Direct Tax Study Plan for CMA Inter 2020

Direct Tax Study Plan

Hi, Friends, welcome to the CMA knowledge blog in this article, I am going to share a study strategy to score 60% marks and get an exemption in Direct tax Paper 7, (CMA inter Group I).

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First of all, we need to know the syllabus structure.
a. Income tax basics 10% 

b. Heads of Income and Computation of Total Income and Tax Liability 70% 

c. Tax Management, Administration Procedure and ICDS  20% 

So, Friends now as per the CMA DT syllabus we need to focus on Heads of Income and computation of total income and tax liability.

To score good marks in the Direct Tax subject you need to give more focus on the Five (05) Heads of Income & Accounting Method followed by the assessee.

1. Salaries (Section15-17)	▪ Taxable on a due basis or on a receipt basis whichever is earlier. ▪ Method of accounting followed by the assessee is irrelevant.
2. HP        (Section22-27)	▪ Taxable on Accrual basis. The method of accounting of assessee is irrelevant.
3. PGBP  (Section28-44DB)	▪ PGBP Income is taxable as per the method of accounting followed by the assessee. If the assessee follows an Accrual basis of accounting → Income is taxed on an accrual basis. If the assessee follows a Cash basis of accounting → Income is taxed on a Cash basis. ▪ Certain payments are allowable only on a Payment basis.
4. Cap. Gain     (Section 45 – 55A)	▪ Taxable in the PY in which the capital asset is transferred. ▪ Method of accounting followed by the assessee is irrelevant.
IFOS            (Section 56 – 59)	▪ Same as PGBP.

As per the previous paper pattern you need to do the study plan and strategy to complete the entire syllabus in time. 

Marks Distribution table chapter wise of the previous papers, as below table:

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As per the above table, we need to do more focus on Important chapters and need to solve maximum practical problems questions.

While solving a Practical problem you need to note all the applicable sections and Exemptions.

Because exam papers are set to test the knowledge of the students. This means how well you are prepared for the exam and you know about the exact provision applicable to the practical asked in the problems.

In the exam hall while writing paper so many students are unable to complete the entire paper. Because of lack of time management. So, While preparing for the paper you need to keep one thing in your mind, that you will attempt for 100 marks, then only you will be able to score maximum marks in the Direct tax paper.

So, friends, you need to set a target to attempt for 100 marks, for doing so, you need to formulate your own strategy for time management.

1. Solve Q1. MCQ within 30 min. 25 Marks.  (After that you will have 150 min.)

2. Q2 to Q 8 out of 7 we need to attempt any 5 Questions. At maximum 30 minutes each. So, While picking up questions one should check both questions e.g. Q2 (a) & (b). If you are sure you will attempt both questions, then only you need to choose those questions. 

3. Once you select the remaining 5 questions, then you need to strictly follow the time management rule. If any question required more than 30 min. This means you are in trouble and you may fall short of time.

So always remember time management is the most essential and crucial task in professional courses like CMA, CA, and CS.

So, friends whenever you study always think about the practical aspects of the study material, and try to apply whatever study you do need to use practically.
Now you may say how we can use Direct tax practically.

So, I will tell you how!

If you are studying the Salary chapter. Then you can do it practically by getting form 16 of any of your family members and trying to fill in the Income-tax return of an individual person. For doing you can visit Income- tax India government site and download the templates of various taxpayers. For getting practical experience you have a good chance, as the Income- tax return filing date is extended till Sept. Month. So take this opportunity and try to file at least one IT return this year, I will tell you, that once you file a tax return practical experience then you will get more confident at the time of your examination.

So, these are some tips from my side. if you like this article, then please share it with your friends and if you want to know how to practically file an income tax return, then I will try to explain in my next article on how to file income tax online, for that, you need to comment in the comment box, if you have any query send me an email at cmaknowledgein@gmail.com, I will definitely answer to your queries.

Thanks.
Mahadev S,
CMA knowledge team

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