CA Foundation June 2026 Exam: Last Month Current Affairs You Must Know

<h2>CA Foundation June 2026 Exam: Last Month Current Affairs Compilation</h2>

<p>With only weeks left before your CA Foundation exam in June 2026, you need to focus on current affairs topics that directly connect to the exam syllabus. Current affairs questions typically appear in the <strong>Business Law, Economics, and Accounting Standards</strong> sections. Let's break down what you must know.</p>

<h3>1. RBI Monetary Policy & Interest Rates (May 2026)</h3>

<p>The Reserve Bank of India's recent monetary policy decisions are <strong>always relevant</strong> for CA Foundation exams. In May 2026, the RBI's policy rate decisions affect:</p>

<ul>

<li><strong>Repo Rate</strong> – This is the rate at which RBI lends to commercial banks. Any change impacts inflation and economic growth (covered in Economics paper)</li>

<li><strong>CRR and SLR</strong> – Cash Reserve Ratio and Statutory Liquidity Ratio changes affect bank lending capacity</li>

<li><strong>Inflation Control</strong> – Remember Section 45ZB of the RBI Act, 1934 regarding inflation targeting framework</li>

</ul>

<p><strong>What to Remember:</strong> If the repo rate was reduced in May 2026, it means RBI is trying to boost economic growth. If increased, it's to control inflation. This directly relates to your Economics paper (Chapter: Money and Banking).</p>

<h3>2. Union Budget 2026 Implementation & Tax Changes</h3>

<p>The Budget 2026 announcements that came into effect in recent months are crucial. Focus on:</p>

<ul>

<li><strong>Direct Tax Changes</strong> – Any new income tax slabs, deductions, or exemptions under the Income Tax Act, 1961</li>

<li><strong>GST Rate Modifications</strong> – Watch for any changes in Goods and Services Tax rates on common commodities</li>

<li><strong>Corporate Tax</strong> – New incentives or changes for startups and MSMEs (relevant for Business Law paper)</li>

<li><strong>Customs Duty</strong> – Changes on imports affecting domestic industries</li>

</ul>

<p><strong>Exam Connection:</strong> These directly appear in your <strong>Business Law paper (Taxation Chapter)</strong> and Economic paper. The examiner loves asking "As per the latest Budget, which of the following is correct?" type questions.</p>

<h3>3. GST Council Decisions & Compliance Updates</h3>

<p>Recent GST Council meetings (May 2026) likely introduced changes in:</p>

<ul>

<li><strong>GST Rate Changes</strong> – Essential commodities vs luxury goods classification</li>

<li><strong>IGST, CGST, SGST Distribution</strong> – How taxes are distributed between Centre and States</li>

<li><strong>E-way Bills & Returns</strong> – GSTR-1, GSTR-3B filing deadlines and compliance requirements</li>

<li><strong>GST Audit & Invoicing</strong> – New rules for businesses above certain turnover</li>

</ul>

<p><strong>Why This Matters:</strong> GST is a <strong>major topic in CA Foundation</strong> (Business Law – Chapter on Indirect Taxes). Questions asking "Which of the following transactions are NOT subject to GST?" are extremely common.</p>

<h3>4. Inflation Data & Price Index Changes</h3>

<p>Recent inflation data (April-May 2026) affects:</p>

<ul>

<li><strong>Consumer Price Index (CPI)</strong> – The measure of inflation that impacts purchasing power</li>

<li><strong>Wholesale Price Index (WPI)</strong> – Affects business costs and profit margins</li>

<li><strong>Retail vs Wholesale Prices</strong> – Understanding the difference is crucial for Economics paper</li>

</ul>

<p>If inflation is high, students must understand why RBI raises rates. If inflation is low, they cut rates. This cause-and-effect relationship appears in almost every exam.</p>

<h3>5. Regulatory Changes in Banking & NBFC Sector</h3>

<p>Recent announcements about:</p>

<ul>

<li><strong>Basel III Norms</strong> – Capital adequacy requirements for banks</li>

<li><strong>KYC & AML Regulations</strong> – Know Your Customer and Anti-Money Laundering compliance (Section 35 of the PMLA, 2002)</li>

<li><strong>Digital Banking Rules</strong> – RBI's guidelines on cybersecurity and digital transactions</li>

</ul>

<h3>6. International Trade & Economic Developments</h3>

<p>Watch for:</p>

<ul>

<li>India's <strong>FDI (Foreign Direct Investment)</strong> trends</li>

<li><strong>Rupee vs Dollar</strong> exchange rate movements</li>

<li><strong>Export-Import Statistics</strong> – India's trade balance and key trading partners</li>

<li><strong>Global Economic Growth</strong> – How recession in developed countries affects India</li>

</ul>

<h3>Quick Revision Checklist for June 2026 Exam:</h3>

<ul>

<li>✓ Latest Repo Rate and RBI Policy decisions</li>

<li>✓ Current Income Tax slabs and deductions</li>

<li>✓ Recent GST rate changes and compliances</li>

<li>✓ Latest inflation figures (CPI and WPI)</li>

<li>✓ Banking regulations and KYC norms</li>

<li>✓ Current account deficit and foreign exchange reserves data</li>

</ul>

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<h3>Practice MCQ Questions for CA Foundation Exam:</h3>

<p><strong>Question 1:</strong> If the RBI reduces the Repo Rate in May 2026, what is the most likely objective?</p>

<ul>

<li>A) To increase inflation</li>

<li>B) To boost economic growth and reduce borrowing costs</li>

<li>C) To increase CRR for banks</li>

<li>D) To reduce money supply in the economy</li>

</ul>

<p><strong>Answer: B) To boost economic growth and reduce borrowing costs</strong></p>

<p><strong>Question 2:</strong> Under the current GST regime (2026), which of the following is NOT subject to GST?</p>

<ul>

<li>A) Sale of immovable property</li>

<li>B) Passenger air travel</li>

<li>C) Restaurant meals</li>

<li>D) Mobile phones</li>

</ul>

<p><strong>Answer: A) Sale of immovable property</strong> (Covered under Real Estate Regulation Act, not GST)</p>

<p><strong>Question 3:</strong> As per recent Union Budget 2026, which section of the Income Tax Act provides tax exemption to startups meeting certain criteria?</p>

<ul>

<li>A) Section 80-IC</li>

<li>B) Section 80-IEE</li>

<li>C) Section 80-IAC</li>

<li>D) Section 80-JJAA</li>

</ul>

<p><strong>Answer: C) Section 80-IAC</strong> (Though check latest amendments for 2026)</p>

<h3>Final Advice for CA Foundation June 2026 Candidates:</h3>

<p>Don't try to memorize everything. Instead, <strong>understand the "why"</strong> behind each policy. When you understand that lower interest rates encourage borrowing and spending, you can answer any variation of that question. Read <strong>The Economic Times or Financial Express for 15 minutes daily</strong> till your exam. Focus on Indian economic news, not global markets.</p>

<p><strong>Last Tip:</strong> Current affairs questions usually have obvious wrong answers. Read each question carefully and eliminate wrong options first. You'll score well!</p>