School of Law and Governance

LAW 451 Taxation Law I L T P C

Version: 1.1 4 0 0 4
Pre-requisites//Exposure Constitution-I, Company Law-I
co-requisites SEBI & Investment Laws
Semester VIII
Programme B.A. LL.B.(H) & B.Sc.LL.B.(H)

1. Objective of the Course:

Power to tax had been described as the power to destroy. This idea is being floated often
whenever the state introduces a new tax. Is this true? Is it not necessary that in order to raise
revenue and place the economy on solid foundation, the taxing power should be conferred on the
state? The power to tax shall not go unregulated. In the context of a federal structure the
distribution of the taxing powers assumes added significance. Obviously, a study of the
constitutional framework on taxation becomes important. Along with this, an analysis of the
different laws enacted in exercise of these powers with their safeguards and remedies sheds light
on the mechanics of the taxation by the Union and the States. However, the objective of this
paper is to impart the students the basic principles of direct tax.

2. Teaching Learning Methodology:

Lecture Method

Problem Method

Case Study Method

3. Evaluation Scheme:

Continuous Assessment 30 Points

Attendance 5 Points

Mid-Term 15Points

End Term 50 Points

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4. Course Contents
Module 1: General Perspective

History of Tax in India , Fundamental Principles Relating to Tax Laws

Governmental Financial Policy, tax structure and their role in the national economy,

Concept of tax , Nature and characteristics of taxes and Distinction between: - Tax and fee
- Tax and cess ,
 Basic Concepts under Income Tax Act
 Assesse – S. 2(7)
 Assessment Year S. 2(9)
 Previous year S. 3
 Person S. 2(31)
 Income S. 2 (24), Charge of Income Tax S.4, Scope of total income S.5
 Heads of income S. 14, Gross Total Income
 Total Income and tax liability
 Income not included in total income
 Deemed income Clubbing of income
 Residential status

Select bibliography:

Dr. V.K. Singhania & Dr. Kapil Singhania; Taxman’s Direct Taxex- law and practice,
Taxman Publication pvt. Ltd.

V. K. Singhania - Students guide to direct Taxes

Kanga and Palkiwala, The Law and Practice of Income Tax, Wadha, Nagpur

Ramesh Sharma, Supreme Court on Direct Taxes, (1998)

Sampat Iyengar, Law of Income Tax, (1998)

Income Tax Act[Bare Act]

Kailash Rai, Taxation Law, Allahabad Law Agency

S.R. Myneni, Taxation Law, Allahabad Law Agency.

Module-2: Income from Salary

 Essential norms of salary income

 Basis of charge

 Allowances

 Perquisites and their valuation

 Deduction from salary income

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Select bibliography:

Dr. V.K. Singhania & Dr. Kapil Singhania; Taxman’s Direct Taxex- law and practice,
Taxman Publication pvt. Ltd.

V. K. Singhania - Students guide to direct Taxes

Kanga and Palkiwala, The Law and Practice of Income Tax, Wadha, Nagpur

Ramesh Sharma, Supreme Court on Direct Taxes, (1998)

Sampat Iyengar, Law of Income Tax, (1998)

Income Tax Act[Bare Act]

Kailash Rai, Taxation Law, Allahabad Law Agency

S.R. Myneni, Taxation Law, Allahabad Law Agency.

Module-3: Income from House property

Chargeability

Calculation of Annual value

Proerty income exept from tax

Computation of income from let out house property

Computation of income from self occupied house property

Select bibliography:

Dr. V.K. Singhania & Dr. Kapil Singhania; Taxman’s Direct Taxex- law and practice,
Taxman Publication pvt. Ltd.

V. K. Singhania - Students guide to direct Taxes

 School of Law and Governance

Kanga and Palkiwala, The Law and Practice of Income Tax, Wadha, Nagpur

Ramesh Sharma, Supreme Court on Direct Taxes, (1998)

Sampat Iyengar, Law of Income Tax, (1998)

Income Tax Act[Bare Act]

Kailash Rai, Taxation Law, Allahabad Law Agency

S.R. Myneni, Taxation Law, Allahabad Law Agency.

Module-4: Income from Profits and gains of business or profession

General Principles

Method of acconting

Scheme of deductions and allowances

Basic principles governing admissibility of deductions under section 30 to 44DB

Some deductions which are expressly allowed in respect of expenses/allowances

Select bibliography:

Dr. V.K. Singhania & Dr. Kapil Singhania; Taxman’s Direct Taxex- law and practice,
Taxman Publication pvt. Ltd.

V. K. Singhania - Students guide to direct Taxes

Kanga and Palkiwala, The Law and Practice of Income Tax, Wadha, Nagpur

Ramesh Sharma, Supreme Court on Direct Taxes, (1998)

Sampat Iyengar, Law of Income Tax, (1998)

Income Tax Act[Bare Act]

Kailash Rai, Taxation Law, Allahabad Law Agency

S.R. Myneni, Taxation Law, Allahabad Law Agency.

Module-5: Capital gains & Income from other sources

Meaning of capital assets

Types of capital assests

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Coputation of capital gain

Capital gains exept from tax

Short term and long term capital gain

Basic concept on income from other sources

Some examples on income from other sources

Select bibliography:

Dr. V.K. Singhania & Dr. Kapil Singhania; Taxman’s Direct Taxex- law and practice,
Taxman Publication pvt. Ltd.

V. K. Singhania - Students guide to direct Taxes

Kanga and Palkiwala, The Law and Practice of Income Tax, Wadha, Nagpur

Ramesh Sharma, Supreme Court on Direct Taxes, (1998)

Sampat Iyengar, Law of Income Tax, (1998)

Income Tax Act[Bare Act]

Kailash Rai, Taxation Law, Allahabad Law Agency

S.R. Myneni, Taxation Law, Allahabad Law Agency.

Module-6: Deductions from Gross Total Income

Essential rules governing deductions

Deduction in respect of life insurance premium, deferred annuity, contributions to PF,

subscription to certain equity shares etc.

Deduction in respect of pension fund

Deduction in respect of National Pension System

Deduction in respect of medical insurance premium

Deduction in respect of donations to certain funds, charitable institutions etc.

Deduction in respect of contributions given by any person to political parties or electoral

trust

Deduction in respect of income from business of publication of books

Deduction in respect of royalty income of authors

Deduction in case of a person with disability

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Rebate of Rs 2,000 for resident individuals having total income up to Rs5 lakh

Select bibliography:

Dr. V.K. Singhania & Dr. Kapil Singhania; Taxman’s Direct Taxex- law and practice,
Taxman Publication pvt. Ltd.

V. K. Singhania - Students guide to direct Taxes

Kanga and Palkiwala, The Law and Practice of Income Tax, Wadha, Nagpur

Ramesh Sharma, Supreme Court on Direct Taxes, (1998)

Sampat Iyengar, Law of Income Tax, (1998)

Income Tax Act[Bare Act]

Kailash Rai, Taxation Law, Allahabad Law Agency

S.R. Myneni, Taxation Law, Allahabad Law Agency.