The Institute of Chartered Accountants of India (ICAI), through its Board of Studies (Academic), has officially announced that the newly enacted Income-tax Act, 2025 will become applicable for CA examinations from May 2027 onwards. The announcement follows the Presidential assent received by the legislation on 21 August 2025, with the law coming into force from 1 April 2026.
The applicability is aligned with the tax year 2026–27, which will close on 31 March 2027, making the revised provisions examinable only in the examination cycle that begins thereafter.
Exam-Wise Implementation
ICAI has clarified the scope of applicability, stating that the new law will govern the following papers beginning May 2027:
- Intermediate Paper 3A: Income-tax Law
- Final Paper 4: Direct Tax Laws & International Taxation
Additionally, the provisions will also extend to Self-Paced Online Module Set C – Paper 5: International Taxation for all examinations conducted from 1 May 2027 onwards.
ICAI.
Student Advisory
The Board has urged aspirants to plan their preparation timelines keeping in mind the revamped direct tax framework. Students preparing for May 2027 and later exam cycles will be required to study the amended Income-tax scheme in full, affecting both conceptual and computational aspects.
Read More: RBI Issues Comprehensive IRACP Directions, 2025: Key Provisions That Every Banks Must Know
