Q1Salary computation
0 marks easy
Case: Mr. Roshan, aged 45 years, is employed as a finance manager in XYZ Ltd., Mumbai. During the F.Y. 2025-26, he receives: Basic Salary - ₹ 60,000 p.m., DA - ₹ 12,000 p.m. (50% forming part for retirement benefits), Employer's contribution to PF – 15% of basic salary. He owns a house property let out during P.Y. 2025-26, taken on loan with interest of ₹ 2.20 lakhs paid. Details: Municipal Value – ₹ 1,80,000 per annum, Fair Rent – ₹ 1,95,000 per annum, Standard Rent – ₹ 1,80,000 per annum, Actual Rent received – ₹ 1,70,000 per annum, Municipal Tax (paid by tenant) – 7.5% of municipal value, Repair …
What would be the amount chargeable to tax under the head "Salaries" of Mr. Roshan for the A.Y. 2026-27?
(a) ₹ 7,93,320
(b) ₹ 8,01,960
(c) ₹ 8,10,600
(d) ₹ 8,26,960
Q1Composite supply under GST
0 marks easy
Case: Apex Learning Hub is a registered person under the Goods and Services Tax law and is engaged in providing coaching services. The aggregate turnover during the previous financial year was more than ₹ 5 crore. During the course of internal review and compliance verification, the following facts were noted: Apex Learning Hub provides coaching services for competitive examinations and charges a consolidated fee from students. The fee structure includes tuition fee, study material charges, and access to recorded online lectures, which are not shown separately on the invoice. Study material and reco…
Which of the following statements is correct regarding taxability of consolidated fee charged from students as per the relevant provisions of the GST Law?
(a) The supply qualifies as a composite supply, and the entire consideration shall be taxed at the rate applicable to coaching services.
(b) The supply qualifies as a mixed supply, and the highest rate applicable to any individual component shall apply to the entire consideration.
(c) Tuition fee is exempt, and only study material and online lectures are taxable.
(d) Each component must be taxed separately even if a consolidated price is charged.
Q2Capital gains
0 marks easy
Case: Mr. Roshan, aged 45 years, is employed as a finance manager in XYZ Ltd., Mumbai. During the F.Y. 2025-26, he receives: Basic Salary - ₹ 60,000 p.m., DA - ₹ 12,000 p.m. (50% forming part for retirement benefits), Employer's contribution to PF – 15% of basic salary. He owns a house property let out during P.Y. 2025-26, taken on loan with interest of ₹ 2.20 lakhs paid. Details: Municipal Value – ₹ 1,80,000 per annum, Fair Rent – ₹ 1,95,000 per annum, Standard Rent – ₹ 1,80,000 per annum, Actual Rent received – ₹ 1,70,000 per annum, Municipal Tax (paid by tenant) – 7.5% of municipal value, Repair …
Compute the amount of capital gains chargeable to tax in the hands of Mr. Roshan for the A.Y. 2026-27.
(a) ₹ 9,00,000
(b) ₹ 5,26,948
(c) Nil
(d) ₹ 4,59,000
Q2GST on advance received
0 marks easy
Case: Apex Learning Hub is a registered person under the Goods and Services Tax law and is engaged in providing coaching services. The aggregate turnover during the previous financial year was more than ₹ 5 crore. During the course of internal review and compliance verification, the following facts were noted: Apex Learning Hub provides coaching services for competitive examinations and charges a consolidated fee from students. The fee structure includes tuition fee, study material charges, and access to recorded online lectures, which are not shown separately on the invoice. Study material and reco…
Whether GST is payable on the receipt of ₹ 2,50,000 received from corporate clients?
(a) GST is payable at the time of receipt of ₹ 2,50,000
(b) GST is payable only at the time of issuance of invoice
(c) GST is payable at the time of supply of services
(d) GST is not payable on coaching services at all
Q3Total income computation
0 marks easy
Case: Mr. Roshan, aged 45 years, is employed as a finance manager in XYZ Ltd., Mumbai. During the F.Y. 2025-26, he receives: Basic Salary - ₹ 60,000 p.m., DA - ₹ 12,000 p.m. (50% forming part for retirement benefits), Employer's contribution to PF – 15% of basic salary. He owns a house property let out during P.Y. 2025-26, taken on loan with interest of ₹ 2.20 lakhs paid. Details: Municipal Value – ₹ 1,80,000 per annum, Fair Rent – ₹ 1,95,000 per annum, Standard Rent – ₹ 1,80,000 per annum, Actual Rent received – ₹ 1,70,000 per annum, Municipal Tax (paid by tenant) – 7.5% of municipal value, Repair …
What would be the total income of Mr. Roshan for the A.Y. 2026-27?
(a) ₹ 12,01,960
(b) ₹ 11,07,960
(c) ₹ 20,16,600
(d) ₹ 21,51,100
Q3E-way bill requirements for diesel
0 marks easy
Case: Apex Learning Hub is a registered person under the Goods and Services Tax law and is engaged in providing coaching services. The aggregate turnover during the previous financial year was more than ₹ 5 crore. During the course of internal review and compliance verification, the following facts were noted: Apex Learning Hub provides coaching services for competitive examinations and charges a consolidated fee from students. The fee structure includes tuition fee, study material charges, and access to recorded online lectures, which are not shown separately on the invoice. Study material and reco…
In case of diesel purchased by Apex Learning Hub, e-way bill is _________?
(a) required to be generated as the value is equal to ₹ 50,000
(b) not required to be generated as the consignment value is not more than ₹ 50,000
(c) not required to be generated as the transport location was not more than 50 KM
(d) not required to be generated at all irrespective of value of goods
Q4Tax liability under default regime
0 marks easy
Case: Mr. Roshan, aged 45 years, is employed as a finance manager in XYZ Ltd., Mumbai. During the F.Y. 2025-26, he receives: Basic Salary - ₹ 60,000 p.m., DA - ₹ 12,000 p.m. (50% forming part for retirement benefits), Employer's contribution to PF – 15% of basic salary. He owns a house property let out during P.Y. 2025-26, taken on loan with interest of ₹ 2.20 lakhs paid. Details: Municipal Value – ₹ 1,80,000 per annum, Fair Rent – ₹ 1,95,000 per annum, Standard Rent – ₹ 1,80,000 per annum, Actual Rent received – ₹ 1,70,000 per annum, Municipal Tax (paid by tenant) – 7.5% of municipal value, Repair …
What would be the tax liability of Mr. Roshan for the A.Y. 2026-27?
(a) ₹ 1,70,730
(b) ₹ 1,87,370
(c) Nil
(d) ₹ 2,040
Q4GST registration for multiple places of business
0 marks easy
Case: Apex Learning Hub is a registered person under the Goods and Services Tax law and is engaged in providing coaching services. The aggregate turnover during the previous financial year was more than ₹ 5 crore. During the course of internal review and compliance verification, the following facts were noted: Apex Learning Hub provides coaching services for competitive examinations and charges a consolidated fee from students. The fee structure includes tuition fee, study material charges, and access to recorded online lectures, which are not shown separately on the invoice. Study material and reco…
Whether Apex Learning Hub was required to obtain separate GST registration for the additional place of business in another State?
(a) No, a single registration is sufficient across India
(b) Yes, as registration is State-specific under GST
(c) Yes, only if turnover exceeds the threshold limit
(d) Yes, only if goods are supplied from that State
Q5Tax liability under optional regime
0 marks easy
Case: Mr. Roshan, aged 45 years, is employed as a finance manager in XYZ Ltd., Mumbai. During the F.Y. 2025-26, he receives: Basic Salary - ₹ 60,000 p.m., DA - ₹ 12,000 p.m. (50% forming part for retirement benefits), Employer's contribution to PF – 15% of basic salary. He owns a house property let out during P.Y. 2025-26, taken on loan with interest of ₹ 2.20 lakhs paid. Details: Municipal Value – ₹ 1,80,000 per annum, Fair Rent – ₹ 1,95,000 per annum, Standard Rent – ₹ 1,80,000 per annum, Actual Rent received – ₹ 1,70,000 per annum, Municipal Tax (paid by tenant) – 7.5% of municipal value, Repair …
What would be the tax liability of Mr. Roshan for the A.Y. 2026-27 if he opts out of the default tax regime?
(a) ₹ 1,13,460
(b) ₹ 1,03,060
(c) ₹ 2,35,990
(d) ₹ 2,33,680
Q5Input tax credit claim deadline
0 marks easy
Case: Apex Learning Hub is a registered person under the Goods and Services Tax law and is engaged in providing coaching services. The aggregate turnover during the previous financial year was more than ₹ 5 crore. During the course of internal review and compliance verification, the following facts were noted: Apex Learning Hub provides coaching services for competitive examinations and charges a consolidated fee from students. The fee structure includes tuition fee, study material charges, and access to recorded online lectures, which are not shown separately on the invoice. Study material and reco…
What is the last date to avail input tax credit pertaining to the current financial year?
(a) 15th December of the succeeding financial year
(b) 30th November of the succeeding financial year
(c) 31st March of the succeeding financial year
(d) The due date of furnishing the return for September of the succeeding financial year
Q6Residential status determination
0 marks hard
Mr. Subhash, an Indian citizen, is currently in employment with an overseas company located in Country X. During the previous year 2025-26, he comes to India for 135 days. He is in India for 100 days, 50 days, 76 days and 45 days in the financial years 2021-22, 2022-23, 2023-24 and 2024-25, respectively. His annual income for the previous year 2025-26 is as follows: Income from salary earned and received in Country X: ₹ 2,00,000; Income earned and received from a house property situated in Country X: ₹ 5,00,000; Income deemed to be accrued and arise in India: ₹ 2,00,000; Income from retail business (accrued and received outside India, controlled from India): ₹ 10,00,000; Income accrued and arise in India: ₹ 4,00,000. He is not liable to pay tax in Country X. Determine the residential status of Mr. Subhash for the assessment year 2026-27.
Q6GST computation, reverse charge, and ITC
0 marks easy
M/s. Nivedita Private Limited is a manufacturer of Televisions at Mohali, Punjab and has a Service center at Bhatinda, Punjab. The company has taken a single registration of GST. It provides the following information for the month of November 2025. Outward Supply: (1) Supply of televisions to M/s. Shine Electronics Ltd. located at Ludhiana, Punjab – ₹ 20,00,000. (2) Raw material transferred to Service Centre located at Bhatinda branch – ₹ 1,80,000. (3) Received advance from M/s. New Electro Divine registered at Delhi for purchase of television – ₹ 3,50,000. (4) Received advance from M/s. New Electro Divine registered at Delhi for payment of Annual Maintenance Charges (AMC) of television – ₹ 50,000. Inward Supply: (1) Purchase of raw material from M/s. Electro Enterprises Pvt. Ltd. registered at Ludhiana, Punjab – ₹ 25,00,000. (2) Freight paid for transportation of Television to a tempo owner registered as GTA at Mohali, Punjab. Tempo owner issued invoice without any GST – ₹ 50,000. (3) Paid rent of factory and service centre to Mr. Rakesh, who is an unregistered person – ₹ 1,20,000. (4) Security services received from M/s. Safety-n-Security Services, sole proprietorship firm, registered under composition scheme at Jalandhar, Punjab – ₹ 25,000. Additional Information: (1) Purchase of raw materials includes ₹ 1,20,000 which was purchased on 10-03-2025 but invoices were uploaded in GSTR-1 on 18-11-2025 and communicated to recipient in Form GSTR-2B. (2) Credit Note of ₹ 80,000 (excluding GST) was issued on 30-11-2025 to M/s. Shine Electronics Ltd. against invoice of ₹ 4,20,000 issued on 10-03-2024. (3) The annual return for FY 2024-25 was filed on 30-10-2025. (4) Turnover of M/s. Nivedita Private Limited for FY 2024-25 was ₹ 160 lakh. (5) Rate of CGST, SGST and IGST is 2.5%, 2.5% and 5% in case of transporter and in other cases rate of CGST, SGST and IGST are 9%, 9% and 18% respectively for both inward and outward supply. (6) All figures are exclusive of taxes. Compute the GST payable on outward supply, GST payable under reverse charge mechanism and input tax credit (ITC) available for the month of November, 2025. Provide supporting explanatory notes for your conclusion.
Q7Salary and perquisite computation
0 marks hard
Ms. Nisha is a marketing manager in Rose Ltd. She gives you the following details for P.Y. 2025-26: (i) Basic salary of ₹ 45,000 p.m. (ii) Dearness Allowance of ₹ 10,000 p.m. (30% is for retirement benefits) (iii) Bonus of one-month basic salary (iv) She contributes 18% of her salary (Basic Pay + DA) towards recognised provident fund and the company contributes the same amount. (v) Motor car owned by the employer (cubic capacity of engine exceeds 1.6 litres) provided from 1st November, 2025 used for both official and personal purposes. Repair and running expenses of ₹ 50,000 were fully met by Ms. Nisha. The motor car was self-driven by the employee. (vi) The company pays medical insurance premium of ₹ 18,000 to effect insurance on the health of Ms. Nisha. (vii) Her employer gave him a rent free accommodation in Mumbai from 1.4.2024. The house was taken on lease by Rose Ltd. for ₹ 12,000 p.m. The perquisite value of such accommodation for the P.Y. 2024-25 was ₹ 55,000. (viii) Company incurred expenses on the treatment of her daughter abroad including stay expenses of ₹ 1,50,000 as permitted by the RBI. (ix) Company also incurred expenses in relation to the foreign travel for medical treatment of daughter of ₹ 80,000. Compute the income chargeable to tax under the head "Salaries" in the hands of Ms. Nisha for the Assessment Year 2026-27 under optional tax regime.
Q7Taxable supplies computation under GST
0 marks easy
Mr. Jitender engaged in providing various services is registered as a regular taxpayer under GST. He furnished the following information relating to various output transactions done for the financial year 2024-25: (i) Rent received for renting of land for fish farming – ₹ 6,00,000. (ii) Received price linked subsidy from M/s Happy Days, a registered Charitable Trust – ₹ 2,00,000. (iii) Provided services as National Testing Agency to M/s Fine Future Institute, a recognized educational institute for conducting an entrance examination for admission to educational institute – ₹ 1,80,000. (iv) Provided services by way of pre-conditioning, pre-cooling, ripening and waxing of fruits. The essential characteristics of fruits remain same – ₹ 32,00,000. (v) Providing rooms having room charges ₹ 4,500 per day to a person receiving health care services from his established health care clinic – ₹ 1,50,000. Compute the amount of taxable supply of Mr. Jitender for FY 2024-25 showing each item separately. Correct legal reasoning of each item should form part of your answer. All amounts given are exclusive of taxes.
Q8Gross total income and loss carry forward
0 marks hard
Mr. Vipul furnished the following details for the previous year 2025-26: (i) Loss from House Property (computed) in India – ₹ 2,60,000 (ii) Income from business in India – ₹ 8,60,000 (iii) Short Term Capital Gain on sale of equity shares listed in recognized stock exchange (STT paid) – ₹ 1,99,800 (iv) Income from card game (Gross) – ₹ 1,02,500 (v) Loss from betting (Gross) – ₹ 87,500 (vi) Expenses of Lottery Income – ₹ 7,500 (vii) Income from Lottery Income – ₹ 38,500 (Net of TDS) (viii) Loss from the activity of owning and maintaining camels for races – ₹ 20,000 (ix) Income from the activity of owning and maintaining race horses – ₹ 97,800 (x) Long term capital gain on sale of land – ₹ 25,000 (xi) Income of minor daughter Riya from script writing for Television series - ₹ 15,000 (xii) Interest income of minor son Saurabh who suffers from disability specified in section 80U - ₹ 2,50,000. Brought forward losses: Loss from Textile Business pertaining to A.Y. 2014-15 – ₹ 7,000; Long-term capital loss pertaining to A.Y. 2017-18 – ₹ 1,12,500; Short term capital loss pertaining to A.Y. 2018-19 – ₹ 90,200. Compute gross total income of Mr. Vipul as per optional tax regime and find out the amount of losses which can be carried forward.
Q8Taxability of health insurance and accommodation
0 marks easy
Examine the taxability of supplies in the following independent cases in terms of the relevant provisions of the CGST Act, 2017. Brief reason should form part of your answer:
Q9Tax deduction and collection at source
0 marks easy
Examine the applicability and determine the amount of tax deduction/collection at source as per the Income-tax Act, 1961 for the A.Y. 2026-27 in the following situations:
Q9Time of supply determination
0 marks easy
Determine the time of supply in case of following transactions on individual basis by briefly stating the relevant provisions:
Q10Business income and tax computation
0 marks hard
Mr. Yuvaan, a resident individual, aged 45 years, is engaged in manufacturing of textile business, as a proprietor. He follows mercantile system of accounting. The net profit as per profit and loss account after debiting/crediting the following items was ₹ 20,00,000: (i) ₹ 25,000 paid to creditor for goods in cash. (ii) Gross interest received from saving bank account ₹ 15,000. (iii) Contribution to notified approved research association for scientific research ₹ 1,10,000. (iv) He paid job charges for the value addition on the fabrics ₹ 1,10,000 without deduction of tax to job worker by an account payee cheque. (v) Normal depreciation of ₹ 4,50,000 as per Income-tax Rules, 1962 including depreciation on ₹ 15 lakhs, being the cost of new machinery purchased and put to use on 01-09-2025. (vi) Subsidy of 20% on new machinery under technology upgradation fund Scheme from the Central Government which was credited to profit and loss account. (vii) Insurance expenses include ₹ 50,000 deposited with life insurance Corporation of India for the maintenance of her mother aged 70 years depended upon him and suffering from severe disability. (viii) General expenses include revenue expenditure incurred for promoting family planning amongst its employees of ₹ 75,000. (ix) On 01-03-2026, Mr. Yuvaan purchased raw material for ₹ 30,000 from Kanha & Co., a medium enterprise as per MSMED Act, 2006, for which the payment was made on 18-04-2026. There was no agreement for payment period between them. Additional Information: (a) Mr. Yuvaan repaid housing loan principal and interest of ₹ 75,000 and ₹ 80,000 respectively, availed for purchase of let-out house property. (b) He received rent of ₹ 3,50,000 from his let-out house property. The municipal taxes of ₹ 40,000 for this house was paid by him on 30-04-2026. (c) He received ₹ 75,000 by pre-mature withdrawals from deposit including interest ₹ 5,000, in post office time deposit, eligible for deduction under Section 80C. (d) He sold a gold bracelet on 01-05-2025 for ₹ 5,00,000, which was acquired for ₹ 40,000 on 01-03-2005. A diamond was embedded onto bracelet on 01-05-2007 of ₹ 50,000. Cost Inflation Index – F.Y. 2004-05:113, 2007-08:129, 2025-26:376. Turnover for F.Y. 2024-25: ₹ 250 lakhs, F.Y. 2025-26: ₹ 300 lakhs. Compute the total income and tax liability of Mr. Yuvaan for the assessment year 2026-27 under default tax regime and optional tax regime.
Q10E-way bill acceptance and deemed acceptance
0 marks easy
M/s Alpha Distributors (registered in Maharashtra) supplies goods to M/s Beta Retailers (registered in Gujarat). Due to urgency, Part A of the e-way bill is furnished by Beta Retailers on 5th March at 2:00 PM. The goods are delivered on 7th March at 10:00 AM. The details of the e-way bill are made available to Alpha Distributors on the common portal immediately upon generation. Alpha Distributors does not communicate acceptance or rejection of the consignment. Examine: