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100+ Free CS Executive Tax Laws Practice Questions

Prepare for the ICSI CS Executive Paper 7: Tax Laws and Practice exam with instant access — no signup required.

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ICSI CS Executive Programme (New Syllabus 2022) — Paper 1: Jurisprudence, Interpretation & General Laws

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ICSI CS Executive Programme (New Syllabus 2022) — Paper 6: Economic, Commercial and Intellectual Property Laws

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2026 Statistics

Key Facts: CS Executive Tax Laws Exam

100

Total Marks

ICSI CS Executive Syllabus 2022

3 hours

Duration

ICSI Examination Pattern

20% / 80%

Objective / Descriptive

ICSI New Syllabus 2022

60 / 40

Direct / Indirect Tax Marks

ICSI Tax Laws and Practice Syllabus

40% / 50%

Paper / Aggregate Pass Marks

ICSI Examination Rules

ICSI CS Executive Paper 7, Tax Laws and Practice (new syllabus 2022), is a 100-mark, 3-hour offline paper with about 20% case-based objective/MCQ and 80% descriptive questions and no negative marking. Part A covers Direct Tax (Income-tax) for roughly 60 marks and Part B covers Indirect Tax, GST and Customs, for roughly 40 marks. Passing requires a minimum of 40% in the paper and 50% in the module aggregate. This free prep provides 100 MCQs with explanations across both parts, aligned to the current syllabus and Finance Act amendments.

Sample CS Executive Tax Laws Practice Questions

Try these sample questions to test your CS Executive Tax Laws 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, what is the definition of 'previous year' for an assessee?
A.The year in which income is earned
B.The year in which income is assessed to tax
C.Any 12-month period chosen by the assessee
D.The calendar year preceding the assessment year
Explanation: Section 3 defines 'previous year' as the financial year in which income is earned. It is the uniform period of 12 months ending on 31st March in which income accrues, and that income is taxed in the immediately following assessment year.
2Income earned during the previous year 2025-26 is chargeable to tax in which assessment year?
A.2027-28
B.2024-25
C.2025-26
D.2026-27
Explanation: The assessment year is the financial year immediately following the previous year. Income of previous year 2025-26 (1 April 2025 to 31 March 2026) is assessed in assessment year 2026-27.
3Which of the following is NOT included in the definition of 'person' under Section 2(31) of the Income-tax Act, 1961?
A.A Hindu Undivided Family (HUF)
B.An Association of Persons (AOP)
C.A local authority
D.A specific movable asset
Explanation: Section 2(31) lists seven categories of 'person': individual, HUF, company, firm, AOP/BOI, local authority, and every artificial juridical person. A movable asset is property, not a 'person' capable of being assessed.
4An individual is said to be a resident in India for a previous year if he stays in India for at least how many days during that previous year (basic condition under Section 6)?
A.365 days
B.60 days
C.90 days
D.182 days
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 in the previous year plus 365 days or more in the preceding four years. Satisfying any one basic condition makes him resident.
5To qualify as 'Resident and Ordinarily Resident' (ROR), an individual must satisfy a basic condition AND which additional conditions under Section 6(6)?
A.Resident in at least 2 of the 10 preceding years and present 730 days or more in the 7 preceding years
B.Resident in all 10 preceding years
C.Present in India for 182 days in each of 7 preceding years
D.Resident in at least 5 of the 10 preceding years
Explanation: Under Section 6(6), an individual is ROR only if he is resident in at least 2 of the 10 previous years preceding the relevant year AND has been in India for 730 days or more during the 7 preceding previous years. Failing either makes him Resident but Not Ordinarily Resident.
6For a Resident and Ordinarily Resident, which of the following income is taxable in India?
A.Only income from Indian companies
B.Only income received in India
C.Only income that accrues in India
D.Global income, whether earned in India or outside India
Explanation: Under Section 5, the scope of total income of an ROR includes all income that accrues, arises, is received, or is deemed to accrue/arise/be received anywhere in the world. ROR is taxed on global income.
7A non-resident is chargeable to tax in India in respect of which of the following?
A.Income from foreign sources only
B.All foreign business income
C.Global income from all sources
D.Income that accrues or arises, or is received, or is deemed to accrue/arise in India
Explanation: Under Section 5(2), a non-resident is taxed only on income received or deemed received in India and income that accrues/arises or is deemed to accrue/arise in India. Foreign income with no India nexus is outside the charge.
8How many heads of income are recognised under Section 14 of the Income-tax Act, 1961?
A.Six
B.Seven
C.Four
D.Five
Explanation: Section 14 classifies income under five heads: Salaries; Income from House Property; Profits and Gains of Business or Profession; Capital Gains; and Income from Other Sources. All income must be computed under one of these heads.
9Which of the following relationships is essential for income to be taxable under the head 'Salaries'?
A.Partner and firm
B.Lender and borrower
C.Principal and agent
D.Employer and employee
Explanation: Income is taxable under 'Salaries' only where an employer-employee (master-servant) relationship exists. Remuneration to a partner from a firm, or to an agent, is not salary but is taxed under business/profession or other sources.
10Under the new tax regime (Section 115BAC, default from AY 2024-25), what is the standard deduction available to salaried individuals for AY 2026-27?
A.No standard deduction is allowed
B.Rs. 40,000
C.Rs. 50,000
D.Rs. 75,000
Explanation: From AY 2024-25 the standard deduction under Section 16(ia) was increased to Rs. 75,000 for salaried taxpayers and pensioners opting for the default new regime under Section 115BAC. Under the old regime it remains Rs. 50,000.

About the CS Executive Tax Laws Exam

CS Executive Paper 7, Tax Laws and Practice, under the ICSI new syllabus 2022 tests Direct Tax (Income-tax) in Part A and Indirect Tax (GST and Customs) in Part B over a 100-mark, 3-hour offline paper combining case-based objective and descriptive questions.

Assessment

Question count not published by the exam provider

Time Limit

3 hours (offline pen-and-paper)

Passing Score

40% in the paper and 50% in the aggregate of the module

Exam Fee

No separate per-paper fee; covered within ICSI CS Executive Programme registration and module examination fees (Institute of Company Secretaries of India (ICSI))

CS Executive Tax Laws Exam Content Outline

~15%

Direct Tax - Basic Concepts and Residential Status

Income-tax Act definitions, previous and assessment year, person and assessee, charge of tax, residential status under Section 6, and scope of total income under Section 5.

~18%

Heads of Income

Salaries, House Property, Business or Profession, Capital Gains, and Other Sources, with exemptions, allowances, depreciation, presumptive taxation, and special rates.

~15%

Deductions, Rebates and Total Income

Chapter VI-A deductions, Section 87A rebate, clubbing, set-off and carry-forward, agricultural income, surcharge, cess, and computation of total income.

~12%

Taxation of Individuals and Companies

Slab rates, the new regime under Section 115BAC, company rates, concessional regimes 115BAA and 115BAB, MAT under 115JB, and AMT under 115JC.

~15%

TDS, Advance Tax, Returns and Assessment

TDS sections 192-206AA, advance tax instalments, interest 234A/B/C, return filing 139, processing and assessment 143/144/147, PAN, and faceless assessment.

~12%

GST - Supply, Levy, Time, Value and Place of Supply, ITC

Scope of supply, composite and mixed supply, levy and reverse charge, composition scheme, time and value of supply, place of supply, and input tax credit.

~7%

GST - Registration, Returns and E-way Bill

Registration thresholds, GSTIN, tax invoice, GSTR-1/3B/9, QRMP, e-way bill, TDS and TCS under GST, and the GST Council.

~6%

Customs Act Basics and Valuation

Customs Act 1962 levy, taxable event, IGST on imports, transaction value under Section 14, CIF/assessable value, and bill of entry procedure.

How to Pass the CS Executive Tax Laws Exam

What You Need to Know

  • Passing score: 40% in the paper and 50% in the aggregate of the module
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours (offline pen-and-paper)
  • Exam fee: No separate per-paper fee; covered within ICSI CS Executive Programme registration and module examination fees

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

CS Executive Tax Laws Study Tips from Top Performers

1Always study from the ICSI tax supplement applicable to your exam session, because Finance Act amendments change rates and thresholds each year.
2Practice numerical computation for salaries, house property, and capital gains, since these recur in both objective and descriptive questions.
3Compare the old and new regimes under Section 115BAC, as questions often test which deductions survive under the default new regime.
4Build a one-page chart of GST sections for supply, time, value, place of supply, and ITC to recall them quickly under exam pressure.
5Do not neglect Customs in Part B; valuation and the taxable event are frequently examined despite the smaller weight.
6Attempt the case-based MCQ section first to lock in objective marks before moving to descriptive answers.

Frequently Asked Questions

What is the exam pattern for CS Executive Tax Laws and Practice?

Paper 7 is a 100-mark, 3-hour offline pen-and-paper examination. About 20% of the marks are case-based objective/MCQ questions and 80% are descriptive. There is no negative marking under the ICSI new syllabus 2022.

How is the CS Executive Tax Laws paper divided?

The paper is divided into Part A, Direct Tax (Income-tax) carrying about 60 marks, and Part B, Indirect Tax covering Goods and Services Tax and Customs Law carrying about 40 marks.

What are the passing marks for CS Executive Tax Laws?

A candidate must score a minimum of 40% marks in the paper and 50% marks in the aggregate of the module or group to pass, as per ICSI examination rules.

Is there negative marking in CS Executive Tax Laws?

No. ICSI does not apply negative marking for the case-based objective/MCQ portion of CS Executive Paper 7 under the new syllabus 2022.

Which tax laws are covered in CS Executive Paper 7?

The paper covers the Income-tax Act 1961 in Part A, and the Central GST, Integrated GST, and State GST Acts along with the Customs Act 1962 in Part B, as amended by the relevant Finance Act for the exam session.

How many practice questions does this free CS Executive Tax Laws prep include?

This free prep includes 100 multiple-choice questions covering Direct Tax, GST, and Customs, each with a detailed explanation and explanations for the incorrect options.