CA Articleship Interview Guide 2026 — Updated March 2026
Crack Your CA Articleship Interview
The most comprehensive, exam-ready guide covering HR, Audit, Accounting Standards, Income Tax Act 2025, GST, and Companies Act — structured for Big 4, Mid-tier & boutique CA firms.
10Chapters
200+Q&A
27AS Covered
2026Updated
Preparing for a CA Articleship interview is one of the most pivotal steps in your Chartered Accountancy journey. While technical knowledge is indispensable, the HR round plays an equally vital role in determining your selection — revealing your mindset, adaptability, and professional clarity.
Chapter 1
HR Round — Questions & Model Answers
Know Your Why
Interviewers want to see clarity of purpose — why CA, why this firm, why this practice area.
Research the Firm
Big 4 vs mid-tier has distinct expectations. Know their clients, sectors, and culture before you walk in.
Self-Intro: 2 Mins Max
Name → Level cleared → Strengths → Interest area. Structured, not rehearsed.
Stay Current
Read ET or Inshorts daily. Know Budget 2025-26 highlights and the new Income Tax Act 2025 basics.
Q1Tell me something about yourself.
“My name is [Your Name]. I am currently pursuing Chartered Accountancy and have cleared [mention level]. I have a strong foundation in accounting, taxation, auditing, and financial reporting. I am disciplined, detail-oriented, and believe in continuous learning. Alongside academics, I actively follow Economic Times, ICAI notifications, and Union Budget updates — including the recently introduced Income Tax Act 2025 — to strengthen my practical understanding.”
Q2Why did you choose CA?
“CA is one of the most respected and comprehensive professional qualifications in finance. It offers deep expertise across taxation, auditing, law, and strategic decision-making. I am naturally drawn to analytical and problem-solving work, and the CA qualification provides the ideal platform to develop that expertise while contributing meaningfully to organisations and clients.”
Q3Why Statutory Audit / Internal Audit / Direct Tax?
Statutory Audit: “It provides comprehensive exposure to financial statements, accounting standards, and internal controls — developing analytical skills and a strong foundation in understanding how businesses function.”
Direct Tax: “It combines technical knowledge with practical application and involves continuous learning due to frequent amendments — the rollout of the Income Tax Act 2025 effective April 2026 is a perfect example of why this area keeps me motivated.”
Direct Tax: “It combines technical knowledge with practical application and involves continuous learning due to frequent amendments — the rollout of the Income Tax Act 2025 effective April 2026 is a perfect example of why this area keeps me motivated.”
Q4Why Big 4? Why KPMG and not another Big 4?
“Big 4 firms offer unparalleled diversity of exposure — listed companies, multinationals, complex Ind AS assignments — combined with structured training programmes and global work culture. KPMG’s focus on technology-driven audit solutions and innovation within the audit process accelerates professional growth significantly.”
For GT/BDO: “They offer excellent mid-market client exposure with faster responsibility growth — articles handle complete assignments rather than narrow sub-sections, building a well-rounded profile.”
For GT/BDO: “They offer excellent mid-market client exposure with faster responsibility growth — articles handle complete assignments rather than narrow sub-sections, building a well-rounded profile.”
Q5What are your strengths and weaknesses?
Strengths: Analytical mindset, attention to detail, quick learner, calm under pressure, team-oriented approach, and a habit of staying updated with current regulatory changes — CARO 2020, Schedule III revisions, Union Budget 2025-26, Income Tax Act 2025, GST circulars.
Weakness: “I have a tendency toward perfectionism that can sometimes slow pace. I am actively working on this by consciously prioritising tasks and setting time-bound checkpoints.”
Weakness: “I have a tendency toward perfectionism that can sometimes slow pace. I am actively working on this by consciously prioritising tasks and setting time-bound checkpoints.”
Q6Where do you see yourself in 5 years?
“As a qualified Chartered Accountant with in-depth expertise in audit or taxation, handling client assignments independently, contributing to team leadership, and staying at the forefront of developments in financial reporting standards and tax legislation — including the transition to the new ITA 2025 framework.”
Video Learning
Must-Watch YouTube Playlists by CA Devesh Thakur
Complete Series
Income Tax Act 1961 vs 2025 — PRARAMBH 2026
Complete video series covering the transition from ITA 1961 to ITA 2025 — section mapping, TDS consolidation, Tax Year concept & all key changes effective April 2026.
▶ Watch Playlist →
30-Day Course
GST Full Course 2025 — Learn GST from Scratch
30-day complete GST course in Hindi — CGST, IGST, ITC, RCM, returns, compliance & practical filing. Perfect for articleship interview preparation and on-the-job readiness.
▶ Watch Playlist →
Beginner Guide
Export Roadmap 2026 — How to Start Export Business
Complete export business guide in Hindi — registration, documentation, customs, GST on exports, DGFT compliance & practical steps for beginners entering international trade.
▶ Watch Playlist →Chapter 2
Audit — Standards, CARO 2020 & Practical Q&A
| SA Series | Standard | Key Focus |
|---|---|---|
| SA 200 | Overall Objectives of the Auditor | Reasonable assurance; auditor’s responsibilities |
| SA 240 | Auditor’s Responsibility — Fraud | Fraud vs error; professional scepticism |
| SA 315 | Risk Identification & Assessment | ROMM; understanding the entity |
| SA 320 | Materiality | Overall + performance materiality (60–75% of overall) |
| SA 530 | Audit Sampling | Statistical vs non-statistical sampling |
| SA 570 | Going Concern | 12-month assessment; indicators of doubt |
| SA 700–720 | Reporting Series | Modified/Unmodified opinions; KAMs; EOM |
| SQC-1 | Quality Control for Firms | Policies; engagement quality reviewer |
QWhat are the types of Audit Opinions?
Unmodified (Clean): Financial statements present a true and fair view — standard opinion paragraph.
Qualified: Material but NOT pervasive misstatement OR scope limitation — “Except for” language; Basis for Qualification paragraph added.
Adverse: Material AND pervasive misstatement — “Do not present a true and fair view” language.
Disclaimer: Unable to obtain sufficient evidence AND effect could be material & pervasive — “Do not express an opinion” language.
Qualified: Material but NOT pervasive misstatement OR scope limitation — “Except for” language; Basis for Qualification paragraph added.
Adverse: Material AND pervasive misstatement — “Do not present a true and fair view” language.
Disclaimer: Unable to obtain sufficient evidence AND effect could be material & pervasive — “Do not express an opinion” language.
QWhat is Materiality? (SA 320)
Materiality is the threshold below which misstatements are unlikely to influence the economic decisions of users. Overall materiality is set at planning stage based on benchmarks: typically 5% of pre-tax profit, 1% of revenue, or 0.5–1% of total assets. Performance materiality is set lower (often 60–75% of overall) to reduce the risk that aggregate uncorrected misstatements exceed overall materiality.
QKAMs vs Emphasis of Matter — SA 701 vs SA 706?
Key Audit Matters (SA 701) — applicable to listed entities — are matters of most significance requiring significant auditor judgement. They do not modify the opinion but improve transparency of the audit process.
Emphasis of Matter (SA 706) draws attention to a matter properly presented in the financial statements that is fundamental to users’ understanding. Neither KAMs nor EOM modifies the audit opinion.
Emphasis of Matter (SA 706) draws attention to a matter properly presented in the financial statements that is fundamental to users’ understanding. Neither KAMs nor EOM modifies the audit opinion.
CARO 2020 — 21 Clauses at a Glance
| Clause | Reporting Area | Status vs CARO 2016 |
|---|---|---|
| 1 | Title deeds of immovable properties; revaluation | NEW |
| 2 | Inventories physically verified; working capital limits | Enhanced |
| 3 | Loans, investments, guarantees, security — Sec 185/186 | Existing |
| 7 | Statutory dues — PF, ESI, Income Tax, GST, Customs | Existing |
| 11 | Fraud committed on/by the company — SA 240 reporting | Existing |
| 14 | Internal audit — conducted; qualification of auditor | NEW |
| 17 | Cash losses — current and preceding FY | NEW |
| 18 | Wilful defaulter status with banks/FIs | NEW |
| 19 | Pending proceedings under PMLA / Benami Transactions Act | NEW |
| 20 | CSR obligations — applicability and compliance | NEW |
CARO 2020 Applicability Exception
CARO 2020 does NOT apply to: Banking companies, Insurance companies, Section 8 (non-profit) companies, OPCs, small companies, and private companies where paid-up capital + reserves ≤ ₹1 crore, borrowings ≤ ₹1 crore, and total revenue ≤ ₹10 crore.
Chapter 3 & 4
Accounting Standards — AS & Ind AS
27 Active Mandatory AS (as of 1 February 2022)
AS 6, AS 8, AS 30, AS 31, and AS 32 have been withdrawn. These apply to entities not required to follow Ind AS — non-corporate entities, SMEs, and companies below the Ind AS threshold (net worth < ₹500 crore).
| AS No. | Standard Name | One-Line Interview Anchor |
|---|---|---|
| AS 2 | Valuation of Inventories | Lower of Cost and NRV · FIFO/WA · LIFO not permitted · NRV is entity-specific |
| AS 9 | Revenue Recognition | 5 conditions for sale of goods; risks & rewards transfer |
| AS 10 | Property, Plant & Equipment | Cost or Revaluation model · Component accounting · Revaluation surplus → Reserve |
| AS 14 | Accounting for Amalgamations | Pooling (5 conditions ALL met) vs Purchase Method · Goodwill: max 5 years |
| AS 15 | Employee Benefits | Defined benefit: PUC method · Actuarial gains/losses → P&L (contrast Ind AS 19) |
| AS 22 | Accounting for Taxes on Income | Timing differences · DTL always recognised · DTA: virtual certainty |
| AS 26 | Intangible Assets | Max useful life: 10 years · Research expense · Development: PIRATE conditions |
| AS 28 | Impairment of Assets | RA = higher of VIU and NSP · Reversal permitted (except goodwill) |
| AS 29 | Provisions, Contingent Liabilities & Assets | Provision: ALL 3 conditions · CL: disclose only · CA: disclose if probable |
Most-Asked AS vs Ind AS Differences
| Topic | AS (Non-Ind AS) | Ind AS (IFRS-Converged) | Key Insight |
|---|---|---|---|
| Post-Period Dividends | AS 4: Provision sometimes required | Ind AS 10: Non-adjusting — only disclosed in notes | Ind AS never creates liability for post-period dividends |
| Actuarial Gains/Losses | AS 15: Recognised in P&L | Ind AS 19: Recognised in OCI; NOT recycled to P&L | Ind AS keeps P&L more stable — very popular interview Q |
| Leases | AS 19: Operating leases off-balance-sheet | Ind AS 116: ROU Asset + Lease Liability for virtually ALL leases | Ind AS 116 affects leverage ratios — on-balance-sheet impact |
| Intangibles Useful Life | AS 26: Maximum 10 years | Ind AS 38: Indefinite useful life permitted; annual impairment test | Ind AS allows indefinite-life brands — significant for brand-heavy companies |
| Financial Instruments | AS 13: Incurred loss model | Ind AS 109: ECL model — forward-looking 3-stage | ECL is significantly more complex and forward-looking |
QWalk me through the 5-step Ind AS 115 revenue recognition model.
Step 1 — Identify the contract: Approved by both parties, commercial substance, rights and payment terms identified, probable collection.
Step 2 — Identify performance obligations: Distinct goods or services promised (distinct = customer can benefit from it alone + separable from other promises).
Step 3 — Determine transaction price: Variable consideration (constraint applies — recognise only to extent highly probable of no significant reversal).
Step 4 — Allocate transaction price: Relative stand-alone selling prices of each performance obligation.
Step 5 — Recognise revenue: At a point in time when control transfers, or over time if any criterion is met.
Step 2 — Identify performance obligations: Distinct goods or services promised (distinct = customer can benefit from it alone + separable from other promises).
Step 3 — Determine transaction price: Variable consideration (constraint applies — recognise only to extent highly probable of no significant reversal).
Step 4 — Allocate transaction price: Relative stand-alone selling prices of each performance obligation.
Step 5 — Recognise revenue: At a point in time when control transfers, or over time if any criterion is met.
QExplain the 3-stage ECL model under Ind AS 109.
Stage 1 (Performing): 12-month ECL recognised. Interest income on gross carrying amount.
Stage 2 (Underperforming): Significant increase in credit risk since origination but not yet credit-impaired. Lifetime ECL recognised. Interest income still on gross carrying amount.
Stage 3 (Credit-impaired): Default, restructured, or objective evidence of impairment. Lifetime ECL. Interest income on net carrying amount (gross less lifetime loss allowance).
Stage 2 (Underperforming): Significant increase in credit risk since origination but not yet credit-impaired. Lifetime ECL recognised. Interest income still on gross carrying amount.
Stage 3 (Credit-impaired): Default, restructured, or objective evidence of impairment. Lifetime ECL. Interest income on net carrying amount (gross less lifetime loss allowance).
Chapter 6 & 6A
Direct Taxation — TDS (IT Act 2025), Capital Gains & Income Tax Act 2025
🆕 Income Tax Act 2025 — Effective 1 April 2026
Critical for 2026 Interviews — IT Act 2025 Now Effective
The Income Tax Act 2025 received Presidential assent on 21 August 2025 and is effective from 1 April 2026. TDS provisions are now under Sections 392–402 with key rate changes. Interviewers at Big 4 and mid-tier firms will expect you to know the new section numbers, updated rates, and renumbered forms under IT Rules 2026. The old ITA 1961 sections (192–194T) are replaced.
🔴 ITA 1961 (Old)
- 819+ sections
- 47 chapters
- ~1,200 provisos + ~900 explanations
- ‘Previous Year’ + ‘Assessment Year’ (two concepts)
- 60+ TDS sections (Sec 192–194T)
- Fragmented, difficult cross-referencing
🟢 ITA 2025 (New — April 2026)
- 536 sections (reduced by ~35%)
- 23 chapters
- Significantly reduced provisos — plain language
- Single ‘Tax Year’ concept (1 April–31 March)
- 3 consolidated TDS sections: 392, 393, 394
- Cleaner, digital-first enforcement
| Change Area | ITA 2025 Update | Student Note |
|---|---|---|
| Tax Year Concept | Eliminates ‘Previous Year’ + ‘Assessment Year’; single ‘Tax Year’ = 1 April to 31 March | No more PY/AY confusion in post-2026 assessments |
| TDS Consolidation | 60+ sections → 3 sections: Sec 392 (Salary), Sec 393 (Others — table-based Sl.1–29), Sec 394 (TCS). Key rate reductions: 194H, 194IB, 194M, 194G from 5% → 2%; 194O from 1% → 0.1%. New Sec 194T (partners @ 10%) | Major simplification + rate rationalisation; forms renumbered under IT Rules 2026 |
| HRA Metro Cities | 8 cities now qualify for 50% HRA: Mumbai, Delhi, Kolkata, Chennai + Hyderabad, Pune, Ahmedabad, Bengaluru | 4 new cities added — major change for salaried employees |
| Company Buyback | Buyback proceeds reclassified from Dividend Income → Capital Gains | Changes applicable tax rate and reporting |
| Dividend/MF Interest | Sec 93(2): NO deduction allowed for interest incurred to earn dividend or MF income | Increases taxable income for passive investors |
| VDA/Digital Assets | Expanded definition — crypto, NFTs, and government-notified digital assets explicitly recognised | Wider scope captures more transactions |
| Digital Enforcement | Tax authorities can access emails, cloud, social media, digital trading platforms during search | Critical for advisors with HNI digital asset clients |
TDS Rate Chart — IT Act 2025 (Sec 392, 393, 394) — Effective 01.04.2026
IT Act 2025 — TDS Architecture
All 30+ TDS sections (192–206CB) of ITA 1961 are now consolidated under Chapter XIX, Sections 392–402. Sec 392 = Salary TDS. Sec 393 = All other TDS (table-based Sl.1 to Sl.29 for residents & non-residents). Sec 394 = TCS. Higher rate rules under Sec 397. Default consequences under Sec 398. All forms renumbered under IT Rules 2026.
Group A — Salary, Property & Rent
| Section (ITA 2025) | Nature of Payment | Threshold | Rate |
|---|---|---|---|
| 392 | Salary — estimated annual income | Basic exemption limit | Average Rate (Slab) |
| 392(7) | EPF premature withdrawal | ₹50,000 | 10% |
| 393(1) Sl.7 | Insurance commission / remuneration | ₹20,000 | Rates in Force |
| 393(1) Sl.13 | Commission / Brokerage (other than insurance) | ₹20,000 | 2% (was 5%) |
| 393(1) Sl.14 | Rent — Plant / Machinery / Equipment | ₹50,000/month | 2% |
| 393(1) Sl.14 | Rent — Land / Building / Furniture | ₹50,000/month | 10% |
| 393(1) Sl.15 | Transfer of immovable property (not agri. land) | ₹50,00,000 | 1% (on higher of consideration or stamp duty value) |
| 393(1) Sl.16 | Rent by Ind/HUF (non-audit) — year-end deduction | ₹50,000/month | 2% (was 5%) |
| 393(1) Sl.17 | JDA — Monetary consideration | No threshold | 10% |
| 393(1) | Income from MF / Specified Units (not CG) | ₹10,000 | 10% |
| 393(1) Sl.20 | Compensation on compulsory acquisition of property | ₹5,00,000 | 10% |
Group B — Interest, Contractor, Professional & Business
| Section (ITA 2025) | Nature of Payment | Threshold | Rate |
|---|---|---|---|
| 393(1) Sl.1 | Interest on securities (govt / debentures / bonds) | ₹10,000 | Rates in Force |
| 393(1) Sl.2 | Dividend paid by domestic company | As applicable | Rates in Force |
| 393(1) Sl.3 | Interest — Bank / Co-op / Post Office | ₹1,00,000 (SC) / ₹50,000 (Others) | Rates in Force |
| 393(1) Sl.3 | Interest — Other persons | ₹10,000 | Rates in Force |
| 393(1) Sl.6 | Payments to contractors / sub-contractors | ₹30,000 single / ₹1,00,000 aggregate | 1% (Ind/HUF) / 2% (Others) |
| 393(1) | Life insurance policy proceeds (taxable) | ₹1,00,000 | 2% |
| 393(1) Sl.18 | Professional services — doctors, CAs, lawyers | ₹50,000 | 10% |
| 393(1) Sl.18 | Technical services / FTS / Call centre | ₹50,000 | 2% |
| 393(1) Sl.18 | Royalty — patent, copyright, trademark | ₹50,000 | 10% |
| 393(1) Sl.18 | Director remuneration / sitting fees (non-salary) | No threshold | 10% |
| 393(1) | Ind/HUF (non-audit) — contract / professional / commission | ₹50,00,000 | 2% (was 5%) |
| 393(1) Sl.27 | E-commerce operator to participant / seller | Nil (no threshold) | 0.1% (was 1%) |
| 393(1) Sl.28 | Senior citizen 75+ — bank computes & deducts TDS | As applicable | Slab Rate |
| 393(1) Sl.29 | Purchase of goods — buyer turnover > ₹10 Cr | ₹50,00,000 per seller/year | 0.1% |
| 393(1) | Benefit / perquisite from business or profession | ₹20,000 | 10% |
| 393(1) Sl.8(v) | Transfer of VDA / Crypto / NFT | Nil | 1% |
Group C — Lottery, Gaming, Cash, NSS & Partners
| Section (ITA 2025) | Nature of Payment | Threshold | Rate |
|---|---|---|---|
| 393(1) Sl.4 | Lottery / crossword / card games / betting / gambling | ₹10,000/txn | Rates in Force |
| 393(1) | Online gaming winnings — net winnings basis | As prescribed | Rates in Force |
| 393(1) Sl.5 | Winnings from horse race | ₹10,000/txn | Rates in Force |
| 393(1) | NSS / Sec 80CCA(2)(a) withdrawal | ₹2,500 | 10% |
| 393(1) Sl.12 | Commission on sale / distribution of lottery tickets | ₹20,000 | 2% (was 5%) |
| 393(1) Sl.26 | Cash withdrawal from bank / post office / co-op bank | ₹3 Cr (co-op) / ₹1 Cr (others) | 2% |
| 393(1) | Payment to partners — salary, interest, bonus, commission | ₹20,000/partner/year | 10% — NEW |
Group D — Non-Resident & Foreign Entity Payments (Sec 393(2))
| Section (ITA 2025) | Nature of Payment | Rate | Key Note |
|---|---|---|---|
| 393(2) | NR sportsman / entertainer / sports association | 20% | Nil threshold |
| 393(2) | Infrastructure Debt Fund — interest to NR | 5% | Nil threshold |
| 393(2) | Business Trust (REIT/InvIT) income to NR | 5% or 10% | By income nature |
| 393(2) | Any sum chargeable to tax — NR general (old Sec 195) | Rates in Force / DTAA | DTAA rate if lower; TRC in Form 42 required |
| 393(2) | MF units income to NR (old Sec 196A) | 20% / DTAA | Lower rate applies |
| 393(2) | FII / FPI income from securities (old Sec 196D) | 20% / DTAA | Capital gains excluded from TDS |
TCS — Tax Collected at Source (Sec 394)
| Section (ITA 2025) | Coverage | Key Note |
|---|---|---|
| 394 | All TCS provisions — consolidated from old Sec 206C (all sub-sections) | Replaces scattered TCS provisions with single table-based section |
Key Rate Changes under IT Act 2025
- 194H Commission/Brokerage: 5% → 2%
- 194IB Rent (Ind/HUF): 5% → 2%
- 194M Ind/HUF payments: 5% → 2%
- 194O E-commerce: 1% → 0.1%
- 194G Lottery commission: 5% → 2%
- 194T Payment to partners: NEW @ 10%
- Threshold increases: 194K MF income: ₹5,000 → ₹10,000 | 194LA Land acquisition: ₹2,50,000 → ₹5,00,000
TDS Forms — Old vs New (IT Rules 2026)
- Form 130 (old Form 16) — Salary TDS Certificate · Due: 15th June
- Form 131 (old Form 16A) — Non-salary TDS Certificate · Due: 15 days from return due date
- Form 132 (old Form 16B/16C/16D/16E) — Property / Rent TDS Certificate
- Form 138 (old Form 24Q) — Quarterly Salary TDS Return
- Form 140 (old Form 26Q) — Quarterly Non-salary TDS Return
- Form 141 (old Form 26QB/QC/QD/QE) — Property / Rent TDS Return
- Form 144 (old Form 27Q) — NR TDS Return
- Form 145 (old Form 15CA) — NR Remittance Declaration
- Form 146 (old Form 15CB) — CA Certificate for NR remittance
- Form 168 (old Form 26AS) — Annual Information Statement (AIS)
- Form 121 (old Form 15G + 15H) — Self-declaration for no TDS
Higher Rate Rules — Section 397
- No PAN — Sec 397(2)(a): TDS at HIGHER of (a) twice the normal rate, OR (b) 20% flat rate
- Non-filer — Sec 397(2)(b): If deductee has not filed ITR for 2 preceding years AND TDS/TCS exceeded ₹50,000 each year — TDS at HIGHER of (a) twice normal rate, OR (b) 5%
- Exceptions: Higher rate does NOT apply to salary (392), EPF withdrawal (392(7)), lottery/horse race, and online gaming
TDS Deposit & Return Due Dates
- April–February: Deposit by 7th of following month
- March: Deposit by 30th April (extended)
- Q1 Return (Apr–Jun): 31st July | Q2 (Jul–Sep): 31st October
- Q3 (Oct–Dec): 31st January | Q4 (Jan–Mar): 31st May
- Salary Certificate (Form 130): By 15th June
- Property TDS (Form 141): Within 30 days from end of deduction month
Consequences of Default — Section 398
- TDS not deducted / delayed: Interest @ 1% per month (from deductible date to actual deduction date)
- TDS deducted but not deposited: Interest @ 1.5% per month (from deduction date to deposit date)
- Late filing of TDS return: ₹200 per day (max: TDS amount) under Sec 427
- 30% expenditure disallowed from business income under Sec 35 if TDS not deducted/deposited
- Wilful failure: Prosecution — 3 months to 7 years imprisonment with fine
Budget 2025-26 — New Tax Regime Slabs (AY 2026-27)
| Income Range | Tax Rate | Key Note |
|---|---|---|
| Up to ₹4 lakh | NIL | — |
| ₹4 lakh – ₹8 lakh | 5% | — |
| ₹8 lakh – ₹12 lakh | 10% | Effectively NIL up to ₹12L via Sec 87A rebate |
| ₹12 lakh – ₹16 lakh | 15% | — |
| ₹16 lakh – ₹20 lakh | 20% | — |
| ₹20 lakh – ₹24 lakh | 25% | — |
| Above ₹24 lakh | 30% | Standard deduction: ₹75,000 for salaried |
Budget 2025-26 Highlights — Interview Ready
- No income tax up to ₹12 lakh (₹12.75 lakh for salaried) via Section 87A rebate
- Standard Deduction increased to ₹75,000 under New Regime
- Updated Return (ITR-U): window extended to 4 years (from 2 years)
- Angel Tax abolished — Section 56(2)(viib) removed, benefiting start-ups
- LTCG exemption limit under Section 112A increased to ₹1.25 lakh
- Vivad Se Vishwas Scheme 2.0 extended for pending direct tax disputes
QWhat is the ‘Tax Year’ concept under the Income Tax Act 2025?
Under ITA 2025, ‘Tax Year’ replaces the dual concepts of ‘Previous Year’ (income earning year) and ‘Assessment Year’ (tax filing year). Tax Year is a single unified period of 12 months commencing from 1st April — the period for which an individual or entity’s income is computed for taxation purposes. This simplification eliminates confusion that arose from the PY/AY distinction and aligns India’s framework with international practice. Effective from 1 April 2026 — applies to Tax Year 2026-27 onwards.
QHow has TDS been consolidated under ITA 2025?
ITA 1961 had over 60 TDS sections (192 to 194T), each with its own format, thresholds, and exceptions — a major source of deductor error. ITA 2025 consolidates this into 3 sections: Section 392 (salary TDS), Section 393 (TDS for residents, non-residents, any person — via structured tables with Sl.1 to Sl.29), and Section 394 (TCS). Key rate changes: Commission/Brokerage (194H) from 5% to 2%; Rent by Ind/HUF (194IB) from 5% to 2%; Ind/HUF payments (194M) from 5% to 2%; E-commerce (194O) from 1% to 0.1%; Lottery commission (194G) from 5% to 2%. New addition: Section 194T — payment to partners @ 10%. Higher rate rules are unified under Section 397, default consequences under Section 398. All TDS forms are renumbered under IT Rules 2026 — Form 130 (old Form 16), Form 131 (old Form 16A), Form 140 (old Form 26Q), Form 141 (old Form 26QB), Form 168 (old Form 26AS/AIS).
QWhat are Section 234A, 234B, and 234C?
Sec 234A: Interest for delay in filing return — 1% per month from due date until actual filing date, on tax payable.
Sec 234B: Interest for default in advance tax — 1% per month from 1st April of AY until assessment/payment, where <90% of assessed tax is paid as advance tax.
Sec 234C: Interest for deferment of advance tax instalments — 1% per month for 3 months (June/Sep/Dec shortfall); 1% per month for 1 month (March shortfall).
Sec 234B: Interest for default in advance tax — 1% per month from 1st April of AY until assessment/payment, where <90% of assessed tax is paid as advance tax.
Sec 234C: Interest for deferment of advance tax instalments — 1% per month for 3 months (June/Sep/Dec shortfall); 1% per month for 1 month (March shortfall).
Chapter 7
GST — CGST / IGST / UTGST Acts
QWhat are the 4 mandatory conditions for claiming ITC (Section 16)?
All four must be met: (1) Registered person must be in possession of a valid tax invoice, debit note, or other prescribed document. (2) Receipt of goods or services (or both). (3) Tax actually charged by supplier and paid to the government — reflected in GSTR-2B. (4) Return has been filed (GSTR-3B). Time limit: 30th November of the following FY or date of filing GSTR-9, whichever is earlier.
QSection 17(5) — What are Blocked Credits?
Absolute blocks on ITC regardless of business use: (1) Motor vehicles (exceptions: resale, goods transport, passenger transport); (2) Food & beverages, outdoor catering, beauty treatment; (3) Membership of clubs/health centres; (4) Travel benefits to employees on vacation (LTA); (5) Works contract services for construction of immovable property (unless for further supply of same); (6) Goods/services for construction of immovable property for own account.
QGSTR-2A vs GSTR-2B — what’s the difference?
GSTR-2A is a dynamic, auto-populated statement that updates in real-time as suppliers file their GSTR-1. Used for reconciliation purposes.
GSTR-2B is a static, auto-drafted ITC statement generated on a fixed date each month (14th of following month). ITC is claimable only to the extent reflected in GSTR-2B — Finance Act 2021/2022 restricts ITC to GSTR-2B only.
GSTR-2B is a static, auto-drafted ITC statement generated on a fixed date each month (14th of following month). ITC is claimable only to the extent reflected in GSTR-2B — Finance Act 2021/2022 restricts ITC to GSTR-2B only.
GST Return Filing Calendar
| Return | Periodicity | Due Date | Purpose |
|---|---|---|---|
| GSTR-1 | Monthly (>₹5 Cr) | 11th of next month | Outward supplies details |
| GSTR-3B | Monthly (>₹5 Cr) | 20th of next month | Summary return + tax payment |
| GSTR-3B | Quarterly (QRMP) | 22nd/24th (Category A/B) | Summary return — quarterly |
| GSTR-9 | Annual | 31st December of next FY | Annual return |
| GSTR-9C | Annual (>₹5 Cr) | 31st December of next FY | CA/CMA certified reconciliation statement |
Chapter 8
Companies Act 2013 — Key Sections
| Section | Topic | Key Points |
|---|---|---|
| Sec 139 | Appointment of Auditor | 5-year term · Listed: mandatory rotation (10 yrs individual / 2 terms for firms) · Shareholders approve at AGM |
| Sec 143 | Powers & Duties of Auditor | Right of access at all times · Report on true & fair view, IFC adequacy, CARO matters, frauds observed |
| Sec 144 | Prohibited Services | Cannot provide: bookkeeping, internal audit, actuarial, investment advisory, management services |
| Sec 147 | Punishment for Contravention | False statement: imprisonment up to 1 yr + fine · Fraud: up to 10 yrs + 3Ã fraud amount |
| Sec 177 | Audit Committee | Mandatory for listed companies · Min 3 directors · 2/3 independent · Chairperson must be independent |
| Sec 135 | CSR | Net worth ≥ ₹500Cr OR turnover ≥ ₹1,000Cr OR net profit ≥ ₹5Cr · Spend 2% of avg net profits of last 3 FYs |
Schedule III Amendments (April 2022) — Interview Hot Topics
- Trade Payables Ageing Schedule — breakup for <1 yr, 1–2 yrs, 2–3 yrs, >3 yrs (disputed & undisputed)
- Trade Receivables Ageing Schedule — similar age-wise breakup
- VDA/Crypto Disclosures — investments in Virtual Digital Assets and associated profit/loss
- Key Ratio Analysis — Current ratio, Debt-equity, ROE, Inventory/Debtor/Creditor turnover, Net profit margin, ROCE, DSCR — with variance explanations
- Undisclosed Income — transactions not recorded in books surrendered during IT assessment
- Wilful Defaulter Status — whether company declared wilful defaulter by bank/FI
- Struck-Off Company Transactions — disclosure of transactions with Sec 248 struck-off companies
Chapter 10
Top 10 Tips to Ace Your CA Articleship Interview
Master 3 Auditing Standards
Know SA 200, SA 315, and the SA 700 series in depth — with practical application examples and real-world scenarios beyond just definitions.
Prepare 2 Favourite Standards (One AS, One Ind AS)
Be ready for a live case study or numerical example — not just recitation.
Stay Updated Daily
Read ET or Inshorts + ICAI notifications weekly. Know Budget 2025-26 highlights AND the structural changes under Income Tax Act 2025 (effective April 2026).
Explain Like a Teacher
Interviewers test whether you can TEACH a concept, not just recite it. The ‘explain to a non-CA’ test is powerful.
Know CARO 2020 Clause-by-Clause
Particularly the new clauses added vs CARO 2016. Have 2–3 clauses ready to discuss with practical audit procedures.
Master IT Act 2025 TDS Provisions
Know Sec 392/393/394 structure, key rate reductions (194H, 194IB, 194M, 194O, 194G), new Sec 194T for partners, renumbered forms under IT Rules 2026, and the Tax Year concept. Be ready to cite specific section numbers.
Prepare Your Weakness Answer Carefully
It should be genuine, self-aware, with a concrete improvement action already in progress.
Research the Firm
Their sectors, notable clients, recent news, ranking, culture. Big 4 vs mid-tier has very different expectations.
Be Honest About What You Don’t Know
Say “I am not fully certain, but my understanding is…” rather than guessing. Honesty is respected in CA interviews.
Professional Presentation
Firm eye contact, upright posture, clear articulate speech — first impressions matter as much as technical content.
Interview Intelligence
Topic Frequency in CA Articleship Interviews
