Free Practice Questions for FPSB Retirement & Tax Specialist

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Key Facts: FPSB Retirement & Tax Specialist Exam

75 Q

Total written exam questions

FPSB India Program Guide

120 min

Total exam duration

FPSB India Program Guide

51%

Weight of Retirement planning

FPSB India Exam Blueprint

₹8,000

Exam fee per attempt

FPSB India Student Portal

FPSB India Retirement and Tax Planning Specialist Exam is a modular CFP pathway test of 75 MCQs over 2 hours. Fees are ₹8,000 per attempt. No static passing score; difficulty is equated monthly. Pre-exam course score must be 70%+.

Sample FPSB Retirement & Tax Specialist Practice Questions

Try these sample questions to review concepts for the FPSB Retirement & Tax Specialist exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following is the primary objective of the accumulation phase in retirement planning?

A.Maximizing current consumption while minimizing debt

B.Building a corpus through regular savings and investment compounding

C.Liquidating assets to generate regular monthly pension income

D.Transferring wealth to the next generation with minimum tax liability

Explanation: The accumulation phase is the period during an individual's working life when they save and invest to build a retirement corpus. Compounding returns over a long investment horizon are utilized to grow the wealth needed for retirement.

2What is the maximum entry age for a subscriber under the National Pension System (NPS) Private Sector All Citizens Model?

A.60 years

B.65 years

C.70 years

D.75 years

Explanation: PFRDA has increased the entry age for the National Pension System (NPS) Private Sector All Citizens Model to 70 years. Any Indian citizen (resident or non-resident) aged between 18 and 70 years can join NPS.

3Which of the following annuity options provides payments to the annuitant for life, and after their death, to their spouse, with eventual return of the purchase price to the nominee?

A.Life annuity without return of purchase price

B.Annuity payable for a guaranteed period of 5, 10, or 15 years

C.Joint life survivor annuity with return of purchase price

D.Deferred annuity for a single life with inflation indexation

Explanation: A joint life survivor annuity with return of purchase price (ROP) pays the primary annuitant for life, then pays the spouse for life, and upon the death of the spouse, the original investment (purchase price) is returned to the nominee.

4Under the Employees' Provident Fund Scheme, 1952, what is the standard statutory percentage of basic salary and dearness allowance contributed by an employee?

A.8.33%

B.10.00%

C.12.00%

D.15.00%

Explanation: The standard employee contribution to the Employees' Provident Fund (EPF) is 12% of their basic wages, dearness allowance, and retaining allowance (if any).

5Which of the following retirement income schemes is backed by the Government of India and specifically tailored for citizens aged 60 years and above, offering monthly interest payments?

A.Public Provident Fund (PPF)

B.Senior Citizens Savings Scheme (SCSS)

C.National Savings Certificate (NSC)

D.NPS Tier-II Account

Explanation: The Senior Citizens Savings Scheme (SCSS) is a government-backed savings scheme for individuals aged 60 and above. It offers a attractive quarterly/monthly interest payout and qualifies for tax deductions under Section 80C.

6What is the maximum investment limit allowed per individual in the Senior Citizens Savings Scheme (SCSS) as per the revised rules?

A.₹15 Lakh

B.₹20 Lakh

C.₹30 Lakh

D.₹50 Lakh

Explanation: The maximum deposit limit for the Senior Citizens Savings Scheme (SCSS) was increased to ₹30 Lakh per individual starting from FY 2023-24.

7Which of the following describes the lock-in period for the Public Provident Fund (PPF) in India?

A.3 years

B.5 years

C.10 years

D.15 years

Explanation: A PPF account matures after 15 financial years from the end of the financial year in which the account was opened, which effectively makes it a 15-year long-term lock-in investment.

8Under the Payment of Gratuity Act, 1972, what is the minimum continuous service required for an employee to become eligible for gratuity?

A.3 years

B.5 years

C.7 years

D.10 years

Explanation: As per Section 4 of the Payment of Gratuity Act, 1972, gratuity is payable to an employee on termination of employment after they have rendered continuous service for not less than 5 years.

9What is the maximum limit of tax-exempt gratuity an employee can receive under Section 10(10) of the Income Tax Act?

A.₹10 Lakh

B.₹20 Lakh

C.₹25 Lakh

D.₹30 Lakh

Explanation: The maximum tax-exempt limit for gratuity received by employees covered under the Payment of Gratuity Act, as well as non-covered private sector employees, is ₹20 Lakh.

10In the context of the National Pension System (NPS), what does the term 'PRAN' stand for?

A.Personal Retirement Account Number

B.Permanent Retirement Account Number

C.Pension Registry Access Node

D.Provident and Retirement Allocation Net

Explanation: PRAN stands for Permanent Retirement Account Number, which is a unique 12-digit number allocated to each subscriber joining the National Pension System.

About the FPSB Retirement & Tax Specialist Exam

The FPSB Retirement and Tax Planning Specialist exam is a modular certification exam testing competencies in retirement needs analysis, tax planning, cash flow optimization, and cross-border taxation. It consists of 75 MCQs to be completed in 2 hours.

Exam sponsor: Financial Planning Standards Board (FPSB) India. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

75 questions

Time Limit

2 hours

Passing Score

Equated monthly based on difficulty

Exam / Certification Fees

₹8,000

Exam sponsor website

Reported exam pass rate: Not published. Determined by FPSB India based on periodic difficulty standardizations. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

51%

Retirement Planning

Retirement needs analysis, retirement cash flow, pension plans, and withdrawal strategies.

49%

Tax Planning and Optimization

Taxation principles, income tax planning, wealth tax, international taxation, and optimization strategies.

Preparing for the FPSB Retirement & Tax Specialist Exam

What You Need to Know

Passing score: Equated monthly based on difficulty
Exam length: 75 questions
Time limit: 2 hours
Exam / certification fees: ₹8,000 Official sources

Using Our Practice Resources

Work through all 100 available questions
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FPSB Retirement & Tax Specialist: Suggested Study Strategy

1Ensure you master both retirement formulas (like annuity due/ordinary annuity for savings) and Indian tax slab rules under old and new regimes.

2Understand the mechanics of key retirement products in India such as NPS, EPF, PPF, and SCSS.

3Pay attention to capital gains tax rates, indexation benefits, and taxation of different investment products.

4Consistently complete practice exams under timed conditions (120 minutes limit for 75 questions).

5There is no negative marking, so attempt every one of the 75 questions - never leave an answer blank.

Frequently Asked Questions

What is the FPSB Retirement & Tax Planning Specialist exam format?

The exam consists of 75 multiple-choice questions (MCQs) with a total time limit of 2 hours. It is computer-based and conducted in-person at NSEIT centers or via online proctoring.

What is the passing score for this specialist exam?

There is no fixed passing percentage (such as 60% or 70%). FPSB India sets the passing standard through a periodic standard-setting process based on uniform difficulty metrics.

Is there negative marking in the FPSB Retirement & Tax Planning Specialist exam?

No. There is no negative marking, so no marks are deducted for wrong answers. Candidates should attempt all 75 multiple-choice questions within the 2-hour window.

Are there prerequisites for registering for the retirement & tax exam?

Yes. Candidates must have an active student registration with FPSB India, complete the modular coursework, and score 70% or higher on individual portal course tests.

What is the cost of the FPSB Retirement & Tax planning exam?

The exam fee is ₹8,000 per attempt. Additional registration fees (₹18,000 for 1-year registration) and course material fees (₹6,500) may also apply.