Income Tax Act 2025 in CA Final: which Act for your attempt
For CA Final, the Income-tax Act, 2025 is examined from the May 2027 attempt onwards in Paper 4: Direct Tax Laws & International Taxation. CA Final November 2026 and CA Intermediate January 2027 stay on the Income-tax Act, 1961. If you might move your Group II from November 2026 to May 2027, you will be studying a different Act, from a different edition of the study material.
Which Income-tax Act applies to which CA attempt
ICAI's Board of Studies announced on 5 December 2025 that the Income-tax Act, 2025 applies "from May 2027 CA Examination Onwards" for Intermediate Paper 3A and Final Paper 4 (ICAI announcement, PDF (opens in a new tab)).
| Attempt | Paper | Which Act | Source |
|---|---|---|---|
| CA Final November 2026 | Paper 4: DT & International Taxation | Income-tax Act, 1961, as amended by the Finance Act, 2025; AY 2026-27; notifications and circulars up to 30 April 2026 | RTP Paper 4, November 2026, PDF (opens in a new tab) |
| CA Intermediate January 2027 | Paper 3A: Income-tax Law | Income-tax Act, 1961 | ICAI announcement, PDF (opens in a new tab) |
| CA Final May 2027 onwards | Paper 4: DT & International Taxation | Income-tax Act, 2025 | Same announcement |
| CA Intermediate May 2027 onwards | Paper 3A: Income-tax Law | Income-tax Act, 2025 | Same announcement |
| Self-Paced Online Module Set C, Paper 5: International Taxation | Exams held from 1 May 2027 | Income-tax Act, 2025 | Same announcement |
The announcement makes no exception for students who wrote earlier attempts. If your Paper 4 is in May 2027, it is on the 2025 Act, whether it's your first attempt or not.
Group I (Financial Reporting, AFM and Audit) is not affected by the change of Act.
Why ICAI starts the new Act only in May 2027
ICAI's reasoning, from the same announcement: the Income-tax Act, 2025 received the President's assent on 21 August 2025 and is effective from 1 April 2026, so it applies from tax year 2026-27. That tax year ends on 31 March 2027, and "the provisions of the Income-tax Act, 2025 will be examined for CA Examinations thereafter."
CA Final is now held only in May and November (ICAI announcement, 6 April 2026, PDF (opens in a new tab)), so November 2026 is the last Final attempt on the 1961 Act and the very next one is on the new Act.
Which study material to read for your attempt
November 2026: the 1961 Act editions
ICAI's notice for November 2026 lists, for Paper 4, the September 2025 edition plus the RTP for November 2026 plus the Judicial Updates for November 2026 (study material notice, PDF (opens in a new tab)).
The November 2026 RTP adds that no Statutory Update was issued for Paper 4 this time. There were no significant notifications or circulars between 1 August 2025 and 30 April 2026, except Notification No. 54/2026 of 31 March 2026, which ICAI has put in the Judicial Update (RTP Paper 4, PDF (opens in a new tab); Judicial Update, PDF (opens in a new tab)).
May 2027: the new editions
ICAI's Final study material page now has a separate heading, "Applicable for May 2027 Exam Onwards", with new editions for Paper 4 and Paper 5 (ICAI Final study material (opens in a new tab)). When we checked on 5 October 2026:
- Paper 4: Module 1 (Chapters 1 to 8) and Module 2 (Chapters 9 and 10) were up. Check the page again for the remaining modules before you plan the rest of your DT reading.
- Paper 5: Module 1 (GST, Chapters 1 to 6) was up. ICAI says this edition (September 2026) is "relevant for May 2027 and November 2027 examinations" (Paper 5 initial pages, PDF (opens in a new tab)).
Paper 5 isn't about the Income-tax Act, but it's the other Group II paper with a new edition, so a Group II student moving to May 2027 needs both. Those Paper 5 initial pages also say the Statutory Update for May 2027 will cover notifications and circulars from 1 May 2026 to 31 October 2026.
For Intermediate, ICAI lists May 2027 editions for Papers 1 to 5 and Paper 6 Section B, including Paper 3 Section A: Income-tax Law (ICAI Intermediate study material (opens in a new tab)).
Our CA Final ICAI study material page links to ICAI's page, which lists both editions.
What changes in Paper 4, in ICAI's own words
ICAI's new Paper 4 study material, Chapter 1: Basic Concepts (PDF (opens in a new tab)), sets out what's different. Only what ICAI states is listed here.
| What | What ICAI's new study material says |
|---|---|
| The Act | Income-tax Act, 2025, in force from 1 April 2026. "It contains 23 chapters comprising of 536 sections with 16 schedules." |
| The year | Income is computed for the "Tax Year", defined in section 3 as the twelve-month financial year starting 1 April. Examples are worked for T.Y. 2026-27. |
| Rates | Part IB of the First Schedule to the Finance Act, 2026 gives the rates for T.Y. 2026-27. |
| Rules | The Income-tax Rules, 2026 |
| Section numbers | Case law under the 1961 Act that is still relevant is kept, but "the reference to section numbers of the repealed Income-tax Act, 1961 are replaced with the section numbers of the Income-tax Act, 2025." |
| The old Act | Section 536 repeals the 1961 Act. Proceedings for tax years beginning before 1 April 2026 continue under it. |
A few new section references from the same chapter: the charging section is section 4; "person" is defined in section 2(77) and "assessee" in section 2(11); the option to shift out of the default tax regime is under section 202(4).
What this means when you sit down to study:
- Don't map old section numbers in your head. Learn each provision with its new number from the new edition. That's the number you'll write in May 2027.
- Change your wording. A May 2027 answer computes income for a tax year, not a previous year and assessment year. A November 2026 answer still uses AY 2026-27, as the RTP states.
- Your old DT notes need checking line by line. Concepts and case law may carry over, but every section number, and every figure that came from the Finance Act, 2025, has to be checked against the new edition.
If you might move from November 2026 to May 2027
What each choice means for DT:
| Your plan | Paper 4 law to study | Study material |
|---|---|---|
| Both groups in November 2026 | Income-tax Act, 1961 | September 2025 edition + RTP + Judicial Update for November 2026 |
| Group I in November 2026, Group II in May 2027 | Income-tax Act, 2025 | The May 2027 editions of Papers 4 and 5 |
| Both groups in May 2027 | Income-tax Act, 2025 | The May 2027 editions for Papers 4 and 5; for the other papers, check ICAI's May 2027 notice when it is published |
| Group II in November 2026, but you may need to repeat it in May 2027 | 1961 Act now; 2025 Act if you repeat | Finish November on the 1961 Act. Switch only after your result |
Four things to do:
- Decide early, and decide once. Revising DT under the 1961 Act until late October and then starting the 2025 Act means two rounds of the same paper. If you already know Group II is for May, start on the new edition now.
- Don't mix the two Acts. If you're writing Paper 4 on 9 November 2026 (ICAI exam schedule, PDF (opens in a new tab)), keep the new material away until you've written it. Mixing section numbers is an easy way to lose marks.
- Keep IBS in mind. Paper 6 in November 2026 draws on the core papers' material, including Papers 4 and 5 (September 2025 editions) (study material notice, PDF (opens in a new tab)). ICAI lists Paper 6's material in its study material notice for each attempt, and the notice for May 2027 isn't out yet (BoS announcements (opens in a new tab)). Check it when it comes.
- Wait for the May 2027 cut-off. ICAI hasn't stated the Paper 4 cut-off date for May 2027 yet. It will be in the May 2027 RTP or update. For the last May attempt, the cut-off was 31 October 2025 for May 2026 (see CA exam applicability; RTP Group I, May 2026, PDF (opens in a new tab)). Treat that as last cycle's date, not 2027's.
How to fit the May 2027 preparation into weeks is in our CA Final 3-month study plan for May 2027 and when to start a CA Final test series for May 2027. How to keep amendments under control in either attempt is in how to revise amendments for CA exams.
Our Group II mocks: which attempt they are for
To be plain: our live CA Final plans are for the November 2026 attempt. The CA Final Group II mock tests are set under the law for November 2026, which means the Income-tax Act, 1961 for DT, with every amendment applicable for November 2026 tested.
- Writing Group II in November 2026? Those mocks are written for your attempt: full-syllabus mocks for DT and International Tax, IDT and IBS, checked line by line, with your checked copy back within 24 hours.
- Writing Group II in May 2027? Our November 2026 DT mocks are on the old Act, so they aren't the right practice for you. Our CA Final test series page lists every live plan.
Frequently asked questions
Is the Income-tax Act 2025 applicable for CA Final November 2026?
No. CA Final November 2026 Paper 4 is on the Income-tax Act, 1961, as amended by the Finance Act, 2025, for AY 2026-27, with notifications and circulars up to 30 April 2026 (RTP Paper 4, PDF (opens in a new tab)).
Which Income-tax Act applies for CA Final May 2027?
The Income-tax Act, 2025, for Paper 4: Direct Tax Laws & International Taxation, from the May 2027 exams onwards (ICAI announcement, PDF (opens in a new tab)).
I'm writing DT in November 2026. If I have to write it again in May 2027, which Act applies?
The Income-tax Act, 2025. ICAI's announcement applies to every May 2027 Paper 4 candidate and makes no exception for earlier attempts. Finish November on the 1961 Act, then switch to the new edition.
Can I use my old DT study material for May 2027?
Not as your main source. ICAI lists new Paper 4 editions "Applicable for May 2027 Exam Onwards", and its new material replaces 1961 Act section numbers with 2025 Act numbers (Chapter 1, PDF (opens in a new tab)). Use the old notes only after checking each point against the new edition.
Is the Income-tax Act 2025 applicable for CA Inter January 2027?
No. CA Intermediate January 2027 is on the 1961 Act; Paper 3A moves to the 2025 Act from May 2027. Our CA Intermediate test series for January 2027 tests every amendment applicable for that attempt. More in what's applicable for your CA attempt and our news post on ICAI's announcement.
Practise with checked CA Final mock tests
If you are writing November 2026, the plans in our CA mock test series have full-syllabus mock tests for every subject on the latest ICAI pattern, with every amendment applicable for November 2026 tested. You write by hand and upload one PDF, and your checked copy comes back within 24 hours, with the reason for every mark cut and the line you should have written.
- CA Final Group II mock tests: DT and International Tax, IDT and IBS
- CA Final Group I mock tests: FR, AFM and Audit
- CA Final both groups mock tests: all six papers
You can read preview pages of the first mock of each subject on the plan page before you buy. ICAI's own RTPs, MTPs, past papers and study material are linked on our CA Final free resources page.