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🇮🇳 CMA Intermediate · subject
CMA Intermediate Taxation Syllabus
Every chapter and topic of Taxation examined in CMA Intermediate — 2 chapters, 5 topics, plus 50 flashcards written against it.
Taxation syllabus — full chapter and topic list
Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Taxation in CMA Intermediate, not a summary of it.
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Income Tax
3 topics- Basic Concepts and Definitions
- Residential Status and Tax Incidence
- Income from Salaries
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Indirect Tax
2 topics- Goods and Services Tax (GST)
- Customs Duty
Taxation flashcards for CMA Intermediate
23 of 50 cards from the Taxation deck — real questions with worked answers.
Under the Income Tax Act, 1961, what is a 'Previous Year' (PY)?
The financial year (1 April to 31 March) in which income is earned. Income of the PY is assessed to tax in the immediately following Assessment Year.
Define 'Assessment Year' (AY) under the Income Tax Act, 1961.
The period of 12 months commencing on 1 April every year and ending on 31 March, in which the income of the previous year is assessed to tax.
Define 'Assessee' under Section 2(7) of the Income Tax Act, 1961.
A person by whom any tax or any other sum (interest/penalty) is payable under the Act, including deemed assessees and assessees in default.
What are the categories of 'Person' under Section 2(31) of the Income Tax Act?
Seven categories: Individual; Hindu Undivided Family (HUF); Company; Firm; Association of Persons (AOP) or Body of Individuals (BOI); Local Authority; and every other Artificial Juridical Person.
Distinguish between Gross Total Income (GTI) and Total Income.
GTI is the aggregate of income under all five heads before Chapter VI-A deductions. Total Income = GTI minus deductions under Chapter VI-A (Sections 80C to 80U); tax is computed on Total Income.
What are the five heads of income under Section 14 of the Income Tax Act?
1) Salaries, 2) Income from House Property, 3) Profits and Gains of Business or Profession, 4) Capital Gains, 5) Income from Other Sources.
What is the basic exemption limit and slab structure concept under the Income Tax Act?
Income up to the basic exemption limit is not taxed; income above is taxed at progressively higher slab rates. The new tax regime (default u/s 115BAC) and old regime have different slabs and exemption limits.
Define 'Income' as it is treated under the Income Tax Act (inclusive definition).
Section 2(24) gives an inclusive definition covering profits/gains, dividends, salary perquisites, capital gains, winnings from lotteries, voluntary contributions to trusts, etc.; it is not exhaustive.
When does the first previous year of a newly set-up business begin?
It begins on the date of setting up the business/source and ends on 31 March, so the first PY may be less than 12 months.
What is the residential status test for an Individual to be 'Resident' in India?
An individual is resident if he satisfies any one basic condition: (a) in India for 182 days or more in the PY, OR (b) 60 days or more in the PY AND 365 days or more in the 4 preceding PYs.
What are the two additional conditions to determine if a Resident Individual is 'Ordinarily Resident' (ROR)?
(a) Resident in India in at least 2 of the 10 preceding previous years, AND (b) in India for 730 days or more in the 7 preceding previous years. Satisfying both makes him Ordinarily Resident.
When is a Resident Individual treated as 'Not Ordinarily Resident' (RNOR)?
When he is a resident but fails to satisfy one or both additional conditions (not resident in 2 of 10 prior years, or less than 730 days in 7 prior years).
How is residential status of a company determined under the Income Tax Act?
A company is resident in India if it is an Indian company, OR its Place of Effective Management (POEM) is in India during the PY.
How is residential status of an HUF determined?
An HUF is resident if its control and management is situated wholly or partly in India. It is Ordinarily Resident if the Karta satisfies both additional conditions (2 of 10 years and 730 days/7 years).
What is the scope of total income for a Resident and Ordinarily Resident (ROR)?
Global income is taxable: income received/accrued in India AND income accrued and received outside India are all taxable.
What is the scope of total income for a Non-Resident (NR)?
Only income received or deemed to be received in India, and income that accrues/arises or is deemed to accrue/arise in India, is taxable. Foreign income is not taxed.
What is the scope of total income for an RNOR (Resident but Not Ordinarily Resident)?
Income received/accrued in India is taxable, plus foreign income only if derived from a business controlled in or profession set up in India. Other foreign income is not taxable.
What is the relaxed day-count rule for an Indian citizen leaving India for employment abroad or as a crew member?
The 60-day condition in the second basic test is extended to 182 days, so he is resident only if in India for 182 days or more in the PY.
Under deemed residency, when is an Indian citizen with income over Rs. 15 lakh treated as resident?
An Indian citizen having total income (other than foreign sources) exceeding Rs. 15 lakh, not liable to tax in any other country, is deemed resident (RNOR) even if present 120-181 days (with 365 days in 4 prior years).
Define 'Salary' for income tax purposes (key inclusions).
Salary includes wages, annuity/pension, gratuity, fees, commission, perquisites, profits in lieu of salary, advance salary, and employer's contribution to recognised provident fund in excess of limits.
What is the basis of charge for 'Income from Salaries' (Section 15)?
Salary is taxed on due basis or receipt basis, whichever is earlier. Advance salary and arrears are taxed when received (if not already taxed on due basis).
What is the Standard Deduction available from salary income?
A flat standard deduction from gross salary - Rs. 50,000 under the old regime and Rs. 75,000 under the new regime (Section 16(ia)).
What are the three components considered for House Rent Allowance (HRA) exemption under Section 10(13A)?
Least of: (a) actual HRA received, (b) rent paid minus 10% of salary, (c) 50% of salary (metro cities) or 40% (non-metro). Salary = Basic + DA (in terms) + commission (% of turnover).
Planning Taxation for CMA Intermediate
Taxation is about 16% of the CMA Intermediate syllabus by topic count — 5 of 31 topics, spread over 2 chapters. At roughly 45 minutes per topic plus 12 minutes per sub-topic, a first pass runs to about 4 hours.
Work top-down: read the chapter, then tick topics off individually rather than marking the whole chapter done. Sub-topics are where silent gaps hide.
Taxation (CMA Intermediate) FAQ
What is in the CMA Intermediate Taxation syllabus?
Taxation is split into 2 chapters — Income Tax and Indirect Tax, containing 5 topics and 0 sub-topics in total.
How is Taxation structured in the CMA Intermediate syllabus?
2 chapters. Taxation accounts for about 16% of the topics in the whole CMA Intermediate syllabus (5 of 31).
How long should I spend on Taxation for CMA Intermediate?
Budget around 4 hours for a first pass through Taxation — about 45 minutes per topic plus 12 minutes per sub-topic across its 5 topics. Add revision cycles on top.
Are there flashcards for CMA Intermediate Taxation?
Yes — a 50-card Taxation deck. Sample cards are printed on this page, and the full deck is free in the Examius app with spaced repetition scheduling.