CA Inter Taxation - Income-tax Law MCQ Test 4

Deductions from gross total income, the computation of the tax liability and advance tax are the three areas this practice test works through 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 before answering the questions attached to each one. It covers Chapter 6: Deductions from Gross Total Income, Chapter 9: Income-tax Liability - Computation and Optimisation, Chapter 2: Residence and Scope of Total Income, and Chapter 7: Advance Tax. The situations deal with an employer contribution to a pension scheme, deductions for investments and health insurance, the tax payable under the two regimes, the scope of total income for a resident but not ordinarily resident individual, and the due date for advance tax. 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.

The paper carries 15 marks and 8 questions, arranged in 4 case scenarios. Seven questions are worth 2 marks each and the last one is worth 1 mark. Each scenario gives the facts of a situation, and the questions attached to it ask you to apply the Act. The time limit is 30 minutes, and the paper is marked once at the end of the attempt.

There is no negative marking, so a wrong answer costs you nothing. Most questions carry 2 marks and the last one carries 1 mark. In exam mode the paper is timed and marked at the end, and you receive a certificate that carries your name and your score. Every question on the result screen also carries a Report a mistake button.

The test covers Chapter 6: Deductions from Gross Total Income, Chapter 9: Income-tax Liability - Computation and Optimisation, Chapter 2: Residence and Scope of Total Income, and Chapter 7: Advance Tax. The scenarios work through employer and individual deductions, the tax payable under the two regimes for the same set of facts, the scope of total income for an individual who is resident but not ordinarily resident, and the due date for advance tax.

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, stated as at 31 October 2026. The paper is a practice test by HeyArtha for CA Intermediate Group 1 students preparing for the January 2027 attempt. It is not issued by or affiliated with ICAI.

One scenario gives a salary, an employer contribution to a pension scheme, investments and health insurance premiums, and asks for the deductions allowed in each tax regime. Another asks for the tax liability of an individual under both regimes, including the rebate and the marginal relief, and then asks which regime costs less. A third works on the scope of total income, and the last one on the payment of advance tax.

In exam mode there is a 30 minute timer, and the paper is marked once at the end. In practice mode there is no timer, and you can read the explanation for every answer as you go. The explanations show the provision applied and the working behind each figure in the options, which is useful for the computational questions in this paper.

No sign-up is needed and there is no payment to make. Nothing about a student is stored on a server. You open the paper, answer the questions and read the result screen, where each question carries a Report a mistake button if you think something in the paper does not match the law.

Read every figure given, because the options often turn on a single number. Questions on this paper turn on the salary ceiling that decides an employer contribution, the limits under sections 80C and 80D, the slab rates and the rebate threshold, the days of residence and the number of preceding years of residence, and the due date that applies to a professional on a presumptive basis.