Course

Unit 1

Introduction to tax laws – Brief History of Income Tax in India – Concept of tax – Direct and Indirect taxes – Important definitions in the Income Tax Act: Assessee – Deemed Assessee – Assessee in Default – Assessment – Assessment year – Income – Person – Previous Year – Financial Year – Gross Total Income – Total Income – Tax avoidance – Tax evasion.

Unit 2

Determination of Residential status – individual – HUF – Company – AOP or BOI – any other person – Incidence of tax – Exempted income under section 10.

Unit 3

Salaries – Principles of salary – Scope of salary -Definition of term salary – Perquisites – Allowances

– Profits in lieu of salary – Gratuity – Pension – Earned Leave salary – Retrenchment compensation – Leave Travel Concession – Provident fund – Deduction from Gross Salary – computation of taxable salary.

Unit 4

Income from house property – let out house and self-occupied house – annual value – Deemed to be let-out House Property- Unrealized rent – Deemed ownership and Co-ownership – Doctrine of mutuality – house properties exempted from tax – deduction u/s 24 – Computation of income from House Property.

Unit 5

Profits and gains from Business or Profession u/s 28 – Definitions – allowable expenses and disallowable expenses – Income Chargeable under the Head Profits & Gains of Business or Profession u/s 28 – Specific Deductions u/s 29 – Depreciation – Block of Assets – provision related to depreciation – Expenditure on Scientific Research u/s 35 – Other deductions u/s 36 – General deductions u/s 37(1) – computation of Income from Business or Profession Presumptive taxation: u/s’s 44AD, 44ADA, 44AEAC.

Course Objective:

To enable the students to understand the Indian scenario of tax law and familiarise them with the basic concepts of Income Tax Law in India.

Course outcome:

The students will be able to:

CO1: Understand important definitions as per the Income Tax Act

CO2: Determine the residential status and tax incidence for individuals and other entities. CO3: Compute taxable salary considering all components and deductions.

CO4: Compute the income from house property, including allowable deductions under Section 24. CO5: Compute the income from business or profession considering all specific deductions.

Textbook:

1. Dr. H. C. Mehrotra, Dr. S. P. Goyal – Income Tax Law and Practice – Sahitya Bhawan Publications

References:

1. Vinod K. Singhania – Students Guide to Income Tax – Taxmann
2. Bhagwati Prasad – Direct Taxes law and Practice – Wishwa Prakashan