CHRIST UNIVERSITY, Hosur Road, Bangalore

Bachelor of Business Management (BBM) Programme

Course Plan
DIRECT TAX - LAW AND PRACTICE
Name of the faculty Email Suresha.B suresh .b@christuniversity.in Shivi Khanna Birenjan Digal birenjan.digal@christuniversity.in Introduction: The study of Direct tax law and practice is of great importance for management students as it exposes students to the tax environment in India for both individual and corporate assesses. It enables individuals to understand the tax implication on income or profit made through different sources. India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc. Since 1991 tax system in India has under gone a radical change, in line with liberal economic policy and WTO commitments of the country. Some of the changes are: Reduction in customs and excise duties Lowering corporate Tax Widening of the tax base and toning up the tax administration Objective: To familiarize students with Income tax law and computation of taxable income under various heads, and also tax liabilities and other legal obligations as per the Income Tax Act of 1961. Teaching and Learning Approach Each week's teaching sessions will comprise: FIVE - Hour lecture including student Centered Activity During which you will be introduced to the topic for that week. It is important to note that the coverage of each topic during the lecture will be incomplete unless you read the references provided and attempt the tutorial questions that cover that topic. It is important to note that for each topic a set of objectives is given and it is your responsibility to ensure that you meet those objectives. Recommended Text: Income Tax - Law and Practice, By Gaur and Narang, Kalyani Publication, Assessment Year 2011 - 12 Reference Book: Dr. Vinod K Singhania Dr. Kapil Singhania By taxmans Reference Website:

http://www.Incometaxindia.com http://www.legalserviceindia.com

MODULE

TOPICS

DURATION
06 June 11 07th 07th 08th 08th 11th 14
th

HOURS 1 1 1 1 1

METHODOL OGY
Presentation

Completion REMARKS

II

Introduction Introduction To Taxation - Direct And Indirect Tax, Income Tax Act 1961, Income Tax Rules 1962, Finance Act, Scheme of IT An Over-View Basic Concepts - Assesses, Person, Assessment Year, Previous Year, Agricultural Income, Income, GTI, Total Income, Average Rate Of Tax Maximum Marginal Rate Practical Problems on ART Capital And Revenue Concepts Residential Status And Incidence Of Tax Determination of residential status, Sec 6 (1), 6 (6), Exceptions to section 6 (1), 6 (6), Kinds of income, Indian income Foreign income, Practical problems Incidence of tax (U/S 5), Problems on Incidence of tax (U/S 5) Exempted Income Income from Salary Salary definition U/s 17(1), characteristics of salary Chargeability, Provident Fund Types And Taxability Allowances All types and taxability Perquisites, And Their Valuation, Profit in Lieu of salary, Deductions From Gross Salary, Retirement Benefits Introduction Gratuity Leave Encashment Pension

-Do-Do-Do-DoProblem Solving

15 15 16 16 17 18 18 -

1 1 1 1 1 1 1 4 1 1 3 3 2

Presentation Presentation Presentation Presentation Problem Solving Problem Solving Problem Solving Assignment Presentation and Problem Solving -Do-Do-Do-Do-Do-Do-Do-Do-Do-Do-

III

20 20 21 23 24 - 29 29 30 1 July 11 02-05 06-08 09-12

st

IV

Income from house property: Chargeability, Annual value and Its determination, Deductions from Annual value of SOP and LOP U/S 24 Treatment of Vacancy period and Unrealized Rent, Practical problems Profits and Gains of Business and Profession: Meaning Of Business and Profession, Admissible and Inadmissible expenses Sec 30-44D Incomes Chargeable, Computation Of Taxable Income, Deemed Profit And Incomes Treatment of Depreciation Practical Problems Capital Gains: Basis of charge, Meaning of important terms Types of Capital Gains STCG & LTCG, Computation of Capital Gains, Exemptions from LTGC Deductions U/s 54. Deductions U/s 54B Deductions U/s 54D Deductions U/s 54G Deductions U/s 54GA Deductions U/s 54EC Deductions U/s 54ED Deductions U/s 54F (Practical Problems) Income from Other Sources: Chargeability, Incomes taxable, General Incomes Specific incomes Deductions allowed, Grossing up of income, Computation of taxable income Practical problems Clubbing of income

13 14 15 16 19-26

1 1 1 1 6

Presentation and Problem Solving

27 28 th July to 5th August 16 17 18 19 20 - 26 27 27 30 30 September 2 2 3 6 7 8 10 10 13

1 4 1 1 1 1 4 1 1 1 1 1 1 1 1 1

Presentation and Problem Solving

VI

Presentation and Problem Solving

VII

Presentation and Problem Solving 14 15 16 17 20 21 22

1 1 1 1 1 1 1

VIII

IX

Set off and carry forward (concept only) Deductions from Gross Total Income Assessment of individuals: Deductions U/S 80C 80U Computation of total income and tax liability. Case Studies Assessment procedure, income tax authorities and their powers, Collection and Recovery of Tax. Total

23

1 Presentation and Problem Solving

28 28 29

1 1 1 70
Presentation

CIA II ASSIGNMENT TOPIC:

1. Write a comparative report on Finance Bill 2009 and 2011, highlighting the key features with respect to individual and Company Assessee. (10 MARKS) 2. Collect salary details of any TWO employee of any organization and compute taxable income, tax liability as per Form 16. OR 3. You are required to collect the ITR (prescribed form available online for salary income) complete with imaginary figures and submit the same. (10 MARKS)
ASSIGNMENT SCHEDULE: DETAILS CIA II DATE OF SUBMISSION \PRESENTATION 25-07-2011

DETAILS CIA III BOOKS FOR REFERENCE:

Methodology Surprise test/Quiz Viva - Voce Case Solving

1. 2. 3. 4. 5. 6. 7.

Dinkar Pagare, Law and Practice of Income Tax Mahesh Chandra & Goyal, Income Tax Law and practice Gaur & Narang, Law and Practice of Income Tax_ Direct Tax Law And Practice By Dr. Bhagawathy Prasad New Age Publications Direct Tax Law And Practice By Dr. H.P Mehrotra Sahitya Bhavan Publications Students Guide To Income Tax By Dr. Vinod .K. Singhani Tax Man Publications Income Tax Law And Practice By Gaur And Narang Kalyani Publications