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CMA Intermediate Direct and Indirect Taxation Classes

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Kochi

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Indore

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Ahmedabad

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Chennai

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CMA Intermediate Paper 7 — Direct and Indirect Taxation

Taxation is a 100-mark paper covering Direct Tax (~50 marks) and Indirect Tax/GST (~50 marks). For the December 2026 exam, Finance Act 2025 applies for Direct Tax. This is the most amendment-sensitive paper in CMA Intermediate — preparation from previous-year material without updating for the current Finance Act and latest GST amendments is a common cause of failure.

Direct Tax — Income Tax Act 1961

  • Basic concepts — Residential status, previous year and assessment year, scope of total income
  • Heads of Income:
    • Salaries — Allowances, perquisites, standard deduction, provident fund rules
    • House Property — Let-out and self-occupied, deemed let-out, interest deduction under Section 24(b)
    • Business/Profession — Allowable and disallowable deductions (Sections 30–37), depreciation under IT Act, presumptive taxation (44AD, 44ADA, 44AE)
    • Capital Gains — STCG and LTCG, post-Finance Act 2025 rates, exemptions (54, 54F, 54EC)
    • Other Sources — Interest, dividends, family pension, gifts
  • Deductions under Chapter VI-A — 80C through 80U complete landscape
  • TDS provisions — Rates, thresholds, deposit timelines, Form 26AS, AIS (Annual Information Statement)
  • Advance Tax — Computation, instalments (15 June, 15 Sept, 15 Dec, 15 March), interest on shortfall
  • Assessment procedure — Self-assessment, scrutiny, reassessment overview

Indirect Tax — GST

  • Constitutional framework — Article 246A, GST Council, CGST, SGST, IGST, UTGST structure
  • Supply — Scope, composite and mixed supply, Schedule I/II/III, exempt supply
  • Time of supply and Value of supply
  • Input Tax Credit — Eligibility, blocked credits under Section 17(5), reversal, GSTR-2B reconciliation
  • Registration — Threshold limits, compulsory registration, casual taxable person, non-resident
  • Returns — GSTR-1, GSTR-3B, GSTR-9 (Annual Return), GSTR-9C (Reconciliation Statement)
  • E-Way Bill — Threshold, validity, exceptions, penalty
  • Demand and recovery — Section 73 (non-fraud) and Section 74 (fraud/suppression)
  • Refunds — Zero-rated supply, ITC refund for exporters, inverted duty structure

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