CBSE Class 12 Question Paper 2026 Solution Taxation

FOR CBSE CLASS 12 EXAM PREPARATION

CBSE Class 12 2026
Question Paper
Solution · Taxation
EXAM YEAR TYPE SUBJECT

CBSE Class 12 2026 Question Paper Solution Taxation

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Strictly Confidential a
Marking Scheme

(For Internal and Restricted use only)
Senior Secondary School Examination, 2026 (XIIth)
SUBJECT NAME : Taxation (Q.P. CODE : 822/346)

General Instructions: -
1 The CBSE has decided to introduce On Screen Marking (OSM) for the evaluation of
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Class XII answer Book with the 2026 Examination.
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2 You are aware that evaluation is the most important process in the actual and correct

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assessment of the candidates. A small mistake in evaluation may lead to serious

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problems which may affect the future of the candidates, education system and
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teaching profession. To avoid mistakes, it is requested that before starting evaluation,
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a“Evaluation
you must read and understand the spot evaluation guidelines carefully.
3 policy is a confidential policy as it is related to the confidentiality
of the examinations conducted, evaluation done and several other aspects. Its
leakage to public in any manner could lead to derailment of the examination
system and affect the life and future of millions of candidates. Sharing this
policy/document to anyone, publishing in any magazine and printing in
Newspaper/Website, etc. may invite action under various rules of the Board
and IPC.”
4 Evaluation is to be done as per instructions provided in the Marking Scheme. It should

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not be done according to one’s own interpretation or any other consideration. Marking

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Scheme should be strictly adhered to and religiously followed. However, while

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evaluating, answers which are based on latest information or knowledge and/or

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are innovative, they may be assessed for their correctness otherwise and due

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marks be awarded to them. In Class-XII, while evaluating two competency-
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based questions, please try to understand given answer and even if reply is not
from marking scheme but correct competency is enumerated by the candidate,
due marks should be awarded.
5 The Marking scheme carries only suggested value points for the answers.
These are in the nature of Guidelines only and do not constitute the complete answer.
The students can have their own expression and if the expression is correct, the due
marks should be awarded accordingly.
6 The Head-Examiner must go through the first five answer books evaluated by each
evaluator on the first day, to ensure that evaluation has been carried out as per the
instructions given in the Marking Scheme. If there is any variation, the same should
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be zero after deliberation and discussion. The remaining answer books meant for

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evaluation shall be given only after ensuring that there is no significant variation in

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the marking of individual evaluators.
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Evaluators will mark ( √ ) wherever answer is correct. For wrong answer CROSS ‘X’
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be marked. Evaluators will not put right (✓) while evaluating which gives an

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impression that answer is correct and no marks are awarded. This is most common
mistake which evaluators are committing.
8 If a question has parts, please award marks on the right-hand side for each part in
the OSM Portal. Marks awarded for different parts of the question will be totaled up
by the OSM System.
9 If a question does not have any parts, marks must be awarded in the left-hand margin
in the OSM Portal. This may also be followed strictly.

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10 No marks to be deducted for the cumulative effect of an error. It should be penalized
only once.
11 A full scale of marks __________ (example 0 to 80/70/60/50/40/30 marks as given in
Question Paper) has to be used. Please do not hesitate to award full marks if the
answer deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8
hours every day and evaluate 20 answer books per day in main subjects and 25
answer books per day in other subjects (Details are given in Spot Guidelines).This is
in view of the reduced syllabus and number of questions in question paper.
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past :-
● Answers marked as correct, but marks not awarded. (Ensure that the right tick
mark is correctly and clearly indicated. It should merely be a line. Same is with
the X for incorrect answer.)
● Half or a part of answer marked correct and the rest as wrong, but no marks
awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it
should be marked as cross (X) and awarded zero (0) Marks.
15 The Examiners should acquaint themselves with the guidelines given in the
“Guidelines for Spot Evaluation” before starting the actual evaluation.
16 The candidates are entitled to obtain photocopy of the Answer Book on request on
payment of the prescribed processing fee. All Examiners/Additional Head
Examiners/Head Examiners are once again reminded that they must ensure that
evaluation is carried out strictly as per value points for each answer as given in the
Marking Scheme.
17 If a candidate attempts both alternatives/options in a question where only one
option/ alternative is required to be attempted, the Evaluator shall award marks
in both the options. The system will take the higher of two scores and
disregard the other response.
18 In a question having two options/alternatives, if a candidate has attempted only
one, then the evaluator shall mark “NA” (Not attempted) against the option that
has not been attempted by the candidate.

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MARKING SCHEME
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Taxation (Subject Code-822)
(PAPER CODE : 346) (P3460822)
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Q.No. EXPECTED ANSWER/VALUE POINTS Marks
Answer any 4 out of given 6 questions in employability skills 4x1=4 marks
1. (i) An entrepreneur is a person who starts, organizes and manages a 1
business or new venture, taking financial risks in the hope of making a profit.
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[Step 1,1 mark]

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(ii) (B) Generating [Step 1,1 mark]
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(iii)g (D) Distorted [Step 1,1 mark]
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(iv) (C) Imperative [Step 1,1 mark]
1

(v) Sender = The sender is the person who sends the message. [Step 1,0.5
1

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Receiver = The receiver is the person who gets the message sent by the
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sender. [Step 2,0.5 mark]

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(vi) Formal [Step 1,1 mark] g
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Answer any 4 out of given 6 questions 4x1=4 marks
2. (i) (A) Atal Bihari Vajpayee [Step 1,1 mark] 1

(ii) (A) 4% [Step 1,1 mark] 1
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1

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1

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(v) (B) Central Government [Step 1,1 mark]

1
(vi) (D) Foreign Tourists [Step 1,1 mark]
1
(vii) (A) Interstate [Step 1,1 mark]
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Answer any 6 out of given 7 questions 6x1=6 marks
3. (i) E-TDS stands for Electronic tax deducted at source. It means online 1
submission of TDS returns by the deductor [Step 1,1 mark]

(ii) (D) 1,80,000 [Step 1,1 mark] 1

(iii) (C) 40 Lakhs [Step 1,1 mark] 1

(iv) (A) ` 12,500 [Step 1,1 mark] 1

(v) (B) Payment under purchase [Step 1,1 mark]
1

(vi) (B) Any Assessee [Step 1,1 mark]
1

(vii) (B) 15,000 [Step 1,1 mark] 1

Answer any 5 out of given 6 questions 5x1=5 marks
4. (i) (D) Section 80C [Step 1,1 mark] 1

(ii) (B) five [Step 1,1 mark] 1

(iii) (C) 30% [Step 1,1 mark] 1

1
(iv) (D) 80 years [Step 1,1 mark]

(v) Advance tax receipts help the government to get a constant flow of
income throughout the year so that expenses can be incurred rather than 1
receiving all tax payments at the end of the year. [Step 1,1 mark]
1
(vi) Individual only [Step 1,1 mark]

Answer any 5 out of given 6 questions 5x1=5 marks
5. (i) (D) 20 [Step 1,1 mark] 1

(ii) (C) IGST [Step 1,1 mark] 1

(iii) (D) Central and state following the GST council proposals [Step 1,1 1
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(iv) (D) Property Tax [Step 1,1 mark]
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(v) (D) Destination [Step 1,1 mark] 1

(vi) (C) Education [Step 1,1 mark] 1

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Answer any 5 out of given 6 questions
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5x1=5 marks
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6.
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(i) (A) Vijay
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(ii)g (A) 15 [Step 1,1 mark]
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(iii) (C) 10% on excess of ` 1,00,000 [Step 1,1 mark] 1

(iv) (1) Tax on cigarettes and Tobacco products [Step 1, 0.5 mark] 1

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(2) Tax on Alcoholic beverages [Step 2, 0.5 mark]

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(3) Tax on gambling or betting
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(v) The reverse charge mechanism a
tax is shifted from the supplier to the recipient of goods and services. [Step 1,1
1

1
(vi) (B) 4 [Step 1,1 mark]

SECTION-B
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Answer any 3 out of given 5 questions on employability skills. Answer each
question in 20-30 words.
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las (a) Listening [Step 1,0.5 mark]
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ag (b) speaking [Step 2,0.5 mark]

(c) Reading [Step 3,0.5 mark]

(d) Writing [Step 4,0.5 mark]

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8. It is the ability to control one’s emotions, thoughts and behaviour effectively 2
in different situations. [Step 1, 2 mark]

9. Self-awareness means understanding yourself, your thoughts, feelings, 2
strengths, weakness values and behaviour. [Step 1, 2 mark]

10. Following benefits of green jobs: [Any two] 2
(1) Increase the efficiency of energy and raw materials. [Step 1,1 mark] Any two

(2) Reduce greenhouse gas emission [Step 2,1 mark]
(3) Protect & restore ecosystem
(4) Control waste and pollution
(5) Support adoption to the effects of climate change
11.  A cell is a rectangle shaped box, where the row and column meet. [Step 2
1,1 mark]

 It is the smallest unit where you can enter data (numbers, text,
formulas). [Step 2,1 mark]

Answer any 3 out of given 5 questions in 20-30 words each. 3x2=6 marks
12. Amount of deduction u s 80 D
Premium in respect of wife Rs 12,000
Premium for himself Rs 2,000
Premium in respect of children not dependent Nil
Total Rs 18,000 restricted to
Add: Premium in respect of parents Rs 15,000
(senior citizens) Rs 22,000 restricted
to maximum Rs 20,000
Deduction available u s 80 D Rs 35,000 [Step 1,2

13. Income from salary 7,50,000

Less deduction u s 80 D 1,00,000

Deduction u s 80 EE 1,00,000 2,00,000

Taxable Income 5,50,000
Interest  20,00,000*10/100*1 [Step 1,2 mark]

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14. (1) It pre-pones the collection of tax.
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(2) Ensures a regular source of revenue to the government.
(3) Provides for a greater reach and wider base for tax. [Step 1,2 mark]

15. Any three of the following : 2
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(1)
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An individual
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(2) A HUF . s e
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(3) AnasADP or a BDI (whether incorporated or not)
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(4) An artificial juridical person referred to in section 2(31)(VII), if the
adjusted total income of that person does not exceed ` 20,00,000
[Step1,2

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16. Inter-state supply means where the location of supplier and the place of supply 2
are in :
(a) Two different states ag
(b) Two different union territories
(c) A state and a union territory [Step 1,2 mark]

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Answer any 2 out of given 3 questions in 30-50 words each. 2x3=6 marks

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c. o Key difference between CGST and IGST
17.
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Feature CGST IGST

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a Who levies it Central Government Central Govt
(for Intrastate) (for Interstate)

When Supplier and recipient are in Supplier & Recipient
applicable same state are in different states

Revenue occurs Central Government (in Collected centrally then
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to whom relation to the CGST portion) shared centre & state
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[Step 1, 1.5 mark] [Step 2, 1.5mark]

18.  Dual GST: Both centre and states simultaneously have the power to 3
impose GST across the entire supply chain. [Step 1, 1.5 mark]

 Centre world Levy and collect CGST and states world levy SGST on
all supplies within a state. [Step 2, 1.5 mark]

19. Actual price of the goods `10,000 3
When sold at a profit of 20% profit  (20/100) ` 10000` 2000
Thus the selling price (excluding tax) of the goods will be
Actual price  profit
` 10000 ` 2000
`12000 [Step 1,1 mark]
(ii) The GST is charged is 5%
CGST paid by the consumer 25% of selling price
2.5/100` 12000` 300 [Step 2,1 mark]
(iii) SGST paid by the consumer 2.5% of selling price
 (2.5/100)` 12000` 300
Thus, the total amount paid by the consumer
 selling price CGSTSGST
` 12000` 300` 300 `12600 [Step 3,1 mark]

Answer any 3 out of given 5 questions in 50-80 words each. 3x4=12 marks

20. Instalments Due Date Amount due to be paid Amount 4
Paid

Ist Instalment 15 Sept. 2023 Upto 30% of the Rs 60,000
advance tax payable

IInd Instalment 15 Dec. 2023 Upto 60% of the Rs 60,000
advance tax payable as
reduced by amount
paid in earlier
instalments i.e.
20,000Rs 60,000

IIIrd Instalment 15 Mar.2024 Upto 100% of the Rs 80,000
advance tax payable as
reduced by amount
paid in earlier
instalments

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21. MRPRs 1,00,000 Discount % 20% GST20% 4
20
Discount20% of 1,00,000 3 1 , 00 , 000 Rs 20,000
100

Selling price(discounted value) 1,00,00020,000
80,000 [Step 1,2 mark]
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CGST0; SGST0

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3 80 , 000 22400
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IGST20% of 80,000

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Amount of Billselling price IGST
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80,00022400` 1,02,400. [Step 2,2 mark]

22. According to the particulars of Mr Ayaan 4
Income from salary 7,96,200
Income from other source (royalty) 3,50,000
Gross total Income 11,46,200
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Less: Deduction u s 80 D 9,000

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Deduction u s 80 QQD
Maximum subjected limit
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Total taxable income a 8,37,200
Working notes :
Income from salary
Basic salary 3,90,000
DA 96,000
Car facility with chauffeur 39,600
(24002 90012) m
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Commission on turnover 1,00,000

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Bonus 20,000

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Rent fee accommodation
(15% of salary  rent of furniture)
(salarybasicDAcomm.bonus)
Total 7,96,200
[Step 1,4 mark]
23. Advantages of GST 4
(i) Elimination of cascading taxes(tax on tax) [Any four
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advantages
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(ii) Simplified tax structure & uniformity
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(iii) Greater transparency and wider tax base and any four
(iv) Promotes a national market disadvantages,
0.5 each]
(v) Benefits for small business [Step 1,2 mark]
Disadvantages of GST
(i) Compliances burden and transition issues
(ii) Multiple tax slabs/classification issues
(iii) Increased cost/Burden for some business
(iv) Awareness and capacity issues
(v) Cash flow and ITC issues [Step 2,2 mark]
24.  Input tax credit means setting off the amount of input tax by a 4
registered dealer against the amount of his output tax.
[Step 1,2 mark]
 The GST is based on the value addition to the goods and the related tax
liability of the dealer can be arrived at by the supplier by discharging
input tax credit from tax collected on supplier during payment periods.
[Step 2,2 mark]
-oOo-

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