CA Inter Taxation - Income-tax Law MCQ Test 5

Salaries, house property, business income, capital gains and the set-off of losses are the heads of income 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 its questions. It covers Chapter 3, Unit 1: Salaries, Chapter 3, Unit 2: Income from House Property, Chapter 3, Unit 3: Profits and Gains of Business or Profession, Chapter 3, Unit 4: Capital Gains, Chapter 5: Aggregation of Income, Set-off and Carry Forward of Losses, and Chapter 9: Income Tax Liability - Computation and Optimisation. The situations deal with house rent exemption, a let-out flat, cash purchases and depreciation, a short-term capital gain and a loss carried forward. 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 sets out the facts, and the questions that follow ask you to apply the Act to them. The time limit is 30 minutes and there is no negative marking, so a wrong answer costs you nothing.

The test covers Chapter 3, Unit 1: Salaries, Chapter 3, Unit 2: Income from House Property, Chapter 3, Unit 3: Profits and Gains of Business or Profession, Chapter 3, Unit 4: Capital Gains, Chapter 5: Aggregation of Income, Set-off and Carry Forward of Losses, and Chapter 9: Income Tax Liability - Computation and Optimisation. Each scenario draws on one or more of these areas.

They are application-based. One scenario deals with a salaried employee who also lets out a flat, and asks for the salary income after the exemption and for the income from the flat. Another deals with a trader, and asks about cash purchases, depreciation on an asset put to use late in the year, and a short-term capital gain on listed shares. The last two scenarios deal with the loss carried forward and with tax on a total income.

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. This is a practice test by HeyArtha for CA Intermediate Group 1 students preparing for the January 2027 attempt, and it is not issued by or affiliated with ICAI.

There is no negative marking, so a wrong answer costs you nothing. The paper is marked once at the end of the timed attempt, and you receive a certificate that carries your name and your score. Every question on the result screen carries a Report a mistake button, so you can point out anything that reads wrong or does not agree with the law.

Yes. Practice mode runs the same paper with no timer, and you can read the explanation for every answer as you go, including the working behind the numerical options. That matters on this paper, since several questions ask for a figure computed step by step and the options differ by one step in the calculation.

There is no sign-up and no payment, and nothing about a student is stored on a server. You open the paper and answer the questions. The explanations in practice mode also point you to the provision that decides each answer, so you can go back to the chapter and revise that part.

Set out the computation before you look at the options. The questions turn on points such as the salary limit that decides whether a perquisite is taxable, the number of days an asset is put to use, whether a transfer expense is allowable, the ceiling on the set-off of a house-property loss, and the income limit that gives a rebate. Writing the working first keeps the trap options at a distance.