CA Intermediate Taxation Classes

CA Intermediate Paper 3 — Taxation

Taxation is a 100-mark paper divided into two sections: Section A — Income Tax Laws (~60 marks) and Section B — Goods and Services Tax (~40 marks). It is the most amendment-sensitive paper in CA Intermediate Group 1 — using outdated study material for this paper is one of the most common and avoidable reasons for failure.

For the November 2026 attempt, the applicable law is Finance Act 2025 for Direct Tax and GST amendments up to the ICAI-notified cut-off date.

Section A — Income Tax Laws (~60 marks)

• Basic Concepts — Residential status, incidence of tax, computation of total income and tax liability
• Heads of Income
  • Salaries — Allowances, perquisites, PF provisions, deductions under section 16
  • House Property — Self-occupied vs let-out property, deemed let-out, interest deduction
  • Profits and Gains of Business or Profession — Allowable and disallowable expenses, depreciation under Income Tax Act, maintenance of accounts
  • Capital Gains — Short-term and long-term capital gains, STCG and LTCG tax rates after Finance Act 2025, exemptions under sections 54, 54F, 54EC
  • Other Sources — Dividends, interest, gifts, winnings
• Clubbing of Income and Set-off of Losses — Intra-head and inter-head set-off, carry forward rules for each head
• Deductions under Chapter VI-A — Sections 80C through 80U — the complete landscape of tax-saving deductions
• Advance Tax and TDS — Computation, due dates, TDS rates for common transactions

Section B — GST (~40 marks)

• Supply — Definition, composite supply, mixed supply, exempt supply
• Time and Value of Supply — Specific scenarios for goods and services
• Input Tax Credit — Eligibility, blocked credits (Section 17(5)), conditions for claiming
• Registration — Threshold limits, compulsory registration, voluntary registration
• Returns — GSTR-1, GSTR-3B, annual return overview
• Payment of Tax — Electronic cash and credit ledger, interest on late payment

What Changes Every Attempt

Direct Tax changes with each Finance Act — capital gains tax rates, deduction limits, and TDS rate revisions are tested specifically. Finance Act 2025 introduced revisions to LTCG rates and holding period rules that are directly examinable in November 2026. GST changes with every GST Council meeting — rate changes and circular clarifications from GST Council meetings up to the ICAI cut-off are fair game. Never use previous-attempt material for Paper 3 without verifying amendment currency.