Effective Tips to Clear Direct taxation and Income tax...


14 April 2011  


This is my simple effort to bring some of the useful exam tips to score good mark with Income tax I P CC Level and Direct tax for Final Level).

This is my humble effort to those who are writing I P CC and final exam to give some good input in to Taxation subject. This is mainly target to those who had failed frequently in the above segment and those who have poor exam result despite of their hard work. There are two parts this article contains. First is the preparation part (Before and after) and second is the exam point of view. Even if it is lengthy, but useful.


Before start preparation 

1.   Mental preparation: - Direct taxes at final level are characterized by 1) Lengthy (2) Practical oriented (3) Difficult .If you have planed mentally to handle the subject then half of the battle you won.


For IPCC segment, the question paper is lengthy and practical and requires more time because it is a Combination of 3 segments (Income tax, VAT and Service tax).


During preparation  

1.         Good and effective preparation for taxation exam


One must understand the concepts behind the taxation law and its applications. One question of final level (DT) may have applications in the various segments. Crystal clarity with respect of concepts should be warranted.

Check the case laws which may contradictory with the sections along with the conceptual learning. Also, the recent amendment applicable for your exam.


I P CC level, there is not much more complexity, however, application oriented questions will also set in your exam. You are advised to carry out balanced studies (Income tax, VAT and Service tax)


Read>> Understand the concepts behind legality>>Make a good notes of those concepts>> Revise  



2.      Good revision plan


The effectiveness of taxation depends upon effective Revision plan. For clearing and scoring good mark, you should be perfect in taxation laws with crystal clear with concepts.This can be achieved through constant and good revision strategies only.


What you have learned in Sunday must be revised on Wednesday and so on and so forth.




3.    Keep a work book

Keep a Scheduler or a daily work book and fix a daily target and area proposed to be completed within that day. Take an immediate action plan for any deficiency.


4.      Reference book and scanners and suggested answers in tandem. 


Start with reference book and then comes to the past exam question. Understand the practical and application oriented past exam question pattern. This will improve your potential to the exam, even though which may not repeated to your exam. Make a list of Compulsory Practical question of past exam. ( CQ).


5.   For final students, Apart from direct taxation, give a good care to Wealth tax segment. Be thorough with Wealth tax concepts and do good exercise with Practical problems. This will help you to score marks.

6.   For IPCC student, give equal importance to 3 areas. ( Income tax, VAT and service tax)


7.   As far as VAT and Service tax is concerned, more marks are set from the least segment. It is easy to study this least segment and can score a good mark.

8.   You have to solve all the practical compulsory questions of past few exam. Solving more and more practical problem will improve your problem solving ability during the exam.

9.   Learn well all the recent amendment and case laws Applicable for your exam. Few questions can be set from these segment to test your updating with tax laws.

10.             Never add anything new during the last 15 days before exam, rather focusing on what already learned.


During exam 

1.    Direct tax question paper is characterised by lengthy, practical and require a good time to read it. Even if the question is difficult, never be panic rather, regain your confidence level. For I P C C students also the paper may be practical oriented nature. Be cool and calm

2. When you receive the question papers do the followings

      As and when receiving the question papers highlight the important Facts and figures as well. This will help you to extract the relevant points from the lengthy questions and thus save your precious time.

      Adopt a good time management strategies. Allocate a maximum time for all the questions. Try to finish it within the time. Especially the papers seem to be voluminous.


     Good presentation for your exam

a)          In taxation papers, one question may be having applications in more than various segments. Correlate the same in one by one in a comprehensive and cohesive manner. (Inter Linking technique).

b)           Try to avoid easy type presentation for direct taxation and Income tax. It is better to write precise points with good heading and sub heading. This will help to get bird eye view to the examiner.

c)            For all the practical question, give a good introduction and write the relevant section and any case laws which is supporting or against the relevant sessions and finally a good conclusion. It is just like a movie; display all the names in the beginning and later story come and finally the End message will come.

d)          If you are going to correlate the section with cases laws, Start fact of the case law and next verdict by the court and finally your conclusion with the case at disposal.

e)           For all the problem paper (Compulsory segment) the steps carries each marks. So, the figures should be supported by the legality as far as possible. The legal things which form part and parcel of your working should be given in the form of working notes.



 Classification of exam time

 Classify your total time in to two based on the hardness of your questions. First half can be called normal time and second half is called a strategic time. (In cricket you can compare it with power play).

Start with easy questions (practical) and theory questions first (Normal time) and leave the toughest questions to Strategic time.


e) Attending Full questions without fail


 Try to attend the question that you may be even not know well or not prepared.100% attending all the questions.


Never compare the answer of your friends. 


Also don’t forget to refer this also


Effective tips to Clear audit and law papers 

 Effective tips to Clear accounts, SFM and costing


Wish you all the best

Happy exam writing

CA vivek M

castudenthelpdesk @ gmail.com