CA Inter Paper 4 cheat sheet

Residential status for an individual: basic condition = stay in India 182 days or more in the previous year, OR 60 days or more in the previous year plus 365 days or more in the four preceding years; the 60-day limb becomes 182 days for a citizen leaving India for employment abroad or as crew, and for a citizen or PIO visiting India with total Indian income (other than foreign-source) up to Rs 15 lakh.

Deemed resident under section 6(1A): an Indian citizen with total income (excluding foreign-source income) above Rs 15 lakh who is not liable to tax in any other country is deemed resident but always ROR-categorised as RNOR.

Rates for individuals below 60 (AY 2025-26, new regime u/s 115BAC default): 0 up to Rs 3,00,000; 5% on Rs 3,00,001-7,00,000; 10% on 7,00,001-10,00,000; 15% on 10,00,001-12,00,000; 20% on 12,00,001-15,00,000; 30% above Rs 15,00,000; rebate u/s 87A up to Rs 25,000 where total income does not exceed Rs 7,00,000 (new regime).

Old regime slabs (individual below 60): 0 up to Rs 2,50,000; 5% on 2,50,001-5,00,000; 20% on 5,00,001-10,00,000; 30% above 10,00,000; surcharge 10% (income above Rs 50 lakh), 15% (above 1 crore), 25% (above 2 crore); marginal relief applies at each threshold.

Section 10(13A) HRA exemption = least of (i) actual HRA received, (ii) rent paid minus 10% of salary, (iii) 50% of salary (Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere; salary = basic + DA forming part of retirement benefits + commission as fixed percentage of turnover.

Section 24(a) deduction for let-out house property = 30% of net annual value (GAV minus municipal taxes paid by owner); interest on borrowed capital deductible up to Rs 2,00,000 for self-occupied property under the old regime, nil standard deduction under the new regime for self-occupied.

Depreciation u/s 32: block of assets, WDV method; additional depreciation 20% for new plant and machinery in manufacturing (10% if used less than 180 days); 15% for new plant and machinery acquired and installed by 31 March 2027 where cost exceeds Rs 1 crore and claim is not opted out.

Capital gains: long-term for listed equity shares and equity-oriented funds means holding over 12 months; unlisted shares and immovable property 24 months; other assets 36 months. Section 112A LTCG on listed equity above Rs 1,25,000 taxed at 10% without indexation.

Levy: CGST plus SGST on intra-State supply (rates each = half of the notified rate) and IGST on inter-State supply, at rates notified under section 9; petroleum crude, high-speed diesel, petrol, natural gas and ATF are outside GST until notified, and alcoholic liquor for human consumption is constitutionally excluded.

Registration thresholds: Rs 40 lakh aggregate turnover for goods (Rs 20 lakh in specified special-category States), Rs 20 lakh for services (Rs 10 lakh in special-category States); compulsory registration applies regardless of threshold for inter-State taxable supply of goods, casual taxable persons, and persons liable under reverse charge.

Composition levy u/s 10: manufacturer or trader up to Rs 1.5 crore aggregate turnover pays 1% (0.5% CGST + 0.5% SGST) of turnover in State; restaurant service providers pay 5% without ITC; a service provider up to Rs 50 lakh pays 6% under section 10(2A).

Time of supply for goods: earlier of date of issue of invoice or last date for issue of invoice, and date of receipt of payment; for services: earlier of invoice date (if issued within 30 days) or provision date, and payment date.

Value of supply u/s 15 = transaction value where parties are unrelated, price is the sole consideration, and the supplier and recipient are not related; it includes incidental expenses, packing, commission, interest, late fees, subsidies linked to price, and excludes discounts given before or at the time of supply recorded on the invoice.

Input tax credit u/s 16: possession of tax invoice or debit note, receipt of goods or services, tax actually paid to the Government, return filed u/s 39, and invoice/debit note furnished in GSTR-1; ITC on invoices older than the section 16(4) time limit (30 November following the financial year, or annual return date, whichever earlier) lapses.

Reverse charge: recipient pays tax and cannot use the amount as ITC for the same supply beyond the tax paid; RCM applies to notified goods and services such as goods transport agency services, legal services from advocates, and sponsorship services.

Returns: GSTR-1 (outward supplies) by the 11th of the following month, GSTR-3B by the 20th, GSTR-9 annual return by 31 December following the financial year; e-invoicing is mandatory for B2B supplies where aggregate turnover exceeds Rs 5 crore.

Chapter VI-A ceilings: section 80C (plus 80CCC and 80CCD(1)) capped at Rs 1,50,000; 80CCD(1B) additional Rs 50,000 for NPS; 80D health insurance Rs 25,000 (Rs 50,000 if senior citizen), plus Rs 50,000 for preventive health check-up within the same limit; 80TTA Rs 10,000 on savings bank interest for non-seniors, 80TTB Rs 50,000 for senior citizens.

80CCD(2) employer contribution to NPS is deductible up to 14% of salary under the new regime (10% under the old regime for non-government employees), over and above the section 80C ceiling.

Section 80G: deduction of 50% or 100% of donation depending on the institution; cash donations above Rs 2,000 are not eligible; the deduction is limited to 10% of adjusted gross total income where the 100%/50% qualifying limit applies.

Presumptive taxation: section 44AD at 8% of turnover (6% for digital receipts) for eligible businesses up to Rs 2 crore (Rs 3 crore where cash receipts are 5% or less); section 44ADA at 50% of gross receipts for specified professions up to Rs 50 lakh (Rs 75 lakh with the 5% cash condition).

TDS rates commonly tested: 194C 1% for individual/HUF payees and 2% for others; 194J 10% for professional or technical services and 2% for call centres; 194I 10% for land/building and 2% for plant and machinery; 194A 10% on interest other than securities; 194H 5% on commission or brokerage.

Advance tax instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March; interest u/s 234B is 1% per month on shortfall, and 234C is 1% per month for three months on each instalment shortfall.

Return filing: due date 31 July for non-audit taxpayers, 31 October for audited cases, 30 November for transfer pricing cases; belated return u/s 139(4) can be filed up to 31 December of the assessment year with a fee u/s 234F of Rs 1,000 (Rs 5,000 if income exceeds Rs 5 lakh).

Set-off and carry forward: business loss can be carried forward 8 years only if the return is filed within the due date u/s 139(1); unabsorbed depreciation carries forward indefinitely; house property loss set-off against other heads is capped at Rs 2,00,000 per year.

Place of supply for goods (section 10): where the supply involves movement, the location where goods are handed over for movement; where there is no movement, the location of the goods at the time of delivery; for bill-to/ship-to transactions, the location of the third person on whose direction the goods are delivered.

Place of supply for services (section 12, domestic): generally the location of the registered recipient; where the recipient is unregistered, the address on record, failing which the location of the supplier; for services related to immovable property, the location of the property.

Place of supply for services (section 13, cross-border): default rule is the location of the recipient; exceptions include performance-based services (place of actual performance), restaurant and catering services (place of performance), and training and admission to events.

Zero-rated supply u/s 16 IGST Act: export of goods or services and supplies to a Special Economic Zone unit or developer; the supplier may either export under bond/LUT without payment of IGST and claim refund of unutilised ITC, or pay IGST and claim a refund of the tax paid.

Exemptions commonly tested: services by way of pure services to a Government or local authority in relation to functions listed in the Eleventh or Twelfth Schedule, health care services by a clinical establishment, educational services by recognised institutions, and agricultural produce.

Refund of ITC on inverted duty structure: refund = (turnover of inverted-rated supply / total turnover) x net ITC, subject to the condition that the accumulation is due to the input rate being higher than the output rate; the formula does not apply where the supplier's output is nil-rated or exempt.

Time limit for claiming refund u/s 54: within two years from the relevant date; the department must pass an order within 60 days of receipt of a complete application; interest at 6% applies where refund is delayed beyond 60 days.

E-way bill: required for movement of goods where consignment value exceeds Rs 50,000 (lower limits in some States); validity is one day per 200 km or part thereof; it must be generated before commencement of movement and can be extended within 8 hours before or after expiry.