DT is a practical paper in CA Final, and for most of the students, practical subject is easier to score than the theory ones. So why not make full use of this plus point and score as much as you can in DT?
Most students do a lot of practical work during their articleship in direct taxes. This practical knowledge helps in building the initial interest in the subject.
In this blog, we are going to help you clear out all the obstacles that may come in your way for scoring an exemption in DT. Just read on!
| Phase | Talks about |
| 1 | Classes (3-4 months) |
| 2 | How to do First time Self Study after classes (30 – 40 days) |
| 3 | 1st Revision (10 -12 days) |
| 4 | Penultimate revision (7 days) |
| 5 | The Ultimate Revision (1.5 days strategy) |
Phase 1: Self-study VS Classes? (3 – 4 months)
It’s a no brainer question, really!
Although, very few people might have this query in mind for whether to take DT classes or go for self-study, but for those who are still questioning the classes, let me clarify that DT is a very conceptual paper and a very lengthy one at that. The kind that should not be taken lightly.
The Income Tax Act is itself so vast that you would not know where to begin your study from! To be honest, even if you try you would not be able to understand the bare act in the first reading without guidance.
Classes not only provide with conceptual clarity but also help you with the following:
- Discipline to finish the course timely
- Sequence of how to go about chapters
- Highlight Areas which require more focus as compared to others
- Relevant questions that can be solved after each concept
- Helps you understand how to retain key words and present language of law
Pitfall alert! Preparing for DT on your own could be a very big risk which you might regret taking later on!
Don’t lose sight of these facts while taking the classes:
- DT classes are quite lengthy and it would take around 3-4 months (up to 200 – 250hrs ) to get completed. Further, DT has a lot of amendments each year therefore plan to take DT classes at a time when you can cover the amendment in the classes itself.
- Another golden tip is to complete your homework along with all the solved questions. DT has a lot of questions and it is generally seen that students skip doing these questions after the class and then end up regretting when exam time comes!
Phase 2: Self Study after classes (30-40days)
The best strategy to follow for DT is to start your self – study with the classes itself. DT is one of the last subjects for which students take coaching. So it is advisable to self-study DT every day after finishing each class.
What self-study requires? A lot of patience and discipline.
What self-study gives you in return? Sets the tone for the future revisions and make your subject ‘smooth like butter’!
Fresh and hot preparation techniques from the Ranker’s way!
- Practice: Solve all the questions in the question bank either along with the classes or in the first reading.
- Where to start from? – Follow the sequence as suggested by your teacher. ICAI has 4 modules that cover 31 chapters!! (23 + 8)
OUR SUGGESTION:
| Chapter No. | Chapter Name | Category | Sequence |
| 1. | Basic Concepts | A | I |
| 2. | Residence and Scope of Total Income | A | II |
| 6. | Profits and Gains of Business or Profession | A | III |
| 9. | Income of Other Persons included in assesses Total Income | B | IV |
| 12. | Assessment of Various Entities | B | V |
| 16. | Income-tax Authorities | B | VI |
| 17. | Assessment Procedure | B | VII |
| 19. | Dispute Resolution | B | VIII |
| 18. | Appeals and Revision | B | IX |
| 20. | Penalties | B | X |
| 21. | Offences and Prosecution | B | XI |
| 15. | Deduction, Collection and Recovery of Tax | A | XII |
| 11. | Deductions from Gross Total Income | A | XIII |
| 13. | Charitable or Religious Trusts and Institutions, Political Parties and Electoral Trusts | A | XIV |
| 10. | Aggregation of Income, Set-Off and Carry Forward of Losses | B | XV |
| 7. | Capital Gains | B | XVI |
| 25. | Non Resident Taxation | A | XVII |
| 27. | Advance Rulings | A | XVIII |
| 26. | Double Taxation Relief | A | XIX |
| 24. | Transfer Pricing and Other Provisions to check Avoidance of Tax | A | XX |
| 28. | Equalisation Levy | A | XXI |
| 29. | Application and Interpretation of Tax Treaties | B | XXII |
| 30. | Fundamentals of Base Erosion and Profit Shifting | B | XXIII |
| 22. | Liability in Special Cases | B | XXIV |
| 14. | Tax Planning, Tax Avoidance & Tax Evasion | B | XXV |
| 3. | Incomes which do not form part of Total Income | C | XXVI |
| 4. | Salaries | C | XXVII |
| 5. | Income from House Property | C | XXVIII |
| 8. | Income from Other Sources | C | XXIX |
| 23. | Miscellaneous Provisions | C | XXX |
| 31. | Overview of Model Tax Conventions | C | XXXI |
- Although, there are theory questions (especially in assessment procedure and international taxation) but there is no need to write and practice them, just going through them would be enough. Nevertheless, don’t take them halke me!
How to Study? A million-dollar question!
- You will find a lot of techniques for this question but the best way to study DT is to go through the section/chapter first and then practice a question. This way the concept gets engraved in your mind!
- Prepare a format for long 12–16-mark questions.
For e.g.: Format for PGBP, calculation of interest on total income, computation of total income tax. Refer the Institute’s format and stick to it while solving questions. The reason being when you will practice this again and again, you will get more and more comfortable with the solution’s layout that the ICAI expects, and then there will be no chance for the examiner to cut out any marks in presentation area.
PRO TIPS TO YOUR RESCUE!
- Try to write 1 answer each day (at least on those days when you are preparing DT). Focus on presentation of the answer because we fail to present answers in our paper.
- After writing, evaluate your own paper and note down the mistake that you did, or the areas of improvement on a separate piece of paper.
- The most difficult aspect is to finish the huge syllabus on time. Keep a check on your time and ensure that daily targets are achieved.
Phase 3: 1st Revision (10-12 days)
After all the hurdles of taking classes, warming up with self-study and whatnot, the time has finally come for our very first revision!
Obviously, first revision is no child’s play, and what you study here will go a long way!
Here are a few points to be kept in mind while starting the First Revision:
- The exemption is scored with just 3 things. Those are Revision, Revision and Revision!
Revise the concepts quickly, by going through the summary book wherein all the sections are summarized along with examples. Unlike law, in DT, you would need to go through the examples along with revising the concepts.
Your focus now, should be to solve as many questions as possible at this stage.
Moreover, make sure that you put your remarks next to difficult question as to what is the learning from the question (i.e., crux of the question for LDR)
- Identify your weak points!
Take note of the adjustments that seem to be a bit tricky and mark them separately so that you can work on these areas in your second revision.
- Track your time!
Keep a note of the time you have spent on each chapter which will help you plan your 2nd and subsequent revisions.
- What about case laws?
Try to cover case laws with the classes or during the first read. Mark the most important or recent case laws which the institute has added. You can pick them during your first and second revision! If you can remember the case law name, well and good but do not spend a lot of time in memorizing them. Rather use that time on memorizing the TDS sections and the tax rates!
- MCQs! They can make or break your paper!
Do not take MCQs lightly. MCQs in DT require a lot of practice. Only if you are conceptually strong, you will be able to attempt the questions! Don’t trust me? Ask the recent attempt students! Your first revision is the best time to pick the MCQ practice as you will be fresh with the syllabus.
- Don’t mock the mock test!
Attempt a mock test paper after completing the 1st Revision. Before you appear for the mock test, watch this video so that you don’t have wrong expectations from the mock test – https://youtu.be/eG3D1s_Hbss
- Paper 6C: Should you pick International taxation?
You may decide to opt for International taxation as an elective paper. If you do, it could help you cover the 30 marks of DT. Although International taxation under Paper 6C is much more detailed and complex, however doing Int. taxation as part of the DT course with help you get familiarized with paper 6C and give the initial push.
Further since Paper 6C is just before the DT paper, you would get an edge while revising DT in 1.5 days! Before you decide which elective to choose, watch this video so that you make the right choice- https://www.youtube.com/watch?v=SDMeSKDujc8&list=PL0xOe0xVMnt4Cwi3RyGmJPgukRCdWaS-&index=13
Phase 4: 2nd Revision (7 days)
Now that you have come this far, it won’t look good to just leave things here, right? Buckle up folks, it’s time for the 2nd revision, the upgraded brother of 1st revision.
Upgraded how? We’ll tell you don’t worry!
Firstly, the thing to be kept in mind while starting the Second Revision is-
Confidence is the name of this game!
- Be confident about the subject.
- After the first mock test, if you feel there is a lack of understanding in any concept then you must focus on those concepts while you are on your 2nd revision.
Won’t let you leave without our beloved pro tips and tricks!
- All subsequent revisions after the first revision should be focused on bringing down your revision time, increasing your writing speed and improving your answer presentation.
- Get into a group of 3-4 students to help each other with doubts and also to motivate each other to adhere to the revision timeline (if possible).
- Refer your summary book, any markings that you might have done in the Module along with the marked questions of the Question bank.
- A pro-tip here would be to write down, in short, all those “very important points” that you already marked or those that seem tricky to you on a separate sheet of paper so that you can refer all such points in one glance just a day before exam and avoid the frenzy.
- Attempt the latest mock test for the upcoming attempt under timed conditions, this will act like exam day simulation and therefore, in turn you will comparatively feel more at ease during the actual exam.
Phase 5: Last Day Revision – 1.5 days
Ultimately, it all boils downs to these days!
You must have heard – “Anything that you are not able to revise on the day before exam, you will not be able to write it in the exam”. Nahin suna kya? Oops! It’s high time for you to start watching my YT Videos. Search for Shubham Singhal.
Coming back – People who revise the entire syllabus in 1.5 days are able to score better than the ones who do selective studying.
Pro tips coming to your rescue yet again!
- An hour-by-hour study schedule should be prepared at least a month before the start of the exams (Can also be done after the 2nd revision).
- All resources for the revision must be ready – Summary notes and LDR Questions
- It is very important to practice LDR Questions for each important chapter (PGBP, MAT, AMT, Charitable trust by hand. Do not just go through the questions superficially!
- Utilize your 1.5 days for paper 6 very smartly. You can cover a lot of syllabus for DT after coming back from Paper 5. Do not waste your time thinking – 6C hai, open book hai, aaram se karenge! If you are confident about your preparation for Paper 6, then start revising DT or IDT in the evening after coming back from paper 5!
Resources:
- Teacher’s study material/complier/ summary notes – Most important
- Case law summary book – Go through it once
- Latest amended Question bank
- Past 1 attempt RTP/MTP
Key takeaways:
- Practice makes a man perfect. The more you practice and the more confident you will feel. Practice all LDR questions by hand in each revision no matter how much time it takes.
- NOTES are very important. ICAI has 4 very bulky modules for DT. Make sure to have a summary book in place so that you don’t feel lost!
- Give mock tests and get them evaluated from an experienced source, if possible.
- Say optimistic affirmations every day before and after studying and practice gratitude. It helps us to stay focused and shoos away the “Exam Anxiety”
- Keep yourself hydrated and eat light meals till the paper
- Do regular stretching/ warm-up to avoid fatigue during those three hours
Don’t fall for the below mentioned traps:
- Do not TALLY questions.
- The presentation of practical questions is very important.
- Working notes are also an important part in DT so show all the working notes properly at the end of the solution. Give detailed notes and explanations for all adjustments! ICAI does give step marks!
- Do not rely entirely on revision videos. You have to write the paper yourself, therefore make sure to revise yourself!!!
Thank you, Sumedha Bhat and Aishwarya Garg for helping me present this blog in such formal way.
We hope this blog was helpful. Do let us know your feedback below so that we stay motivated to bring many more such blogs your way!
Let’s ace it The Ranker’s Way!