Welcome to Practice Paper–2 of our Income Tax Inspector Departmental Examination 2026 – Paper III series. This practice paper has been thoughtfully prepared to help aspirants strengthen their understanding of the Allied Laws, Office Procedure and Service Rules prescribed under the latest departmental examination syllabus. Covering a wide range of topics, including the Right to Information Act, Transfer of Property Act, Registration Act, Companies Act, Bharatiya Sakshya Adhiniyam, Code of Civil Procedure, Information Technology Act, General Financial Rules, Manual of Office Procedure, CCS Rules, FRSR, POSH Act and the Rights of Persons with Disabilities Act, the questions are designed to test conceptual understanding as well as practical application.
Attempt all the questions before referring to the answer key. The detailed explanations provided with each answer will help you reinforce important concepts and improve your overall preparation.
Q.1. Under the Right to Information Act, 2005, if an application is made to a public authority that does not hold the requested information but another public authority does, the application should ordinarily be transferred within:
A. 3 days
B. 5 days
C. 10 days
D. 30 days
Q.2. Which of the following information is generally exempt from disclosure under the RTI Act, 2005?
A. Annual Budget
B. Cabinet papers before a decision is taken
C. Recruitment advertisement
D. Tender notice
Q.3. Which of the following is not a reason for rejecting an RTI application?
A. Information sought is exempt under the Act
B. Information does not exist
C. Applicant has not stated reasons for seeking information
D. Information would impede an ongoing investigation
Q.4. Under the RTI Act, which authority hears the second appeal?
A. District Court
B. Public Information Officer
C. Central Information Commission
D. High Court
Q.5. The RTI Act requires every public authority to:
A. Publish only annual reports
B. Maintain records duly catalogued and indexed
C. Appoint a judicial officer
D. Conduct monthly audits
Q.6. The object of suo motu disclosure under the RTI Act is to:
A. Increase litigation
B. Minimise the need for RTI applications
C. Levy penalties
D. Conduct departmental enquiries
Q.7. The doctrine of Lis Pendens is contained in the:
A. Registration Act, 1908
B. Transfer of Property Act, 1882
C. Companies Act, 2013
D. Code of Civil Procedure, 1908
Q.8. A person who fraudulently represents himself as the owner of property and transfers it may attract the doctrine of:
A. Election
B. Ostensible Owner
C. Feeding the Grant by Estoppel
D. Lis Pendens
Q.9. Which doctrine protects a transferee who acts in good faith and after taking reasonable care to ascertain the transferor’s authority?
A. Election
B. Ostensible Owner
C. Actionable Claim
D. Exchange
Q.10. A claim to an unsecured debt is known as:
A. Mortgage
B. Actionable Claim
C. Easement
D. Lease
Q.11. The Registration Act, 1908 generally requires documents to be presented for registration within:
A. One month
B. Two months
C. Four months
D. Six months
Q.12. Registration of a document primarily serves to:
A. Levy stamp duty
B. Give public notice of the transaction
C. Transfer possession
D. Create a company
Q.13. The Memorandum of Association (MOA) primarily defines the:
A. Internal management of the company
B. Objects and scope of the company
C. Salary of directors
D. Audit procedure
Q.14. The Articles of Association (AOA) mainly regulate:
A. Internal management of the company
B. Income Tax assessment
C. Property registration
D. Criminal proceedings
Q.15. A Director Identification Number (DIN) is allotted under the:
A. Companies Act, 2013
B. Income Tax Act, 1961
C. Registration Act, 1908
D. Information Technology Act, 2000
Q.16. Which of the following companies can ordinarily be incorporated with only one member?
A. Public Company
B. Section 8 Company
C. One Person Company
D. Producer Company
Q.17. Under the Bharatiya Sakshya Adhiniyam, 2023, the burden of proving a fact generally lies upon:
A. The Judge
B. The person who asserts the fact
C. The Police
D. The Witness
Q.18. An admission made by a party is generally:
A. Always conclusive proof
B. Irrelevant
C. Relevant evidence against the maker
D. Inadmissible
Q.19. A fact which the Court directs to be taken as proved unless disproved is called:
A. Admission
B. Conclusive Proof
C. Presumption
D. Secondary Evidence
Q.20. Electronic records are admissible in evidence subject to compliance with the provisions of the:
A. Transfer of Property Act, 1882
B. Registration Act, 1908
C. Bharatiya Sakshya Adhiniyam, 2023
D. Code of Civil Procedure, 1908
Q.21. Under the Code of Civil Procedure, 1908, a person expecting the institution of a suit against him may apply for:
A. Attachment before judgment
B. Caveat
C. Review
D. Revision
Q.22. A decree passed by a competent civil court may be executed by:
A. Criminal Court
B. Executing Court
C. District Magistrate
D. Police Authority
Q.23. Which of the following is not a decree under the Code of Civil Procedure?
A. Preliminary Decree
B. Final Decree
C. Interlocutory Order
D. Composite Decree
Q.24. The primary object of issuing a summons in a civil suit is to:
A. Arrest the defendant
B. Inform the defendant of the institution of the suit
C. Impose penalty
D. Execute the decree
Q.25. The Information Technology Act, 2000 grants legal recognition to:
A. Oral agreements
B. Electronic records and digital signatures
C. Notarised affidavits only
D. Government notifications only
Q.26. Which authority has been established under the Information Technology Act to adjudicate certain cyber law contraventions?
A. Civil Judge
B. Adjudicating Officer
C. Registrar of Companies
D. Collector
Q.27. The primary purpose of the Information Technology Act, 2000 is to:
A. Regulate banking
B. Facilitate electronic commerce and e-governance
C. Govern company audits
D. Regulate civil procedure
Q.28. Which of the following is treated as an electronic record under the Information Technology Act?
A. Paper file only
B. E-mail communication
C. Oral statement
D. Newspaper report
Q.29. The Manual of Office Procedure primarily aims to:
A. Standardise office work
B. Levy taxes
C. Conduct criminal investigations
D. Regulate companies
Q.30. In office procedure, a receipt generally means:
A. A financial voucher only
B. Any communication received in an office
C. An audit objection
D. A court decree
Q.31. The noting portion of a file is primarily meant for:
A. Recording the movement of cash
B. Recording examination, comments and suggestions on a case
C. Recording attendance
D. Maintaining stock registers
Q.32. The correspondence portion of a file generally contains:
A. Office notes
B. Communications received and issued
C. Leave records
D. Financial sanctions only
Q.33. The General Financial Rules (GFR) emphasize the principle of:
A. Personal convenience
B. Financial propriety
C. Political neutrality
D. Judicial discipline
Q.34. Government procurement through the Government e-Marketplace (GeM) is intended to:
A. Increase litigation
B. Promote transparent and efficient procurement
C. Replace departmental examinations
D. Conduct audits
Q.35. Under the General Financial Rules, the authority to incur expenditure should ordinarily be supported by:
A. Personal approval
B. Budget provision and competent sanction
C. Verbal instructions
D. Audit objection
Q.36. The Delegation of Financial Powers Rules primarily deal with:
A. Delegation of financial authority to Government officers
B. Recruitment of employees
C. Property registration
D. Civil litigation
Q.37. Under the CCS (Conduct) Rules, every Government servant is expected to maintain:
A. Commercial interests
B. Absolute integrity and devotion to duty
C. Political affiliation
D. Confidential business activities
Q.38. A Government servant shall not engage in private trade or business except:
A. With prior permission where permitted under the Rules
B. On holidays only
C. After office hours
D. With oral approval of the Head of Office
Q.39. The CCS (CCA) Rules classify penalties into:
A. Civil and Criminal
B. Financial and Administrative
C. Minor and Major
D. Temporary and Permanent
Q.40. Under the CCS (Leave) Rules, leave cannot be claimed:
A. As a matter of right
B. During probation
C. By permanent employees
D. For medical reasons
Q.41. Under the CCS (Pension) Rules, 2021, qualifying service is primarily relevant for determining:
A. House Rent Allowance
B. Pensionary benefits
C. Travelling Allowance
D. Leave Travel Concession
Q.42. Which of the following types of leave may be granted when no other leave is admissible or when the Government servant specifically applies for it?
A. Earned Leave
B. Half Pay Leave
C. Extraordinary Leave
D. Casual Leave
Q.43. Under the CCS (Conduct) Rules, a Government servant shall not participate in:
A. Official meetings
B. Political activities prohibited under the Rules
C. Departmental training
D. Official seminars
Q.44. Under the CCS (Conduct) Rules, acceptance of gifts by a Government servant is:
A. Always prohibited
B. Permitted without restriction
C. Regulated by the prescribed rules and monetary limits
D. Allowed only from relatives
Q.45. According to the Fundamental Rules, the competent authority may grant leave:
A. Automatically
B. Subject to the exigencies of public service
C. Only after retirement
D. Only during probation
Q.46. Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Internal Committee is constituted to:
A. Conduct annual audits
B. Inquire into complaints of sexual harassment
C. Grant leave
D. Conduct departmental examinations
Q.47. The Rights of Persons with Disabilities Act, 2016 primarily seeks to ensure:
A. Higher pension
B. Equality, non-discrimination and accessibility
C. Income tax exemption
D. Registration of property
Q.48. Under the Rights of Persons with Disabilities Act, 2016, the appropriate Government is required to:
A. Promote accessibility for persons with disabilities
B. Levy additional taxes
C. Regulate companies
D. Conduct departmental examinations
Q.49. Which publication provides consolidated guidance on the procedure for handling Government files, receipts and correspondence?
A. General Financial Rules
B. Manual of Office Procedure
C. Companies Act, 2013
D. Registration Act, 1908
Q.50. Which of the following best describes the objective of Paper III in the Income Tax Inspector Departmental Examination?
A. To test only memory-based knowledge
B. To assess understanding of Allied Laws, Office Procedure and Service Rules relevant to departmental functioning
C. To test only accounting principles
D. To assess drafting of Income Tax returns
Answer Key with Short Explanations
Q.1 Answer: B. 5 days
Explanation: If the requested information pertains to another public authority, the RTI application should ordinarily be transferred within 5 days under Section 6(3) of the RTI Act.
Q.2 Answer: B. Cabinet papers before a decision is taken
Explanation: Cabinet papers are generally exempt from disclosure until the decision is taken and the matter is complete, subject to the provisions of the RTI Act.
Q.3 Answer: C. Applicant has not stated reasons for seeking information
Explanation: An applicant is not required to give any reason for seeking information under the RTI Act.
Q.4 Answer: C. Central Information Commission
Explanation: In matters relating to Central Public Authorities, the second appeal lies before the Central Information Commission (CIC).
Q.5 Answer: B. Maintain records duly catalogued and indexed
Explanation: Public authorities must maintain records properly catalogued and indexed to facilitate easy access to information.
Q.6 Answer: B. Minimise the need for RTI applications
Explanation: Suo motu disclosure promotes transparency by proactively publishing information, thereby reducing the need for individual RTI applications.
Q.7 Answer: B. Transfer of Property Act, 1882
Explanation: The doctrine of Lis Pendens is contained in Section 52 of the Transfer of Property Act, 1882.
Q.8 Answer: C. Feeding the Grant by Estoppel
Explanation: Under Section 43 of the Transfer of Property Act, if a person fraudulently or erroneously represents that he is authorised to transfer property and later acquires an interest in it, the transfer may operate on that subsequently acquired interest.
Q.9 Answer: B. Ostensible Owner
Explanation: Under Section 41 of the Transfer of Property Act, a transfer by an ostensible owner is protected if the transferee acts in good faith after taking reasonable care.
Q.10 Answer: B. Actionable Claim
Explanation: An actionable claim refers to a claim to an unsecured debt or a beneficial interest in movable property not in the claimant’s possession.
Q.11 Answer: C. Four months
Explanation: Documents required to be registered should ordinarily be presented for registration within four months from the date of execution.
Q.12 Answer: B. Give public notice of the transaction
Explanation: Registration provides authenticity and public notice of transactions affecting immovable property.
Q.13 Answer: B. Objects and scope of the company
Explanation: The Memorandum of Association (MOA) defines the company’s objectives, powers and scope of operations.
Q.14 Answer: A. Internal management of the company
Explanation: The Articles of Association (AOA) regulate the internal management and administration of the company.
Q.15 Answer: A. Companies Act, 2013
Explanation: Every individual proposed to be appointed as a director must obtain a Director Identification Number (DIN) under the Companies Act, 2013.
Q.16 Answer: C. One Person Company
Explanation: A One Person Company (OPC) can be incorporated with only one member under the Companies Act, 2013.
Q.17 Answer: B. The person who asserts the fact
Explanation: The burden of proof generally lies on the person who asserts the existence of a particular fact.
Q.18 Answer: C. Relevant evidence against the maker
Explanation: An admission is a relevant piece of evidence and may be used against the person who made it, though it is not conclusive proof.
Q.19 Answer: C. Presumption
Explanation: A presumption allows the Court to treat a fact as proved unless it is rebutted by evidence.
Q.20 Answer: C. Bharatiya Sakshya Adhiniyam, 2023
Explanation: The Bharatiya Sakshya Adhiniyam, 2023 governs the admissibility and evidentiary value of electronic records in judicial proceedings.
Q.21 Answer: B. Caveat
Explanation: Under Section 148A of the Code of Civil Procedure, 1908, a person anticipating a suit or proceeding may lodge a caveat to ensure that no order is passed without being heard.
Q.22 Answer: B. Executing Court
Explanation: A decree passed by a competent civil court is executed by the executing court in accordance with the provisions of the Code of Civil Procedure.
Q.23 Answer: C. Interlocutory Order
Explanation: An interlocutory order is an interim order passed during the pendency of a suit and is not a decree under the CPC.
Q.24 Answer: B. Inform the defendant of the institution of the suit
Explanation: A summons is issued to notify the defendant about the institution of the suit and to require appearance before the court.
Q.25 Answer: B. Electronic records and digital signatures
Explanation: The Information Technology Act, 2000 grants legal recognition to electronic records and digital signatures, facilitating electronic transactions and e-governance.
Q.26 Answer: B. Adjudicating Officer
Explanation: The Information Technology Act provides for the appointment of Adjudicating Officers to inquire into specified contraventions under the Act.
Q.27 Answer: B. Facilitate electronic commerce and e-governance
Explanation: The principal objective of the Information Technology Act, 2000 is to provide legal recognition to electronic transactions and promote e-commerce and e-governance.
Q.28 Answer: B. E-mail communication
Explanation: An e-mail is an electronic record recognized under the Information Technology Act.
Q.29 Answer: A. Standardise office work
Explanation: The Manual of Office Procedure lays down uniform procedures for efficient disposal of Government work and proper record management.
Q.30 Answer: B. Any communication received in an office
Explanation: In office procedure, a receipt means any communication, letter, e-mail or document received in an office for further action.
Q.31 Answer: B. Recording examination, comments and suggestions on a case
Explanation: The noting portion of a file contains the analysis, comments and recommendations of the dealing officials.
Q.32 Answer: B. Communications received and issued
Explanation: The correspondence portion contains all communications received from and sent to outside parties relating to the case.
Q.33 Answer: B. Financial propriety
Explanation: The General Financial Rules emphasize financial propriety, economy, efficiency and accountability in the use of public funds.
Q.34 Answer: B. Promote transparent and efficient procurement
Explanation: The Government e-Marketplace (GeM) provides an online platform for transparent, efficient and competitive Government procurement.
Q.35 Answer: B. Budget provision and competent sanction
Explanation: Government expenditure should ordinarily be incurred only when there is a budget provision and the expenditure has been sanctioned by the competent authority.
Q.36 Answer: A. Delegation of financial authority to Government officers
Explanation: The Delegation of Financial Powers Rules specify the financial powers delegated to various Government authorities.
Q.37 Answer: B. Absolute integrity and devotion to duty
Explanation: Rule 3 of the CCS (Conduct) Rules, 1964 requires every Government servant to maintain absolute integrity, devotion to duty and conduct befitting a Government servant.
Q.38 Answer: A. With prior permission where permitted under the Rules
Explanation: A Government servant shall not engage in private trade or business except where permitted under the CCS (Conduct) Rules with the prescribed approval.
Q.39 Answer: C. Minor and Major
Explanation: The CCS (CCA) Rules, 1965 classify disciplinary penalties into Minor Penalties and Major Penalties.
Q.40 Answer: A. As a matter of right
Explanation: Under the CCS (Leave) Rules, 1972, leave cannot be claimed as a matter of right. Its grant depends on the exigencies of public service and approval by the competent authority.
Q.41 Answer: B. Pensionary benefits
Explanation: Under the CCS (Pension) Rules, 2021, qualifying service is the service that counts for determining a Government servant’s pension and retirement benefits.
Q.42 Answer: C. Extraordinary Leave
Explanation: Extraordinary Leave (EOL) may be granted when no other leave is admissible or when the Government servant specifically requests it.
Q.43 Answer: B. Political activities prohibited under the Rules
Explanation: The CCS (Conduct) Rules, 1964 prohibit Government servants from taking part in political activities in the manner specified under the Rules.
Q.44 Answer: C. Regulated by the prescribed rules and monetary limits
Explanation: Acceptance of gifts by Government servants is governed by the CCS (Conduct) Rules, which prescribe conditions and monetary limits.
Q.45 Answer: B. Subject to the exigencies of public service
Explanation: Leave is sanctioned by the competent authority keeping in view the exigencies of public service and cannot be claimed as a matter of right.
Q.46 Answer: B. Inquire into complaints of sexual harassment
Explanation: The Internal Committee constituted under the POSH Act, 2013 receives and inquires into complaints of sexual harassment at the workplace.
Q.47 Answer: B. Equality, non-discrimination and accessibility
Explanation: The Rights of Persons with Disabilities Act, 2016 aims to ensure equality, protect the rights of persons with disabilities and promote accessibility.
Q.48 Answer: A. Promote accessibility for persons with disabilities
Explanation: The Act requires the appropriate Government to take measures for creating a barrier-free and accessible environment for persons with disabilities.
Q.49 Answer: B. Manual of Office Procedure
Explanation: The Manual of Office Procedure (MOP) lays down the procedure for handling receipts, file management, noting, drafting and record management in Government offices.
Q.50 Answer: B. To assess understanding of Allied Laws, Office Procedure and Service Rules relevant to departmental functioning
Explanation: Paper III is intended to test candidates’ knowledge of Allied Laws, Office Procedure and Service Rules, enabling them to apply these provisions effectively in their official duties.
Stay connected with Simple Income Tax for more practice papers, daily MCQs, previous year solved question papers, study materials and the latest updates on the Income Tax Inspector Departmental Examination 2026. This practice paper has been prepared by Simple Income Tax exclusively for educational and self-assessment purposes. The questions are original and have been designed with reference to the prescribed syllabus and standard reference books for the Income Tax Inspector Departmental Examination. While every effort has been made to ensure accuracy, candidates are advised to refer to the latest Acts, Rules, Government orders and official departmental instructions for authoritative guidance.
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