CA Inter Paper 3: Taxation study plan

Determine residential status for individuals and companies by applying the 182/60+365 day tests and the 120/182 day rule for Indian citizens leaving for employment or as crew, including the deemed-resident provision under Section 6(1A).

Classify income into the five heads and apply the scope of total income rules (Sec 5) for resident, RNOR, and non-resident taxpayers, including receipts accruing or arising outside India.

Compute salary income for a private-sector employee covering basic pay, DA, HRA, special allowance, employer PF contribution, gratuity, and leave encashment, applying the standard deduction of Rs 50,000 (new regime) and Rs 75,000 (old regime).

Calculate house property income for a let-out property: determine GAV, deduct municipal taxes actually paid, apply the 30% standard deduction, and restrict interest on borrowed capital to Rs 2,00,000 for self-occupied and the pre-construction interest rules.

Identify which allowances are fully taxable, partly exempt, or fully exempt (HRA, LTC, gratuity, leave encashment) and state the statutory limits for each.

Compute profits and gains of business or profession for a sole proprietor, correctly treating depreciation (WDV method, 15%/10%/5% blocks), Section 40A(3) cash-payment disallowance, and Section 43B statutory dues.

Distinguish between revenue and capital expenditure and apply the specific disallowances under Sections 40(a), 40A, and 43B in a given fact pattern.

Calculate capital gains on transfer of a long-term immovable property: apply the cost inflation index (CII) for the year of acquisition and year of transfer, and compute indexed cost of acquisition and improvement.

Apply the exemptions under Sections 54, 54B, 54EC, and 54F, including the Rs 50 lakh cap on 54EC bonds and the two-house 54 option.

Determine whether an asset is long-term or short-term (12 months for listed shares and units, 24 months for unlisted shares and immovable property) and compute tax at 10% without indexation vs 20% with indexation for listed securities.

Compute income from other sources: interest on savings and fixed deposits, dividend, and winnings from lotteries/crossword puzzles, applying the 30% flat tax on winnings and the Rs 10,000/50,000 TDS thresholds.

Apply the clubbing provisions under Sections 60-64: spouse's income from transferred assets, minor child's income (with the Rs 1,500 exemption per child), and income from HUF property converted by a member.

Set off intra-head and inter-head losses and determine carry-forward eligibility for business loss (8 years), capital loss (8 years), and house-property loss (8 years, capped at Rs 2 lakh per year).

Claim Chapter VI-A deductions: Section 80C (Rs 1.5 lakh), 80D (Rs 25,000/50,000), 80TTA (Rs 10,000), 80TTB (Rs 50,000 for seniors), 80G (50%/100% with or without qualifying limit), and 80JJAA.

Compute total income and tax liability for an individual under both the old regime and the new regime (Section 115BAC), including the Section 87A rebate and marginal relief.

Compute advance tax installments (15%, 45%, 75%, 100%) for a business assessee and determine interest under Sections 234B and 234C for shortfall or delay.

Apply TDS rates and thresholds for salary (Section 192), interest (194A), rent (194I), professional fees (194J), and contractor payments (194C), and state the due dates for deposit (7th of the following month, 30th April for March).

File a return of income: choose ITR-1/ITR-2/ITR-3/ITR-4 based on income sources, and state the due dates (31 July for non-audit, 31 October for audit) and belated/revised return deadlines.

Determine the place of supply for goods and services in cross-border and intra-state transactions, including the default rule for services and the special rules for immovable property, events, and transportation.

Identify the time of supply for goods and services under both forward charge and reverse charge, and compute the due date for payment of GST (20th of the following month for monthly filers).

Compute the value of supply under Section 15: transaction value, inclusion of packing, freight, and incidental costs, and exclusion of discounts (trade discount, cash discount).

Apply the valuation rules when consideration is not wholly in money or between related persons, and use the cost-plus method or comparable-uncontrolled-price method as appropriate.

List the major exemptions under Notification 12/2017 (healthcare, education, agricultural produce, charitable activities) and determine whether a given service is exempt or taxable.

Identify supplies covered by reverse charge under Section 9(3) and 9(4) (e.g., GTA, legal services, director's services, import of services) and compute the RCM liability.

Determine eligibility for input tax credit under Section 16: possession of a tax invoice, receipt of goods/services, tax paid to the government, and filing of return; list the blocked credits under Section 17(5).

Prepare a monthly GSTR-3B return: compute output tax, eligible ITC, and net cash liability, and reconcile with GSTR-1 and GSTR-2B.

Apply the rules for late filing of returns: late fee under Section 47 (Rs 50/day, capped) and interest under Section 50 (18% p.a.) for delayed payment.

Determine the refund mechanism for exports (with payment of tax under LUT or on payment) and for inverted duty structure, including the formula for maximum refund under Rule 89(5).

Draft an appeal to the Appellate Authority under Section 107: state the 3-month limitation, pre-deposit of 10% of disputed tax, and the form GST APL-01.

Explain the advance ruling mechanism under Chapter XVII: eligibility, application in Form GST ARA-01, and the binding nature of the ruling on the applicant and the department.

Solve an integrated case study where a business has salary income, business income, and GST turnover, and compute both income-tax liability and GST payable in the same fact pattern.

Reconcile income-tax turnover with GST turnover and identify common adjustments (e.g., exempt supplies, branch transfers, and timing differences).

Apply TDS provisions to GST-inclusive payments and determine whether TDS under income-tax and TCS under GST apply independently.

Analyse a case involving a notice for mismatch between GSTR-1 and GSTR-3B, and propose the response with supporting reconciliation.

Compute the total tax outflow (income-tax + GST + interest) for a small business and identify planning opportunities within the law.

Revise all 12 domains using the cheat sheets and templates created in weeks 1-7, spending 30 minutes per domain.

Attempt one full-length mock test (100 marks, 3 hours) covering income-tax and GST, and score at least 60%.

Review every incorrect answer from the mock and write a 3-line correction note for each mistake.

Memorise key thresholds and due dates: basic exemption limits, 87A rebate, 80C/80D limits, TDS rates, GST registration threshold (Rs 40 lakh/20 lakh), and return due dates.