CMA Intermediate · June 2026 · Paper 7
CMA Intermediate Direct and Indirect Taxation June 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICMAI; read them on ICMAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 2(a) | 7 | Residential status of a foreign national across alternative scenarios, including person of Indian origin and deemed resident citizen rules | Residential Status and Scope of Total Income |
| 2(b) | 7 | Computing salary income under the default tax regime with allowances, perquisites and employer pension contribution | Salaries |
| 3(a) | 7 | House property income for co-owners of a self-occupied flat and a separately let-out flat, including interest deduction limits | Income from House Property |
| 3(b) | 7 | Adjusting a trader's net profit to taxable business income: depreciation, disallowances, cash payments and stock errors | Profits and Gains of Business or Profession |
| 4(a) | 7 | Capital gains on sale of a house and listed shares: stamp duty value, forfeited advance, grandfathering and reinvestment exemptions | Capital Gains |
| 4(b) | 7 | Income from other sources: rent of land, dividends with interest deduction, gifts from relatives, winnings and honorarium | Income from Other Sources |
| 5(a) | 7 | Gross total income with inter-head set-off and carry forward of house property, business, capital and speculative losses | Set off and Carry Forward of Losses |
| 5(b) | 7 | Tax liability under regular provisions compared with alternate minimum tax for an individual claiming profit-linked deductions | Taxation of Individuals (including AMT) and HUF |
| 6(a) | 7 | Distinguishing features of direct and indirect taxes | Concept of Indirect Taxes |
| 6(b) | 7 | Role and functions of the GST Network | Introduction to GST Law |
| 7(a) | 7 | Eligibility for the composition schemes for goods and services suppliers in different situations | Composition Levy |
| 7(b) | 7 | Value of supply for foreign currency exchange services using reference rates and the alternative method | Time and Value of Supply |
| 8(a) | 7 | Input tax credit eligibility for blocked and allowed items such as CSR goods, samples, foundations and staff food | Input Tax Credit |
| 8(b) | 7 | Assessable value of goods imported by air, with and without actual freight and insurance data | Customs Act |
What stood out
- Income tax took nine of the fourteen written parts (63 marks on offer) while GST and customs took five, so direct tax remained the scoring core.
- Every income head had its own 7-mark computation (salary, house property, business, capital gains, other sources), plus residential status, set-off of losses and alternate minimum tax.
- Theory was limited to two 7-mark parts, both in Question 6 (direct vs indirect taxes, functions of GSTN), giving theory-oriented candidates one clean choice.
- GST practicals focused on input tax credit, composition eligibility and the special valuation rule for money changers; customs appeared through an air-freight assessable value computation.
- The MCQ section tilted towards indirect tax: nine of fifteen questions covered GST and customs, including two on customs valuation and duty types.
Practise the chapters that carried the marks
Customs Act, Residential Status and Scope of Total Income, Income from House Property: study guides and practice questions in the CMA Intermediate format.