CA Inter Taxation MCQs 2026: Income Tax & GST Practice Questions

CA Inter Taxation MCQs 2026 are part of Paper 3: Taxation in the CA Intermediate examination. The May 2026 paper was conducted on 9 May 2026 and included questions from Income Tax Law and GST. Part I consisted of MCQs, while Part II included descriptive questions.

The MCQ portion carried 30 marks. The paper included case scenarios as well as individual questions. The questions tested the application of tax provisions to practical situations. Topics included slump sale, clubbing of income, pension contributions, advance tax, capital gains, GST registration, composition levy, place of supply, interest, TCS and input tax credit.

The question paper also provides the correct options for the MCQs. Students preparing for upcoming attempts can use these questions to understand the type of situations used in the examination and practise applying taxation provisions.

CA Inter Taxation MCQs 2026 Overview

The CA Intermediate Paper 3: Taxation examination was divided into Part I and Part II. Part I consisted of MCQs, while Part II consisted of descriptive questions.

The May 2026 paper had a maximum of 100 marks and a duration of 3 hours. The MCQ portion carried 30 marks.

Students were required to mark the answers to Part I on the OMR answer sheet. The instructions also stated that answers written inside the descriptive answer book would not be evaluated.

CA Inter Taxation Questions Based on Case Scenarios

The May 2026 examination included multiple case scenarios. These questions required students to apply Income Tax and GST provisions to the facts given in each situation.

Income Tax Case Scenarios

The first case scenario was based on Mr. Jayesh, a resident individual who operated two units through his proprietorship concern. He transferred Unit A through a slump sale.

The questions required students to calculate the net worth of the undertaking and determine the capital gain or loss arising from the transfer. The case also included a question on the amount of tax deductible at source on professional fees and commission.

The second case scenario involved Vijay, a resident individual, and the transfer of a house property to family members. The questions tested the provisions related to clubbing of income.

The same case also covered:

• Deduction for contribution to a pension scheme.

• Applicability of advance tax.

• Presumptive taxation under Section 44ADA.

• Taxability of rental income.

These questions required students to carefully apply the relevant provisions to the facts given in the case.

GST Case Scenario

The GST case scenario was based on HHG & Co., a partnership firm engaged in manufacturing semiconductors.

The questions covered several GST provisions, including:

• Effective date of registration.

• Composition levy.

• Tax payable under the composition scheme.

• Import of services.

• Time of supply.

• Place of supply.

• Withdrawal from the composition scheme.

The case included transactions involving imported services, supply of goods and supplies made in territorial waters. Students had to identify the applicable GST provisions before selecting the correct option.

CA Inter Tax Practice Questions PDF Download

Students can use the May 2026 Paper 3 Taxation question paper for practice and revision. The paper contains the MCQs asked in the examination along with the descriptive questions.

The MCQ portion includes questions from both Income Tax and GST. Practising the questions can help you understand how taxation concepts were applied to practical situations in the examination.

The answer key given with the paper provides the correct options for the MCQs.

CA Inter Income Tax MCQs

The May 2026 Paper 3 included eight MCQs from Income Tax Law. The questions covered slump sale, clubbing of income, pension contribution, advance tax and capital gains.

Q1. What is the net worth of Unit A of M/s Jayesh Enterprises for the purpose of slump sale?

A. ₹2,053.33 lakh
B. ₹2,103.33 lakh
C. ₹2,253.33 lakh
D. ₹2,170 lakh

Answer: B

Q2. What is the capital gain or loss arising from the slump sale of Unit A?

A. Short-term capital gain of ₹304.43 lakh
B. Long-term capital loss of ₹303.33 lakh
C. Short-term capital loss of ₹353.88 lakh
D. Long-term capital loss of ₹303.88 lakh

Answer: C

Q3. What amount of tax is deductible by Mr. Jayesh on payments made to Mr. Naresh?

A. ₹1,750
B. ₹2,700
C. ₹700
D. Nil

Answer: C

The next questions were based on Vijay, Rashmi and Anushka. The case involved a house property gifted by Vijay to his wife and then transferred by her to her daughter-in-law.

Q4. In whose hands will the rental income from the house property be taxable?

A. Vijay
B. Anushka
C. Rashmi
D. Either Vijay or Rashmi, based on whose total income is higher

Answer: A

Q5. If Vijay had gifted the house property to his major son Bhanu instead of Rashmi, in whose hands would the rental income be taxable?

A. Vijay
B. Bhanu
C. 50% each in the hands of Vijay and Bhanu
D. Either Vijay or Bhanu, based on whose total income is higher

Answer: B

Q6. What deduction is available to Vijay for the contribution to the pension scheme?

A. ₹1,44,000 under Section 80CCD(1) and ₹36,000 under Section 80CCD(1B)
B. ₹1,50,000 under Section 80CCD(2)
C. ₹2,01,600 under Section 80CCD(2)
D. Nil

Answer: C

Q7. How is advance tax applicable to Rashmi, assuming she has no other taxable income?

A. No advance tax liability because she follows the default tax regime
B. Tax is payable in instalments of 15%, 45%, 75% and 100%
C. The entire advance tax is payable by 15 March
D. At least 75% of the tax liability is payable by 15 March

Answer: C

Q8. M/s YKR LLC is a foreign portfolio investor and non-resident in India. It trades in listed shares of an Indian company. Under which head will the profit from these transactions be taxable in India?

A. Profits and gains from business or profession
B. Income from Other Sources
C. Capital Gains
D. Not taxable in India

Answer: C

CA Inter GST MCQs

The GST portion of the May 2026 paper included eight MCQs. The questions tested registration, composition levy, import of services, time of supply, place of supply, withdrawal from composition, interest and TCS.

Q9. What is the effective date of GST registration of HHG & Co., which became liable for registration on 14 April 2025 and applied within the prescribed period?

A. 14 May 2025
B. 16 May 2025
C. 14 April 2025
D. 12 May 2025

Answer: C

Q10. What is the composition tax payable by HHG & Co. for the quarter ending June 2025?

A. ₹31,000 each under CGST and SGST
B. ₹36,000 each under CGST and SGST
C. ₹56,000 each under CGST and SGST
D. ₹51,000 each under CGST and SGST

Answer: B

Q11. Which of the imported services received by HHG & Co. will be treated as a supply under GST?

A. Architect services of ₹1,50,000
B. Management consultancy of ₹2,00,000
C. Both services
D. Neither service

Answer: A

Q12. For the supply of taxable goods to VGT Ltd., when was the tax invoice required to be issued?

A. 12 September 2025
B. 14 September 2025
C. 27 September 2025
D. 26 September 2025

Answer: D

Q13. What is the place of supply for the goods supplied in territorial waters located 11 nautical miles from Kerala and 9 nautical miles from Tamil Nadu?

A. Karnataka
B. Tamil Nadu
C. Gujarat
D. Kerala

Answer: B

Q14. By what date should HHG & Co. furnish the statement containing details of stock after withdrawal from the composition scheme?

A. 25 July 2025
B. 11 July 2025
C. 10 August 2025
D. 9 August 2025

Answer: C

Q15. Mr. Aman filed his GSTR-3B for June 2025 on 25 September 2025 and paid the tax liability of ₹30,000 on the same date. What is the total interest payable under the CGST Act?

A. ₹962
B. ₹976
C. ₹1,006
D. ₹991

Answer: D

Q16. M/s Suraj Apparels made sales of ₹4,60,000 and received sales returns of ₹88,500 during October 2025. The goods were taxable at 18% IGST. What amount of IGST TCS should Y-kart collect?

A. ₹22,272
B. ₹3,850
C. ₹1,925
D. ₹2,300

Answer: C

How to Prepare for CA Inter Taxation MCQs 2026

Students preparing for the next CA Intermediate attempt should focus on understanding tax provisions and applying them to different situations.

1. Understand the Concept First

Do not rely only on memorising the correct option. Understand the provision behind each question.

This is particularly important for case-based questions, where several facts can affect the answer.

2. Practise Case-Based Questions

The May 2026 paper included several case scenarios from Income Tax and GST.

While practising, pay attention to:

• Dates of transactions.

• Amounts involved.

• Nature of income or supply.

• Residential status.

• Tax regime.

• Registration status.

• Place of supply.

• Applicable provisions.

3. Practise Calculations

Some taxation MCQs require calculations before you can select an option.

Practise questions involving:

• Capital gains.

• Net worth.

• TDS and TCS.

• Advance tax.

• GST liability.

• Interest.

• Input tax credit.

After solving a question, check the working instead of checking only the final answer.

4. Revise Income Tax and GST Separately

Divide your revision between Income Tax and GST.

For Income Tax, revise topics such as:

• Residential status.

• Capital gains.

• Clubbing of income.

• Deductions.

• Advance tax.

• TDS and TCS.

• Set-off and carry forward of losses.

For GST, revise topics such as:

• Registration.

• Composition levy.

• Time of supply.

• Place of supply.

• Input tax credit.

• Reverse charge.

• TDS and TCS.

• Interest.

5. Practise ICAI Questions

Use ICAI study material, previous examination papers, official MCQs, revision test papers and mock test papers for practice.

Try to solve the MCQs without looking at the answers first. After completing a practice set, review the questions you got wrong.

This can help you identify whether the mistake was due to a conceptual gap, calculation error or incorrect reading of the question.

The May 2026 paper shows that students need to understand how taxation provisions work in practical situations. Regular practice with case-based questions can help you become familiar with this question style.