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Direct Tax Pocket Book for CA Inter Income Tax Law (AY 2026-27)
- Shared by
- CA B.
- Course
- CA Inter
- Subject
- Taxation
- Added
- 26 Oct 2026
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This 48-page pocket book condenses the CA Inter Income Tax syllabus into exam-ready charts, revised against the Finance Act 2025 and AY 2026-27 rates. It covers the default 115BAC tax regime, the optional slab regime, surcharge and marginal relief, the rebate under section 87A, and the list of exemptions and deductions given up under the new regime. It is meant for rapid revision and last-day recall, and suits students preparing for the January 2027 Inter exams who already have ICAI study material.
What the notes cover
The opening chapters set out first principles: the slab rates for the default 115BAC(1A) regime and the optional regime for individuals, seniors and super seniors, the 4% health and education cess, and rounding rules under sections 288A and 288B. They also list the computation chain from the five heads of income through clubbing, set-off, Chapter VI-A deductions and surcharge to the final tax payable. Surcharge tables for individuals, firms, companies and co-operative societies are included, along with rebate limits under section 87A and the alternate minimum tax and MAT provisions.
How to use them for revision
Because the content is in charts, it works best for quick recall before the exam. Read the default and optional regime slab tables side by side, then test yourself on what the 115BAC(2) column gives up, such as HRA, LTC and most section 10(14) allowances, versus what is still allowed. Check the surcharge caps on dividend and capital gains income, and the marginal relief formula. Use the book alongside full-length questions from ICAI material, since it does not replace practice.
Who should read it
This note suits CA Inter students attempting Paper 3 Section A on Income Tax Law in the January 2027 exams, especially those in the final weeks before the exam who need a compact summary of rates and thresholds. It is also useful for students revising the regime choice between default and optional tax slabs, and for anyone checking the rate and surcharge position for AY 2026-27.
Key topics in these notes
- Default regime u/s 115BAC(1A) slab rates
- Optional regime slabs for individuals and seniors
- Surcharge and marginal relief
- Rebate u/s 87A
- Deductions and exemptions denied under 115BAC(2)
- Alternate Minimum Tax (115JC)
- MAT (115JB)
- Cess and rounding rules (288A 288B)
Related notes
Frequently asked questions
What are the tax slabs under the default regime for AY 2026-27?
The default regime under section 115BAC(1A) gives nil tax up to Rs 4 lakh, then 5% from Rs 4 lakh to Rs 8 lakh, rising in steps to 30% above Rs 24 lakh. Special-rate incomes keep their own rates.
Which exemptions and deductions are not allowed under the new regime?
Under section 115BAC(2), LTC, HRA, most section 10(14) allowances, SEZ unit exemption, and deductions such as section 24(b) interest and most Chapter VI-A deductions are not allowed. Only 80CCD(2), 80CCH(2) and 80JJAA remain available.
How does the section 87A rebate work?
For a resident individual with net total income up to Rs 12 lakh under the default regime, the rebate is the lower of tax payable or Rs 60,000, which makes tax nil. Under the optional regime the limit is Rs 5 lakh with a rebate of up to Rs 12,500.
Is this pocket book a replacement for ICAI study material?
No. The book is a condensed revision aid, and the note itself says full-length practice should come from ICAI material. You can open it free in the Studycaller app to read the full note.