Cracking the ICAI Tax Papers: Your Preparation Guide for 2025
This article provides a detailed overview of the tax paper syllabus at the CA intermediate and final levels, including the structure, objectives, and weightage.
The Institute of Chartered Accountants of India (ICAI) is a statutory body responsible for regulating the profession of Chartered Accountancy (CA) in India. It offers the CA qualification through a structured three-tier course system comprising the Foundation, Intermediate, and Final levels.
Among the various subjects covered in the CA course, taxation holds significant importance. Having a strong understanding of tax laws is crucial for every CA, as it not only improves your ability to interpret and apply the legislation but also gives you an upper hand as a trusted advisor to clients and business .
To achieve this, having a solid grasp of concepts alone is not enough but staying updated on tax laws and judicial pronouncements is also crucial. This article provides a detailed overview of the tax papers at the Intermediate and Final Stage.
Understanding the Syllabus: What to Study for CA Tax Papers
At the foundation level there is no specific paper related to tax. At the Intermediate level, there is a dedicated Taxation paper (Paper 3). This paper is divided into two sections:
Section A covers Income Tax Law
Section B covers Goods and Services Tax (GST).
At the Final level, taxation is split into two comprehensive papers:
Paper 4: Direct Tax Laws and International Taxation
Paper 5: Indirect Tax Laws
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CA Intermediate Tax Syllabus:
Paper 3 – TAXATION
| SECTION | TOPIC | OBJECTIVE | CONTENTS |
| A | INCOME TAX LAW (50 Marks) | a. To develop an understanding of the provisions of income-tax law. b. To acquire the ability to apply such provisions to solve problems and address application oriented issues. | 1. Basic Concepts: (i) Income-tax law: An introduction(ii) Significant concepts in income-tax law, including person, assessee, previous year, assessment year, income, agricultural income(iii) Basis of Charge(iv) Procedure for computation of total income: a. To acquire the ability to analyse and interpret the provisions of direct tax laws and recommend optimal solutions to practical problems in a tax efficient manner; and b. To apply the provisions of direct tax laws and the concepts, principles and provisions of international taxation to recommend solutions to issues involved in cross border transactions.and tax payable in case of individuals 2. Residential status and scope of total income: (i) Residential status (ii) Scope of total income 3. Heads of income and the provisions governing computation of income under different heads: (i) Salaries (ii) Income from house property (iii) Profits and gains of business or profession Capital gains (iv) Income from other sources 4. Provisions relating to clubbing of income, set-off or carry forward and set-off of losses, deductions from gross total income. 5. Advance Tax, Tax deduction at source and tax collection at source. 6. Provisions for filing return of income and self-assessment. 7. Computation of total income and income-tax payable by an individual under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability. |
| B | GST (50 MARKS) | a. To develop an understanding of the provisions of goods and services tax law. b. To acquire the ability to apply such provisions to address/solve issues in moderately complex scenarios. | 1. GST Laws: An introduction including Constitutional aspects. 2. Levy and collection of CGST and IGST: (i) Application of CGST/IGST law (ii) Concept of supply including composite and mixed supplies (iii) Charge of tax including reverse charge (iv) Exemption from tax (v) Composition levy 3. Basic concepts of: (i) Classification (ii) Place of supply (iii) Time of supply (iv) Value of supply (v) Input tax credit 4. Computation of GST liability. 5. Registration. 6. Tax invoice; Credit and Debit Notes; Electronic way bill. 7. Accounts and Records. 8. Returns. 9. Payment of tax. |
CA Final Tax Syllabus
Paper 4: Direct Tax Laws & International Taxation
Paper 5: Indirect Tax Laws (GST, Customs & FTP)
| PAPER NO. | PAPER NAME | OBJECTIVE | CONTENT |
| 4 | DIRECT TAX LAWS & INTERNATIONAL TAXATION (100 MARKS) | a. To acquire the ability to analyse and interpret the provisions of direct tax laws and recommend optimal solutions to practical problems in a tax efficient manner; and b. To apply the provisions of direct tax laws and the concepts, principles and provisions of international taxation to recommend solutions to issues involved in cross border transactions. | 1. i) Comprehensive computation of income-tax liability of companies and other entities under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability - General provisions under the Act for computation of total income and tax liability of companies and other entities - Special tax regimes under the Act for companies and other entities - Optimisation of tax liability of companies and other entities through tax planning ii) Special Provisions relating to charitable and religious trust and institutions, political parties and electoral trusts, business trusts, securitisation trusts, investment funds and other funds/trusts iii) Anti-avoidance provisions under the Act iv) Provisions to address tax challenges on digitalisation 2. Tax Administration and Appellate Mechanism i) Deduction, Collection and Recovery of Tax ii) Income-tax Authorities iii) Assessment Procedures iv) Appeals and Revision; and Dispute Resolution v) Provisions to counteract unethical tax practices - Taxation of undisclosed income under the Income-tax Act, 1961 - Taxation of undisclosed foreign income and assets - Penalties and offences and prosecution vi) Miscellaneous Provisions vii) Tax Audit 3. International Taxation i) Taxation of cross border transactions and Non-resident taxation under the Income-tax Act, 1961, including - Transfer Pricing - Non-resident Taxation - Double Taxation Relief - Advance Ruling ii) Other Aspects of International Taxation, namely, - Significant articles of OECD and UN Model Tax Conventions - Fundamentals of BEPS - Application and Interpretation of Tax Treaties - Latest developments in International Taxation |
| 5 | INDIRECT TAX LAWS (100 MARKS) | PART I: GOODS AND SERVICES TAX (80 MARKS) To acquire the ability to analyse and interpret the provisions of the goods and services tax law and recommend solutions to case scenarios. | 1. i) Comprehensive computation of income-tax liability of companies and other entities under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability - General provisions under the Act for computation of total income and tax liability of companies and other entities - Special tax regimes under the Act for companies and other entities - Optimisation of tax liability of companies and other entities through tax planning ii) Special Provisions relating to charitable and religious trust and institutions, political parties and electoral trusts, business trusts, securitisation trusts, investment funds and other funds/trusts iii) Anti-avoidance provisions under the Act iv Provisions to address tax challenges on digitalisation 2. Tax Administration and Appellate Mechanism i) Deduction, Collection and Recovery of Tax ii) Income-tax Authorities iii) Assessment Procedures iv) Appeals and Revision; and Dispute Resolution v) Provisions to counteract unethical tax practices - Taxation of undisclosed income under the Income-tax Act, 1961 - Taxation of undisclosed foreign income and assets - Penalties and offences and prosecution vi Miscellaneous Provisions vii) Tax Audit 3. International Taxation i Taxation of cross border transactions and Non-resident taxation under the Income-tax Act, 1961, including - Transfer Pricing - Non-resident Taxation - Double Taxation Relief - Advance Ruling ii) Other Aspects of International Taxation, namely, - Significant articles of OECD and UN Model Tax Conventions - Fundamentals of BEPS - Application and Interpretation of Tax Treaties - Latest developments in International Taxation |
| PART II: CUSTOMS & FTP (20 MARKS) To develop an understanding of the customs laws and foreign trade policy and acquire the ability to analyse and interpret the provisions of such laws/concepts. | PART II: CUSTOMS & FTP (20 MARKS) 1. Customs Law as contained in the Customs Act, 1962 and the Customs Tariff Act, 1975 i) Introduction to customs law including Constitutional aspects ii) Levy of customs duties including application of customs law, taxable event, charge of customs duty, exceptions to levy of customs duty, exemption from custom duty iii) Types of customs duties iv) Classification and valuation of imported and export goods v) Import and Export Procedures including special procedures relating to baggage, goods imported or exported by post, stores vi) Warehousing vii) Refund 2. Foreign Trade Policy i) Introduction to FTP - legislation governing FTP, salient features of an FTP, administration of FTP, contents of FTP and other related provisions ii) Basic concepts relating to import and export iii) Basic concepts relating to export promotion schemes provided under FTP |
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For CA Intermediate Taxation paper, Section A covers Income Tax Law and Section B covers GST, carrying 50 marks each.
Below is the weightage for different topics.
Paper 3: Taxation
Section A: Income-Tax Law (50 Marks).
| SECTION | CONTENTS | WEIGHTAGE |
| I | Basic Concepts: (i) Income-tax law: An introduction (ii) Significant concepts in income-tax law, including person, assessee, previous year, assessment year, income, agricultural income (iii) Basis of Charge (iv) Procedure for computation of total income and tax payable in case of individuals | 10%-20% |
| II | Residential status and scope of total income: (i) Residential status (ii) Scope of total income Heads of income and the provisions governing computation of income under different heads: (i) Salaries (ii) Income from house property (iii) Profits and gains of business or profession (iv) Capital gains (v) Income from other sources | 25%-30% |
| III | Provisions relating to clubbing of income, set-off or carry forward and set-off of losses, deductions from gross total income | 15%-250% |
| IV | Advance Tax, Tax deduction at source and tax collection at source | 15%-20% |
| V | Provisions for filing return of income and self-assessment Computation of total income and income-tax payable by an individual under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability | 20%-25% |
Section B: Goods And Services Tax (Gst) (50 Marks) .
| SECTION | CONTENTS | WEIGHTAGE |
| I | GST Laws: An introduction including Constitutional aspects | 0-5% |
| II | Levy and collection of CGST and IGST: (i) Application of CGST/IGST law (ii) Concept of supply including composite and mixed supplies (iii) Charge of tax including reverse charge (iv) Exemption from tax (v) Composition levy Basic concepts of: (i) Classification (ii) Place of supply (iii) Time of supply (iv) Value of supply (v) Input tax credit Computation of GST liability | 50%-80% |
| II | Registration Tax invoice; Credit and Debit Notes; Electronic way bill Accounts and Records Payment of tax Returns | 20%-45% |
Section-Wise Weightage Table For CA Final.
For CA Final, Paper 4: Direct Tax Laws & International Taxation is for 100 marks, and Paper 5: Indirect Tax Laws is for 100 marks, with Part I (GST) carrying 80 marks and Part II (Customs & FTP) carrying 20 marks.
Below the weightage for different topics is given.
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Paper 4: Direct Tax Laws & International Taxation (100 Marks)
| SECTION | CONTENT | WEIGHTAGE |
| I | (i) Comprehensive computation of income-tax liabilities of companies and other entities under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability - General provisions under the Act for computation of total income and tax liability for companies and other entities - Special tax regimes under the Act for companies and other entities - Optimisation of tax liability of companies and other entities through tax planning (ii) Special Provisions relating to charitable and religious trust and institutions, political parties and electoral trusts, business trusts, securitisation trusts, investment funds and other funds/trusts (iii) Anti-avoidance provisions under the Act (iv) Provisions to address tax challenges on digitalisation | 40%-45% [20%-23% weightage for item (i) and 20%-22% weightage for (ii), (iii) and (iv) together] |
| II | Tax Administration and Appellate Mechanism (i) Deduction, Collection and Recovery of Tax (ii) Income-tax Authorities (iii) Assessment Procedures (iv) Appeals and Revision; and Dispute Resolution (v) Provisions to counteract unethical tax practices - Taxation of undisclosed income under the Income-tax Act, 1961 - Taxation of undisclosed foreign income and assets - Penalties and offences and prosecution (vi) Miscellaneous Provisions (vii) Tax Audit | 20%-30% |
| III | International Taxation (i) Taxation of cross border transactions and Non-resident taxation under the Income-tax Act, 1961, including - Transfer Pricing - Non-resident Taxation - Double Taxation Relief - Advance Ruling (ii) Other Aspects of International Taxation, namely, - Significant articles of OECD and UN Model Tax Conventions - Fundamentals of BEPS - Application and Interpretation of Tax Treaties - Latest developments in international taxation | 30%-35% |
Part I: Goods And Services Tax (80 Marks)
| SECTIONS | CONTENTS | WEIGHTAGE |
| I | Goods and Services Tax (GST) Law as contained in the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017 including (i) Case studies based on following: Levy and collection of CGST and IGST – Application of CGST/IGST law; Concept of supply, inter-State supply, intra-State supply, supplies in territorial waters; Charge of tax including reverse charge; Classification; Exemption from tax; Place of supply; Time of Supply; Value of supply; Input tax credit; Computation of GST liability | 45%-65% |
| II | Procedures under GST including registration, tax invoice, credit and debit notes, electronic way-bill, accounts and records, returns, payment of tax | 10%-30% |
| III | Refunds and case studies based on refund provisions Job work Liability to pay in certain cases Administration of GST; Assessment and Audit | 0%-5% |
| IV | Inspection, Search, Seizure and Arrest Demand and Recovery; Offences and Penalties Appeals and Revision Advance Ruling Ethics under GST Other provisions | 15%-30% |
Part II: Customs & FTP (20 Marks)
| SECTIONS | CONTENTS | WEIGHTAGE |
| I | Customs Law as contained in the Customs Act, 1962 and the Customs Tariff Act, 1975 (ii) Levy of customs duties including application of customs law, taxable event, charge of customs duty, exceptions to levy of customs duty, exemption from custom duty (iii) Types of customs duties (iv) Classification and valuation of imported and export goods | 40%-65% |
| II | Import and Export Procedures including special procedures relating to baggage, goods imported or exported by post, stores Warehousing Refund | 20%-45% |
| III | Foreign Trade Policy (i) Introduction to FTP – legislation governing FTP, salient features of an FTP, administration of FTP, contents of FTP and other related provisions (ii) Basic concepts relating to import and export (iii) Basic concepts relating to export promotion schemes provided under FTP | 10%-20% |
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Official Study Materials: Where to Find and How to Use Them
ICAI provides comprehensive and regularly updated study materials for all CA exam levels, which you can download for free from the official Board of Studies (BoS) Knowledge Portal on the ICAI website.
How to access:
Go to the ICAI website → click on "Students" → select "BoS Knowledge Portal" → choose your course and subject → download the PDF study material.
Alternatively you can access the study material directly, by CLICKING HERE to go to the official ICAI BoS Knowledge Portal.
For physical books, log in to the CDS portal (https://icai-cds.org/) with your registration details and order your required study material using your allotted coupon.
Tips for Preparation
While preparing, start with the ICAI study materials as your primary and fundamental source. It is comprehensive, reliable and aligned with the exam syllabus
While studying, make concise notes for quick revision .To practise under exam like conditions make use of the Revision Test Papers (RTPs) and Mock Test Papers (MTPs) provided by ICAI.
In addition to the study material given by ICAI, refer to standard reference books, online courses, and coaching materials to help you understand complex topics and strengthen your conceptual clarity.
A balanced approach combining ICAI resources with external support materials ensures a proper thorough preparation and boosts your confidence for the exam.
Staying Updated: Amendments and Recent Case Laws.
Tax laws are dynamic in nature and frequently undergo amendments, making it essential to stay updated. To keep up with these changes, you should regularly check the ICAI’s announcement section for statutory updates and attend webinars focused on recent amendments and case laws.
Integrating these amendments and judicial pronouncements into your notes and practice questions will help reinforce your understanding and ensure that your preparation remains current.
Being aware of such updates is not just important from an examination point of view but is also necessary for your long-term professional growth in the field of taxation
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How to Approach the Exam with Confidence.
To approach your exams with a calm and focused mind, it is essential to build confidence in your own preparation. The first step towards maintaining this calm is to start early and follow a consistent daily routine throughout your preparation.
It is equally important to become familiar with the question patterns and marking scheme. Once you have completed the study material, begin solving past year papers and mock tests, strictly within the exam time limit to simulate real exam conditions.
After each mock test, analyze your performance to identify weak areas and focus on improving them. This not only sharpens your preparation but also boosts your confidence as the exam approaches.
Finally, I wish you all the very best for your exams. Stay confident, stay focused, and give it your best!
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