Direct Tax at CA Final Level
Direct Tax Laws and International Taxation (DTLIT) is Paper 7 of CA Final. It covers the Income Tax Act 1961 comprehensively — including provisions rarely tested at Intermediate — plus international taxation, transfer pricing, and Double Taxation Avoidance Agreements (DTAAs). It is one of the highest-scoring papers if you focus on the right areas.
Domestic Tax — Key Advanced Topics
- Business Income (PGBP): Section 43, 43A, 43B, 43CA, 44AA-44D — maintenance of books, presumptive taxation, scientific research deductions
- Capital Gains: Full value of consideration, Section 50C (immovable property), 50CA (unquoted shares), 56(2)(x) — gift taxation
- Corporate Taxation: MAT under Section 115JB, AMT for non-corporates, Section 115BAA and 115BAB (new tax regime for companies)
- Assessment Procedures: Search and seizure (Section 132), survey, block assessment, reassessment (Section 148A), faceless assessment
- GAAR: Sections 95–102 — general anti-avoidance rules, impermissible avoidance arrangements
International Taxation — Cannot Skip
- Residential status — Section 6 rules for companies (POEM — Place of Effective Management)
- Section 9 — income deemed to accrue or arise in India (royalties, FTS, dividends)
- DTAA — treaty override, beneficial provisions, Article 7 (Business Profits), Article 12 (Royalties)
- Transfer Pricing — Sections 92–92F, ALP methods (CUP, RPM, CPM, TNMM, PSM)
- BEPS — Action Plans relevant for India, Pillar 1 & Pillar 2 concepts
💡 Tax law changes every Finance Act. Use e-mentor Planner to schedule a dedicated "amendments review" session every month — especially after Union Budget announcements. The planner lets you add custom tasks alongside standard chapter targets.
90-Day Plan
- Days 1–40: Domestic Tax — comprehensive coverage of all provisions, solve ICAI practice questions daily
- Days 41–65: International Taxation — DTAA, Transfer Pricing, GAAR, BEPS
- Days 66–80: Full revision + amendments from recent Finance Act
- Days 81–90: 3 past papers — analyze mistakes, focus revision on error patterns