CA Inter Taxation Important Amendments & Exam Tips

If you are studying for CA Inter and especially preparing for Paper-3 (Taxation), you must pay close attention to CA Inter Taxation Important Amendments. These changes affect both direct taxes (income-tax law) and indirect taxes (GST). Missing them can cost you marks. So I am writing this guide to help you stay updated, understand the changes simply, and use smart exam strategies.

What are the important amendments

Income Tax Act

• The old, long Income-tax Act (1961) is being replaced by Income Tax Act, 2025 — a simpler, shorter tax law.
  
• Under this new Act, legal language is simpler. The law aims to reduce confusion.
  
• The concept of “Tax Year” replaces the older “Previous Year” / “Assessment Year” approach. This makes it easier to know for which year you are filing tax.

This amendment is especially important for future-looking legislation, and candidates of CA Inter should know that from FY 2026-27, the new law will be applicable.

Also Read: How To Study And Score In CA Inter Advanced Accounting

Key Direct Tax Updates

Here are some major direct tax changes under the new amendments that you must memorise.

Changed Slab-rates under New Regime (Section 115BAC)

From FY 2025-26 onwards (i.e. for AY 2026-27), tax slab rates under the new regime are revised.

This revision means more relief for individuals earning moderate income.

Higher Rebate under Section 87A (New Regime)

If your total income is up to ₹ 12,00,000 under new regime, you now get rebate of up to ₹ 60,000.

This is a big relief for salaried persons or individuals earning up to a lakh-plus income per year.

Revised TDS/TCS, Crypto, other Provisions

The 2025 amendments make changes in many sections — TDS/TCS thresholds, computation of “total income” in block periods, and even regulation of crypto-assets.
Also, the law aims to make compliance simpler, bring clarity, and reduce litigation.

Indirect Tax Updates – GST & Compliance (Also in CA Inter Taxation)

Since Paper-3 of CA Inter also includes GST portion, these changes matter.

Major GST Restructuring – GST 2.0

• In 2025, the Indian indirect tax regime underwent a major overhaul. GST slabs have been rationalised: essential and common items are taxed at lower rates, while luxury or “sin goods” are now taxed higher.
  
• GST slabs have been simplified to core slabs (0%, 5%, 18%) for most items; for certain goods, a higher slab (e.g. 40%) may apply under “sin/luxury” classification.
  
• The change means you must update your GST questions in practice and theory parts.

Compliance & Return Filing Changes

• From July 2025 onward, GST return filing norms have changed. Forms and formats are updated. Accuracy and timely filing are now more strictly enforced.
  
• As a CA Inter student, this means you must practice revised formats while doing GST problems.

Why These Amendments Matter for CA Inter Exam

• The syllabus of Institute of Chartered Accountants of India (ICAI) for Paper-3 includes Income-tax Law and GST — so these changes are official amendments for upcoming attempts (May/Sept 2025, Jan 2026, etc.)
  
• Many questions (MCQs, long-form questions) in exams will test these latest amendments.
  
• Understanding the revised slab structure, rebate limits, and GST changes helps you solve both theoretical and numerical problems more accurately.
  
• If you ignore these updates, you risk losing marks even if your basics are strong.

Exam Tips: How to Crack Taxation with Amendments

Here are smart, simple tips to help you prepare well and score high.

• Make a checklist — Write down all the “new changes” (slab rates, rebate, TDS, GST slab, return rules). Keep it with you. Revise this before exam.
  
• Use both old + new — For problems set in past years, older provisions may apply. For current/future problems examiners may expect new law. Know both.
  
• Practice both direct tax & GST — Don’t ignore GST just because direct tax seems heavy. GST changes are important too now.
  
• Stay updated — Amendments may come till the exam date. Keep watching official updates from ICAI or credible sources.
  
• Time your answers smartly — In exam, first answer what you know (amendments) quickly, then do long-answer questions. This ensures you don’t lose easy marks due to confusion.
  
• Use clarity in law-terms — While writing answers, mention correct section numbers (if asked), or write “as per amended slab (FY 2025-26)” — this shows you know changes.

Frequently Asked Questions(FAQs)

Q: Should I forget old tax slabs and only learn new ones now?
Ans: Not yet. Exams may include past years or older regime questions. So, learn both old and new, but prioritise new for upcoming exams.

Q: Does the new law mean I don’t need to study older provisions at all?
Ans: No. Some provisions may remain. Also, many illustrations and problems in textbooks or old papers still follow old law. So knowing both helps.

Q: For GST — do I need special notes again because of GST 2.0 change?
Ans: Yes. You must update your GST notes. GST 2.0 has changed slab rates and return rules. Use latest notes or ICAI amendment circulars.

Q: How often do such big amendments come, and will they impact CA Inter regularly?
Ans: Not always. But when there is a major law change (like Income Tax Act 2025 or GST 2.0), ICAI issues “Statutory Update / Amendments” for exams. For May 2025/Sept 2025/Jan 2026 — these are valid.

Your Study Plan

1. Download latest Amendment Circular / Statutory Update from ICAI site. Read carefully.
   
2. Update your own notes comparing “Old vs New”. Use tables (like slab-rate table above).
   
3. Solve at least 15–20 problems (income-tax + GST) using new laws. Practice both numericals and theory.
   
4. Revise amendments every 2–3 days till exam. Use flashcards if helpful.
   
5. In exam, read questions carefully — check if income is for FY 2025-26 or earlier. Then apply correct law.

Final Thoughts

If you keep yourself updated with CA Inter Taxation Important Amendments, you give yourself a big edge. You reduce chances of silly mistakes. You handle both direct tax and GST questions with confidence.

Remember — tax laws change. So keep your notes fresh. Practice smart. Read official updates. With right preparation, you can convert these amendments from exam hurdles into scoring opportunities.

Wish you all the best in your CA Inter journey. You’ve got this.