Applicability of Income-tax Act, 2025 from May 2027 CA Exams Onwards

The Institute of Chartered Accountants of India (ICAI) announced that the Income-tax Act, 2025, which received presidential assent on 21st August 2025 and becomes effective from 1st April 2026, will be applicable for the tax year 2026-27. Consequently, CA students will be examined on the provisions of this Act in their May 2027 examinations onwards. Specifically, the updated Income-tax provisions will be relevant for Intermediate Paper 3A: Income-tax Law and Final Paper 4: Direct Tax Laws & International Taxation. Additionally, for self-paced online modules, Module Set C – Paper 5: International Taxation will also reflect the new Act for exams conducted from 1st May 2027 onwards. This announcement is intended to guide students in academic planning and preparation, ensuring they focus on the updated legal provisions for taxation in India. The ICAI emphasized timely adaptation to the new law to maintain accuracy in exam preparation and compliance with the revised tax framework.

Institute of Chartered Accountants of India

Board of Studies (Academic)
The Institute of Chartered Accountants of India
5th December 2025

ANNOUNCEMENT

Applicability of the Income-tax Act, 2025 from May 2027 CA Exams Onwards

The Income-tax Act, 2025 has received the assent of the Hon’ble President of India on 21^st August 2025. The Income-tax Act, 2025 will be effective from 1^st April 2026.

Accordingly, the same will be applicable for the tax year 2026-27. Since the tax year will end on 31^st March 2027, the provisions of the  Income-Tax Act, 2025, will be examined for CA Examinations thereafter.

In view of the above, it has been decided that the provisions of the Income-tax Act, 2025 shall be applicable:

1. From May 2027 CA Examination Onwards for

– Intermediate Paper 3A: Income-tax Law

–   Final Paper 4: Direct Tax Laws & International Taxation

2. For CA Exams Conducted from 1^st May 2027 Onwards for

– Self-Paced Online Module Set C – Paper 5: International Taxation Students are advised to take note of the above for their academic planning and preparation.

Secretary, BOS(A)