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100+ Free CMA Inter Paper 7 (DITX) Practice Questions

ICMAI CMA Intermediate Paper 7: Direct and Indirect Taxation (DITX) practice questions are available now; exam metadata is being verified.

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House Rent Allowance (HRA) exemption under Section 10(13A) for an employee in a metro city is the LEAST of: actual HRA received; rent paid minus 10% of salary; and:

A
B
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2026 Statistics

Key Facts: CMA Inter Paper 7 (DITX) Exam

100

Marks in the Paper

ICMAI Syllabus 2022

3 hours

Exam Duration

ICMAI Syllabus 2022

50% / 50%

Direct vs Indirect Tax Split

ICMAI Syllabus 2022

35%

GST Laws Weightage

ICMAI Syllabus 2022

40%

Minimum Paper Pass Mark

ICMAI Passing Norms

10%

Customs Act Weightage

ICMAI Syllabus 2022

ICMAI CMA Intermediate Paper 7, Direct and Indirect Taxation (DITX), is a 100-mark, 3-hour Group I written examination under Syllabus 2022. Section A (Direct Taxation, 50%) covers basics of the Income-tax Act (10%), heads of income (25%), and total income, tax liability, TDS, advance tax and returns (15%). Section B (Indirect Taxation, 50%) covers concepts of indirect taxes (5%), GST laws (35%), and Customs Act and Rules (10%). The pass requirement is 40% in the paper and 50% aggregate in the group. Tax content is revised each term to the applicable Assessment Year and Finance Act; ICMAI publishes an official MCQ Bank for practice.

Sample CMA Inter Paper 7 (DITX) Practice Questions

Try these sample questions to test your CMA Inter Paper 7 (DITX) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Income-tax Act, 1961, income earned during a Previous Year is generally charged to tax in which year?
A.The same Previous Year
B.The immediately following Assessment Year
C.Any year chosen by the assessee
D.The preceding Assessment Year
Explanation: Income of a Previous Year (the financial year in which income is earned) is assessed and taxed in the immediately following Assessment Year. For PY 2023-24, the relevant Assessment Year is 2024-25.
2Which section of the Income-tax Act, 1961 is the charging section that levies income tax for an assessment year?
A.Section 4
B.Section 2
C.Section 14
D.Section 10
Explanation: Section 4 is the charging section; it provides that income tax shall be charged for any assessment year at the rate(s) prescribed by the relevant Finance Act on the total income of every person.
3An individual is treated as 'resident' in India for a previous year if he is in India for at least:
A.60 days in the previous year only
B.182 days in the previous year; or 60 days in the PY and 365 days in the preceding 4 years
C.90 days in the previous year
D.150 days in the previous year
Explanation: Under Section 6(1), an individual is resident if present in India for 182 days or more in the previous year, OR 60 days or more in the PY and 365 days or more in the four preceding years. Either basic condition makes him resident.
4A Resident individual becomes 'Resident and Ordinarily Resident' (ROR) only if he additionally satisfies that he was resident in India in at least:
A.2 out of 10 preceding years and 730 days in 7 preceding years
B.5 out of 7 preceding years
C.All 10 preceding years
D.1 out of 5 preceding years
Explanation: Under Section 6(6), a resident is ROR only if he was resident in India in at least 2 of the 10 previous years preceding the relevant PY AND was in India for 730 days or more during the 7 preceding previous years. Otherwise he is RNOR.
5Income which accrues or arises outside India and is also received outside India is taxable in India for which category of assessee?
A.Resident and Ordinarily Resident (ROR) only
B.Non-Resident only
C.All assessees regardless of residential status
D.Resident but Not Ordinarily Resident (RNOR) only
Explanation: Only a Resident and Ordinarily Resident is taxed on global income, including income that accrues and is received outside India. An RNOR is taxed on such foreign income only if it is from a business controlled in India; a non-resident is not taxed on it.
6How many heads of income are specified under Section 14 of the Income-tax Act, 1961?
A.Four
B.Five
C.Six
D.Three
Explanation: Section 14 specifies five heads: Salaries; Income from House Property; Profits and Gains of Business or Profession; Capital Gains; and Income from Other Sources. All income is classified under one of these heads.
7Agricultural income earned in India is treated under the Income-tax Act, 1961 as:
A.Fully taxable under Income from Other Sources
B.Exempt under Section 10(1) but used for partial integration (rate purposes)
C.Taxable under Capital Gains
D.Always fully taxable at 30%
Explanation: Agricultural income is exempt under Section 10(1). However, for a non-corporate assessee, it is aggregated with non-agricultural income for the limited purpose of determining the rate of tax (partial integration), subject to threshold conditions.
8Under Section 2(31), which of the following is NOT separately included in the definition of 'person'?
A.An individual and a Hindu Undivided Family
B.A company and a firm
C.An Association of Persons or Body of Individuals
D.A specific bank branch as a distinct person
Explanation: Section 2(31) defines seven categories of 'person': individual, HUF, company, firm, AOP/BOI, local authority, and every artificial juridical person. A bank branch is not a distinct 'person'; the bank itself (a company) is the assessee.
9The maximum amount of income not chargeable to tax (basic exemption limit) for a resident individual below 60 years under the OLD tax regime for AY 2024-25 is:
A.Rs. 2,00,000
B.Rs. 2,50,000
C.Rs. 3,00,000
D.Rs. 5,00,000
Explanation: Under the old regime, the basic exemption limit for a resident individual below 60 years is Rs. 2,50,000. It is Rs. 3,00,000 for senior citizens (60-80 years) and Rs. 5,00,000 for super senior citizens (80+).
10Under Section 288A, the total income of an assessee is required to be rounded off to the nearest multiple of:
A.Rs. 1
B.Rs. 10
C.Rs. 100
D.Rs. 1,000
Explanation: Section 288A requires total income to be rounded off to the nearest multiple of Rs. 10. Section 288B requires the tax payable/refund to be similarly rounded off to the nearest Rs. 10.

About the CMA Inter Paper 7 (DITX) Practice Questions

Verified exam format metadata for ICMAI CMA Intermediate Paper 7: Direct and Indirect Taxation (DITX) is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.