CA Inter Taxation Important Questions For May 2019 | By CA Inter Toppers


CA Inter Taxation Important Questions For May 2019 by CA Inter Toppers. In the previous articles, we have given CA Inter Accounting and Cost and Management Accounting and chapter wise important questions for May 2019 attempt. Today we are providing CA Inter tax most important questions for May 2019 attempt (सीए इंटर टैक्स  इम्पोर्टेन्ट प्रश्न). With only a few days left for the CA Inter exam May 2019, students have very less time to cement their learnings and get well prepared to write the perfect exams. During these days before the exams, students should avoid studying anything new. They must focus on practising and revising what they have studied until now.

Moreover, they must go through the important topics and practice the questions related to those topics. This will help to fine-tune your preparations for the board exams. It’s very essential that students pick reliable study material and practice manual, which provide only important and meaningful stuff so that students are able to make an effective preparation for the exam.

For tax paper, you can start by making a plan according to your target. First, jot down the syllabus and figure out the time period required to cover each chapter. Videos are available on youtube which explains the study process and the important topics req to pass the exam. Make sure you cover the chapters on time otherwise you’ll not have enough time for other chapters. Make time for studying every day. You can watch free videos online for clearing your doubts, read books and if you’re not so good at taxation then taking classes makes it easier for the student to study and perform better. If you don’t have enough time then here we have given some important questions in CA Inter tax exam for May 2019. Let’s check it.

CA Inter Taxation Important Questions May 2019

Here we have provided all the theory important question of CA Inter Group -I tax important guess questions. People who are preparing for the CA Inter May 2019 taxation exam can follow these questions for their exams preparation. If you don’t have time, here we have given all 4 marks important questions, 8 marks important questions and 16 marks important questions. So prepare all these short answers questions and long answers questions. Please have a look!


  1. Explain the concept of marginal relief under the I.T Act, 1961.
  2. Describe the average rate of tax and maximum marginal rate under section 2(10) and 2(29C) of the Income-tax Act,1961.
  3. State any four instances where the income of the previous year is assessable in the previous year itself instead of the assessment year.
  4. Write a short note on “Income accruing” and “Income due”. Can an income which has been taxed on accrual basis be assessed again on receipt basis?
  5. An employee instructs his employer to pay a certain portion of his salary to a charity and claims it as exempt as it is diverted by overriding charge/title – Comment.
  6. Who is an “Assessee”? Who is a “Deemed Assessee”? Who is an “Assessee in Default”? Explain with suitable examples.
  7. Write short notes on ” Year of accrual of dividend.


  1. Distinguish between Application of Income and Diversion of Income.
  2. Discuss the provisions relating to the determination of the residential status of Hindu undivided family, partnership firm and company.
  3. State with reasons whether the following receipts are taxable or not under the provisions of Income-tax Act, 1961?
  • Mr Suri received a sum of Rs.5,00,000 as compensation, from “Yatra Foundation”, towards the loss of property on account of Flood Disaster at Chennai during December 2018.
  • Suman received an advance of Rs.3 lakhs on 06-06-2018 to transfer his residential house property. Since the transfer was not affected during the previous year due to failure in negotiations, he deducted the advance money forfeited from the cost of acquisition of the property.
  • Federer, a non-resident residing in Sweden, has received rent from Mr Nadal, also a non-resident residing in France in respect of property taken on lease at Mumbai. Since this income is received outside India from a non-resident, Federer claims that his income is not chargeable to tax in India.
  • TDS is not applicable in respect of payment of Rs.1,00,000 to Mr Pandey a resident, being interest on recurring deposit with SBI.
  1. Explain the term “Business Connection” under section 9(1)

  2. Examine the correctness or otherwise of the statement- “Income deemed to accrue or arise in India to a nonresident by way of interest, royalty and fees for technical services is to be taxed irrespective of territorial nexus”.

  3. An individual, who is an Indian resident, is allowed to hold two different citizenships simultaneously. Is the citizenship a determining factor for the residential status of an individual?

  4. State the activities and operations, income from which is not deemed to accrue or arise in India.

  5. When is an individual and HUF said to be “Resident and Ordinarily Resident” under the Income-tax Act, 1961?


  1. Distinguish between foregoing of salary and surrender of salary.
  2. How is the advance salary taxed in the hands of an employee? Is the tax treatment the same for loan or advance against salary?
  3. Write short notes on a) Profits in lieu of salary b) Specified employees   c) Sec 10 (l0C)
  4. Is retrenchment compensation received by workmen taxable under the Act? If yes, to what extent is it taxable?
  5. When is the provision of medical facilities or assistance by an employer not treated as a prerequisite in the hands of the employee? Discuss.


  1. Explain briefly the applicability of section 22 for changeability of income-tax for:
  • House property situated in a foreign country and
  • House property with disputed ownership.

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