Business Taxation (Major)

Unit

Title and Contents

No. of

Lecture Hours

1

Introduction to Income Tax Act 1961 and Important Concept under the Act:

Tax: Meaning, Concept and Objectives

Income Tax Act -1961- Concepts, Meaning and Definitions, Indian Tax System, Direct Tax and Indirect Tax, Difference between Direct Tax and Indirect Tax, Canon of Taxation, Residential Status & Tax Incidence, Income Exempt from Tax.

Definitions: Income, Person, Assessee, Deemed Assessee, Assessment Year, Pervious Year, Agricultural Income, Exempted Income, Gross Total Income (GTI), Total Taxable Income (TTI), Residential Status of an Assessee, PAN, TAN, Recent Reforms in Direct Tax.

10

2

Heads of Income and Computation of Income under various Heads

   I.      Income from Salary: Concept of Salary, Features, Components of Salary, Allowances- Fully Taxable, Partially Taxable, Fully Exempted, Perquisites and their Valuation, Provident Fund and its Tax Treatment, Standard Deductions, Computation of Income from Salary (Theory and Simple Problems)

   II.   Income from House Property: Meaning, Basis of Chargeability, Gross Annual Value, Net Annual Value, Types of Property- Self Occupied, Let out, and Deemed to be Let out Property, Municipal Tax, Unrealized Rent, Arrears in Rent, Vacancy Period, Deductions u/s 24 (Theory and Simple Problems)

 III.   Income from Profits and Gains of Business and Professions: Definition of Business, Profession, Vocation, Income not Taxable under the Head Profits and Gains of Business or Profession, Expenditures Allowed and not Allowed as Deduction, Depreciation, Methods of Accounting (Theory and Simple Problems)

 IV.   Income from Capital Gains: Meaning, Chargeability-Definitions- Capital Assets, Transfer, Cost of Acquisition, Cost of Improvement, Short Term and Long-Term Capital Gains and Capital Assets, Cost Inflation Index, Deductions Allowed. (Theory only)

    V.   Income from Other Sources: Meaning, Chargeability Method of Accounting, Deductions, Amounts not Deductible. (Theory only)

30

3

Computation of Gross Total Income and Net Taxable Income: Gross Total Income - Deductions u/s-80C, 80CCC to 80 U – Total Taxable Income, Income Tax Calculation of Individual - (Rates/Slabs Applicable for Respective Assessment Year), Education Cess and Higher Education Cess, Surcharge, Difference between Old Tax Regime and New Tax Regime (Calculation of Tax Payable as per Old Regime), Computation of Total Taxable Income (Simple Problems on Old Tax Regime Only)

12

4

Filing Online ITR and Other Important Aspects of Income Tax Act 1961: Due Dates of Filing Return, E-Filing of Income Tax Return (ITR), Types of ITR, (ITR-1 to ITR-5) and Forms used (Form-16 & Form 26AS), Advance Tax, TDS (Tax Deducted at Source), Types of Assessment, AIR (Annual Information Return), SFT (Specified Financial Transactions), Tax Collection at Sources (TCS), Methods of Payment of Tax, (Theory Only)

08