CA Inter Taxation MCQ Test 5 (Income-tax + GST)

The whole Taxation paper, Income-tax Law and GST together, carries 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 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, Chapter 9: Income Tax Liability - Computation and Optimisation. GST chapters: Chapter 2 - Supply under GST, Chapter 3 - Charge of GST, Chapter 7 - Value of Supply, Chapter 8 - Input Tax Credit, Chapter 15 - Returns, Chapter 11 - Accounts and Records. 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. 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 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 GST side covers Chapter 2 - Supply under GST, Chapter 3 - Charge of GST, Chapter 7 - Value of Supply, Chapter 8 - Input Tax Credit, Chapter 15 - Returns and Chapter 11 - Accounts and Records.

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.

The Income-tax scenarios run through the heads of income in order. An employee asks about salary, the exemption for house rent allowance and the tax on the value of a perquisite. A trader asks about cash purchases paid in instalments and the deduction for depreciation. A house owner asks about the loss on a self-occupied property and the part of it that can be set off against salary. A resident individual asks about tax on total income after the rebate. The last scenario covers a short-term capital gain on listed shares.

The GST scenarios follow a manufacturer that holds separate registrations in two states. You work out the treatment of machinery moved between the two establishments, of goods given to an employee, and of a machine supplied with commissioning services. You then compute the value of a supply of equipment, work out the effect of a commercial credit note on the credit of the recipient, and the credit blocked on promotional kits distributed as samples. The last questions deal with the annual return and the period for keeping the books.

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.