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

Prepare for the ICMAI CMA Intermediate Paper 7: Direct and Indirect Taxation (DITX) exam with instant access — no signup required.

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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) Exam

CMA Intermediate Paper 7 (DITX) is a Group I, 100-mark, 3-hour written paper covering Direct Taxation (income tax basics, heads of income, total income and tax liability, TDS and returns) in Section A and Indirect Taxation (GST concepts, levy, supply, ITC, registration, returns and customs basics) in Section B, each weighted about 50%.

Assessment

Question count not published by the exam provider

Time Limit

3 hours

Passing Score

40% in the paper plus 50% aggregate in the group (ICMAI Intermediate norms)

Exam Fee

Covered within ICMAI Intermediate course and examination fees; no separate per-paper fee is published (The Institute of Cost Accountants of India (ICMAI))

CMA Inter Paper 7 (DITX) Exam Content Outline

10%

Section A: Basics of Income Tax Act

Income-tax framework, definitions, previous year and assessment year, charging Section 4, residential status, scope of total income, and exemptions under Section 10.

25%

Section A: Heads of Income

Salaries, house property, profits and gains of business or profession, capital gains, and income from other sources, with deductions and computation under each head.

15%

Section A: Total Income, Tax Liability, TDS & Returns

Clubbing, set-off and carry-forward of losses, Chapter VI-A deductions, rebate and surcharge, old/new regime tax computation, TDS/TCS, advance tax, and return filing.

5%

Section B: Concept of Indirect Taxes

Features of indirect taxes, distinction from direct taxes, the Constitution (101st Amendment) Act, and the dual GST structure of CGST, SGST/UTGST and IGST.

35%

Section B: Goods and Services Tax (GST) Laws

Levy and collection, scope of supply, composite/mixed supply, time, place and value of supply, registration, composition, input tax credit, reverse charge, returns, and e-way bill.

10%

Section B: Customs Act & Rules

Basics of customs law, taxable event, types of duties, valuation under Section 14, import/export procedures, warehousing, and IGST on imports.

How to Pass the CMA Inter Paper 7 (DITX) Exam

What You Need to Know

  • Passing score: 40% in the paper plus 50% aggregate in the group (ICMAI Intermediate norms)
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours
  • Exam fee: Covered within ICMAI Intermediate course and examination fees; no separate per-paper fee is published

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 Inter Paper 7 (DITX) Study Tips from Top Performers

1Treat Direct and Indirect Taxation as two near-equal 50% halves and allocate study time accordingly.
2Prioritise GST within Section B, since GST laws alone carry roughly 35% of the paper.
3Always check the applicable Assessment Year and Finance Act for your specific exam term before memorising rates and thresholds.
4Practise full computation problems for heads of income and total income, not just theory.
5Master ITC eligibility, blocked credits, and time/place/value of supply, which are heavily tested in GST.
6For customs, focus on valuation under Section 14, types of duties, and IGST on imports.

Frequently Asked Questions

How many marks is CMA Inter Paper 7 (DITX) and how long is the exam?

CMA Intermediate Paper 7, Direct and Indirect Taxation, is a 100-mark written examination of 3 hours under Group I. It is a subjective/descriptive paper, though ICMAI also publishes an official MCQ Bank that students use for practice.

How is the syllabus of CMA Inter Paper 7 divided?

The paper is split equally: Section A Direct Taxation (50%) and Section B Indirect Taxation (50%). Within Direct Taxation, basics of income tax carry 10%, heads of income 25%, and total income, tax liability, TDS and returns 15%.

What is the weightage of GST in CMA Inter Paper 7?

Under Syllabus 2022, GST laws carry about 35% of the paper, the concept of indirect taxes about 5%, and the Customs Act and Rules about 10%, so GST is by far the largest single component of Section B.

What is the passing requirement for CMA Inter Paper 7?

A candidate must score at least 40% in the individual paper and at least 50% aggregate in the group to pass, in line with ICMAI Intermediate passing norms. There is no separate negative marking in the descriptive paper.

Which Assessment Year and Finance Act apply to CMA Inter Paper 7?

ICMAI applies the Assessment Year and Finance Act notified for each examination term, so candidates should confirm the applicable AY and amendments for their specific December or June attempt before relying on rates and thresholds.

Does CMA Inter Paper 7 cover both income tax and GST?

Yes. Section A covers direct taxation under the Income-tax Act, 1961, while Section B covers indirect taxation, principally GST law and the basics of customs duty, making the paper a combined direct and indirect taxation assessment.