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Direct Tax CA Final (old syllabus) Nov 2o2o Exam – A Meaningful Insight & Suggested answers

Dear CA Final Students,

Exams of the CA Final are over and the discussion is on high pitch amongst the students that how was the descriptive part of Direct Tax (old syllabus) question paper – easy, tough or moderate? Letus find out following the standard approach called “Dissection”.

Dissection of question paper of Direct Tax Ca Final(old syllabus) Nov 2o2o Exam

Question No.Chapter Name / Section No.  MarksAverage expected performance of the studentsTricky Adjustments/ points
1Computation of Total Income14Able to manage 75%Refer point (c), (e), (f) of this question
2 (a)Assessment of Charitable Trust8Able to manage 80% to 100%Not much
2(b)Computation of Unilateral Relief under section 916Able to manage 80% to 100%Not Much
3(a) (i)TDS under section 1922Able to manage 70% to 90%Judgment of Supreme Court
3(a)(ii)TDS under section 194I2Able to manage 70% to 90%Judgment of Supreme Court and CBDT Circular
3(a) (iiI)TDS under section 194J2Able to Manage 70% to 90%CBDT Ciruclar
3(a)(iv)TDS under section 1952Able to manage 50% to 60%Taxability of Commission in India in the hands of Agent. To answer this question one assumption required
3(b)Taxation of Non-residents – section 115 BBA6Able to manage 70% to 90%Proper drafting required while answering 3(b)(iii)
4(a)(i)Assessment Procedure- Section 144C4Able to manage around 30%Whether filing of appeal to CIT(A) possible when draft order deemed to have been accepted?
4(a)(ii)Powers of IT authorities – Section 132B4Not able to manageIt requires thorough understanding of Section 132B and the relevant case law
4(a)(iii)Re-assessment proceedings under section 1474Able to manage around 30%Judgment of Supreme Court
4(b)(i)Taxation of Non-residents – Section 9 – Business connection2Able to manage 50%Very old judgment of Supreme Court
4(b)(ii)Taxation of Non-residents – Section 9 – Business connection2Able to manage 30%Judgment of Court
4(b)(iii)Taxation of Non-residents- Section 9 and 115A2Not able to mangeThis question  is an abridged form of one question in Nov 2003 attempt
5(a)(i)Powers of IT authorities – Section 132B4Not able to manageIt requires thorough understanding of Section 132B
5(a)(ii)Penalty- Section 270AA4Able to manage 50%It requires thorough understanding of Section 270AA
5(b)Transfer Pricing – Section 92CE6Able to manage 50% to 70%Amendment made by Finance Act 2019
6(a)(i)AAR6Able to manage 30% to 50%It requires thorough procedural  understanding
6(b)Tax planning – avoidance – management4Able to manage 70%  to 90%Proper drafting required
6(c)Dividend Stripping- Section 94(7) and computation of Capital Gain4Able to Mange 60% to 80%Cutoff date for the purpose of section 94(7)

Drawing conclusions

  1. The opening two questions were quite easy.
  2. The paper was “MODERATE”.
  3. “TOUGH” for those who opted to write question no. 4
  4. “TOUGH” for those who have not done in-depth study of CBDT circulars and Court Judgments on TDS
  5. “TOUGH” for those who are not acquainted with the procedural aspects of Income Tax Act.
  6. “TOUGH” for those who lack in-depth understanding on International Taxation.
  7. ICAI had not given much weightage (in descriptive part) to recent amendments, Capital Gain, Income from Other Sources, MAT, AMT, Partnership Firm, Advance Tax, Routine provisions of assessment and appeals.

Suggested Answers

The Students under my mentorship had a pleasant experience in writing this paper, the reason being, astonishingly Q No.2(b), entire Q No.3, almost Q No.4 and Q No. 6 were identical and covered in my book. I have appended extracts from my book for the above referred questions which may serve as a suggested answers.

Download suggested answers from: https://www.mtliveca.com/material-for-students/

In next article, we will discuss what care should be taken while planning for the preparation of Direct Tax by the students who will be appearing in May 2021 / Nov 2021 and onwards.

Thank you all for the patient reading and special thanks to Siddharth for a lovely Phrase DT=MT.

You can also listen me here: https://youtu.be/qmhmPu15jf0

See what you get in Sure Success CoursePack May21/Nov21: https://youtu.be/eDJrr86QRtw

Link to buy Sure Success CoursePack May21/Nov21: https://www.mtliveca.com/video-lectures/

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