ICAI Exam Update: New Income Tax Act in CA Inter, Final, & Self-Paced Exam

The ICAI has formally announced that the new Income-tax Act, 2025, will be incorporated into the Chartered Accountancy exam syllabus, changing the tax law framework for aspirants. The Act, which received Presidential assent on 21 August 2025, is scheduled to come into force from 1 April 2026, covering the tax year 2026-27.

According to ICAI’s notification, CA examinations held from May 2027 onward will be based on this new law, ensuring students are tested on the most up-to-date tax legislation. This update demands that CA aspirants change their preparation strategy, textbooks, and exam outlook accordingly.

Why ICAI has announced the New Income Tax Act 

ICAI’s decision is based on India’s evolving tax framework. The traditional Income Tax Act, 1961, has been in place for decades and includes several amendments over the years. As the government updates the tax system, ICAI must ensure that students are trained on the laws that will define future financial practices. 

Key reasons behind the update include:

• India’s tax structure is undergoing a major reform.
• The new Act is expected to simplify tax interpretation.
• Future CAs must be aligned with modern compliance systems.
• The curriculum needs to stay relevant for the next decade.
• ICAI aims to reduce the gap between academic learning and practical application.
• This update ensures students are well-prepared for future tax frameworks and industry expectations.

What ICAI Has Officially Announced

• The new Act will be applicable in CA exams from the May 2027 cycle onward.
• The updated tax law will be used for all relevant levels: Intermediate, Final, and Self-Paced Modules.
• Once implemented, students must study and attempt questions under the new legal regime; older tax provisions will become obsolete for exam purposes.
• ICAI’s syllabus will be adjusted to reflect updated chapters, computations, and examples according to the new Act. 

Highlights of announcement:

• The New Income Tax Act will become part of CA Intermediate, CA Final, and Self-Paced Modules.
• ICAI will release new study material and supplementary resources.
• There will be a transition period for students already preparing under the old Act.
• Updated questions, examples, and case studies will be provided.
• ICAI will publish a detailed notification with dates, syllabus changes, and module structures.

This clarity ensures that students have enough time to prepare before the new syllabus becomes applicable. 

Applicability of the New Income Tax Act on the CA Exam Level

The ICAI has approved the latest changes in the CA exam syllabus applicability. 

What Should Students Do Right Now?

Students should monitor ICAI announcements, avoid purchasing old tax materials, and be ready to shift to updated books. They should strengthen core tax concepts, attend revised coaching sessions, and stay open to re-learning as the new Act becomes applicable.

Transition Timelines of the New Income Tax Act

• New legislation date: The Income-tax Act, 2025, got assent on 21 August 2025.
• Effective tax year: 2026–27, starting from 1 April 2026.
• First CA exam under the new law: Exams held from May 2027 onward.
• Until then, Current exams (before May 2027) will follow the existing law, so ongoing students must watch for updated notifications from ICAI before switching materials.

Summary

A significant change for CA candidates is the ICAI's incorporation of the Income-tax Act, 2025, into the exam syllabus. Exams are scheduled to follow the new law starting in May 2027, so it's time for students to get ready. They should update their study materials, rethink their tactics, and match with current taxation standards. Those who keep informed and plan will have a distinct advantage over others. Recall that the tax industry is evolving, and CAs need to keep up.