The Institute of Chartered Accountants of India (ICAI) has announced that the new Income-tax Act 2025 will apply to CA examinations starting May 2027. The law — which received the President’s assent on 21 August 2025 — becomes effective from 1 April 2026, covering the tax year 2026-27.This update means students preparing for CA Intermediate and Final exams must revise their study plan to align with the new tax law and not the older act.
What Changes With Income-tax Act 2025 for CA Exams?
Here’s a breakdown of how the shift will impact the ICAI Exam syllabus and planning. The new tax law replaces the older Income-tax Act, 1961, for exam purposes from May 2027 onwards.
- For CA Intermediate Paper 3A: Income-tax Law — will refer to Income-tax Act 2025 from May 2027 attempt onwards.
- For CA Final Paper 4: Direct Tax Laws & International Taxation — the new Act’s provisions will be examined starting May 2027.
- Also applies to Self-paced Online Module Set C – Paper 5: International Taxation, for exams held from 1 May 2027.
Until exams before May 2027, the existing syllabus under the Income-tax Act, 1961 (with amendments), remains valid.
What Students Should Do: Adjust Study Plan & Prep Strategy?
Given this transition, CA aspirants should take note and act accordingly:
- If your first CA exam attempt is in May 2027 or later, study using updated materials based on the Income-tax Act 2025.
- If you plan to appear before May 2027, continue with the current syllabus referencing the 1961 Act (with latest amendments).
- Keep an eye on ICAI’s official announcements for detailed amendments and updated study modules.
- For taxation papers, stay updated on practical and procedural changes under the new Act — law changes may bring altered computations, exemptions, and compliance rules.
Why This Update Matters for CA Candidates & Tax Professionals?
The shift to the Income-tax Act 2025 is not just academic — it reflects real-world legislative reforms. As future chartered accountants, you’ll deal with tax returns, audits, and compliance based on the new law. Mastering the updated Act from the exam stage ensures professional readiness and reduces the chances of confusion after qualification. Moreover, the broader regulatory environment is also shifting: regulatory bodies such as the National Financial Reporting Authority (NFRA) have already backed ICAI’s role in administering tax-audit responsibilities under the proposed law. This update gives a clear milestone: From May 2027 onward, CA exams will test Income-tax Law according to the 2025 Act — so plan accordingly and stay updated on study material revisions.
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