Paper 3 — Taxation
Two half-papers with different logic. Total income computation and GST input tax credit are the anchors of each.
Paper at a glance
Taxation is scored as one paper but must be prepared as two. The Income Tax section rewards a fixed computation format — heads of income in order, then deductions, then tax — while the GST section rewards sequencing rules, particularly around time of supply, place of supply and input tax credit. The RTP is unusually important here for one specific reason: tax provisions change, and the RTP is where ICAI signals which assessment year and which amendments are applicable to your attempt.
50:50
Income Tax to GST split
100
Total marks
3h
Duration
Total income
PGBP
Capital gains
GST — ITC
GST — supply
GST — returns
Marks allotted by section
Chapter repeat strip
One square per recent attempt, filled when the chapter was asked. Read across a row to see how consistently a chapter appears, and down a column to see how broad a single paper tends to be.
| Chapter | M24 | N24 | M25 | N25 | M26 | Typical weight |
|---|---|---|---|---|---|---|
| Computation of Total Income & Tax Liabilityasked in 5 of 5 | M24: asked | N24: asked | M25: asked | N25: asked | M26: asked | 14–20 marks |
| Profits and Gains of Business or Professionasked in 5 of 5 | M24: asked | N24: asked | M25: asked | N25: asked | M26: asked | 10–14 marks |
| Capital Gainsasked in 5 of 5 | M24: asked | N24: asked | M25: asked | N25: asked | M26: asked | 8–12 marks |
| Income from House Propertyasked in 4 of 5 | M24: asked | N24: asked | M25: not asked | N25: asked | M26: asked | 5–8 marks |
| Deductions under Chapter VI-Aasked in 5 of 5 | M24: asked | N24: asked | M25: asked | N25: asked | M26: asked | 6–10 marks |
| TDS, TCS & Advance Taxasked in 4 of 5 | M24: asked | N24: asked | M25: asked | N25: not asked | M26: asked | 6–10 marks |
| GST — Input Tax Creditasked in 5 of 5 | M24: asked | N24: asked | M25: asked | N25: asked | M26: asked | 12–16 marks |
| GST — Supply, Time & Place of Supplyasked in 5 of 5 | M24: asked | N24: asked | M25: asked | N25: asked | M26: asked | 14–18 marks |
| GST — Registration & Returnsasked in 4 of 5 | M24: asked | N24: not asked | M25: asked | N25: asked | M26: asked | 8–12 marks |
Indicative pattern compiled from publicly available past papers, RTPs and MTPs. It is a revision-sequencing aid, not a prediction — and not a basis for leaving any chapter unprepared.
Revision priority
Revise first
P1Every attempt, heavy marks, and both halves of the paper represented. Non-negotiable.
- Computation of Total Income & Tax Liability
- GST — Supply, Time & Place of Supply
- GST — Input Tax Credit
- Profits and Gains of Business or Profession
Revise second
P2Regular, formula-driven and quick to score once the format is fixed.
- Capital Gains
- Income from House Property
- GST — Registration & Returns
Do not skip
P3Short but heavily amended areas. The RTP is where you confirm what applies to your attempt.
- TDS, TCS & Advance Tax
- Deductions under Chapter VI-A
- GST — Payment & E-way Bill
Typical question structure
Computation of total income for an individual
Head-wise, in statutory order, with a working note for every non-obvious figure.
PGBP or capital gains — computational
State the section for each disallowance. The reasoning is what is marked.
GST — supply, time and place of supply
Identify the nature of supply first; everything else follows from it.
GST — input tax credit and net liability
State the set-off order as a rule line, then compute head-wise.
TDS, registration or returns — short questions
Thresholds, rates and due dates. Precision matters more than explanation.
How to use this paper
- Confirm the applicable assessment year first. The RTP states which assessment year and which amendments apply to your attempt. Studying the wrong year is the most expensive mistake available in this paper.
- Prepare the two halves separately. Income Tax rewards a computation format; GST rewards sequencing rules. Mixing the study approach weakens both.
- Write the computation format from memory weekly. The head-wise skeleton should be reproducible without thinking, so that exam time goes to the adjustments.
- Track amendments in a single sheet. Tax is the paper where last year's notes are actively dangerous. Keep one running amendment list.
Have questions?
Find answers.
Still unsure about something? We're happy to help you figure it out.
Talk to usWhich assessment year applies to my attempt?
ICAI states the applicable assessment year and the cut-off date for amendments in the RTP and in its announcements for each attempt. Always confirm this on icai.org before starting revision — it changes between attempts and older material becomes actively misleading.
Should I study Income Tax or GST first?
Income Tax first for most students, because its computation format gives structure early and the marks are more evenly distributed. GST is more rule-dense and benefits from being closer to the exam in memory.
How much do amendments matter in Taxation?
Considerably. This is the paper where studying from outdated material causes direct mark loss, because rates, thresholds and provisions change between attempts. Verify every rate against current ICAI material.
Please note
These are study aids, not ICAI publications. Kartavvya is not affiliated with ICAI. Chapter-frequency patterns are indicative, compiled from publicly available past papers, Revision Test Papers and Mock Test Papers to help you prioritise revision — they are not a prediction of any future paper and should not be used to skip syllabus. Always download the official RTP, MTP and Suggested Answers from icai.org and treat those as authoritative.
Other papers
The analysis tells you where to look. Practice is what changes the score.
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