Income tax Topics

Indian Taxation System – Overview of Direct Taxes – Constitutional provisions pertaining to taxation –

Basic Principles of Interpretation of Statue – Basic Conceptson Income Tax: Assessee – Person – Assessment

Year – Previous Year – Income – Casual Incomes – Charitable Purpose – Permanent Account Number –

Gross Total Income – Total Income –Tax Rates for an Individual – Average Rate of Income Tax–

Distinction Between Capital and Revenue Items –Concept of Tax Planning – Tax Avoidance – Tax Evasion.

Exempted Incomes: Incomes Fully Exempt and Incomes Partially Exempt – Agriculture Income and its

Assessment – Residential Status – Conditions applicable to an Individual, HUF, Company, Firm and any

Other Persons – Incidence of Tax – Problems on computation of Total Income of an Individual based on

Residential Status.

Meaning of Salary – Characteristics of Salary- Salary u/s 17(1) – Annual Accretion – Allowances –

Perquisites – Profits in lieu of Salary – Deductions u/s. 16. (Including Problems)

Deductions U/s 80 Concerning individual – Computation of Income from Salary – Computation of Tax

Liability. (Including Problems)

Meaning of House Property –Deemed Ownership – Annual Value – Property incomes exempt from Tax –

Determination of Annual Value for Let-out House and Self-occupied House – Deductions u/s. 24 –

Unrealized Rent – Computation of Income from House Property. (Including Problems)

Objective: To acquire the conceptual and legal knowledge about Income Tax provisions relating to

computation of Income from different heads with reference to an Individual Assessee.

Profits & Gains from Business or Profession: Definition of Business and Profession – Chargeability –

Deductions expressly allowed and disallowed – General Deductions – Computation of Profits and Gains

from Business and Profession. (Including Problems)

Depreciation: Meaning – Basis –Rates of depreciation- Assets which qualify for depreciation – Conditions

for claiming depreciation -Block of Assets – Unabsorbed Depreciation. (Including Problems)

Capital Gains: Capital Assets – Meaning – Types – Cost of Inflation Index – Transfer – Transactions not

regarded as transfer – Cost of acquisition of various assets – Deductions from Capital Gains – Exemption

u/s. 54 – Computation of taxable Capital Gains. (Including Problems)

Income from Others Sources: Interest on Securities – Bond Washing Transactions – Casual Income –

Family Pension – Gifts and other general incomes – Deductions – Deemed Income.(Including Problems)

UNIT-IV:AGGREGATION OF INCOME & SET OFF AND CARRY FORWARD OF LOSSES

Aggregation of Income – Set off and Carry Forward of Losses – Income of Other Persons included in

Assessee’s Total Income (Clubbing of Income).(Including Problems)

Deductions from Gross Total Income – Deductions – Rebates and Reliefs – Computation of Total Income

and Tax liability of Individuals – Tax Planning for individual with reference to all heads of income.

(Including Problems)

---

PAPER CODE: 202

MAX. MARKS: 80 T+20 IA

PPW: 3hrs

EXAM DURATION: 3 HRS

Objectives: To make the students capable of finalizing tax liability of HUFs, Co-operative Societies &

Charities and learn the procedure of assessment.

Meaning of HUF under Hindu Law and Under Income Tax Act – Schools of Hindu Law – Share of Income

from HUF Property – Ancestral Property – Coparcener – Conversion of Self-acquired Property into Joint

Family Property – Partition of HUF – Computation of Total Income & Tax Liabilities of HUF(Including

Problems)

Meaning – Provisions relating Co-operative Societies – Computation of Tax Liability of Co-operative

societies, Meaning – Provisions computation of relating to Charitable trusts – Charitable to Charitable/

Religeous Trusts. (Including Problems)

Filing of Return of Income – E-Filing: Procedure E- Verification. Return of Loss – Types of Assessment –

Time Limits for completion of Assessment and Re-assessment – Interest and Penalty for default in filing of

Return of Income

Collection and Recovery of Tax: Deduction of Tax at Source from various heads of income – Tax Collected

at Source from various heads of income – Advance Payment of Tax – Recovery of Tax – Tax Clearance

Certificate – Refund of Tax – Interest Payable by / to the Assessee. (Including Problems)

Double Taxation Avoidance Agreements –– CBDT & Operational Structure – Income Tax Authorities and

their Powers.

Appeals, References and Revision – Advance Rulings – Penalties and Prosecutions – Transfer Pricing –

1. Vinod K. Singhania

: Direct Taxes Laws & Practice

– Taxmanns Publications

2. Vinok K. Singhania

: Students Guide to Income Tax – Taxmanns Publications

3. GirishAhuja and

Dr. Ravi Gupta

: Income Tax – Law & Practice

– Bharat Law Hose Pvt.Ltd.

4. Gaur and Narang

: Income Tax – Law & Practice

– Kalyani Publishers

5. B.B.LAL

: Elements of Income Tax

– Konark Publishers Pvt. Ltd

6. Bhagwati Prasad

: Law and Practice of Income

Tax in India:

– Aligarh Publication