Income Tax Law (Group I) Model Test Paper - 6 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 6 
INTERMEDIATE COURSE: GROUP-I 
PAPER – 3: TAXATION 
Time Allowed – 3 Hours Maximum Marks – 100 
SECTION – A: INCOME TAX LAW (50 MARKS) 
Working Notes should form part of the answer. Wherever necessary, suitable 
assumptions may be made by the candidates and disclosed by way of a note. 
However, in answers to Questions in Division A, working notes are not 
required. 
The relevant assessment year is A.Y.2025-26. 
Division A – Multiple Choice Questions 
Write the most appropriate answer to each of the following multiple choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
1.  Mr. Ashish born on 1.4.1964 furnished his return of income for Assessment 
Year 2025-26 on 10.07.2025. He has paid tax under default tax regime. He 
had shown the following income in his original return of income -  
-  Salary of ? 10.50 lakhs from PQR (P) Ltd (Computed) 
-  Interest from savings bank account of ? 15,700  
-  Interest from fixed deposits with SBI of ? 50,000. 
During the P.Y. 2024-25, he paid interest on loan of ? 2,50,000 for purchase 
of self-occupied property. He contributed ? 1,50,000 towards the PPF. He 
paid health insurance premium of ? 40,000 by account payee cheque for self 
and wife. He paid ? 2,200 in cash for his health check-up and ? 4,000 by 
cheque for preventive health check-up of his parents. He also paid medical 
insurance premium of ? 29,000 during the year to insure the health of his 
mother, aged 80 years. He further incurred medical expenditure of ? 18,000 
on his father, aged 81 years, who is staying with him. His father is not 
covered under any mediclaim policy. 
He met one of his friends, CA. Ashwin on 01.02.2026. While discussing with 
his friend, his friend told him that the default tax regime under section 
115BAC is not beneficial to him. He advised him to revise his return of 
income and shift out of the default tax regime. However, Mr. Ashish’s son, 
who is employed in the accounts department of TQM (P) Ltd., is of the view 
that once tax is paid under section 115BAC in original return, it cannot be 
changed in revised return. 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i)  What is the total deduction under Chapter VI-A allowable to Mr. Ashish 
if he shifts out of the default tax regime under section 115BAC? 
(a)  ? 2,34,800 
(b)  ? 2,35,000 
215
Page 2


MODEL TEST PAPER 6 
INTERMEDIATE COURSE: GROUP-I 
PAPER – 3: TAXATION 
Time Allowed – 3 Hours Maximum Marks – 100 
SECTION – A: INCOME TAX LAW (50 MARKS) 
Working Notes should form part of the answer. Wherever necessary, suitable 
assumptions may be made by the candidates and disclosed by way of a note. 
However, in answers to Questions in Division A, working notes are not 
required. 
The relevant assessment year is A.Y.2025-26. 
Division A – Multiple Choice Questions 
Write the most appropriate answer to each of the following multiple choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
1.  Mr. Ashish born on 1.4.1964 furnished his return of income for Assessment 
Year 2025-26 on 10.07.2025. He has paid tax under default tax regime. He 
had shown the following income in his original return of income -  
-  Salary of ? 10.50 lakhs from PQR (P) Ltd (Computed) 
-  Interest from savings bank account of ? 15,700  
-  Interest from fixed deposits with SBI of ? 50,000. 
During the P.Y. 2024-25, he paid interest on loan of ? 2,50,000 for purchase 
of self-occupied property. He contributed ? 1,50,000 towards the PPF. He 
paid health insurance premium of ? 40,000 by account payee cheque for self 
and wife. He paid ? 2,200 in cash for his health check-up and ? 4,000 by 
cheque for preventive health check-up of his parents. He also paid medical 
insurance premium of ? 29,000 during the year to insure the health of his 
mother, aged 80 years. He further incurred medical expenditure of ? 18,000 
on his father, aged 81 years, who is staying with him. His father is not 
covered under any mediclaim policy. 
He met one of his friends, CA. Ashwin on 01.02.2026. While discussing with 
his friend, his friend told him that the default tax regime under section 
115BAC is not beneficial to him. He advised him to revise his return of 
income and shift out of the default tax regime. However, Mr. Ashish’s son, 
who is employed in the accounts department of TQM (P) Ltd., is of the view 
that once tax is paid under section 115BAC in original return, it cannot be 
changed in revised return. 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i)  What is the total deduction under Chapter VI-A allowable to Mr. Ashish 
if he shifts out of the default tax regime under section 115BAC? 
(a)  ? 2,34,800 
(b)  ? 2,35,000 
215
(c)  ? 2,92,000 
(d)  ? 2,92,200 
(ii)  What is total income of Mr. Ashish under normal provisions of the Act 
for A.Y. 2025-26? 
(a)  ? 5,73,700   
(b)  ? 6,23,700 
(c)  ? 6,48,700  
(d)  ? 6,30,700 
(iii)  Can Mr. Ashish file his revise return of income for A.Y. 2025-26 and 
declare income under the regular provisions of the Act? 
(a)  Yes, Mr. Ashish can revise his return of income and declare 
income under the regular provisions of the Act 
(b)  No, though he can file a revised return of income, option to shift 
out from section 115BAC once not opted in original return of 
income cannot be opted in revised return of income if he is filing 
revised return after due date.  
(c)  No, Mr. Ashish cannot revise his return of income for  
A.Y. 2025-26 
(d)  No, he cannot do so since he is a salaried employee. He would 
have made a declaration to pay tax under section 115BAC to his 
employer, which cannot be changed subsequently at the time of 
fling of return of income (3 x 2 = 6 Marks)  
2. Mr. Rajiv, an Indian resident, purchased a residential house property at 
Gwalior on 28.05.1999 for ? 28.5 lakhs. The fair market value and the stamp 
duty value of such house property as on 1.4.2001 was ? 33.5 lakhs and  
? 32.4 lakhs, respectively. On 25.03.2014, Mr. Rajiv entered into an 
agreement with Mr. Virat for sale of such property for ? 74 lakhs and 
received an amount of ? 3.9 lakhs as advance. However, as Mr. Virat did not 
pay the balance amount, Mr. Rajiv forfeited the advance.  
On 15.04.2024, Mr. Rajiv sold the house property to Mr. Suraj for ? 2.10 
crores, when the stamp duty value of the property was ? 2.33 crores.  
Cost inflation index – 
P.Y. 2024-25: 363; P.Y. 2013-14: 220; P.Y. 2001-02: 100 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i) What shall be the indexed cost of acquisition of residential house 
property at Gwalior for computation of capital gains in the hands of Mr. 
Rajiv? 
(a) ? 1,17,61,200  
(b) ? 1,03,45,500 
(c) ? 1,07,44,800 
216
Page 3


MODEL TEST PAPER 6 
INTERMEDIATE COURSE: GROUP-I 
PAPER – 3: TAXATION 
Time Allowed – 3 Hours Maximum Marks – 100 
SECTION – A: INCOME TAX LAW (50 MARKS) 
Working Notes should form part of the answer. Wherever necessary, suitable 
assumptions may be made by the candidates and disclosed by way of a note. 
However, in answers to Questions in Division A, working notes are not 
required. 
The relevant assessment year is A.Y.2025-26. 
Division A – Multiple Choice Questions 
Write the most appropriate answer to each of the following multiple choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
1.  Mr. Ashish born on 1.4.1964 furnished his return of income for Assessment 
Year 2025-26 on 10.07.2025. He has paid tax under default tax regime. He 
had shown the following income in his original return of income -  
-  Salary of ? 10.50 lakhs from PQR (P) Ltd (Computed) 
-  Interest from savings bank account of ? 15,700  
-  Interest from fixed deposits with SBI of ? 50,000. 
During the P.Y. 2024-25, he paid interest on loan of ? 2,50,000 for purchase 
of self-occupied property. He contributed ? 1,50,000 towards the PPF. He 
paid health insurance premium of ? 40,000 by account payee cheque for self 
and wife. He paid ? 2,200 in cash for his health check-up and ? 4,000 by 
cheque for preventive health check-up of his parents. He also paid medical 
insurance premium of ? 29,000 during the year to insure the health of his 
mother, aged 80 years. He further incurred medical expenditure of ? 18,000 
on his father, aged 81 years, who is staying with him. His father is not 
covered under any mediclaim policy. 
He met one of his friends, CA. Ashwin on 01.02.2026. While discussing with 
his friend, his friend told him that the default tax regime under section 
115BAC is not beneficial to him. He advised him to revise his return of 
income and shift out of the default tax regime. However, Mr. Ashish’s son, 
who is employed in the accounts department of TQM (P) Ltd., is of the view 
that once tax is paid under section 115BAC in original return, it cannot be 
changed in revised return. 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i)  What is the total deduction under Chapter VI-A allowable to Mr. Ashish 
if he shifts out of the default tax regime under section 115BAC? 
(a)  ? 2,34,800 
(b)  ? 2,35,000 
215
(c)  ? 2,92,000 
(d)  ? 2,92,200 
(ii)  What is total income of Mr. Ashish under normal provisions of the Act 
for A.Y. 2025-26? 
(a)  ? 5,73,700   
(b)  ? 6,23,700 
(c)  ? 6,48,700  
(d)  ? 6,30,700 
(iii)  Can Mr. Ashish file his revise return of income for A.Y. 2025-26 and 
declare income under the regular provisions of the Act? 
(a)  Yes, Mr. Ashish can revise his return of income and declare 
income under the regular provisions of the Act 
(b)  No, though he can file a revised return of income, option to shift 
out from section 115BAC once not opted in original return of 
income cannot be opted in revised return of income if he is filing 
revised return after due date.  
(c)  No, Mr. Ashish cannot revise his return of income for  
A.Y. 2025-26 
(d)  No, he cannot do so since he is a salaried employee. He would 
have made a declaration to pay tax under section 115BAC to his 
employer, which cannot be changed subsequently at the time of 
fling of return of income (3 x 2 = 6 Marks)  
2. Mr. Rajiv, an Indian resident, purchased a residential house property at 
Gwalior on 28.05.1999 for ? 28.5 lakhs. The fair market value and the stamp 
duty value of such house property as on 1.4.2001 was ? 33.5 lakhs and  
? 32.4 lakhs, respectively. On 25.03.2014, Mr. Rajiv entered into an 
agreement with Mr. Virat for sale of such property for ? 74 lakhs and 
received an amount of ? 3.9 lakhs as advance. However, as Mr. Virat did not 
pay the balance amount, Mr. Rajiv forfeited the advance.  
On 15.04.2024, Mr. Rajiv sold the house property to Mr. Suraj for ? 2.10 
crores, when the stamp duty value of the property was ? 2.33 crores.  
Cost inflation index – 
P.Y. 2024-25: 363; P.Y. 2013-14: 220; P.Y. 2001-02: 100 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i) What shall be the indexed cost of acquisition of residential house 
property at Gwalior for computation of capital gains in the hands of Mr. 
Rajiv? 
(a) ? 1,17,61,200  
(b) ? 1,03,45,500 
(c) ? 1,07,44,800 
216
(d) ? 1,05,27,200 
(ii) The amount of capital gains for A.Y. 2025-26 in the hands of Mr. Rajiv 
for sale of residential house property at Gwalior is - 
(a) ? 1,13,38,800 
(b ? 1,15,38,800 
(c) ? 1,29,54,500 
(d) ? 1,25,55,200 
(iii) The amount required to be deducted as TDS by Mr. Suraj under 
section 194-IA, is - 
(a) ? 2,33,000 
(b) Nil 
(c) ? 2,10,000 
(d) ? 23,000 (3 x 2 = 6 Marks) 
3.  Mr. Sushil is a person of Indian origin, residing in Canada. During  
P.Y. 2024-25, he visited India on several occasions and his period of stay, in 
total, amounted to 129 days during P.Y. 2024-25 and his period of stay in 
India during P.Y. 2023-24, P.Y. 2022-23, P.Y.2021-22, P.Y. 2020-21 was 
135 days, 115 days, 95 days and 125 days, respectively. He earned the 
following incomes during the P.Y. 2024-25: 
Source of Income Amount ( ?) 
Income received or deemed to be received in India  2,50,000 
Income accruing or arising or which is deemed to accrue or 
arise in India 
3,75,000 
Income accruing or arising and received outside India from 
business controlled from India  
5,50,000 
Income accruing or arising and received outside India from 
business controlled outside India 
6,50,000 
What is the residential status of Mr. Sushil for A.Y. 2025-26 and his income 
liable to tax in India during A.Y. 2025-26? 
(a)  Non-Resident; ? 6,25,000 is liable to tax in India  
(b)  Resident and ordinary resident; ? 18,25,000 is liable to tax in India 
(c)  Resident but not ordinarily resident; ? 11,75,000 is liable to tax in India 
(d)  Non-Resident; ? 11,75,000 is liable to tax in India (2 Marks) 
4.  Mr. Arora made the following cash withdrawals during the P.Y.2024-25 - 
Date Amount From 
1.6.2024 ? 70 lakhs Canara Bank 
1.8.2024 ? 50 lakhs Canara Bank 
1.10.2024 ? 60 lakhs Repco Bank (Co-operative Bank) 
217
Page 4


MODEL TEST PAPER 6 
INTERMEDIATE COURSE: GROUP-I 
PAPER – 3: TAXATION 
Time Allowed – 3 Hours Maximum Marks – 100 
SECTION – A: INCOME TAX LAW (50 MARKS) 
Working Notes should form part of the answer. Wherever necessary, suitable 
assumptions may be made by the candidates and disclosed by way of a note. 
However, in answers to Questions in Division A, working notes are not 
required. 
The relevant assessment year is A.Y.2025-26. 
Division A – Multiple Choice Questions 
Write the most appropriate answer to each of the following multiple choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
1.  Mr. Ashish born on 1.4.1964 furnished his return of income for Assessment 
Year 2025-26 on 10.07.2025. He has paid tax under default tax regime. He 
had shown the following income in his original return of income -  
-  Salary of ? 10.50 lakhs from PQR (P) Ltd (Computed) 
-  Interest from savings bank account of ? 15,700  
-  Interest from fixed deposits with SBI of ? 50,000. 
During the P.Y. 2024-25, he paid interest on loan of ? 2,50,000 for purchase 
of self-occupied property. He contributed ? 1,50,000 towards the PPF. He 
paid health insurance premium of ? 40,000 by account payee cheque for self 
and wife. He paid ? 2,200 in cash for his health check-up and ? 4,000 by 
cheque for preventive health check-up of his parents. He also paid medical 
insurance premium of ? 29,000 during the year to insure the health of his 
mother, aged 80 years. He further incurred medical expenditure of ? 18,000 
on his father, aged 81 years, who is staying with him. His father is not 
covered under any mediclaim policy. 
He met one of his friends, CA. Ashwin on 01.02.2026. While discussing with 
his friend, his friend told him that the default tax regime under section 
115BAC is not beneficial to him. He advised him to revise his return of 
income and shift out of the default tax regime. However, Mr. Ashish’s son, 
who is employed in the accounts department of TQM (P) Ltd., is of the view 
that once tax is paid under section 115BAC in original return, it cannot be 
changed in revised return. 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i)  What is the total deduction under Chapter VI-A allowable to Mr. Ashish 
if he shifts out of the default tax regime under section 115BAC? 
(a)  ? 2,34,800 
(b)  ? 2,35,000 
215
(c)  ? 2,92,000 
(d)  ? 2,92,200 
(ii)  What is total income of Mr. Ashish under normal provisions of the Act 
for A.Y. 2025-26? 
(a)  ? 5,73,700   
(b)  ? 6,23,700 
(c)  ? 6,48,700  
(d)  ? 6,30,700 
(iii)  Can Mr. Ashish file his revise return of income for A.Y. 2025-26 and 
declare income under the regular provisions of the Act? 
(a)  Yes, Mr. Ashish can revise his return of income and declare 
income under the regular provisions of the Act 
(b)  No, though he can file a revised return of income, option to shift 
out from section 115BAC once not opted in original return of 
income cannot be opted in revised return of income if he is filing 
revised return after due date.  
(c)  No, Mr. Ashish cannot revise his return of income for  
A.Y. 2025-26 
(d)  No, he cannot do so since he is a salaried employee. He would 
have made a declaration to pay tax under section 115BAC to his 
employer, which cannot be changed subsequently at the time of 
fling of return of income (3 x 2 = 6 Marks)  
2. Mr. Rajiv, an Indian resident, purchased a residential house property at 
Gwalior on 28.05.1999 for ? 28.5 lakhs. The fair market value and the stamp 
duty value of such house property as on 1.4.2001 was ? 33.5 lakhs and  
? 32.4 lakhs, respectively. On 25.03.2014, Mr. Rajiv entered into an 
agreement with Mr. Virat for sale of such property for ? 74 lakhs and 
received an amount of ? 3.9 lakhs as advance. However, as Mr. Virat did not 
pay the balance amount, Mr. Rajiv forfeited the advance.  
On 15.04.2024, Mr. Rajiv sold the house property to Mr. Suraj for ? 2.10 
crores, when the stamp duty value of the property was ? 2.33 crores.  
Cost inflation index – 
P.Y. 2024-25: 363; P.Y. 2013-14: 220; P.Y. 2001-02: 100 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i) What shall be the indexed cost of acquisition of residential house 
property at Gwalior for computation of capital gains in the hands of Mr. 
Rajiv? 
(a) ? 1,17,61,200  
(b) ? 1,03,45,500 
(c) ? 1,07,44,800 
216
(d) ? 1,05,27,200 
(ii) The amount of capital gains for A.Y. 2025-26 in the hands of Mr. Rajiv 
for sale of residential house property at Gwalior is - 
(a) ? 1,13,38,800 
(b ? 1,15,38,800 
(c) ? 1,29,54,500 
(d) ? 1,25,55,200 
(iii) The amount required to be deducted as TDS by Mr. Suraj under 
section 194-IA, is - 
(a) ? 2,33,000 
(b) Nil 
(c) ? 2,10,000 
(d) ? 23,000 (3 x 2 = 6 Marks) 
3.  Mr. Sushil is a person of Indian origin, residing in Canada. During  
P.Y. 2024-25, he visited India on several occasions and his period of stay, in 
total, amounted to 129 days during P.Y. 2024-25 and his period of stay in 
India during P.Y. 2023-24, P.Y. 2022-23, P.Y.2021-22, P.Y. 2020-21 was 
135 days, 115 days, 95 days and 125 days, respectively. He earned the 
following incomes during the P.Y. 2024-25: 
Source of Income Amount ( ?) 
Income received or deemed to be received in India  2,50,000 
Income accruing or arising or which is deemed to accrue or 
arise in India 
3,75,000 
Income accruing or arising and received outside India from 
business controlled from India  
5,50,000 
Income accruing or arising and received outside India from 
business controlled outside India 
6,50,000 
What is the residential status of Mr. Sushil for A.Y. 2025-26 and his income 
liable to tax in India during A.Y. 2025-26? 
(a)  Non-Resident; ? 6,25,000 is liable to tax in India  
(b)  Resident and ordinary resident; ? 18,25,000 is liable to tax in India 
(c)  Resident but not ordinarily resident; ? 11,75,000 is liable to tax in India 
(d)  Non-Resident; ? 11,75,000 is liable to tax in India (2 Marks) 
4.  Mr. Arora made the following cash withdrawals during the P.Y.2024-25 - 
Date Amount From 
1.6.2024 ? 70 lakhs Canara Bank 
1.8.2024 ? 50 lakhs Canara Bank 
1.10.2024 ? 60 lakhs Repco Bank (Co-operative Bank) 
217
1.11.2024 ? 10 lakhs SBI  
1.12.2024 ? 10 lakhs Repco Bank (Co-operative Bank) 
20.1.2025 ? 20 lakhs Repco Bank (Co-operative Bank) 
1.2.2025 ? 15 lakhs Repco Bank (Co-operative Bank) 
10.2.2025 ? 75 lakhs  SBI  
1.3.2025 ? 15 lakhs SBI 
Which of the above banks are required to deduct tax at source on cash 
withdrawals made by Mr. Arora in the P.Y.2024-25 if he regularly files his 
return of income? 
(a) Canara Bank  
(b) SBI & Repco 
(c) Repco & Canara Bank 
(d) Repco  (1 Mark) 
Division B – Descriptive Questions 
Question No. 1 is compulsory 
Attempt any two questions from the remaining three questions 
1.  Mr. Ashok, aged 61 years, a resident individual, engaged in a wholesale 
business of stationary products provides you the following information for the 
year ended 31.3.2025. He is also a partner in UVW & Co., a partnership 
firm. 
Sl. 
No. 
Particulars ? ? 
(i) Interest on capital received from UVW & Co., at 
14% [in accordance with the partnership deed] 
 1,40,000 
(ii) Share of profit from the firm   44,000 
(iii) Salary as working partner (fully allowed in the 
hands of the firm) 
 1,00,000 
(iv) Interest from bank on fixed deposit (Net of 
TDS) 
 49,500 
(v) Interest on saving bank account  13,300 
(vi) Income-tax refund received relating to 
assessment year 2024-25 including interest of  
? 1,400 
 34,500 
(vii) Net profit from wholesale business  6,60,000 
 Amounts debited include the following:   
 - Depreciation as per books  34,000  
 - Motor car expenses 40,000  
 - Municipal taxes for the shop 7,000  
218
Page 5


MODEL TEST PAPER 6 
INTERMEDIATE COURSE: GROUP-I 
PAPER – 3: TAXATION 
Time Allowed – 3 Hours Maximum Marks – 100 
SECTION – A: INCOME TAX LAW (50 MARKS) 
Working Notes should form part of the answer. Wherever necessary, suitable 
assumptions may be made by the candidates and disclosed by way of a note. 
However, in answers to Questions in Division A, working notes are not 
required. 
The relevant assessment year is A.Y.2025-26. 
Division A – Multiple Choice Questions 
Write the most appropriate answer to each of the following multiple choice 
questions by choosing one of the four options given. All questions are 
compulsory. 
1.  Mr. Ashish born on 1.4.1964 furnished his return of income for Assessment 
Year 2025-26 on 10.07.2025. He has paid tax under default tax regime. He 
had shown the following income in his original return of income -  
-  Salary of ? 10.50 lakhs from PQR (P) Ltd (Computed) 
-  Interest from savings bank account of ? 15,700  
-  Interest from fixed deposits with SBI of ? 50,000. 
During the P.Y. 2024-25, he paid interest on loan of ? 2,50,000 for purchase 
of self-occupied property. He contributed ? 1,50,000 towards the PPF. He 
paid health insurance premium of ? 40,000 by account payee cheque for self 
and wife. He paid ? 2,200 in cash for his health check-up and ? 4,000 by 
cheque for preventive health check-up of his parents. He also paid medical 
insurance premium of ? 29,000 during the year to insure the health of his 
mother, aged 80 years. He further incurred medical expenditure of ? 18,000 
on his father, aged 81 years, who is staying with him. His father is not 
covered under any mediclaim policy. 
He met one of his friends, CA. Ashwin on 01.02.2026. While discussing with 
his friend, his friend told him that the default tax regime under section 
115BAC is not beneficial to him. He advised him to revise his return of 
income and shift out of the default tax regime. However, Mr. Ashish’s son, 
who is employed in the accounts department of TQM (P) Ltd., is of the view 
that once tax is paid under section 115BAC in original return, it cannot be 
changed in revised return. 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i)  What is the total deduction under Chapter VI-A allowable to Mr. Ashish 
if he shifts out of the default tax regime under section 115BAC? 
(a)  ? 2,34,800 
(b)  ? 2,35,000 
215
(c)  ? 2,92,000 
(d)  ? 2,92,200 
(ii)  What is total income of Mr. Ashish under normal provisions of the Act 
for A.Y. 2025-26? 
(a)  ? 5,73,700   
(b)  ? 6,23,700 
(c)  ? 6,48,700  
(d)  ? 6,30,700 
(iii)  Can Mr. Ashish file his revise return of income for A.Y. 2025-26 and 
declare income under the regular provisions of the Act? 
(a)  Yes, Mr. Ashish can revise his return of income and declare 
income under the regular provisions of the Act 
(b)  No, though he can file a revised return of income, option to shift 
out from section 115BAC once not opted in original return of 
income cannot be opted in revised return of income if he is filing 
revised return after due date.  
(c)  No, Mr. Ashish cannot revise his return of income for  
A.Y. 2025-26 
(d)  No, he cannot do so since he is a salaried employee. He would 
have made a declaration to pay tax under section 115BAC to his 
employer, which cannot be changed subsequently at the time of 
fling of return of income (3 x 2 = 6 Marks)  
2. Mr. Rajiv, an Indian resident, purchased a residential house property at 
Gwalior on 28.05.1999 for ? 28.5 lakhs. The fair market value and the stamp 
duty value of such house property as on 1.4.2001 was ? 33.5 lakhs and  
? 32.4 lakhs, respectively. On 25.03.2014, Mr. Rajiv entered into an 
agreement with Mr. Virat for sale of such property for ? 74 lakhs and 
received an amount of ? 3.9 lakhs as advance. However, as Mr. Virat did not 
pay the balance amount, Mr. Rajiv forfeited the advance.  
On 15.04.2024, Mr. Rajiv sold the house property to Mr. Suraj for ? 2.10 
crores, when the stamp duty value of the property was ? 2.33 crores.  
Cost inflation index – 
P.Y. 2024-25: 363; P.Y. 2013-14: 220; P.Y. 2001-02: 100 
Based on the facts of the case scenario given above, choose the most 
appropriate answer to the following questions:-  
(i) What shall be the indexed cost of acquisition of residential house 
property at Gwalior for computation of capital gains in the hands of Mr. 
Rajiv? 
(a) ? 1,17,61,200  
(b) ? 1,03,45,500 
(c) ? 1,07,44,800 
216
(d) ? 1,05,27,200 
(ii) The amount of capital gains for A.Y. 2025-26 in the hands of Mr. Rajiv 
for sale of residential house property at Gwalior is - 
(a) ? 1,13,38,800 
(b ? 1,15,38,800 
(c) ? 1,29,54,500 
(d) ? 1,25,55,200 
(iii) The amount required to be deducted as TDS by Mr. Suraj under 
section 194-IA, is - 
(a) ? 2,33,000 
(b) Nil 
(c) ? 2,10,000 
(d) ? 23,000 (3 x 2 = 6 Marks) 
3.  Mr. Sushil is a person of Indian origin, residing in Canada. During  
P.Y. 2024-25, he visited India on several occasions and his period of stay, in 
total, amounted to 129 days during P.Y. 2024-25 and his period of stay in 
India during P.Y. 2023-24, P.Y. 2022-23, P.Y.2021-22, P.Y. 2020-21 was 
135 days, 115 days, 95 days and 125 days, respectively. He earned the 
following incomes during the P.Y. 2024-25: 
Source of Income Amount ( ?) 
Income received or deemed to be received in India  2,50,000 
Income accruing or arising or which is deemed to accrue or 
arise in India 
3,75,000 
Income accruing or arising and received outside India from 
business controlled from India  
5,50,000 
Income accruing or arising and received outside India from 
business controlled outside India 
6,50,000 
What is the residential status of Mr. Sushil for A.Y. 2025-26 and his income 
liable to tax in India during A.Y. 2025-26? 
(a)  Non-Resident; ? 6,25,000 is liable to tax in India  
(b)  Resident and ordinary resident; ? 18,25,000 is liable to tax in India 
(c)  Resident but not ordinarily resident; ? 11,75,000 is liable to tax in India 
(d)  Non-Resident; ? 11,75,000 is liable to tax in India (2 Marks) 
4.  Mr. Arora made the following cash withdrawals during the P.Y.2024-25 - 
Date Amount From 
1.6.2024 ? 70 lakhs Canara Bank 
1.8.2024 ? 50 lakhs Canara Bank 
1.10.2024 ? 60 lakhs Repco Bank (Co-operative Bank) 
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1.11.2024 ? 10 lakhs SBI  
1.12.2024 ? 10 lakhs Repco Bank (Co-operative Bank) 
20.1.2025 ? 20 lakhs Repco Bank (Co-operative Bank) 
1.2.2025 ? 15 lakhs Repco Bank (Co-operative Bank) 
10.2.2025 ? 75 lakhs  SBI  
1.3.2025 ? 15 lakhs SBI 
Which of the above banks are required to deduct tax at source on cash 
withdrawals made by Mr. Arora in the P.Y.2024-25 if he regularly files his 
return of income? 
(a) Canara Bank  
(b) SBI & Repco 
(c) Repco & Canara Bank 
(d) Repco  (1 Mark) 
Division B – Descriptive Questions 
Question No. 1 is compulsory 
Attempt any two questions from the remaining three questions 
1.  Mr. Ashok, aged 61 years, a resident individual, engaged in a wholesale 
business of stationary products provides you the following information for the 
year ended 31.3.2025. He is also a partner in UVW & Co., a partnership 
firm. 
Sl. 
No. 
Particulars ? ? 
(i) Interest on capital received from UVW & Co., at 
14% [in accordance with the partnership deed] 
 1,40,000 
(ii) Share of profit from the firm   44,000 
(iii) Salary as working partner (fully allowed in the 
hands of the firm) 
 1,00,000 
(iv) Interest from bank on fixed deposit (Net of 
TDS) 
 49,500 
(v) Interest on saving bank account  13,300 
(vi) Income-tax refund received relating to 
assessment year 2024-25 including interest of  
? 1,400 
 34,500 
(vii) Net profit from wholesale business  6,60,000 
 Amounts debited include the following:   
 - Depreciation as per books  34,000  
 - Motor car expenses 40,000  
 - Municipal taxes for the shop 7,000  
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(For two half years; payment for one half year 
made on 12.7.2024 and for the other on 
31.12.2025) 
 - Salary to manager by way of a single cash 
payment  
22,000  
(viii) The WDV of the assets (as on 1.4.2024) used 
in above wholesale business is as under: 
  
 - Computers 2,40,000  
 - Computer printer 1,50,000  
(ix) Motor car acquired on 31.12.2024 (20% used 
for personal use) 
6,80,000  
(x) He owned a house property in Mumbai which 
was sold in January, 2021. He received arrears 
of rent in respect of the said property in 
October, 2024. 
 1,35,000 
(x) LIP paid for independent son 60,000  
(xi) PPF of his wife 70,000  
(xii) Health insurance premium paid by way of A/c 
payee cheque for self 
35,000  
(xiii) Contribution toward Prime Minister National 
Relief Fund 
50,000  
 You are required to compute the total income and tax liability of Mr. Ashok 
for the A.Y. 2025-26 assuming he opts out from the provisions of section 
115BAC. (15 Marks) 
2. (a) Mr. Sudesh (aged 58 years), a citizen of India, serving in the Ministry of 
Finance in India, was transferred to Indian Embassy in UK on 15
th
 
March 2024. His income during the financial year 2024-25 is given 
hereunder: 
Particulars ? 
Rent from a house situated at UK, received in UK. 
Thereafter, remitted to Indian bank account. 
5,25,000 
Salary from Government of India 9,25,000 
Foreign Allowances from Government of India 8,00,000 
 Mr. Sudesh did not come to India during the financial year 2024-25. 
Compute his total income for the Assessment year 2025-26.  (3 Marks) 
(b) Mr. Sumit has submitted his income-tax return containing certain 
losses/deductions in respect of the P.Y. 2024-25 on 22.10.2025. The 
due date for filing the return for Mr. Sumit was 31
st
 July, 2025 under 
section 139(1). You are required to examine with reference to the 
relevant provisions of Income-tax Act, 1961 whether the following 
losses/deductions can be carried forward/claimed in subsequent years 
by Mr. Sumit if he pays tax under default tax provisions of the Act. 
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