CA Intermediate · May 2026 · Paper 3
CA Intermediate Taxation May 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1 | 15 | Business income computation with depreciation, disallowances and other heads, comparing tax under old and default regimes | Profits and Gains of Business or Profession |
| 2(a) | 6 | Residential status of a returning Indian citizen and total income including salary, equity gains and online game winnings | Residential Status and Scope of Total Income |
| 2(b) | 4 | TCS on sale of specified luxury goods and TDS on a contract for goods made to specification | Tax Deduction or Collection at Source and Advance Tax |
| 3(a) | 6 | Valuation of perquisites such as hotel stay, asset sale, free education and travel, plus family pension and other receipts | Salaries |
| 3(b) | 4 | Stamp duty value gap on acquiring property booked earlier, and tax treatment of theft of personal jewellery | Income from Other Sources |
| 4(a) | 6 | Gross total income with intra-head and inter-head set-off, and carry forward of speculative, specified business and other losses | Set-Off or Carry Forward and Set-off of Losses |
| 4(b) | 4 | Time limits for updated return, return of a partner, revised return and PAN application | Provisions for filing Return of Income and Self Assessment |
| 4(b) OR | 4 | Whether filing a return is mandatory where income is below the exemption limit but specified triggers apply | Provisions for filing Return of Income and Self Assessment |
| 5(a) | 10 | Monthly net GST payable in cash covering mixed supply, vouchers, e-commerce delivery, branch transfer, reverse charge and ITC set-off | Charge of GST |
| 5(b) | 5 | Restriction on using electronic credit ledger balance and the exceptions to that rule | Payment of Tax |
| 6(a) | 5 | Eligible input tax credit for the month covering blocked credits, time limits, lot-wise deliveries and depreciation on tax component | Input Tax Credit |
| 6(b) | 5 | Place of supply for domestic air passenger transport, a loyalty-linked future ticket and in-flight entertainment | Place of Supply |
| 7(a) | 5 | GST TDS by a government undertaking: which payments attract deduction and the amount to deposit | Tax Deduction at Source and Collection of Tax at Source |
| 7(b) | 5 | Additional records required to be kept by a works contractor | Accounts and Records |
| 8(a) | 5 | Meaning of specified actionable claims and how they differ in GST treatment from other actionable claims | Supply under GST |
| 8(b) | 5 | Conditions for issuing revised tax invoices and consolidated revised invoices to unregistered recipients | Tax Invoice; Credit and Debit Notes |
| 8(b) OR | 5 | Persons exempt from filing the GST annual return and its due date | Returns |
What stood out
- Income tax and GST each carried 50 marks, split evenly into 15 MCQ marks and 35 descriptive marks per section.
- Capital gains and TDS/TCS drove the income tax MCQs, while GST MCQs touched eight different chapters through one long composition-scheme scenario.
- The compulsory income tax question again tested a full computation under both regimes, rewarding students who can compare old and default regime outcomes quickly.
- GST descriptive questions leaned on input tax credit and payment rules, with credit ledger restrictions appearing as a standalone computation.
- The official key marked no correct option for one slump sale MCQ, so careful computation mattered more than option-matching.
Practise the chapters that carried the marks
Profits and Gains of Business or Profession, Charge of GST, Tax Deduction or Collection at Source and Advance Tax: study guides and practice questions in the CA Intermediate format.