Which Exam Do You Appear In?
✅ Who qualifies as a "New Candidate"?
- Income Tax Inspectors who have passed the Departmental Exam for Inspectors
- Office Superintendents who have passed the Inspector exam
- Tax Assistants who have passed the Inspector exam
- Steno Grade-I & II who have passed the Inspector exam
- Anyone who has not yet attempted the ITO exam under old rules OR attempted but not qualified any paper
📋 Papers to Appear In
- All 5 papers of the New Pattern (DE Rules 2026) are mandatory
- Paper I — IT Law & Taxpayer Services (with books)
- Paper II — Advance Accountancy (without books)
- Paper III — Allied Laws & Office Administration (with books)
- Paper IV — Computation & Drafting (subjective)
- Paper V — IT Applications & Operations (without books)
- No choice — old pattern is not available to new candidates from 2026
📌 Key Rules
- Maximum 10 chances to qualify the examination
- Chances counted from 2010 examination onwards
- No age bar for appearing
- Pass marks: 50% in each paper (45% for SC/ST/PwBD)
- Once you pass a paper, exempt from re-appearing in that paper
- Withdrawal not allowed once application is permitted
ℹ️ Simple rule for new candidates: You have no choice — the New Pattern (DE Rules 2026) with all 5 new papers is the only option. The old DE Rules 2009 pattern is discontinued from 2026 onwards.
⚠️ Who is a "Partially Qualified" Candidate?
- Someone who attempted the exam under DE Rules 2009 (old pattern) and has already passed 1, 2, or 3 papers but not all 5
- Specifically: 3 or fewer papers still unqualified under old pattern
- You are NOT required to re-appear in already-qualified papers
- Old DE Rules 1998 candidates who were mid-way through 2009 matching also fall here
📋 What Papers to Appear In?
- Appear only in the unqualified papers — matched to new pattern equivalents (see table below)
- You must also qualify Paper V (IT Applications & Operations) — compulsory for all regardless of old qualification status
- If you have less than 3 chances left, a minimum 3 chances are guaranteed exclusively for Paper V
| Unqualified Paper (Old Pattern 2009) | Matching Paper to Appear In (New Pattern 2026) | Type |
|---|---|---|
| Paper 1 — IT Law & Computation (Without Books) | Paper I — IT Law & Taxpayer Services (With Books) | Objective |
| Paper 2 — Advanced Accountancy (Without Books) | Paper II — Advance Accountancy (Without Books) | Objective |
| Paper 3 — Allied Laws (Without Books) | Paper III — Allied Laws & Office Administration (With Books) | Objective |
| Paper 4 — IT & Accountancy Combined Practical (With IT Act) | Paper IV — Computation of Income & Drafting (With IT Act) | Subjective |
| No equivalent in old pattern | Paper V — IT Applications & Operations — compulsory for ALL partially qualified candidates | Objective |
⚠️ Important: Passing the matched papers does NOT complete your exam — you must also pass Paper V (new addition with no old equivalent). Note that matched papers in 2026 have broader syllabus — e.g. Paper III now includes Office Administration which was not in old Paper 3.
🔵 Who Can Avail Betterment Chance?
- SC/ST/PwBD candidates who have already fully qualified the examination — but under relaxed standards (at 45% instead of 50%)
- They can re-appear to improve their marks to general standard (50%+)
- Candidates who have NOT fully qualified are NOT eligible for betterment — they must first complete all papers
📋 Papers for Betterment
- If qualified under Old Pattern with relaxed standard: appear in the matching paper(s) as per the paper-matching table
- If qualified under New Pattern with relaxed standard: appear in the specific paper(s) of the new pattern
- Subject to overall ceiling of 10 total chances (inclusive of chances already used)
❌ What Betterment Candidates Cannot Do
- Cannot appear in papers they have already qualified at general standard (50%+)
- Cannot exceed the overall 10-chance limit
- Betterment is only for SC/ST/PwBD — general candidates have no betterment provision
ℹ️ Purpose of betterment: SC/ST/PwBD candidates are allowed to pass at 45% (relaxed standard). Betterment gives them additional chances to reach the 50% general standard, which may help in merit/seniority considerations. This is optional, not mandatory.
Paper-wise Detailed Syllabus — DE Rules 2026
Paper I — Income Tax Law & Taxpayer Services
2026 Updated
100 Marks
▼
100 MCQs. 1/4 mark deducted for every incorrect attempt (changed from 1/8). Bare Acts & Rules permitted in the hall. Divided into Part A Income Tax (90 marks) and Part B Other Acts (10 marks).
What changed in Paper I?
❌ Removed / Old (2019)
- IT Act 1961 only (no IT Act 2025)
- 15 fixed named SC case laws listed
- Wealth Tax Act, 1957 in Part B
- Without books — closed book exam
- 1/8 negative marking
- No Taxpayer Services module
✅ Added / New (2026)
- IT Act 2025 added alongside IT Act 1961
- Case laws: topic-wise categories, 15 marks for SC judgment ratios
- Wealth Tax Act removed from syllabus
- With books — Bare Acts & Rules allowed
- 1/4 negative marking
- New: Taxpayer Services module — TRACES, 26AS, e-PAN, Prefilled ITR, ASK, SEVOTTAM, CPGRAM, E-nivaran (90 marks combined)
Part A — Income Tax & Taxpayer Services 90 Marks
1
Income Tax Act, 1961 (till its applicability) + IT Act 2025 as amended from time to time along with relevant Rules and practical application
2
Taxpayer Services & Digital Service Delivery New
- Taxpayers Charter and service delivery standards
- Practical Applications: Personalized Communication, Digital Platforms
- Proactive Service Delivery — TRACES, 26AS, e-PAN, Prefilled ITR, ASK, SEVOTTAM
- Grievance Redressal Systems — CPGRAM, E-nivaran
3
Case Laws — Supreme Court Judgments Restructured — 15 marks for MCQs based on ratios of SC judgments. Topics for analysis:
- Business expenditure / disallowance
- Capital gains
- Exemption and deduction
- Cash credits / unexplained income
- Reassessment / reopening of assessment
- Search assessments / post-search additions
- Revisional Jurisdiction
* Case laws: topic-wise testing of ratios of SC judgments (no fixed list of named cases anymore). 15 marks allocated.
Part B — Other Acts of Direct Taxes 10 Marks
—
Wealth Tax Act, 1957 Removed — no longer in syllabus
1
Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015
2
Benami Transactions (Prohibition) Amendment Act, 2016
Paper II — Advance Accountancy
2026 Updated
100 Marks
▼
Tests general commercial terms as well. Graduation standard paper. 35% marks are MCQs requiring analytical reasoning and computational understanding. 1/4 mark deducted for every incorrect attempt.
What changed in Paper II?
❌ Removed / Old (2019)
- Departmental / Branch Accounts
- Project expenses — pre & post incorporation (under Company Accounts)
- 7 Accounting Standards only: AS-1,2,7,9,11,19,22
- 1/8 negative marking
- No explicit practical MCQ weight
✅ Added / New (2026)
- Branch/Departmental Accounts removed
- Pre/post incorporation expenses removed
- 5 new Accounting Standards added: AS-10 (PPE), AS-12 (Govt Grants), AS-13 (Investments), AS-16 (Borrowing Costs), AS-29 (Provisions)
- 1/4 negative marking
- 35% marks explicitly for application-based/computational MCQs
1
Accounting Cycle & Final Accounts — Manufacturing, Trading, P&L Accounts and Balance Sheet
2
Partnership Accounts — Including change in constitution & dissolution
3
Company Accounts Modified — Final accounts, issue & forfeiture of shares, contingent expenditure
⚠ Project expenses (pre/post incorporation) removed in 2026
⚠ Project expenses (pre/post incorporation) removed in 2026
4
Hire Purchase, Consignment & Joint Venture Accounts
—
Departmental / Branch Accounts Removed in 2026
5
Depreciation — Straight-line Method and Written Down Value Method
6
Accounting Standards (ICAI) Expanded — 12 AS now (was 7)
- AS-1: Disclosure of Accounting Policies
- AS-2: Valuation of Inventory
- AS-7: Accounting for Construction Contracts
- AS-9: Revenue Recognition
- AS-10: Property, Plant and Equipment New
- AS-11: Effect of Changes in Foreign Exchange Rates
- AS-12: Accounting for Government Grants New
- AS-13: Accounting for Investments New
- AS-16: Borrowing Costs New
- AS-19: Leases
- AS-22: Accounting for Taxes on Income
- AS-29: Provisions, Contingent Liabilities and Contingent Assets New
7
Amalgamation, Absorption & Reconstruction — Basics
📚 Recommended Books: Advanced Accounts — M.C. Shukla & T.S. Grewal (S. Chand); Financial Accounting — R.L. Gupta & V.K. Gupta (Sultan Chand)
Paper III — Allied Laws & Office Administration
Majorly Changed
100 Marks
▼
This paper now covers Allied Laws (50 marks) + Office Administration (50 marks). Books allowed — Bare Acts and FR/SR/GFR Rules provided. 1/4 mark deducted per wrong answer. Office Administration is a brand-new addition in 2026 (previously a separate Paper V).
What changed in Paper III?
❌ Old (2019)
- Allied Laws only (100 marks)
- Without books — closed book
- Hindu Law (Mulla) — general chapters
- Companies Act: different chapter selection
- No Office Administration
- No LLP Act
- 1/8 negative marking
✅ New (2026)
- Allied Laws reduced to 50 marks
- Office Administration added (50 marks) — new!
- With books — Bare Acts, FR/SR/GFR provided
- Hindu Succession Act 1956 (specific Act, not Mulla)
- Companies Act: updated chapter selection (Ch I–II, IV, IX, XV, XX)
- LLP Act 2008 added
- 1/4 negative marking
- Admin: POSH Act, RPwD Act, GeM procurement, Pension Rules 2021, DFPR 2024 — all new
Part A — Allied Laws 50 Marks
1
Indian Contract Act, 1872 — Chapters I to VI
2
Transfer of Property Act, 1882 — Ch-II (Ss.5–11, 44–53A), Ch-III, Ch-IV (Ss.58, 59A, 69, 73, 100, 102, 103), Ch-V (Ss.105–108), Ch-VII, Ch-VIII (Sec.130)
3
Hindu Succession Act, 1956 Changed — Replaces old "Hindu Law by Mulla"
4
Companies Act, 2013 Updated Sections — Ch-I (Ss.1–2), Ch-II (Ss.3–15), Ch-IV (Ss.43–48, 52, 53, 55, 60, 63, 71), Ch-IX (Ss.128–138), Ch-XV (Ss.230–240), Ch-XX (Ss.359–365)
5
Indian Partnership Act, 1932 — Chapters I to VI
6
Civil Procedure Code, 1908 — Order V (summons), Order XVI (witnesses), Ss.60–63 with Order XXI, Order XIX (Affidavits), Order XXVI (Commissions, Rules 1–18), Order XLVII (Review)
7
Information Technology (Amendment) Act, 2008 — Chapters I to V, Chapter XI
8
Right to Information Act, 2005 — Sections 2, 3, 4, 6, 7, 8, 9, 10, 11
9
Limited Liability Partnership (LLP) Act, 2008 New
Part B — Office Administration 50 Marks Entirely New in 2026
1
Fundamental Rules and Supplementary Rules
2
CCS (CCA) Rules, 1965
3
CCS Conduct Rules, 1964
4
CCS Leave Rules, 1972
5
CCS Pension Rules, 2021
6
Delegation of Financial Power Rules, 2024
7
General Financial Rules, 2017
8
Manual of Office Procedure — Vol I, II, and III
9
POSH Act — Protection of Women from Sexual Harassment Act, 2013
10
Rights of Persons with Disabilities (RPwD) Act, 2016
11
Public Procurement via GeM and Contract Management
Paper IV — Computation of Income and Drafting
Subjective
100 Marks
▼
Only IT Act & Rules allowed (narrowed from 2019 which allowed IT Manuals and CBDT Publications). Practical computation (50 marks) + Drafting of Notices & Orders (50 marks).
What changed in Paper IV?
❌ Old (2019)
- Part B: Advanced Accountancy subjective problems (50 marks)
- IT Manuals, CBDT Publications, Ready Reckoner allowed
- Drafting focused on assessments and CSRs
- Part A: Practical application of IT Act for assessments
✅ New (2026)
- Advanced Accountancy removed from this paper (now tested in Paper II only)
- Only IT Act & Rules allowed — IT Manuals removed
- Drafting explicitly structured: statutory notices, assessment orders, penalty orders, ILDP, office communications
- Part A: Computation under heads, exempt income, deductions, set-off, taxable income for individuals/firms/LLP/company, tax/interest/refund
Part A — Computation of Income 50 Marks
1
Computation of income under heads of income
2
Exempt income and deductions from Gross Total Income
3
Aggregation of income, set-off and carry forward of losses, and clubbing of income
4
Computation of total taxable income of individuals, partnership firms, LLP and Company
5
Computation of tax, interest and refund
Part B — Drafting of Notices / Orders 50 Marks Restructured
1
Drafting of statutory notices, including questionnaire and show-cause notices
2
Drafting of assessment orders
3
Drafting of penalty notices and penalty orders
4
Drafting of Income / Loss Determination Proposals (ILDP) New
5
Drafting of basic office communications relating to assessment, demand, refund and rectification
—
Advanced Accountancy (subjective problems) Removed from Paper IV in 2026 — was Part B worth 50 marks in old syllabus; now covered only in Paper II (objective)
Paper V — IT Applications & Operations
Brand New Paper
100 Marks
▼
Completely new paper replacing Old Paper V (Office Procedure). Tests functional capability for IT applications and operations in the Income Tax Department. 100 MCQs, without books, 1/4 negative marking.
What changed in Paper V? (Complete replacement)
❌ Old Paper V — Office Procedure (2019)
- FR/SR rules — TA, joining time, financial powers
- CCS Conduct, CCA, Leave, Pension Rules
- GPF Rules, Cash book, Pay bills
- IT Records & Registers, notices & summons
- Collection & Recovery of Taxes, Refunds
- Search & Seizure, Appeals & Revision
- Internal Audit, Revenue Audit, CBDT circulars
- Reopening assessments, time limitations
- Wealth Tax procedures
✅ New Paper V — IT Applications (2026)
- ITBA Portal — all modules (ITR, Rectification, Recovery, TDS, PAN/TAN, e-Nivaran, MIS)
- Assessment Module — Faceless & non-Faceless
- HRMS in ITBA — roles, access control
- Insight Portal — data handling, e-verification, third-party reporting
- ITD Information Security Policy 2020
- Digital Forensics — DIALs, disk/mobile/cloud/email forensics
- Panchnama, Mazaharnama, Chain of Custody
- Form 65B / Certificate u/s 63(4)(c) BSA
Note: Service/admin rules from old Paper V are now partly in Paper III (Office Administration). IT Office procedures testing has been replaced with ITBA-based digital assessment.
1. ITBA Application Modules New
a
Brief introduction to ITBA Portal
b
ITR processing, Rectification, Recovery, Audit
c
Faceless Appeal, Appeal Register and CSR; Order Giving Effect; Penalty; e-Nivaran
d
PAN and TAN — View/Update NRI Status, Event Marking, Deletion/Restoration, Transfer Orders, Bulk Transfer
e
TDS; Common Functions; MIS-REPORT generation (all modules); Email & Video Conferencing (VC)
2. Assessment Module (Faceless & Non-Faceless) in ITBA
a
Overview, features and functions of assessment
b
Selection of cases and notice generation; Cancellation of cases selected
c
Scrutiny Assessment — issuing notice, reference to TPO/VO, additions/disallowances, sending data to CPC-ITR, feedback capture, passing Assessment Order
d
Manual order upload; Set aside cases for fresh assessment to AO / CIT(A)
3. HRMS in ITBA
a
Role of HRMS in ITBA; User roles and access levels; Role-based access control; Compliance & HR rules
4. Insight Application Module
a
Introduction to Insight Portal; Data Handling; Process Flow; E-verification; Third Party Reporting
5. ITD Information Security Policy 2020
—
ITD Information Security Policy 2020 — full scope
6. Digital Forensics
a
CBDT Digital Intelligence & Analytics Labs (DIALs) standards; Digital Forensics Protocols
b
Handling of Digital Devices on Initiation of Search and post-search
c
Disk, Mobile, e-mail and cloud forensics
d
Cloning, Extraction, Indexing/Clustering; Form 65B / Certificate u/s 63(4)(c) of Bharatiya Sakshya Adhiniyam; Chain of Custody; Panchnama and Mazaharnama