CA Inter Taxation MCQ Test 2 (Income-tax + GST)

A full Taxation paper on one sitting carries 16 questions in 7 case scenarios, 30 marks and 60 minutes, with 8 questions on Income-tax Law and 8 on GST. Income-tax chapters: 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, Chapter 4: Income of Other Persons Included in Assessee's Total Income. GST chapters: Chapter 7 - Value of Supply, Chapter 8 - Input Tax Credit, Chapter 10 - Tax Invoice, Credit and Debit Notes, Chapter 12 - E-Way Bill, Chapter 13 - Payment of Tax. The law basis is the Income-tax Act 1961 as amended by the Finance Act 2025 with notifications and circulars up to 30 June 2026 for assessment year 2026-27, and the CGST Act 2017, the IGST Act 2017 and the CGST Rules as amended by the Finance Act 2025 with notifications and circulars effective up to 28 February 2026. There is no negative marking, so a wrong answer costs nothing. Questions are prepared with AI tools and cross-checked by independent solvers; they are not reviewed by a Chartered Accountant.

The paper carries 16 questions in 7 case scenarios, with 8 questions on Income-tax Law and 8 questions on GST. The Income-tax side 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 GST side covers Chapter 7 - Value of Supply, Chapter 8 - Input Tax Credit, Chapter 10 - Tax Invoice, Credit and Debit Notes, Chapter 12 - E-Way Bill and Chapter 13 - Payment of Tax.

The paper is worth 30 marks and the clock runs for 60 minutes. Fifteen questions carry 2 marks each and the last question carries 1 mark, which brings the paper to 30 marks. There is no negative marking, so a wrong answer costs nothing and there is no reason to leave a question blank. The 16 questions sit in 7 scenarios, so you read the facts of a case first and then apply the law to them.

The Income-tax questions are based on the Income-tax Act 1961 as amended by the Finance Act 2025, with notifications and circulars up to 30 June 2026, for assessment year 2026-27. The GST questions are based on the CGST Act 2017, the IGST Act 2017 and the CGST Rules as amended by the Finance Act 2025, with notifications and circulars effective up to 28 February 2026. The law and the rules are stated as at 31 October 2026.

Each scenario is a short passage of facts about a person or a company, and the questions that follow turn the law on those facts. The Income-tax scenarios deal with presumptive business income for a dealer in electrical goods, capital gains on listed shares and land with an exemption on bonds, deduction of tax on professional fees, and the clubbing of a minor's income. The GST scenarios deal with the value of a supply of furniture, input tax credit, credit notes, an e-way bill and payment of tax.

In exam mode the paper is marked once at the end of the sitting. You see your score against each question and you receive a certificate carrying your name and that score. In practice mode there is no timer, and you can read the explanation for every answer as you go through the paper. Every question in the result screen also carries a Report a mistake button.

No sign-up and no payment are needed. Nothing about a student is stored on a server, so you can work through the paper without creating an account. The result screen gives you your score, the explanation for each answer and the certificate with your name on it. This is a practice test by HeyArtha, and it is not issued by or affiliated with ICAI.

It is written for CA Intermediate Group 1 students sitting the January 2027 attempt, and it follows the ICAI syllabus for that attempt. The Income-tax questions are set for assessment year 2026-27. Each question is linked to a provision in one of the chapters named above, so the paper is meant to be attempted after you have read the study material for those chapters.

Each question is drafted with AI tools and then worked through by independent solvers, who reach the answer separately from the person who wrote the question. Where the solvers did not agree with the stated answer, the question was reworked or dropped. The explanation shown after each question sets out the computation and the provision it turns on. No Chartered Accountant has read the questions before they are published.

Every question in the result screen has a Report a mistake button, so you can point out an error in the question, the options or the answer. That is the route for anything that looks wrong to you. The explanation also sets out the position on the law, so you can read the reasoning first and then decide whether the question needs to be reported.