CA Inter Taxation - Income-tax Law MCQ Test 2

Business profits, capital gains, advance tax and income falling under other persons are the areas this practice test examines for CA Intermediate Group 1 students preparing for the January 2027 attempt. Eight questions sit in four short case scenarios, and you read the facts of a scenario before answering its questions. It covers Chapter 3 Unit 3: Profits and Gains of Business or Profession, Chapter 3 Unit 4: Capital Gains, Chapter 7: Advance Tax, Tax Deduction at Source and Tax Collection at Source, and Chapter 4: Income of Other Persons Included in Assessee's Total Income. The situations deal with presumptive taxation, the holding period for listed shares, the rate for long-term capital gains, exemption on investment in specified bonds, tax deduction on professional fees, and the clubbing of a minor's income. The paper carries 15 marks, the time limit is 30 minutes and there is no negative marking. The law applied is the Income-tax Act 1961 as amended by Finance Act 2025, notifications and circulars up to 30 June 2026, AY 2026-27, stated as at 31 October 2026. Questions are prepared with AI tools and cross-checked by independent solvers; they are not reviewed by a Chartered Accountant.

There are eight questions worth 15 marks in total, and they sit in four case scenarios. Seven questions carry 2 marks each and the last one carries 1 mark. In each scenario you are given a passage of facts about a taxpayer, a business or a payer, and the questions that follow ask you to apply the law to those facts. Several of the questions ask you to work out a figure.

The time limit is 30 minutes and the paper carries 15 marks. There is no negative marking, so a wrong answer costs you nothing. The paper is marked once at the end of the attempt. If you would rather work at your own pace, practice mode runs the same questions without a timer and lets you read the explanation for every answer as you go.

The test covers Chapter 3 Unit 3: Profits and Gains of Business or Profession, Chapter 3 Unit 4: Capital Gains, Chapter 7: Advance Tax, Tax Deduction at Source and Tax Collection at Source, and Chapter 4: Income of Other Persons Included in Assessee's Total Income. Every scenario is drawn from one of these areas, and the questions test the conditions, thresholds and rates that apply to the facts stated.

The questions apply the Income-tax Act 1961 as amended by Finance Act 2025, notifications and circulars up to 30 June 2026, for assessment year 2026-27. The law and the rules are stated as at 31 October 2026. The paper is written for CA Intermediate Group 1 students preparing for the January 2027 attempt, and it is not issued by or affiliated with ICAI.

It is a practice test by HeyArtha, written for CA Intermediate Group 1 students preparing for the January 2027 attempt. It is not issued by or affiliated with ICAI, and it is not an ICAI question paper. The questions are written from the study material and the law as it stands on 31 October 2026, so they can be used to check your working before the examination.

In exam mode the paper is timed and marked once at the end, and you receive a certificate that carries your name and your score. There is no sign-up and no payment, and nothing about a student is stored on a server. Every question on the result screen carries a Report a mistake button, so you can point out anything that reads wrong or does not match the law.

They are applied problems. Each question gives you the facts of a situation, such as a turnover with a portion of cash receipts, the dates on which listed shares were bought and sold, or the payments made by a company to a professional, and asks you to apply the relevant provision. The numerical questions ask for a computation, so it helps to set out the working before you choose an answer.

Yes. Practice mode uses the same questions with no timer, and you can read the explanation for each answer as you go through the paper. The explanations set out the provision that applies and show how the figures in the correct option are worked out. Exam mode is the timed version of the same paper, with the marking done once at the end.