CBSE Class 12 Sample Paper 2026 for Taxation

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CBSE | DEPARTMENT OF SKILL EDUCATION
TAXATION (SUBJECT CODE: 822)
Blue-Print for Sample Question Paper for Class XII (Session 2025-2026)
Max. Time: 3 Hours Max. Marks: 60

PART A - EMPLOYABILITY SKILLS (10 MARKS):

OBJECTIVE TYPE SHORT ANSWER
UNIT TOTAL
NAME OF THE UNIT QUESTIONS TYPE QUESTIONS
NO. QUESTIONS
1 MARK EACH 2 MARKS EACH
1 Communication Skills- IV 1 1 2
2 Self-Management Skills- IV 2 1 3
Information and Communication
3 1 1 2
Technology Skills- IV
4 Entrepreneurial Skills- IV 1 1 2
5 Green Skills- IV 1 1 2
TOTAL QUESTIONS 6 5 11
NO. OF QUESTIONS TO BE ANSWERED Any 4 Any 3 07
TOTAL MARKS 1x4=4 2x3=6 10 MARKS

PART B - SUBJECT SPECIFIC SKILLS (50 MARKS):

DESCRIPTIVE/
OBJECTIVE SHORT SHORT
LONG
TYPE ANS. TYPE ANS. TYPE
UNIT ANS. TYPE TOTAL
QUESTIONS QUES.- I QUES.- II
NAME OF THE UNIT QUESTIONS
NO. QUESTIONS
1 MARK 2 MARKS 3 MARKS 4 MARKS
EACH EACH EACH EACH
Deduction from Gross Total
1 Income
8 2 2 12
Computation of Tax Liability 1
2 of an Individual
9 1 1 12
TDS and Advance Payment 1
3 8 1 1 11
of Tax
4 Goods and Service Tax (GST) 7 1 1 1 10
TOTAL QUESTIONS 32 5 3 5 45
NO. OF QUESTIONS
26 Any 3 Any 2 Any 3 34
TO BE ANSWERED
TOTAL MARKS 1 x 26= 26 2x3=6 3x2=6 4 x 3 = 12 50 MARKS

822 Taxation SQP XII 1

CBSE | DEPARTMENT OF SKILL EDUCATION
TAXATION (SUBJECT CODE: 822)
Sample Question Paper for Class XII (Session 2024-2025)
Max. Time: 3 Hours Max. Marks: 60

General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 24 questions in two sections – Section A & Section B.
3. Section A has Objective type questions whereas Section B contains Subjective type questions.
4. Out of the given (6 + 18 =) 24 questions, a candidate has to answer (6 + 11 =) 17 questions in the
allotted (maximum) time of 3 hours.
5. All questions of a particular section must be attempted in the correct order.
6. SECTION A - OBJECTIVE TYPE QUESTIONS (30 MARKS):
i. This section has 06 questions.
ii. There is no negative marking.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.
7. SECTION B – SUBJECTIVE TYPE QUESTIONS (30 MARKS):
i. This section contains 18 questions.
ii. A candidate has to do 11 questions.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.

822 Taxation SQP XII 2

SECTION A: OBJECTIVE TYPE QUESTIONS

Q. 1 Answer any 4 out of the given 6 questions on Employability Skills (1 x 4 = 4 marks)
i. What is Communication? 1
ii. is a personality disorder that's characterized by extreme 1
perfectionism, order, and neatness.
a. Avoidant personality disorder
b. Obsessive-compulsive personality disorder
c. Dependent personality disorder
d. Narcissistic Personality Disorder
iii. What is the difference between Motivation and Self-Motivation? 1
iv. Which bar is located at the top of Open office Calc Window? 1
a. Title Bar
b. Menu Bar
c. Standard Bar
d. Formatting Bar
v. Which of the following is not a Characteristic of entrepreneurship? 1
a. It is an economic activity done to create, develop and maintain a profit-oriented
organisation.
b. It begins with identifying an opportunity as a potential to sell and make profit in
the market.
c. It deals with optimization in utilization of resources
d. It is the inability of an enterprise and an entrepreneur to take risks
vi. What is the role of Environmental Education teacher? 1

Que 2: Answer any 5 out of the given 7 questions (1 x 5 = 5 marks)
i. Deduction available under section 80QQB in respect of royalty income of authors 1
shall not exceed in a previous year by
a. Rs. 1,50,000
b. Rs. 2,50,000
c. Rs. 3,00,000
d. Rs. 5,00,000
ii. Deduction under 80G on account of donation is allowed to : 1
a. A business assessee only
b. Any assessee
c. Individual or HUF only
d. Individual only
iii. What is the maximum period for which deduction can be claimed under section 1
80E in respect of interest on education loan taken for higher education?
a. 5 years
b. 6 years
c. 7 years
d. 8 years
iv. Under Section 80CCD(2), the deductible amount of contribution made by the 1
employee during the year is subjected to maximum of of the salary of the
employee
a. 5%
b. 7.5%
c. 10%
d. 20%

822 Taxation SQP XII 3

v The quantum of deduction allowed under Section 80D in case of HUF shall be 1
limited upto
a. Rs. 10,000
b. Rs. 15,000
c. Rs. 20,000
d. Rs. 25,000
vi. Maximum qualifying limit for deduction under section 80C is : 1
a. Rs. 50,000
b. Rs. 1,50,000
c. Rs. 2,00,000
d. Rs. 3,00,000
vii. Deduction under section 80EEA is allowed on interest on home loan, subject to 1
that the stamp duty value of the house property bought should not exceed :
a. 25 lakhs
b. 35 lakhs
c. 45 lakhs
d. 55 lakhs

Que 3. Answer any 6 out of the given 7 questions (1 x 6 = 6 marks)
i. Rate of Tax on Winnings from lotteries, crossword puzzles or races including horse 1
races or card games and other games of any form or nature whatsoever under
section 115BB is:
a. 10%
b. 15%
c. 20%
d. 30%
ii. What is the basic exemption limit in case of a resident individual of the age of 60 1
years or above but below 80 years under old tax regime?
a. Rs.2,00,000
b. Rs.3,00,000
c. Rs.4,00,000
d. Rs.5,00,000
iii. What would be the rate of tax chargeable under section 111A i.e. Short term 1
capital gains on equity shares in a company or units of an equity oriented fund
where the transaction is chargeable to securities transaction tax?
a. 10%
b. 15%
c. 20%
d. 30%
iv. Deduction under section 80U is allowed to : 1
a. Individual
b. Individual with disability
c. HUF
d. Dependent parents

822 Taxation SQP XII 4

v. Income tax is rounded off to : 1
a. Nearest ten rupees
b. Nearest one rupee
c. Nearest Hundred rupee
d. No rounding of tax
vi. Where the regular income tax payable for a previous year by a person (other than 1
a company) is less than the alternate minimum tax payable for such previous year,
the adjusted total income shall be deemed to be the total income of such person
and he shall be liable to pay income tax at the rate of under Section 115JC (1)
a. 10%
b. 15%
c. 17.5%
d. 18.5%
vii. What is the maximum amount of Rebate for resident individuals having a total 1
income upto ₹ 5 lakhs [section 87A]?
Rs. 12,500
Rs. 25,000
Rs. 5,000
Rs. 10,000

Que 4: Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Which section deals with the provisions relating to deduction of tax at source on 1
interest other than interest on securities paid to a resident?
a. 192A
b. 194A
c. 195A
d. 196A
ii. Which of the following does not relate to the meaning of ‘rent’? 1
a. Payment under lease
b. Payment under purchase
c. Payment under sub-lease
d. Payment under tenancy
iii. The responsibility to deduct tax from source arises only at the time of payment in 1
which of the following case:
a. Salary
b. Dividends
c. Insurance commission
d. Interest other than securities
iv. The tax under section 194 D has to be deducted at source at prescribed rate of 1
10%, but when the payee does not furnish his PAN to deduction, the tax will be
deducted @
e. Rs 12%
f. 15%
g. 18%
h. 20%
v. Which form is issued for deduction or payment of tax under Section 192? 1
a. Form 16
b. Form 16A
c. Form 16B
d. Form 16AA

822 Taxation SQP XII 5

vi. The liability to pay advance tax arises if tax liability exceeds ₹_________________ 1
a. Rs. 60,000
b. Rs. 10,000
c. Rs. 1,20,000
d. Rs. 1,80,000

Que 5: Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Under the system of GST, what is the threshold limit for GST (in case of supplier of 1
goods and services both) for North Eastern States, Uttarakhand, Sikkim and
Arunachal Pradesh?
a. 2 Lakhs
b. 5 lakhs
c. 10 lakhs
d. 20 lakhs
ii. Which return has to be filed by Registered Taxable person as Annual GST Return? 1
a. GSTR-1
b. GSTR-2
c. GSTR-3
d. GSTR-9
iii. Which of the following is correct hierarchy of utilization of ITC ? 1
a. ITC of CGST allowed for payment of CGST & IGST in that order.
b. ITC of SGST allowed for payment of CGST & IGST in that order.
c. ITC of IGST allowed for payment of CGST, UTGST & SGST in that order.
d. ITC of IGST against SGST, then IGST/SGST, any order

iv. Which return has to be filled by authorities deducting tax at source ? 1
a. GSTR-5
b. GSTR-7
c. GSTR-8
d. GSTR-10

v. Which return has to be filed for supplies effected through e-commerce operator? 1
a. GSTR-5
b. GSTR-6
c. GSTR-82
d. GSTR-10
vi. A tax payer registered in case of seven special category State with an aggregate 1
turnover of in a financial year is eligible to get registered under
Composition Scheme
a. 10 Lacs
b. 25 Lacs
c. 50 Lacs
d. 75 Lacs

Que 6 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. “PAY AS YOU EARN” Scheme is another name for 1
a. TDS
b. Advance tax
c. Clubbing of income
d. AMT
822 Taxation SQP XII 6

ii. What is the rate of tax applicable to Long term capital gains Under Sec 112 of the 1
Income Tax Act, 1961?
a. 12.5%
b. 15%
c. 20%
d. 30%
iii. Under which Section, Deduction in respect of royalty income, etc., of authors of 1
certain books other than text books is allowed to Resident Authors?
a. 80QQA
b. 80QQB
c. 80QQ
d. 80QQD
iv. Under which section TDS on Commission or brokerage is required to be 1
deducted?
a. 194G
b. 194H
c. 194-I
d. 194-J
v. 1
Which of the following has been appointed as e-filing administrator for the
purpose of electronic filing of returns of TDS Scheme, 2003 ?
a. CBDT
b. Director General of Income Tax
c. National Securities Depository Limited
d. Central Government

vi. The taxable person whose registration has been surrendered or cancelled has to 1
file GSTR-10 (final Return) with in
a. Within one months of the date of cancellation or date of order of cancellation,
whichever is later.
b. Within two months of the date of cancellation or date of order of cancellation,
whichever is later.
c. Within three months of the date of cancellation or date of order of cancellation,
whichever is later.
d. Within six months of the date of cancellation or date of order of cancellation,
whichever is later.

822 Taxation SQP XII 7

SECTION B: SUBJECTIVE TYPE QUESTIONS

Answer any 3 out of the given 5 questions on Employability Skills (2 x 3 = 6 marks) Answer each
question in 20 – 30 words.
7. Explain the different steps to active listening? 2
8. There are five parameters that describe an individual’s personality. These five 2
dimensions are also called the ‘Big Five Factors’ and the model are referred to as
the ‘Five Factor Model’, Name and define them.
9. Why Spreadsheet programs have become very popular? 2
10. Explain any four Entrepreneurial competencies? 2
11. What are the services provided by Environmental Engineers? 2

Answer any 3 out of the given 5 questions in 20 – 30 words each (2 x 3 = 6 marks)
12. Suraj, his wife and two sons are independently employed persons. Suraj and his 2
wife are not senior citizens. Suraj pays Medi-claim insurance of ₹ 18,000 for self, ₹
12,000 for his wife, and ₹ 8,000 each for both of his sons.(Not dependent). He also pays
₹ 33,000 for each of his parents who are senior citizens. Calculate the amount of
deduction allowable u/s 80D. Assuming he is opted out of default tax regime u/s
115BAC for the A.Y. 2026-27.

13. Gross Total Income of “R” for assessment year 2026-27 is ₹ 10,45,000. He has taken 2
a loan of ₹ 5,00,000 in F.Y. 2025-26 from a bank for pursuing the LLB from national
law university. He repaid the 1st installment of loan of Rs. 65,000 and interest of ₹.
80,000. Compute his total income for assessment year 2026-27, assuming he has
opted out of default tax regime u/s 115BAC

14. What are the provisions related to deducting of TDS under SECTION 194B and 194D? 2
15. Explain the provisions under section 44AD 2

16. Explain any three features of GST? 2

Answer any 2 out of the given 3 questions in 30– 50 words each (3 x 2 = 6 marks)

822 Taxation SQP XII 8

17. 3
Mr. Sujit, an Indian citizen, has following particulars:

Income from business 8,00,500
Winning from puzzles 1,00,800
Contribution u/s 80C 80,000
Donation to Prime Minister’s Drought Relief Fund 30,000
Donation to charitable institute (approved) 1,00,000
Donation to National Defence Fund 50,000
Donation to government for family planning 35,000
Calculate his net total income, assuming he has opted out of
default tax regime u/s 115BAC.

18. Explain briefly about the forms which are issued by Tax deductor as a proof of Tax 3
Deduction?(Section 203)
19. Explain the advantages of introducing GST ? 3

Answer any 3 out of the given 5 questions in 50– 80 words each (4 x 3 = 12 marks)
20. Explain the provision in respect to Deduction claimed under Section 80 C of the Income 4
Tax Act, 1961? Apart from Insurance Premium, write any other six Investments,
which are eligible for deduction under aforesaid section? ( 1+3)

21. Briefly explain the deductions available in respect to Royalty income of Authors and 4
Patents?
22. Mr. Xavier, submits the following particulars of income for assessment year 4

2026-27

1. Income from salary (computed) 2,50,000
2. Income from house property (computed) 30,000
3. Long term capital gain 40000
4. Short term capital loss (15,000)
5. Interest on securities (Gross) 11,000
6. Interest on Bank Deposits 8,000
7. LIP on his own life 2,000
8. PPF 20,000
9. Donation to National children fund 5,000
10. Donations to PM’s Relief Fund 6,000
11. Payment by cheque to GIC for medical insurance of:
- his wife 9,000
- dependant son 9,000

822 Taxation SQP XII 9

- Father not dependent who is 67 years old 25000
12. Expenses on medical treatment of dependent brother
being a disabled (60%)

25,000

13. Payment of interest on loan taken from approved
charitable institution for the education of his daughter
pursuing M. Tech.

30,000

Compute his total income & tax payable for the A.Y. 2026-27,
assuming he has
opted out of default tax regime u/s 115BAC.

23. Briefly explain the duties and rights of person(s) deducting tax at source. 4

24. What do you mean by Input Tax Credit? What is the hierarchy of utilization of Input Tax 4
Credit?

822 Taxation SQP XII 1
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822 Taxation SQP XII 1
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