CA Foundation June 2026 Exam: Last Month Current Affairs Compilation & Expected Questions

<h2>CA Foundation June 2026 Exam: Current Affairs You Must Know</h2>

<p>With less than a month left for your CA Foundation exam, current affairs becomes crucial for scoring well in <strong>Paper 4 (Quantitative Aptitude, Business Mathematics & Statistics)</strong> and the General Knowledge section. Let me compile the most important topics from April-May 2026 that are likely to be asked.</p>

<h3>1. RBI's Monetary Policy & Interest Rate Changes (May 2026)</h3>

<p>The RBI's recent Monetary Policy Committee (MPC) decision is <strong>must-know</strong> for CA Foundation students. Focus on:</p>

<ul>

<li>Current repo rate and reverse repo rate</li>

<li>Impact on bank lending rates (SLR, CRR concepts from Paper 4)</li>

<li>Inflation control measures</li>

<li>How monetary policy affects business decisions</li>

</ul>

<p><strong>Exam Connection:</strong> Section 45 of the RBI Act, 1934 defines RBI's powers. Questions may ask about the relationship between policy rates and inflation targeting (4% ±2% band).</p>

<h3>2. Union Budget 2026-27 Impact on Business & Taxation</h3>

<p>Budget announcements affect CA Foundation students directly. Remember these points:</p>

<ul>

<li>Changes in income tax slabs (old vs. new regime)</li>

<li>Corporate tax rates for startups and MSMEs</li>

<li>GST rate changes (if any announced)</li>

<li>Tax incentives for sectors like renewable energy, manufacturing</li>

</ul>

<p><strong>Exam Connection:</strong> Direct Tax Code (DTC) concepts, Chapter VI-A deductions, and business income calculation (Page 1 of Paper 4). MCQs often ask about tax implications of business decisions.</p>

<h3>3. GST Council Decisions & Rate Changes</h3>

<p>The GST Council's April-May 2026 meetings may have announced:</p>

<ul>

<li>New GST rates on essential commodities</li>

<li>E-commerce seller guidelines</li>

<li>Input Tax Credit (ITC) rules</li>

<li>Composition scheme eligibility limits</li>

</ul>

<p><strong>Exam Connection:</strong> Indirect Tax and GST chapters (Paper 4). Know Section 15 of GST Act (tax rate determination) and Section 16 (ITC eligibility). Likely MCQ: "If GST rate on a product is 18%, what is the effective GST on intra-state transaction?"</p>

<h3>4. Corporate Governance & SEBI Regulations</h3>

<p>SEBI's recent circulars on listed companies' governance may feature:</p>

<ul>

<li>Disclosure requirements (Business Responsibility and Sustainability Reporting - BRSR)</li>

<li>Board diversity requirements</li>

<li>Independent director guidelines</li>

<li>Related Party Transactions (RPT) approval process</li>

</ul>

<p><strong>Exam Connection:</strong> Companies Act, 2013 (Board composition rules), Regulation 2015 on corporate governance. Paper 4 includes corporate structure and compliance topics.</p>

<h3>5. Inflation, GDP & Economic Growth Data</h3>

<p>Current economic indicators (May 2026):</p>

<ul>

<li>Latest CPI (Consumer Price Index) figures</li>

<li>FY2025-26 GDP growth estimate</li>

<li>Current unemployment rate</li>

<li>Forex reserves status</li>

<li>Manufacturing PMI trends</li>

</ul>

<p><strong>Exam Connection:</strong> Statistics chapter - index numbers (Laspeyres, Paasche indices). Question likely: "If CPI is 125 with 2012 as base year, what is inflation?" Connect to monetary policy decisions above.</p>

<h3>6. FDI & Make in India Initiative Updates</h3>

<p>Recent FDI inflows and manufacturing announcements:</p>

<ul>

<li>FDI restrictions on Chinese companies</li>

<li>Semiconductor manufacturing push</li>

<li>Production Linked Incentive (PLI) scheme expansion</li>

<li>Export-Import (EXIM) policy changes</li>

</ul>

<p><strong>Exam Connection:</strong> International Business and Trade chapter. Know Foreign Exchange Management Act (FEMA), 1999 basics.</p>

<h3>What to Do in the Last 30 Days</h3>

<p><strong>Action Plan:</strong></p>

<ol>

<li>Read last 2 months' Economic Survey summaries (available on India Budget website)</li>

<li>Note down 3-4 key figures: repo rate, GDP%, CPI%, key tax rates</li>

<li>Connect each current affair to a specific CA Foundation topic</li>

<li>Create flashcards of policy names, dates, and numerical values</li>

<li>Practice 5-10 questions daily linking current affairs to theory</li>

</ol>

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<h2>Sample MCQ Questions for Practice</h2>

<p><strong>Question 1:</strong> As per the latest RBI Monetary Policy (May 2026), if the repo rate is increased by 25 basis points, what would be the direct impact on banks' lending rates?</p>

<ul>

<li>(A) Lending rates will decrease</li>

<li>(B) Lending rates will increase</li>

<li>(C) No impact on lending rates</li>

<li>(D) Cannot be determined from given information</li>

</ul>

<p><em>Answer: (B) - Higher repo rate increases borrowing cost for banks, passed on to borrowers</em></p>

<p><strong>Question 2:</strong> The GST Council's recent announcement reduced the GST rate on certain essential commodities from 12% to 5%. How will this affect the input tax credit available to a trader?</p>

<ul>

<li>(A) ITC will remain unchanged</li>

<li>(B) ITC will decrease proportionally</li>

<li>(C) ITC can be carried forward indefinitely</li>

<li>(D) ITC will be blocked entirely</li>

</ul>

<p><em>Answer: (B) - Lower GST rate means lower input tax, hence lower ITC (Section 16, CGST Act)</em></p>

<p><strong>Question 3:</strong> If India's CPI increased to 128 (base year 2012 = 100) in April 2026, what is the inflation rate compared to the base year?</p>

<ul>

<li>(A) 28%</li>

<li>(B) 12.8%</li>

<li>(C) 100%</li>

<li>(D) Cannot be calculated</li>

</ul>

<p><em>Answer: (A) - [(128-100)/100] × 100 = 28% inflation from base year</em></p>

<p><strong>Final Tip:</strong> Don't memorize current affairs in isolation. Always connect them to the relevant CA Foundation concept—taxation, business law, economics, or quantitative methods. This dual preparation will boost both your General Knowledge score and your overall understanding.</p>

<p><strong>All the best for your June 2026 exam! 🎯</strong></p>