CA Inter Eligibility, Registration, Fee, Syllabus


The CA Intermediate Exam is the 2nd level of exam of students pursuing the Chartered Accountancy Course (CA). Subjects of the Intermediate Course are classified into two groups. After clearing the Intermediate Exam, you can study these subjects and attempt the Intermediate Exam group-wise or attempt both groups together. Only after clearing either or both groups of the Intermediate Course, you can join practical training. As a graduate or post-graduate Commerce student, you can register for practical training after completing ICITSS and need not wait to clear any group of the Intermediate Exam. You can answer the Intermediate Exam after completing nine months of practical training. As a final year graduate student, you can register for the Intermediate Course on a provisional basis. During the provisional registration period, you can undergo and complete ICITSS, but you can begin practical training only on submission of satisfactory proof of having passed the graduation exam with the required marks.

Content in this Article


CA Intermediate – A Quick View
Exam Name Chartered Accountants Intermediate (CA Intermediate)
Exam Mode Offline mode
Exam Level Second level national examination
Exam Type Objective and Subjective
Medium of Exam English / Hindi
Maximum Marks 800
Passing Marks Minimum 50 marks in each paper.
Number of Papers 8
Scope National Level
Conducting Body The Institute of Chartered Accountants of India (ICAI)

Eligibility to Appear in CA Intermediate Examination

As per newly introduced Regulation 25E (in the Chartered Accountants Regulations, 1988) following are the criteria to register with the Intermediate Course of ICAI:
  1. A candidate becomes eligible to register for Intermediate only after passing (10+2) examination conducted by an examining body constituted by law and also after passing CPT (Common Proficiency Test) or CA Intermediate (introduced by ICAI as per the new scheme).
  2. There is also a direct entry route through which a candidate can enrol for Intermediate directly without going through Either CPT or CA Intermediate:
    • Students who are Graduate/ Post Graduate in Commerce and secured a minimum of 55% can register directly for Intermediate without passing CA Intermediate or CPT.
    • Similarly like Commerce Graduates, Non commerce Graduates/ Post Graduates can also register for Intermediate by securing 60% marks in Graduation/ Post Graduation.
    • Apart from the above, the students who cleared the Intermediate level of the Institute of Cost Accountants of India or The Institute of Company Secretaries of India.

Process to Register for CA Intermediate Examination

Students can register themselves for the Intermediate course by filling the online registration form available on the ICAI website
  1. Register online on ICAI website by filling online form. Link to Registration form of CA Intermediate : https://sdb.icai.org/stud/defaul.aspx.
  2. Make the Payment of fee online.
  3. On successful payment, system will automatically generate the form. Get that form printed.
  4. Within 7 days of the online registration, submit following documents to your concerned regional office duly signed by the applicant student:
    • The duly signed printout of online successful registration form in hard copy
    • Attested copy of Mark sheet of Class 12th examination issued by the respective Board
    • One recent color photograph (affixed on the printout of the online successful registration form)
    • Attested copy of proof of Nationality, if student is a foreigner
    • Attested copy of proof of special category certificate i.e. SC/ST, OBC, Differently abled
    • Direct Entry Route students have to submit attested copy of Graduation / Post Graduation mark statements/marksheet of Intermediate level examination of the Institute of Company Secretaries of India or the Institute of Cost Accountants of India.
Once the above formalities are completed Study Material will be dispatch to the students within one month through the Centralised Dispatch System.

CA Intermediate Course Registration Fee 2018

Details of Fees Both Groups (Rs) Both groups (US $) Single Group (Rs) Single Group (US $)
Registration Fee 15000 11000
Student's Activity Fee 2000 2000*
Registration Fee as article assistant 1000
Total Fees 18000 1000 13000 600
*To be paid once


CA Intermediate Course Details

The Institute of Chartered Accountants of India already announced changes in CA Inter syllabus. CA IPCC Old syllabus vs CA Intermediate Subject-wise applicable new changes for CA Intermediate New syllabus is given below. The New CA Inter New Scheme Syllabus is applicable from May 2017.

Difference between CA IPCC Old and CA Intermediate New Syllabus

Old Syllabus New Syllabus
CA IPCC CA Intermediate
700 Marks and 7 papers 800 Marks and 8 papers
Group 1
Accounting (100 Marks) Accounting (100 Marks)
Business Laws, Company Law
(30 + 30 Marks),
Ethics and Communication (20 + 20 Marks)
Corporate (60 Marks)
and
Other Laws (40 Marks)
Cost Accounting (50 Marks)
Financial Management (50 Marks)
Cost Accounting (100 Marks)
Taxation (DT 50 Marks | IDT 50 Marks) Direct Tax Laws (60 Marks) and
Indirect Tax Laws (40 Marks)
Group 2
Advanced Accounting (100 Marks) Advanced Accounting (100 Marks)
Auditing and Assurance (100 Marks) Auditing and Assurance (100 Marks)
Financial Management (60 Marks)
Business Economic Environment (40 Marks)
Information Technology (50 Marks)
Strategic Management (50 Marks)
Information Technology (60 Marks)
Strategic Management (40 Marks)

Changes in CA Intermediate Subjects under CA Inter Syllabus

CA Inter New Scheme Syllabus – Paper 1 : Accounting
Following few topics have been added
  1. Process of formulation of Accounting Standards including Ind ASs and their convergence with International Financial Reporting Standards (IFRSs) and various other International accounting standard setting bodies.
  2. AS 4 : Contingencies and Events occurring after the Balance Sheet Date
  3. AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
  4. AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
  5. AS 12 : Accounting for Government Grants
  6. AS 16 : Borrowing Costs
  7. Cash flow analysis
  8. Branch accounts including foreign branches.
  9. Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion into a company and Sale to a company; Issues related to accounting in Limited Liability Partnerships.
There are few deletions also
  1. As 14
  2. Simple problems of business acquisition
  3. Average due date, account current, self-balancing ledgers
  4. Accounting from incomplete records
  5. Hire Purchase
  6. Accounting in computerised environment
New CA Inter Syllabus – Paper 2 (Part I) : Corporate Laws
No change
New CA Inter Syllabus – Paper 2 (Part II) : Other Laws
Following few topics have been added
  1. Interpretation of statutes and Drafting of simple deeds and documents: Rules of Interpretation of statutes, Aids to interpretation, Rules of Interpretation/construction of Deeds and Documents, Drafting of simple deeds, Resolution, Minutes, Notices and Reports
  2. The Prevention of Money Laundering Act, 2002- Basic structure: Preliminary and Punishment for the Offence of Money laundering
  3. The Consumer Protection Act, 1986: Definitions and Application of the Act, Consumer disputes redressed agencies and Miscellaneous provisions.
  4. Tabular Format of major Labour Acts covering their name, preamble and basic comments
New CA Inter Syllabus – Paper 3 : Cost Accounting
(Proposed Name : Cost and Management Accounting)
Following few topics have been added
  1. Concepts of Activity Based Costing (ABC).
  2. Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,
  3. Short term decision making using the above concepts (basic level).
New CA Inter Syllabus – Paper 4 : Direct Tax Laws and Indirect Tax Laws
There are specific exclusions (Only illustrative)
  1. Section 9A
  2. “Specified deductions in respect of income”, only deductions under section 80JJAA,80QQB, 80RRB and 80TTA are included in the syllabus. All other deductions in respect of income are excluded from the syllabus of new Intermediate course. E.g. Tax Holiday deductions 80IA etc.
  3. Section 44B, 44BB, 44BBA, 44BBB, 44C, 44D and 44DA relating to non-residents/foreign companies are excluded from the syllabus of new Intermediate course.
  4. Rules related to classification of excisable goods and valuation are excluded of both Excise Act and Customs Act.
  5. Declared service [Section 66E], Determination of place of provision of service [Section 66C and Place of Provision of Services Rules, 2012], Bundled Services [Section 66F] and related provisions covered in any of the topics mentioned in the syllabus are excluded from the syllabus of new Intermediate course.
  6. Cenvat Credit Rules has been deleted.
CA Inter New Scheme Syllabus – Paper 5 : Advanced Accounting
Following topics have been added
  1. AS 14 : Accounting for Amalgamations
  2. AS 15 : Employee Benefits
  3. AS 17: Segment Reporting
  4. AS 18 : Related Party Disclosures
  5. AS 21 : Consolidated Financial Statements
  6. AS 22 : Accounting for Taxes on Income
  7. AS 23 : Accounting for Investments in Associates in Consolidated Financial Statements
  8. AS 24 : Discontinuing Operations
  9. AS 25 : Interim Financial Reporting
  10. AS 27 : Financial Reporting of Interest in Joint Ventures
  11. AS 28 : Impairment of Assets
  12. Financial Reporting of Non-Banking Financial Companies and legal and regulatory requirements thereof.
  13. Accounting for Hire Purchase Transactions
  14. Valuation of goodwill
  15. Application of Guidance Notes issued by the ICAI on various accounting aspects. (List attached for reference)
Following topics shifted to Group 1
  1. AS 4 : Contingencies and Events occurring after the Balance Sheet Date
  2. AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
  3. AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
  4. AS 12 : Accounting for Government Grants
  5. AS 16 : Borrowing Costs
New CA Inter Syllabus – Paper 6 : Auditing and Assurance
Following few topics have been added
  • Audit of Banks and Insurance Companies
  • Audit Strategy, Planning and Programming
  • Audit Strategy; Audit planning; Audit programme; Control of quality of audit work Delegation and supervision of audit work; Materiality and Audit Plan; Revision of Materiality; Documenting the Materiality; Performance Materiality; Concept of Principal Auditor and Other Auditor; Acceptance as Principal Auditor; Procedures to be performed by Principal Auditor; Co-ordination between the Principal Auditor and Other Auditor; Relationship between the Internal Audit Function and the External Auditor; Using the work of the Internal Auditor; Documenting the work of Internal Auditor; Auditor’s Expert Meaning; Need for an Auditor’s Expert; Understanding the Auditor’s Expert; Agreement with the Auditor’s Expert; Adequacy of the Auditor’s Expert’s Work.
  • Audit of various items forming part of financial statements in case of banks and insurance companies.
New CA Inter Syllabus – Paper 7 (Part I) : Financial Management
Following few topics have been added
  1. Dividend decisions
Deletion
  1. Fund Flow
  2. Cash flow analysis
New CA Inter Syllabus – Paper 7 (Part II) : Business Economic Environment
It is new paper
  1. Business and Its Economic Environment
    • Introduction
    • Elements of Business Economic Environmen
      • Economic Systems
      • Economic Conditions
      • Economic Policies
  2. Economic Environment in India
    • Economic Planning and Economic Reforms in India
      • Objectives of Planning in India
      • Five-Year Plans
      • Economic Reforms
      • Various Sectors in India- Agriculture, Industry, Service and Infrastructure
      • Agriculture
      • Industry
      • Industrial Growth and Diversification
      • Industrial Policy in India Industrial Policy Resolution 1948
      • Industrial Policy Resolution 1956
      • Industrial Policy Resolution 1991
      • Industrial Licensing Policy
      • Micro Small and Medium Enterprises Policy
      • National Manufacturing Policy
      • Service
      • Infrastructure
  3. Economic Condition in India
    • Economic Growth – National Income and Per Capita Income
    • Poverty in India
    • Unemployment in India
    • Inflation
    • Balance of Payments
    • Financial Environment – Structure of Indian Financial System
  4. Monetary Policy in India
    • Concept and Meaning of Monetary Policy
    • Objectives of the Monetary Policy
    • Impact of Monetary Policy on Business
    • Monetary Policy in India
  5. Fiscal Policy in India
    • Concept and Meaning of Fiscal Policy
    • Objectives of the Fiscal Policy
    • Impact of Fiscal Policy on Business
    • Fiscal Policy in India
  6. Global Economic Environment of Business
  7. Globalization
  8. Trends in Global Economy
Role of World Trade Organization
Foreign Trade Policy of India
New CA Inter Syllabus – Paper 8 (Part I) : Information Technology
Following few topics have been added

Chapter 3: INFORMATION SYSTEMS’S DOMAIN

  • Applying Information Systems to business, Organization and Systems, Domain of Business Information Systems, Information Systems and their role in businesses; IT and Internet as a business enabler & driver;
  • Classification of Information Systems, Concepts of Business Intelligence, Specialized Business Information Systems
  • Business Reporting and fundamentals of XBRL (extensible Business Reporting Language).
Deletion
Flow Chart
New CA Inter Syllabus – Paper 8 (Part II) : Strategic Management
Following few topics have been added
Strategic Management in Government and Not-for-profit organizatio.

CA Intermediate Subject Wise Syllabus

PAPER 1: ACCOUNTING
(One paper – Three hours – 100 Marks)
Contents:
  1. Process of formulation of Accounting Standards including Ind ASs and their convergence with International Financial Reporting Standards (IFRSs) and various other International accounting standard setting bodies.
  2. Framework for Preparation and Presentation of Financial Statements as per Accounting Standards).
  3. Accounting Standards:
    1. Disclosure of Accounting Policies
    2. Valuation of Inventories
    3. Cash Flow Statements
    4. Contingencies and Events occurring after the Balance Sheet Date
    5. Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
    6. Depreciation Accounting
    7. Construction Contracts (Revised 2002)
    8. Revenue Recognition
    9. Accounting for Fixed Assets
    10. The Effects of Changes in Foreign Exchange Rates (Revised 2003)
    11. Accounting for Government Grants
    12. Accounting for Investments
    13. Borrowing Costs
  4. Company Accounts
    • Preparation of financial statements – Statement of Profit and Loss, Balance Sheet and Cash Flow Statement, Statement of changes in Equity and Explanatory Notes;
    • Profit (Loss) prior to incorporation;
    • Alteration of share capital, Accounting for bonus issue.
  5. Cash flow Analysis.
  6. Accounting for Special Transactions:
    • Investment Accounting
    • Insurance claims for loss of stock and loss of profit and
    • Branch accounts including foreign branches.
  7. Advanced Issues in Partnership Accounts in respect of Admission, Retirement and Death of a Partner including treatment of goodwill, Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion into a company and Sale to a company; Issues related to accounting in Limited Liability Partnerships.
  8. Advanced Problems on Financial Statements of Not-for-Profit Organisations.
Note : If either a new Accounting Standards (ASs), Announcements and Limited Revisions to ASs are issued or the earlier one are withdrawn or new ASs, Announcements and Limited Revisions to ASs are issued in place of existing ASs, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified.

PAPER – 2: CORPORATE AND OTHER LAWS
(One paper – Three hours – 100 Marks)
PART I – CORPORATE LAW (60 MARKS)
  1. The Companies Act, 2013 – Sections 23 to 122
    • Prospectus and Allotment of Securities
    • Share Capital and Debentures
    • Acceptance of Deposits by companies
    • Registration of Charges
    • Management and Administration
    • Company Law in a computerized Environment – E-filing.
Note: The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
Part II- OTHER LAWS (40 Marks)
  1. The Indian Contract Act, 1872 (Specific contracts covered from section 76 onwards): Contract of Indemnity and Guarantee, Bailment, Pledge, Agency
  2. The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments, Characteristics
Classification of Instruments, Different provisions relating to Negotiation, Negotiability, Assignability, Right and Obligation of parties, presentment of Instruments, Rules of Compensation.
  1. The Payment of Bonus Act, 1965: Applicability, Definitions, Entitlement of payment of bonus, Minimum and Maximum bonus, Calculation of bonus, Miscellaneous provisions
  2. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952: Introduction, Definition, Various Schemes and other provisions.
  3. 6. The Payment of Gratuity Act, 1972: Extent & Applicability, Definitions, Payment of Gratuity, Calculation, Nominations & Miscellaneous provisions
  4. Interpretation of statutes and Drafting of simple deeds and documents: Rules of Interpretation of statutes, Aids to interpretation, Rules of Interpretation/construction of Deeds and Documents, Drafting of simple deeds, Resolution, Minutes, Notices and Reports.
  5. The Prevention of Money Laundering Act, 2002- Basic structure: Preliminary and Punishment for the Offence of Money laundering
  6. The Consumer Protection Act, 1986: Definitions and Application of the Act, Consumer disputes redressal agencies and Miscellaneous provisions.
  7. Tabular Format of major Labour Acts covering their name, preamble and basic comments
Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. Similarly if any existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute.

PAPER – 3: Cost Accounting
(Proposed name ‘Cost and Management Accounting’)

(One Paper- Three hours- 100 Marks)
(a)Introduction to Cost and Management Accounting
  • Objectives and Scope of Cost and Management Accounting,
  • The users of Cost and Management accounting information- Functions of management accounting.(iii) Role of cost accounting department in an organisation and its relation with other departments.
  • Installation of Costing System
  • Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.
  • Cost terms and Concepts
  • Cost Reduction and Cost Control
  • Elements of Costs
  • Cost behaviour pattern, Separating the components of semi-variable costs, step costs.(x) Methods of Costing, Techniques of Costing.
(xi) Coding Systems.
(b)Elements of Cost and preparation of Cost Sheet
(i) Functional classification and ascertainment of cost
(ii) Preparation of Cost Sheet B. Ascertainment of Cost and Cost Accounting System
(a)Material Cost
  • Procurement procedures- Store procedures and documentation in respect of receipts and issue of stock, Stock verification,
  • Valuation of material receipts
  • Inventory control
  • Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock level
  • Determination of Optimum Order quantity- Economic Order Quantity (EOQ),
  • Techniques of Inventory control- ABC Analysis, FSN, HML, VED, Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios
  • Inventory Accounting
  • Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounts, monitoring consumption.
(b)Employee Cost
  • Attendance and Payroll procedures
Elements of wages- Basic wages, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances and perquisites.
  • Labour Cost Control
  • Labour Turnover- Methods of calculating labour turnover, causes of labour turnover, effects of labourturnover.
  • Utilisation of labour, Direct and indirect labour, charging of labour cost, Identifying labour hours with workorders or batches or capital jobs.
  • Remuneration systems and incentive schemes
Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages.
(c)Direct Expenses
  • Direct expenses and Direct Material
  • Nature of Direct or Chargeable expenses.
  • Sub-contracting- Control on material movements, Identification with the main product or service.
(d)Overheads
  • Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.
  • Behavioural analysis- Fixed, Variable, Semi- Variable and Step cost.
  • Allocation and Apportionment of overheads using Absorption Costing Method.
  • Factory Overheads- Primary distribution and secondary distribution
  • Administration Overheads- Method of allocation to cost centres or products
  • Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.
  • Concepts of Activity Based Costing (ABC).
(e)Recording and Accounting of Costs
  • Non-integrated Accounting system- Ledger under non-integral system
  • Integrated Accounting system- Ledgers under integral system.
  • Relationship and difference between the Non- integrated Accounting system and Integrated Accounting system.
  • Reconciliation of Cost and Financial Accounts.
(a)Job Costing: Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.
(b) Batch Costing: Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective works.
(c)Contract Costing
  • Ascertainment of cost of a contract, Progress payment, Retention money, Escalation clause, Cost plus contract, Value of work certified, Cost of Work not certified.
  • Determination Value of work certified, Cost of work not certified, Notional and Estimated profit from a contact.(d)Process/ Operation Costing
  • Double entry book keeping, Process loss, Abnormal gains and losses, Equivalent units, Inter-process profit, Valuation of work in progress.
  • Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products,
  • By-Products- Methods of apportioning joint costs over by-products, treatment of By-product cost in Cost Accounting.
(e)Operating Costing System
(i) Determination of Costs, Profit and Prices of services of following sectors/ Industries:
– Transport, Hospitals, Canteen/ Restaurants, Hotels/ Lodges, Schools/ Colleges, Financial Institutions/ Banks
D.Cost Control and Analysis
(a)Marginal Costing
  • Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,
  • Comparison of Marginal costing with absorption costing method- Reconciliation of profit under the both methods,
  • Basic concepts of marginal costing, Contribution margin, Break-even analysis, Break –even and profit volume charts, Contribution sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume-Profit Analysis (CVP), Multi- product break- even analysis, Limiting factor (key factor), (iv) Short term decision making using the above concepts (basic level).
(b)Standard Costing
  • Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.
  • Calculation of Variances
-Material Cost Variance, Labour Cost Variance, Variable Overheads Variance, Fixed Overhead Variance and Sales Variances.
(c)Budget and Budgetary Control
  • Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.
  • The use of budget in planning and control
  • Flexible budget, Preparation of Functional budget for operating and non operating functions, Cash budget, Master budget,
  • Introduction to Principal budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios and Budget variances.
NOTE: The relevant Cost Accounting Standards (CASs) as notified by MCA as per Companies Act 2013 will be complied with.

PAPER – 4 : DIRECT TAX LAWS AND INDIRECT TAX LAWS
(One paper ─ Three hours – 100 Marks)
PART I: DIRECT TAX LAWS (60 MARKS)
Contents:
  1. Basic Concepts
    • Income-tax law: An introduction
    • Important definitions in the Income-tax Act, 1961
    • Basis of Charge and Rates of Tax
    • Concept of previous year and assessment year
  2. Residential status and scope of total income
    • Residential status
    • Scope of total income
    • Deemed receipt and accrual of income in India
  3. Incomes which do not form part of total income
    • Incomes not included in total income
    • Tax holiday for newly established units in Special Economic Zones
    • Charitable and religious trusts and institutions: Basic concepts
  4. Heads of income and the provisions governing computation of income under different heads
    • Salaries
    • Income from house property
    • Profits and gains of business or profession
    • Capital gains
    • Income from other sources
  5. Income of other persons included in assesses total income
    • Clubbing of income: An introduction
    • Transfer of income without transfer of assets
    • Income arising from revocable transfer of assets
    • Clubbing of income of income arising to spouse, minor child and son’s wife in certain cases
    • Cross transfers
    • Conversion of self-acquired property into property of HUF
    • Other provisions relating to clubbing of income
  6. Aggregation of income; Set-off, or carry forward and set-off of losses
    • Aggregation of income
    • Concept of set-off and carry forward and set-off of losses
    • Inter-source and Inter-head adjustments
    • Provisions governing set-off and carry forward and set-off of losses under different heads of income
    • Order of set-off of losses
    • Other provisions relating to set-off and carry forward of losses
  7. Deductions from gross total income
    • General provisions
    • Deductions in respect of payments
    • Specific deductions in respect of income
    • Other deductions
  8. Computation of total income and tax liability of resident Individuals
    • Meaning of total income
    • Income to be considered while computing total income of resident individuals
    • Special provisions for spouses governed by Portuguese civil code
    • Procedure for computation of total income and tax liability of resident individuals
  9. Provisions concerning advance tax and tax deducted at source
    • Introduction
    • Direct Payment
    • Provisions concerning deduction of tax at source
    • Certificate for deduction of tax at a lower rate
    • No deduction in certain cases
    • Miscellaneous Provisions relating to deduction of tax at source
    • Advance payment of tax
    • Interest for defaults in payment of advance tax and deferment of advance tax
  10. Provisions for filing return of income
    • Return of Income
    • Compulsory filing of return of income
    • Interest for default in furnishing return of income
    • Specified class or classes of persons to be exempted from filing return of income
    • Return of loss
    • Return of income of charitable trusts and institutions, political parties, universities, colleges etc.
    • Provisions relating to belated return, revised return etc.
    • Permanent account number
    • Persons authorized to verify return of income
    • Other provisions relating to return of income
PART II – INDIRECT TAX LAWS (40 MARKS)
  1. Concept of indirect taxes – General principles, Constitutional aspects
    • Concept and features of indirect taxes
    • Constitutional provisions of indirect taxes
    • Principal indirect taxes
    • Administration of indirect taxes
  2. Introduction to Central Excise Duty and Customs Duty – Basic concepts relating to levy, classification and valuation
    • Concept of excise duty, Types of excise duties, Sources of central excise law
    • Taxable event, Charge of excise duty, Concept of goods and excisable goods, Manufacture, Collection of excise duty,
    • Classification and valuation of excisable goods
    • Small Scale Industry (SSI) exemption
    • Concept of customs duty, Types of customs duties, Sources of customs law
    • Taxable event, Charge of customs duty including exceptions thereof
    • Classification and valuation of imported/export goods
    • Date for determining the rate of duty and tariff valuation of imported and exported goods
  3. Central Sales Tax
    • Basic concepts relating to inter-State sale
    • Sale outside a State
    • Sale in the course of import or export
    • Charge of central sales tax
    • Inter-State stock transfer
    • Rates of tax on inter-State sale
    • Determination of turnover
    • Levy and collection of central sales tax and goods of special importance in inter-State trade
  4. Value Added Tax
    • Basic concepts relating to VAT including its variants, different methods of computation and merits and demerits
    • State-Level VAT
    • Backdrop for State–Level VAT in India
    • Concepts relating to input tax credit
    • Computation of net VAT liability
    • VAT rates
    • Composition scheme for small dealers
    • VAT in relation to incentive schemes
    • Works contract
    • Lease transactions and hire purchase transactions.
  5. Service tax
    • Basic concepts and general principles
    • Concept of service, charge of service tax, negative list of services, date of determination of rate of tax, value of taxable service and rate of exchange
    • Point of taxation of services
    • Exemptions and abatements
    • Valuation of taxable services
    • Registration
    • Invoicing for taxable service
    • Payment of service tax including reverse charge
    • Furnishing of returns
Note – If any new legislation(s) is enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be notified by the Institute. Similarly, if any existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute. Students shall not be examined with reference to any particular State VAT Law. Further, considering that Goods and Services Tax may be implemented in India in near future, the syllabus will accordingly be modified to include the same with effect from the date to be notified by the Institute.
Consequential/corresponding amendments made in the provisions of the direct and indirect tax laws covered in the syllabus of this paper which arise out of the amendments made in the provisions not covered in the syllabus will not form part of the syllabus. Further, the specific inclusions/exclusions in the various topics covered in the syllabus will be effected by way of Study Guide before each examination.
Illustrative list of Inclusions and Exclusions in the syllabus of new Intermediate Course
Paper 4: Direct Tax Laws & Indirect Tax Laws
  1. In respect Part I: Direct Tax Laws, under “2. Residence and Scope of total income”, the provisions of section 9A are excluded from the syllabus.
  2. In respect of Part I:Direct Tax Laws, under “7. Deductions from gross total income” – “Specified deductions in respect of income”, only deductions under section 80JJAA,80QQB, 80RRB and 80TTA are included in the syllabus. All other deductions in respect of income are excluded from the syllabus of new Intermediate course.
  3. In respect of Part I:Direct Tax Laws, under “4. Heads of income and the provisions governing computation of income under different heads” under “Profits and gains of business or profession”, the provisions of section 44B, 44BB, 44BBA, 44BBB, 44C, 44D and 44DA relating to non-residents/foreign companies are excluded from the syllabus of new Intermediate course.
  4. In respect of Part II: Indirect Taxes “2. Introduction to Central Excise Duty and Customs Duty”, in point “Classification and valuation of excisable goods”, an overall idea of concept of classification and scheme of valuation under central excise law is covered in the syllabus. Related rules are excluded from the syllabus of new Intermediate course.
  5. In respect of Part II: Indirect Taxes “2. Introduction to Central Excise Duty and Customs Duty”, in point “Classification and valuation of imported and export goods”, an overall idea of concept of classification and scheme of valuation under customs law is covered in the syllabus. Related rules are excluded from the syllabus of new Intermediate course.
  6. In respect of Part II: Indirect Taxes “5. Service Tax”, Declared service [Section 66E], Determination of place of provision of service [Section 66C and Place of Provision of Services Rules, 2012], Bundled Services [Section 66F] and related provisions covered in any of the topics mentioned in the syllabus are excluded from the syllabus of new Intermediate course.
Specific inclusions/exclusions in the syllabus may be effected by way of Study Guide, approved by the Board of Studies, before each examination. Since tax laws are dynamic in nature, the specific inclusions/exclusions in syllabus may undergo a change with the passing of the Finance Act every year. In Indirect Taxes, the changes may also be on account of notifications and circulars. Accordingly, specific inclusions/exclusions in the syllabus would be effected by way of Study Guide, which would be approved by the Board of Studies, before each examination.

PAPER 5: ADVANCED ACCOUNTING
(One paper – Three hours – 100 Marks) Contents:
  1. Accounting Standards:
    AS 14 : Accounting for Amalgamations
    AS 15 : Employee Benefits
    AS 17 : Segment Reporting
    AS 18 : Related Party Disclosures
    AS 19 : Leases
    AS 20 : Earnings Per Share
    AS 21 : Consolidated Financial Statements
    AS 22 : Accounting for Taxes on Income
    AS 23 : Accounting for Investments in Associates in Consolidated Financial Statements
    AS 24 : Discontinuing Operations
    AS 25 : Interim Financial Reporting
    AS 26 : Intangible Assets
    AS 27 : Financial Reporting of Interest in Joint Ventures
    AS 28 : Impairment of Assets
    AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
  2. Company Accounts
    • Accounting for employee stock option plan, Buy back of securities, Equity shares with differential rights, Underwriting of shares and debentures, Redemption of debentures;
    • Accounting for business acquisition, Amalgamation and reconstruction;
    • Accounting involved in liquidation of companies, Statement of Affairs (including deficiency/surplus accounts) and Iiquidator’s statement of account of the winding up;
    • Financial Reporting of Insurance, Banking companies and Non-Banking Financial Companies and legal and regulatory requirements thereof.
  3. Accounting for Hire Purchase Transactions
  4. Valuation of goodwill
  5. Application of Guidance Notes issued by the ICAI on various accounting aspects. (List attached for reference)
Note: If either a new Accounting Standards (ASs), Announcements and Limited Revisions to ASs are issued or the earlier one are withdrawn or new ASs, Announcements and Limited Revisions to AS are issued in place of existing ASs, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified.
The list of Guidance Notes in Accounting applicable in this paper for a particular exam will be issued separately before the respective examination.
Annexure
Guidance Notes on Accounting Aspects applicable at Intermediate level
  1. Guidance Note on Accrual Basis of Accounting.
  2. Guidance Note on Terms Used in Financial Statements.
  3. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
  4. Guidance Note on Accounting for Corporate Dividend Tax.
  5. Guidance Note on Accounting for Employee Share-based Payments.
  6. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
  7. Guidance Note on Applicability of AS 25 to Interim Financial Results.
  8. Guidance Note on Turnover in case of Contractors.
  9. Guidance Note on the Revised Schedule VI to the Companies Act, 1956 (Now Schedule III to the Companies Act, 2013).
  10. Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013
PAPER – 6: AUDITING AND ASSURANCE
(One Paper- Three hours -100 Marks)
Contents:
  1. Nature, Objective and Scope of Audit
    Nature, objective and scope of Audit; Relationship of auditing with other disciplines; Overview, Standard-setting process, Role of International Auditing and Assurance Standards Board; Standards on Auditing, Guidance Note(s) issued by the ICAI; Inherent Limitations of an audit; Ethical requirements relating to an audit of financial statements; Preconditions for an audit; Audit Engagement; Agreement on Audit Engagement Terms; Terms of Engagement in Recurring Audits; Leadership Responsibilities for Quality on Audits; Concept of Auditor’s Independence; Threats to Independence; Acceptance and Continuance of Client Relationships and Audit Engagements; Responsibility for the Prevention and Detection of Fraud; Fraud Risk Factors; Risks of Material Misstatement Due to Fraud; Communication of Fraud to Management and those charged with governance.
  2. Audit Documentation and Audit Evidence
    Concept of Audit Documentation; Nature & Purpose of Audit Documentation; Form, Content & Extent of Audit Documentation; Completion Memorandum; Ownership and custody of Audit Documentation; Audit procedures for obtaining audit evidence; Sources of evidence; Relevance and Reliability of audit evidence; Sufficient appropriate audit evidence; Written Representations on Audit Evidence; Objective of Auditor regarding Written Representation; Management from whom Written Representations may be requested; Written Representations about Management’s Responsibilities; Obtaining evidence of inventory; Audit procedure to identify litigation & claims; External confirmation procedures; Management’s refusal to allow the auditor to send a confirmation request; Negative Confirmations; Audit evidence about opening balances; Accounting policies relating to opening balances; Reporting with regard to opening balances; Meaning of Related Party; Nature of Related Party Relationships & Transactions; Understanding the Entity’s Related Party Relationships & Transactions; Meaning of Subsequent Events; Auditor’s obligations in different situations of subsequent events; Responsibilities of the Auditor with regard to Going Concern Assumption; Objectives of the Auditor regarding Going Concern; Events or Conditions that may cast doubt about Going Concern Assumption; Audit Procedures when events or conditions are identified.
  3. Audit Strategy, Planning and Programming
    Audit Strategy; Audit planning; Audit programme; Control of quality of audit work Delegation and supervision of audit work; Materiality and Audit Plan; Revision of Materiality; Documenting the Materiality; Performance Materiality; Concept of Principal Auditor and Other Auditor; Acceptance as Principal Auditor; Procedures to be performed by Principal Auditor; Co-ordination between the Principal Auditor and Other Auditor; Relationship between the Internal Audit Function and the External Auditor; Using the work of the Internal Auditor; Documenting the work of Internal Auditor; Auditor’s Expert Meaning; Need for an Auditor’s Expert; Understanding the Auditor’s Expert; Agreement with the Auditor’s Expert; Adequacy of the Auditor’s Expert’s Work.
  4. Risk Assessment and Internal Control
    Risk Assessment procedures; Understanding the entity and its environment; Identifying and Assessing the Risk of Material Misstatement; Documenting the Risks; Elements of internal control; Review and documentation; Evaluation of internal control system; Internal control questionnaire; Internal control check list; Tests of control; Internal Control and IT Environment; Application of concept of materiality and audit risk; Concept of internal audit.
  5. Audit Sampling and Analytical Procedure
    Meaning of Audit Sampling; Designing an audit sample; Types of sampling; Sample Size and selection of items for testing; Sample selection method; Test checking; Techniques of test checks; Nature of analytical procedures; Designing and performing analytical procedures; Investing the results of analytical procedures.
  6. Audit of Items of Financial Statements
    Audit of various items of Financial Statements for e.g. Audit of Sales, Purchase,Receipts, Payments; Verification of Bank Balances; Vouching of items of Income & Expenses; Verification of Capital and Revenue Expenditure; Verification of Assets and Liabilities, Contingent Liabilities; etc. Audit of ledgers for e.g. supplier’s ledger, debtor’s ledger etc.
  7. The Company Audit- I
    Eligibility, Qualifications and Disqualifications of Auditors; Appointment of auditors; Removal of auditors; Remuneration of Auditors; Powers and duties of auditors; Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013; Forming an opinion on the Financial Statements; Auditor’s Report- basic elements; Types of Modified Opinion; Basis for Modification Paragraph; Opinion Paragraph; Emphasis of Matter and Other Matter Paragraph in the Auditor’s Report; Qualifications, Disclaimers, Adverse pinion; Disclosures; Other Important Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder; Nature of Comparative Information; Corresponding Figure; Comparative Financial Statements.
  8. The Company Audit- II
    Audit of Shares, Debentures, Dividends; Verification of issue of Bonus Shares; Specific provisions as regards accounts in the Companies Act, 2013.
  9. Audit of Banks and Insurance Companies
    Audit of various items forming part of financial statements in case of banks and insurance companies.
  10. Audit of Different Category of Entities
    Features and basic principles of government audit; Local bodies and not-for-profit organizations; Comptroller and Auditor General and its constitutional role; Basics of Limited Liability Partnerships (LLPs) audit; Audit of different type of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals, Hire-purchase and leasing companies.
    Note:
    • The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
    • If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute.
PAPER – 7 : FINANCIAL MANAGEMENT
(60 Marks)
Contents
1. Financial Management and Financial Analysis
  1. Introduction to Financial Management Function
    • Objective and scope of financial management
    • Role and purpose
    • Financial management environment
    • Functions of finance executives in an organization (v) Financial distress and insolvency.
  2. Financial Analysis through Ratios
    1. Users of the financial analysis
    2. Sources of financial data for analysis
    3. Calculation and Interpretation of ratios:
      • Analysing liquidity
      • Analysing leverage
      • Analysing efficiency/ activity
      • Analysing profitability
    4. Limitations of ratio analysis
2. Financing Decisions
  1. Sources of Finance
    • Different Sources of Finance, Characteristics of different types of long term debt and equity finance, Method of raising long term finance
    • Different Sources of short term Finance
    • Internal fund as a source of finance
    • International sources of finance
    • Other sources of finance- Sale and lease back, Convertible debt, Venture capital, Grants etc.
  2. Cost of Capital
    • Significance of cost of capital
    • Factors of cost of capital
    • Measurement of costs of individual components of capital
    • Weighted average cost of capital (WACC)
    • Marginal cost of capital
  3. Capital Structure Decisions
    • Significance of capital structure
    • Capital structure planning and designing
    • Designing of optimum capital structure
    • Determinants of capital structure
    • Theories of Capital Structure and value of the firm- relevancy and Irrelevancy of capital structure.
    • EBIT- EPS Analysis, Breakeven- EBIT Analysis.
    • Under/ Over Capitalisation.
  4. Leverages
    • Types of Leverages- Operating, Financial and Combined
    • Analysis of leverages
Capital Investment and Dividend Decisions
  1. Capital Investment Decisions
    1. Objective of capital investment decisions
    2. Methods of Investment appraisal:
      • Payback period, Discounted payback period
      • Accounting Rate of Return (ARR),
      • Net Present Value (NPV)- The meaning of NPV, Strengths and limitations of NPV method, The impact of taxation on the NPV analysis, The impact of Inflation on the NPV analysis, The working capital adjustment in an NPV analysis, Capital rationing, Equivalent Annual Costs, Adjusted present value
      • Internal Rate of return (IRR)- Limitations of the IRR method, Multiple IRRs,
      • Modified internal Rate of Return (MIRR)- Definition and explanation of MIRR, The process for calculating MIRR, Strengths of the MIRR approach.
      • Profitability Index
  2. Dividend Decisions
    • Basics of Dividends
    • Forms of dividend
    • Determinants of dividend
    • Relevancy and Irrelevancy of Dividend Policies- Traditional Approach, Walter’s model, Gordon’s model, Modigliani and Miller (MM) Hypothesis.
Management of Working Capital
  1. Management of Working Capital
    • The management of working capital- Liquidity and Profitability
    • The Working capital financing decisions- Primary and Secondary Sources of Liquidity
    • The working Capital Cycle (operating Cycle), Effectiveness of Working Capital based on its operating and cash conversion cycles
    • Assessment of working capital requirement
    • Management of Accounts Receivables (Debtors),
    • Management of Accounts Payables (Creditors)
    • Management of Inventory
    • Management of Cash, Treasury management
    • Banking norms of working capital finance
Part II: Business Economic Environment (40 Marks) 1. Business and Its Economic Environment
  1. Introduction
  2. Elements of Business Economic Environment
    • Economic Systems
    • Economic Conditions
    • Economic Policies
  3. Economic Environment in India
1. Economic Planning and Economic Reforms in India
  • Objectives of Planning in India
  • Five-Year Plans
  • Economic Reforms
2. Various Sectors in India- Agriculture, Industry, Service and Infrastructure
  • Agriculture
  • Industry
  • Industrial Growth and Diversification Industrial Policy in India Industrial Policy Resolution 1948
Industrial Policy Resolution 1956
Industrial Policy Resolution 1991
  • Industrial Licensing Policy
  • Micro Small and Medium Enterprises Policy
  • National Manufacturing Policy
  • Service
  • Infrastructure
  • Economic Condition in India
    1. Economic Growth – National Income and Per Capita Income
    2. Poverty in India
  • Unemployment in India
    1. Inflation
    2. Balance of Payments
    3. Financial Environment – Structure of Indian Financial System
    4. Monetary Policy in India
      1. Concept and Meaning of Monetary Policy
      2. Objectives of the Monetary Policy
  • Impact of Monetary Policy on Business
    1. Monetary Policy in India
    2. Fiscal Policy in India
      1. Concept and Meaning of Fiscal Policy
      2. Objectives of the Fiscal Policy
  • Impact of Fiscal Policy on Business
    1. Fiscal Policy in India
    2. Global Economic Environment of Business
    3. Globalization II. Trends in Global Economy
      • Role of World Trade Organization
      • Foreign Trade Policy of India
Intermediate (IPC) Paper – 8A: Information Technology
(60 Marks)
Contents
Chapter 1: BUSINESS PROCESSES MANAGEMENT AND IT
  • Introduction to Business Processes and related concepts, Various Business processes – Accounting, Sale, Purchase etc.;
  • Information Processing, Business Process Automation (BPA) – Benefits & Risks, BPA implementation, Business Risks of failure of IT;
  • Theories of Process Management;
  • Business Process Management (BPM) and its implementation, Information as a business asset, Impact of IT on business processes, Change Management Process;
  • Constructing an overview diagram of business processes with an assistance of automated design techniques: Entity Relationship Diagrams and Flowcharts.
Chapter 2: ACCOUNTING INFORMATION SYSTEMS
  • Introduction to Information Systems and its components;
  • Information Systems Development Life Cycle (SDLC) and related key phases;
  • Information Systems and organizational infrastructure;
  • Define Accounting Information Systems (AIS), its types, role and importance to accountants and business, Interrelationship between business processes and Accounting Information Systems.
Chapter 3: INFORMATION SYSTEMS’S DOMAIN
  • Applying Information Systems to business, Organization and Systems, Domain of Business Information Systems, Information Systems and their role in businesses; IT and Internet as a business enabler & driver;
  • Classification of Information Systems, Concepts of Business Intelligence, Specialized Business Information Systems
  • Business Reporting and fundamentals of XBRL (extensible Business Reporting Language).
Chapter 4: INFORMATION TECHNOLOGY RISKS AND CONTROLS
  • Identifying Information Technology Risks, relevant controls and their need;
  • Classification of Controls – Management Control Framework and Application Control Framework.
Chapter 5: TELECOMMUNICATION AND NETWORKS
  • Fundamentals of telecommunication, Components and functions of Telecommunication Systems, Role of telecommunication in Information Systems.
  • Classification of Telecommunication Networks, Digital Data Transmission, Network Topology etc.;
  • Network Architecture, Standards and protocols;
  • Network risks, Controls and Security;
  • Network administration and management – Concepts and Issues
Chapter 6: EMERGING TECHNOLOGIES AND IT ACT, 2000
  • Concepts of Computing Technologies – Grid Computing, Mobile Computing, Cloud Computing: overview and architecture;
  • Emerging technological concepts and latest devices;
  • Risks, Controls and Assurance in Emerging Technologies;
  • Overview of e-Commerce and m-Commerce technologies, Payment Methods; Overview of Specific sections of IT Act, 2000
Strategic Management (40 Marks)
  • Contents
  1. Introduction to Strategic Management
    • Business Policy
    • Meaning and Nature of Strategic management
    • Business Strategy
    • Strategic levels in organizations
    • Strategic Management in Government and Not-for-profit organization
  2. Dynamics of Competitive Strategy
    • Competitive Landscape
    • Strategic Analysis
    • Industry and competitive Analysis
    • Core Competence
    • Competitive advantage
    • Internal and External Analysis
    • SWOT Analysis
    • Globalization
  3. Strategy Making Process
    • Strategic Planning and Decision Making
    • Strategic intent
    • Vision, Mission and Objectives
    • Strategic Management Process
    • Strategy Formulation
  4. Corporate Level Strategies
    • Corporate Strategy
    • Nature, scope and concerns of corporate strategy
    • Strategic Alternatives at Corporate Level
      • Growth
      • Stability
      • Expansion
      • Retrenchment
      • Mergers
      • Acquisition
      • Strategic Alliances
  5. Business Level Strategies
    • Competitive strategies at business level
    • Michael Porter’s Generic Strategies
    • Best-Cost Provider Strategy
  6. Functional Level Strategies
    • Marketing Strategy
    • Financial Strategy
    • Operations Strategy
    • Human Resource Strategy
    • Research and Development
  7. Organisation and Strategic Leadership
    • Organisation structure
    • Strategic Business Unit
    • Strategic Leadership
    • Strategy supportive culture
    • Entrepreneurship and entrepreneurship
  8. Strategy Implementation and Control
    • Strategy Implementation
    • Interrelationships between Strategy Formulation and Implementation
    • Strategic Change
    • Strategic Control
    • Strategic Audit
    • Business Process Reengineering
    • Benchmarking
We hope this article on CA Intermediate Syllabus change has helped you in understanding the new scheme.