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100+ Free CMA Final Paper 15 Practice Questions

Prepare for the CMA Final Paper 15: Direct Tax Laws and International Taxation (DIT) exam with instant access — no signup required.

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2026 Statistics

Key Facts: CMA Final Paper 15 Exam

100

Marks in Paper 15

ICMAI Syllabus 2022

3 hrs

Exam Duration

ICMAI Syllabus 2022

60%

Section A Direct Tax Weight

ICMAI Paper 15 Syllabus

40%

Section B International Taxation Weight

ICMAI Paper 15 Syllabus

40% / 50%

Paper / Group Pass Mark

ICMAI CMA Final Rules

Group III

Exam Group

ICMAI Syllabus 2022

CMA Final Paper 15 (Direct Tax Laws and International Taxation, DIT) is a Group III written exam of 100 marks in 3 hours under ICMAI Syllabus 2022. Section A on Direct Tax Laws carries about 60% and Section B on International Taxation about 40%. Section A covers assessment of individuals, non-residents, companies, firms and trusts, return and assessment procedure, appeals and revision, penalties, business restructuring, tax planning, ICDS, and the Black Money Act, 2015. Section B covers DTAA (Sections 90/90A/91 and OECD/UN models), transfer pricing, GAAR, BEPS, and non-resident taxation. The paper is updated each term for the applicable assessment year and the latest Finance Act; the pass mark is 40% in the paper and 50% aggregate in the group.

Sample CMA Final Paper 15 Practice Questions

Try these sample questions to test your CMA Final Paper 15 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A resident domestic company opts for the concessional tax regime under Section 115BAA for AY 2025-26. What is the effective tax rate (including surcharge and health & education cess)?
A.25.168%
B.30.00%
C.17.16%
D.34.944%
Explanation: Section 115BAA gives domestic companies a base rate of 22%, a flat surcharge of 10% (irrespective of income), and 4% health & education cess. This works out to 22% × 1.10 × 1.04 = 25.168%.
2Under Section 115BAB, a new domestic manufacturing company set up and registered on or after 1 October 2019 and commencing manufacturing by 31 March 2024 is taxed at what base rate on its eligible manufacturing income?
A.22%
B.15%
C.25%
D.30%
Explanation: Section 115BAB prescribes a concessional base rate of 15% for eligible new domestic manufacturing companies, plus a flat 10% surcharge and 4% cess, giving an effective rate of 17.16%.
3Income earned by a non-resident from operating ships under Section 44B is computed on a presumptive basis as what percentage of the specified receipts?
A.5%
B.10%
C.7.5%
D.20%
Explanation: Section 44B deems 7.5% of the aggregate of amounts received/receivable in India and outside India for the carriage of passengers, livestock, mail or goods shipped at any Indian port to be the profits of a non-resident shipping business.
4For a partnership firm assessed under the Income-tax Act for AY 2025-26, what is the rate of income tax (before surcharge and cess) on its total income?
A.25%
B.Slab rates applicable to individuals
C.22%
D.30%
Explanation: A partnership firm (and LLP) is taxed at a flat 30% on its total income. A surcharge of 12% applies where total income exceeds Rs. 1 crore, plus 4% health & education cess.
5Remuneration paid to working partners of a firm is deductible under Section 40(b) only if it is authorised by the partnership deed and within the prescribed limits. On the first Rs. 6,00,000 of book profit (or in case of loss), the maximum deductible remuneration (per Finance Act, 2024 limits) is:
A.90% of book profit or Rs. 1,50,000, whichever is higher
B.Rs. 1,50,000 or 90% of book profit, whichever is lower
C.60% of book profit
D.Rs. 3,00,000 fixed
Explanation: Under the revised Section 40(b) limits (Finance Act, 2024), on the first Rs. 6,00,000 of book profit or in case of loss, deductible remuneration is the higher of Rs. 1,50,000 or 90% of book profit; on the balance, 60% is allowed.
6Under Section 11, a charitable trust must apply at least what percentage of its income to charitable or religious purposes in India to claim exemption, with the balance permitted to be accumulated?
A.75%
B.85%
C.90%
D.100%
Explanation: A trust must apply at least 85% of its income for charitable/religious purposes during the year. Up to 15% can be accumulated or set apart without conditions, and further accumulation requires compliance with Section 11(2).
7The Alternate Minimum Tax (AMT) under Section 115JC applies to non-corporate assessees claiming specified deductions, levied at what rate on adjusted total income (before surcharge and cess)?
A.15%
B.9% for units in IFSC
C.18.5%
D.20%
Explanation: AMT under Section 115JC is levied at 18.5% of adjusted total income for non-corporate assessees. A reduced rate of 9% applies to a unit located in an International Financial Services Centre deriving income solely in convertible foreign exchange.
8Minimum Alternate Tax (MAT) under Section 115JB is computed at 15% of book profit. Companies opting for which sections are exempt from MAT?
A.Section 115BAC
B.Section 44AD only
C.Section 80-IA only
D.Sections 115BAA and 115BAB
Explanation: Domestic companies that opt for the concessional regimes under Sections 115BAA or 115BAB are not liable to MAT under Section 115JB, and the corresponding MAT credit lapses.
9MAT credit under Section 115JAA, being the excess of MAT paid over normal tax, can be carried forward and set off for a maximum of how many assessment years?
A.15 years
B.10 years
C.8 years
D.Indefinitely
Explanation: MAT credit under Section 115JAA may be carried forward and set off against normal tax liability for up to 15 assessment years immediately succeeding the year in which the credit became allowable.
10A belated return of income under Section 139(4) for AY 2025-26 can be filed at any time before:
A.31 March 2025
B.31 December 2025 or completion of assessment, whichever is earlier
C.31 July 2025
D.30 September 2026
Explanation: A belated return under Section 139(4) may be furnished up to three months before the end of the relevant assessment year (i.e., 31 December 2025 for AY 2025-26) or before completion of the assessment, whichever is earlier.

About the CMA Final Paper 15 Exam

CMA Final Paper 15 under ICMAI Syllabus 2022 tests advanced Direct Tax Laws (Section A, ~60%) and International Taxation (Section B, ~40%), covering assessment of entities, procedure, appeals, penalties, business restructuring, ICDS, the Black Money Act, DTAA, transfer pricing, GAAR, and BEPS.

Assessment

Question count not published by the exam provider

Time Limit

3 hours

Passing Score

40% in the paper and 50% aggregate in the group

Exam Fee

Part of the ICMAI CMA Final group exam fee, set per term (commonly around INR 1,200 per group) (The Institute of Cost Accountants of India (ICMAI))

CMA Final Paper 15 Exam Content Outline

60%

Section A: Direct Tax Laws

Assessment of income and tax liability for individuals, non-residents, companies, firms, LLPs and trusts; tax management, returns and assessment/reassessment procedure; interest, fees, survey, search and seizure; appeals, rectification, revision, advance ruling and the Dispute Resolution Committee; penalties and prosecutions; business restructuring (amalgamation, demerger, slump sale, conversions); tax planning; CBDT and authorities; e-commerce and equalisation levy; ICDS; and the Black Money Act, 2015.

40%

Section B: International Taxation

Double Taxation Avoidance Agreements including Sections 90, 90A and 91, OECD and UN model conventions, residence tie-breakers, permanent establishment and treaty articles; transfer pricing including associated enterprises, arm's length price methods, the arm's length range, APA and rollback, safe harbour, thin capitalisation, secondary adjustments and documentation; General Anti-Avoidance Rules (GAAR); BEPS action plans, the MLI, the principal purpose test and global minimum tax; and taxation of non-residents.

How to Pass the CMA Final Paper 15 Exam

What You Need to Know

  • Passing score: 40% in the paper and 50% aggregate in the group
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours
  • Exam fee: Part of the ICMAI CMA Final group exam fee, set per term (commonly around INR 1,200 per group)

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CMA Final Paper 15 Study Tips from Top Performers

1Study Section A by entity type, mastering company concessional rates (115BAA at 25.168% effective and 115BAB at 17.16%) before tackling firms, trusts and non-residents.
2Track Finance Act amendments and the applicable assessment year for your term, since rates, thresholds and limits (e.g. partner remuneration, buy-back) change frequently.
3Practise transfer-pricing computations including the 35th-65th percentile arm's length range and median-based adjustments.
4Memorise key time limits for returns, assessment, appeals, rectification and updated returns, which are reliably tested.
5Use ICMAI's official work book and mock test papers, and build an error log by topic.
6Do not neglect GAAR, BEPS and the Black Money Act; their short, high-yield rules appear often in objective practice.

Frequently Asked Questions

What is CMA Final Paper 15 about?

CMA Final Paper 15, titled Direct Tax Laws and International Taxation (DIT), is a Group III paper under ICMAI Syllabus 2022. Section A covers advanced direct tax laws (about 60%) and Section B covers international taxation such as DTAA, transfer pricing, GAAR and BEPS (about 40%).

How is CMA Final Paper 15 weighted between the two sections?

Section A: Direct Tax Laws carries approximately 60% of the marks and Section B: International Taxation carries approximately 40%, for a paper of 100 marks attempted in 3 hours.

What is the passing requirement for Paper 15?

A candidate must score at least 40% in Paper 15 and at least 50% in aggregate across the group to pass, subject to ICMAI's exemption and set-off rules for the CMA Final.

Is Paper 15 an MCQ exam?

The ICMAI Paper 15 examination is primarily a written/descriptive exam of 100 marks. ICMAI also publishes an official objective question bank, and MCQ practice is widely used to master the law before the descriptive exam.

Which assessment year applies to Paper 15?

Paper 15 content is updated each exam term for the applicable assessment year and the latest Finance Act. Candidates should confirm the assessment year and amendments notified for their specific term.

What topics fall under Section B International Taxation?

Section B covers Double Taxation Avoidance Agreements (Sections 90/90A/91, OECD and UN models), transfer pricing (arm's length price, methods, APA, safe harbour, thin capitalisation, documentation), GAAR, BEPS measures, and taxation of non-residents.