Personal Tax Planning

Paper Code: 
ATG-517
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to familiarize the students with latest provisions of Indian Tax Laws to derive maximum possible tax benefits admissible under the law.

9.00
Unit I: 

Concept of Tax Planning
Meaning of Tax Planning, Tax Avoidance and tax evasion; objectives of tax planning
Basic framework of Income Tax Law; Canons of Taxation
Tax Planning relating to Residential Status and to agricultural income
Tax Planning with reference to Residential status- Relevance of residential status in computing taxable income, Determination of residential status of an individual, Relationship between residential status and incidence of tax
Provisions in brief relating to concept of agricultural income and its tax treatment

9.00
Unit II: 

Tax Planning with reference to Salary Income
Summarized provisions relating to computation of income under the head salary
Taxation of present benefits
• Bonus, fees and commission
• Meaning, Types and Tax Implications of Allowances
• Meaning, Types, valuation and Tax Implications of Perquisites
• Terminal benefits like gratuity, leave encashment, commuted pension, tax relief u/s 89(1)
Case studies based on designing pay package

9.00
Unit III: 

Tax Planning in respect of income from house property, capital gains and income from other sources
• Computation of income from House Property; Permissible deductions; identifying areas of tax planning based on tax implications’ case studies
Summarized provisions relating to computation of Capital Gains and tax liability;
Identifying assets which do not attract capital gains tax, transaction which are not to be treated as transaction of transfer of assets; identifying leading areas of tax planning- case studies

9.00
Unit IV: 

Summarized provisions relating to computation of income from Other Sources; Identifying income which are exempt (Dividend from domestic company; interest income governed by section 10(15); Gifts covered by exemption
Summarized provisions relating to clubbing of income; Areas of tax planning;
Summarized provisions relating to set off of losses; Areas of tax planning

9.00
Unit V: 

Summarized provisions relating to deduction permissible u/s 80 C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80DDB, 80E, 80EE, 80G, 80GG, 80TTA & 80U. Areas of Tax Planning- case study
Computation of Total Income and Tax Liabilities of Individuals
Due Date of Filing Return of Income / Self Assessment u/s 140 A

Essential Readings: 
  1. How to save income tax by tax planning-R.N Lakhotia(Vision Books New Delhi)
  2. Direct Tax Planning and Management- Vinod. K. Singhania(Taxmann’s
  3. Tax Planning- N. K Sharma(Ramesh Book Depot)
References: 
  1. Tax Management- R.N Lakhotia
  2. Tax Planning via Status in Direct tax matters-Bhargava S.R ,& Jain N.L
  3. Corporate Tax Planning-E.A Shrivastva
  4. Law of Income Tax- A.C Sampath, Iyenger(Bharat Publishing House Allahabad)

Note- The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

Academic Year: 
2018-2019
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