CA Inter Taxation MCQ Test 3 (Income-tax + GST)

The two Taxation sections, run end to end, carry 16 questions in 7 case scenarios for 30 marks and 60 minutes, 8 on Income-tax Law and 8 on GST. Income-tax chapters: Chapter 3 Unit 2: Income from House Property, Chapter 5: Aggregation of Income, Set-off and Carry Forward of Losses, Chapter 3 Unit 5: Income from Other Sources, Chapter 8: Provisions for Filing Return of Income and Self-Assessment. GST chapters: Chapter 2 - Supply under GST, Chapter 3 - Charge of GST, Chapter 4 - Place of Supply, Chapter 6 - Time of Supply, Chapter 14 - Tax Deduction at Source and Collection of Tax at Source, Chapter 15 - Returns. 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. 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 2: Income from House Property, Chapter 5: Aggregation of Income, Set-off and Carry Forward of Losses, Chapter 3 Unit 5: Income from Other Sources and Chapter 8: Provisions for Filing Return of Income and Self-Assessment. The GST side covers Chapter 2 - Supply under GST, Chapter 3 - Charge of GST, Chapter 4 - Place of Supply, Chapter 6 - Time of Supply, Chapter 14 - Tax Deduction at Source and Collection of Tax at Source and Chapter 15 - Returns.

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.

One scenario deals with a let-out house, where you compute the gross annual value, the net annual value after municipal taxes paid by the owner, and the income chargeable after the standard deduction and the interest on borrowed capital. A second scenario covers the set-off of a house property loss and a business loss against salary, and the carry forward of the unabsorbed loss when the return is belated. Two further scenarios deal with jewellery received without consideration and with relief from the higher rate of deduction of tax where a PAN becomes operative.

The GST scenarios start with a production line supplied with delivery, insurance and calibration under one package, and a hamper of separate items, so you classify a composite supply and a mixed supply. They then cover the liability of the recipient of legal services under reverse charge, the place of supply of those services and of architect services for property in Goa, the time of supply, deduction and collection of tax on a contract with a public works department and on an environmental consultancy, and the due date for the monthly return.

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.

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.