CA Intermediate PAPER 3: TAXATION Syllabus

What is the deduction under Section 80CCD(1B) for NPS contributions?

An additional deduction of up to Rs. 50,000 for the assessee's own contribution to the National Pension System (NPS), over and above the Rs. 1,50,000 limit under Section 80C/80CCD(1). Available under the old regime.

What is the deduction under Section 80TTA and Section 80TTB?

80TTA: up to Rs. 10,000 on interest from savings bank account for non-seniors. 80TTB: up to Rs. 50,000 on interest from deposits (savings + fixed) for resident senior citizens. Both under old regime only.

When is an individual liable to pay Advance Tax, and what is the threshold?

Advance tax is payable when the estimated tax liability for the year (after TDS/TCS) is Rs. 10,000 or more. Resident senior citizens with no business/professional income are exempt from advance tax.

What are the four advance tax instalment due dates and percentages for non-corporate assessees?

15 June: 15%, 15 September: 45% (cumulative), 15 December: 75% (cumulative), 15 March: 100% (cumulative). Assessees under presumptive taxation (44AD/44ADA) pay 100% by 15 March in a single instalment.

What is the TDS rate and threshold under Section 194A on interest (other than securities) by banks?

TDS at 10% on interest exceeding Rs. 40,000 per year (Rs. 50,000 for senior citizens) from banks/post office/cooperative banks. If PAN is not furnished, TDS is deducted at 20%.

What is the TDS provision under Section 194C for payment to contractors?

TDS at 1% (individual/HUF payee) or 2% (others) on payments to contractors when a single payment exceeds Rs. 30,000 or aggregate payments exceed Rs. 1,00,000 during the financial year.

What is TDS under Section 192 on salary, and how is it computed?

An employer must deduct tax at source on salary at the average rate of income-tax computed on the estimated salary income of the employee for the financial year, based on the regime opted by the employee.

What is the TCS provision under Section 206C(1H) on sale of goods?

A seller with turnover exceeding Rs. 10 crore in the preceding year must collect TCS at 0.1% on sale consideration received exceeding Rs. 50 lakh from a buyer in a financial year (Note: this provision is being phased out from 1.4.2025).

What are the consequences of failure to deduct TDS under Section 40(a)(ia)?

30% of the expenditure on which TDS was not deducted/not paid is disallowed while computing business income. The disallowed amount is allowed in the year in which the TDS is subsequently deducted and paid.

What is the due date for filing return of income for an individual not subject to audit, under Section 139(1)?

31 July of the assessment year for individuals/HUFs not required to get accounts audited. For assessees requiring audit, the due date is 31 October of the assessment year.

What is a 'belated return' under Section 139(4) and its time limit?

A belated return is one filed after the due date under Section 139(1). It can be filed up to 31 December of the assessment year, or before completion of assessment, whichever is earlier. A late filing fee under Section 234F applies.

What is a 'revised return' under Section 139(5) and when can it be filed?

If a person discovers any omission or wrong statement in a return filed under 139(1) or 139(4), a revised return may be filed up to 31 December of the AY, or before completion of assessment, whichever is earlier.

What is the late filing fee under Section 234F for filing a belated return?

Rs. 5,000 if the return is filed after the due date. The fee is reduced to Rs. 1,000 if the total income does not exceed Rs. 5 lakh.

What is the rebate under Section 87A under the new regime (Section 115BAC) for AY 2025-26?

A resident individual with total income up to Rs. 7,00,000 under the new regime gets a rebate equal to the tax payable (max Rs. 25,000), making tax effectively nil. Under the old regime, the rebate limit is Rs. 12,500 for income up to Rs. 5,00,000.

What are the income-tax slab rates under the default new regime (Section 115BAC) for AY 2025-26?

Up to 3,00,000: Nil; 3,00,001-7,00,000: 5%; 7,00,001-10,00,000: 10%; 10,00,001-12,00,000: 15%; 12,00,001-15,00,000: 20%; above 15,00,000: 30%.

Which major deductions/exemptions are NOT available under the new regime (Section 115BAC)?

Not available: Section 80C, 80D, HRA exemption, LTA, interest on self-occupied house property, Chapter VI-A deductions (except 80CCD(2) and 80JJAA), and standard set-off of house property loss against other heads.

How does the surcharge differ between old and new regimes for high incomes?

Surcharge: 10% (>50L), 15% (>1cr), 25% (>2cr), 37% (>5cr) under old regime. Under the new regime, the maximum surcharge is capped at 25% (the 37% rate is not applicable). Health & Education Cess of 4% applies on tax plus surcharge.

What is the constitutional basis for levy of GST in India?

The 101st Constitutional Amendment Act, 2016 inserted Article 246A empowering both Centre and States to levy GST. Article 269A governs IGST on inter-state supplies, and Article 279A established the GST Council.

What is the role of the GST Council under Article 279A?

The GST Council, chaired by the Union Finance Minister, makes recommendations on GST rates, exemptions, threshold limits, model GST laws, and special provisions. Decisions require a 3/4th majority of weighted votes (Centre 1/3rd, States 2/3rd).

What is the charging section for CGST and what is the maximum rate?

Section 9 of the CGST Act, 2017 is the charging section. CGST is levied on intra-state supplies of goods/services on the value determined under Section 15. The maximum CGST rate is 20% (i.e., 40% combined CGST+SGST).

When is IGST levied and under which section?

IGST is levied under Section 5 of the IGST Act, 2017 on inter-state supplies of goods or services, and on imports. IGST = CGST + SGST rate combined. The maximum IGST rate is 40%.

What is the definition of 'Supply' under Section 7 of the CGST Act?

Supply includes all forms of supply of goods/services such as sale, transfer, barter, exchange, licence, rental, lease, or disposal made for consideration in the course/furtherance of business, plus import of services and Schedule I activities (without consideration).

What is the Reverse Charge Mechanism (RCM) under GST?

Reverse charge means the liability to pay GST is on the recipient of goods/services instead of the supplier. It applies to notified supplies under Section 9(3) and to supplies from unregistered to registered persons under Section 9(4) (notified categories).

What is the composition scheme threshold and tax rates under Section 10 of CGST Act?

Available to suppliers with aggregate turnover up to Rs. 1.5 crore (Rs. 75 lakh in special category states). Rates: 1% for traders/manufacturers, 5% for restaurants, 6% for service providers (special composition up to Rs. 50 lakh turnover).

What are the threshold limits for compulsory GST registration under Section 22?

Goods: aggregate turnover exceeding Rs. 40 lakh (Rs. 20 lakh for special category states). Services: exceeding Rs. 20 lakh (Rs. 10 lakh for special category states). Persons making inter-state supplies and certain others must register regardless of turnover (Section 24).

When must a tax invoice be issued for supply of goods vs services?

Goods: on or before removal/delivery of goods. Services: within 30 days from the date of supply of service (45 days for banks/insurers/financial institutions).

What is the purpose and use of a Credit Note and a Debit Note under Section 34?

Credit Note: issued by supplier when taxable value or tax charged in the invoice exceeds the actual amount, or goods are returned/deficient. Debit Note: issued when the taxable value or tax charged in the invoice is less than the actual amount. Both adjust the original invoice value.

When is an E-way Bill required and what is the threshold value?

An E-way bill (Form GST EWB-01) is required for movement of goods of consignment value exceeding Rs. 50,000. It must be generated before commencement of movement, whether for supply, return, or inward supply from an unregistered person.

What are the main GST returns: GSTR-1, GSTR-3B, and GSTR-9?

GSTR-1: statement of outward supplies (monthly/quarterly). GSTR-3B: monthly summary return for tax payment. GSTR-9: annual return (mandatory if turnover exceeds Rs. 2 crore). Tax is paid via the electronic cash/credit ledger by the 20th of the following month.

What conditions must be satisfied to claim Input Tax Credit (ITC) under Section 16?

The registered person must (1) possess a tax invoice/debit note, (2) have received the goods/services, (3) the supplier has actually paid the tax to the government, (4) the invoice appears in GSTR-2B, and (5) has furnished the return under Section 39. Payment to supplier must be made within 180 days.