CA Final Direct Tax Laws and International Taxation MTP January 2026: Question Paper and Solutions

How to Prepare for CA Final Direct Tax Laws and International Taxation

Solving past MTPs, RTPs, and suggested answers from previous examination windows is essential to mastering time management under the time limit applicable to your exam paper. Review step-by-step working notes, legal case precedents, and accounting disclosures with instant 24/7 AI tutor assistance via CApex.

Question directory and available solutions

42 indexed questions. Open a question to read its full statement and available answer.

1. Raghav, a non-resident Indian aged 46 years, furnishes the following particulars of income earned by him in India during the previous year 2024-25:…
2. Eagle Ltd. a company incorporated in Country Z is an associated enterprise of Nova Inc. of USA. Eagle Ltd. has a branch in India since 2011. It…
3. The assessment of Ridhi Associates, a partnership firm, for the Assessment Year 2022-23 was made under section 143(3) on 28 th March, 2024. The…
4. Vardhan Foundation is a charitable trust registered under section 12AB, with its main object falling under the residuary clause “any other object of…
5. Which of the following deduction/exemption/set-off of losses are not allowable while computing income under respective head of income and total…
6. Mr. R, Managing Director of Riviera Alloys Pvt. Ltd., holds 75% of its paid-up share capital of 25 lakhs. The balance in the General Reserve of the…
7. The Statement of Profit & Loss of Bhagwati Private Ltd., a domestic company engaged in manufacturing, shows net profit of 1,07,00,000 for the…
8. Taurus Industries Ltd., a domestic company, provides the following information of its Statement of Profit and Loss for the year ended on 31/03/2025.…
9. Calculate the total income and net tax liability of Mr. Arvind, aged 72 years, for A.Y. 2025-26, after granting relief under section 91, based on…
10. Lotus Welfare Foundation, a charitable trust registered under section 12AB, derived income from property held under trust of 650 lakh during the…
11. SDP Foundation is a charitable trust registered under section 12AB engaged in the activity of providing old-age homes to senior citizens. The total…
12. Compute the total income and tax liability Winter Technologies Inc., a non-resident German company for the A.Y. 2025-26. The following are the…
13. M/s Crystal Wash Pvt. Ltd., a domestic company engaged in the business of manufacturing and selling washing powder and bars, hires agents to promote…
14. Suhas (aged 43 years) is working with TP Ltd. He is entitled to a salary of 85,000 per month w.e.f. 1.4.2024. He has a house property which is…
15. Pristine Cement Industries Ltd. (PCIL) is an Indian company, having its head office at Chennai. For the P.Y. 2024-25, it furnished the following…
16. Novatech Industries Pvt. Ltd. filed its return of income for assessment year 2023-24 on 25 th October 2024. The return is selected for regular…
17. Assessee had taken an engine on lease under an agreement with a foreign company (lessor), a tax resident of the Germany, having no permanent…
18. Metro Buildcon Pvt. Ltd. is engaged in the construction of bridges and flyovers. During the previous year 2024-25, it made payment to various…
19. Explain the term "Exchange of information" as per Article 26 of Model Tax Conventions under OECD Model and UN Model and explain importance of…
20. What do you understand by "GloBE Rules"? Which entities are covered under these Rules?
21. India-Z9 tax treaty provides that architectural services are technical services and payment for the same to a company may be taxed in India.…
22. An agreement has been made between Orange Inc., a company registered in Country A, and Unicorn Ltd., an Indian company, to provide technical…
23. On February 28, 2025, a search was conducted u/s 132 of the Income-tax Act, 1961 in the instance of the gold jewelry retail chain USHA Jewellers (P)…
24. SFT Flair Trust is a business trust registered under SEBI (Real Estate Investment Trusts) Regulations, 2014. Details of its income for the previous…
25. Mint (P) Ltd., Mumbai is engaged in manufacture of ceiling fans and exporting the same to various associated and other enterprises worldwide. The…
26. The Assessing Officer, with prior approval of the Principal Commissioner of Income-tax, surveyed the business premises of Orion Foods Pvt. Ltd.,…
27. Mr. Anjan, a property dealer, sold a flat in Mumbai, the stamp duty of which is 2 crores for 1.80 crores to his friend Mr. Ashwin, a college…
28. Mr. Rahul, a resident individual, starts a new business on 01-11-2024 for sale of designer suits. He obtained a valid PAN in his name and registers…
29. Mr. Sarthak set-up a three-star hotel “Lake View” in Bhopal on 16.5.2009 and another three-star hotel "Sea View" in Mumbai on 1.4.2012. His brother…
30. The net profit of Peacock Ltd. as per its statement of profit and loss for the year ended 31.03.2025 amounted to 27,22,000 after debiting/ crediting…
31. M/s Silver Green is a Limited Liability Partnership firm (LLP) consisting of three partners J, K and L. Mr. J and Mr. K are working partners as per…
32. Mr. James, a non-resident and a person of Indian origin (aged 49 years), furnished following information for the previous year ended 31st March,…
33. Examine and discuss each of the following independent cases of charitable trust/institutions based on the relevant provisions of Income-tax Act,…
34. The following trusts claim that anonymous donations received by them during the financial year 2024-25 are not liable to tax under section 115BBC:…
35. Mr. Ashu, an individual resident in India, aged 25 years furnished the following information for the year ended 31.3.2025: He earned royalty income…
36. Examine the applicability of tax deducted at source/tax collected at source and calculate the amount of TDS as per the provisions applicable for…
37. Vega Ltd., an Indian Company, is engaged in manufacturing activities by importing raw material from Solaris Inc. of UK. Solaris Inc. has a total…
38. Answer any two out of the following sub-parts viz (i), (ii) and (iii): (i) Mr. Arjun, a resident individual, electronically filed his income tax…
39. What is meant by Digital economy? What are the taxation issues in E-Commerce? List out the OECD recommendations under Action Plan 1 which deals with…
40. The Indian branch of F Inc., Country J, conducted transactions worth 600 crores with SR Enterprises Pvt. Ltd., Hyderabad, during FY 2024-25. SR…
41. M/s Apex Metals Pvt. Ltd., an Indian-incorporated entity, establishes two manufacturing units for steel containers - one in a Special Economic Zone…
42. Mr. Rajesh, proprietor of M/s. Gupta Electronics, trades in smartphones. For FY 2024-25, his turnover and total receipts total - 5,12,00,000. He…