listed securities (10% above ₹1L)• Grandfathering provisions — FMV as on 31 Jan 2018• Cost of acquisition and improvement• Indexed cost of acquisition• Capital gains on unlisted securities• Set-off and carry forward of capital losses
    CH 3

    Securities Transaction Tax (STT)

    10%
    • STT rates — delivery, intraday, F&O• STT impact on capital gains classification• STT on options — exercised vs squared off• STT set-off against business income
    CH 4

    Taxation of Specific Products

    HIGH18%
    • Mutual fund taxation — equity vs debt• Dividend taxation — post-2020 regime• F&O income — business income treatment• REIT and InvIT taxation• Sovereign Gold Bond taxation• Tax-free bonds• ETF taxation• NPS tax benefits — Sec 80CCD
    CH 5

    TDS Provisions

    HIGH12%
    • TDS on dividends — Sec 194• TDS on interest — Sec 194A• TDS for NRIs — Sec 195• TDS on sale of property• Form 15G/15H — no TDS declarations• TDS rates and thresholds• Non-deduction penalties
    CH 6

    International Taxation (DTAA)

    10%
    • NRI taxation on Indian securities• DTAA treaty benefits• Tax residency certificate• FPI taxation framework• ODI taxation• Transfer pricing — basics
    CH 7

    Compliance and Filing

    13%
    • ITR forms for traders and investors• Schedule CG — capital gains reporting• Trading reports from brokers• Advance tax requirements for traders• Tax audit — Sec 44AB for F&O traders• Penalty for non-compliance• Revised return provisions

    02. Study Strategy

    How to Prepare

    1

    Master Capital Gains (22%)

    Chapter 2 is the highest-weighted chapter. Know STCG/LTCG rates, holding periods, grandfathering rules, and loss set-off provisions cold.

    2

    Product-wise Tax Treatment

    Chapter 4 (18%) tests taxation across mutual funds, F&O, REITs, bonds, and NPS. Create a comparison table of tax treatment for each product.

    3

    Practice Numerical Calculations

    Many questions require calculating actual tax liability. Practice computing LTCG with grandfathering, indexed cost, and set-off scenarios.

    03. Career Paths

    Where This Takes You

    Tax Advisory — Securities

    Specialized tax advisory for traders and investors

    Wealth Management — Tax Planning

    Tax-efficient portfolio construction for HNIs

    CA Firms — Securities Practice

    Chartered accountant firms with broker/trader clientele

    FAQ

    Frequently Asked Questions

    What does NISM Series XX cover?

    Taxation specific to securities markets — STCG/LTCG, STT, dividend tax, F&O taxation, DTAA for NRIs, mutual fund taxation, and REIT/InvIT tax treatment.

    Is NISM XX mandatory?

    Not strictly mandatory for any single role, but highly valuable for investment advisers, wealth managers, and CAs advising on securities taxation.

    Related Certifications

    NISM X: Investment Adviser

    Full advisory certification

    Read Guide

    NISM XV: Research Analyst

    Equity research and valuation

    Read Guide

    Certification Roadmap

    All 26+ NISM series mapped

    Read Guide

    Explore All Certifications

    Series XX is one piece of the puzzle. See the complete NISM certification roadmap to plan your career path.

    Browse All NISM Exams
    Rohit Singh — Mr. Chartist

    Written By

    Rohit Singh

    Mr. Chartist

    SEBI Registered Research Analyst (INH000015297), Amazon #1 bestselling author, and the founder of Investology — a premium trading ecosystem trusted by 1.5 Lakh+ traders across India.

    INH000015297