Taxation-I

Paper Code: 
AAF 114
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To develop knowledge and skills relating to the tax system as applicable to individuals, HUF, AOP and Companies

Course Outcome (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

AAF 114

Taxation-I

Upon successful completion of this course, the student will be able to:

 

CO 15: Devise different concepts of Income Tax and determination of the residential status                                                         CO 16: Assess special provisions of income tax related to Computation of Taxable income under the head Salaries                                             CO 17: Assess the provisions of House Property and computation regarding Taxable Income.                    

CO 18: Assess provisions of Income Tax act related to computation of Income under the head Business or Profession                                      CO 19: Assess provisions of Income Tax act related to computation of taxable income under the head Capital Gain

Approach in teaching: Interactive Lectures, Tutorials, Class discussion

 

Learning activities for the students: To give assignments & application based questions

Class test, Semester end examinations, Quiz, Solving Numerical problems in tutorials, Assignments, Class Presentation, Individual and group projects

 

7.00
Unit I: 
UNIT I

Introduction: Definitions- Assessee, Assessment Year, Income, Person, Previous Year, Gross Total Income. Scope of Total Income & Residential Status. Income which do not form part of Total Income.

12.00
Unit II: 
UNIT II

Income under the Head “Salaries” Basis of charge,

Deductions from Salaries, Deduction on Account of Entertainment Allowance, Employment Tax, Inclusive definition of Perquisite Treatment of Medical Facilities, Profits in Lieu of Salary, Treatment of Leave Travel Concession, Gratuity, Commuted Pension, Retrenchment Compensation, Compensation received on Voluntary Retirement, House Rent Allowance and notified special allowances Deduction in Respect of Life Insurance premium, Contribution to Provident Fund etc. Relief when salary is paid in arrears or in advance, etc. Valuation of Perquisites: Rent Free Accommodation, Monetary obligation of employee discharged by employer Life Insurance Premium etc. payable by employer, Fringe benefits or amenity: Motor Car, Services of Sweeper etc. Supply of gas, electricity or water, Educational Facilities

6.00

Computation of Taxable Income under the head House Property: Chargeability and Basis of charge, Computation of Annual Value Treatment of Unrealized Rent, Computation of Income of a    self occupied and let out house Property, Deductions from Income from House Property, Treatment of Unrealized Rent realized, subsequently, Treatment of arrears of rent received, Property owned by co-owners, Deemed ownership   

10.00
Unit IV: 
UNIT IV

Income under the Head “Profits and Gains of Business or Profession” Scope of Income under this head Rent, rates, taxes, repair and insurance for buildings Repair and insurance of Plant, Machinery and Furniture, Depreciation: Treatment of unabsorbed depreciation, Tea Development Account/Coffee Development Account and Rubber Development Account, Site Restoration Fund

Expenditure on Scientific Research, Weighted Deduction on in-house research and development to Company assesse, Expenditure for  obtaining  license  to  operate  tele-communication services

Expenditure on eligible projects or schemes, Deduction in respect of expenditure on specified business, Expenditure  by  way  of  payment  to  association  and institutions for rural development programme, Weighted deduction on agricultural extension project and skill development project, Amortization of preliminary expenses, amortization in case of amalgamation or demerger

Deductions under section 36 of Income Tax Act,1961, General Deductions under section 37, Provisions of section 44A, 44AA, 44AB, 44AD, 44AE, 44B, 44BB, Undisclosed  Income/Investments  under  section 68,  69, 69A, 69B,69C

10.00
Unit V: 
UNIT V

Income under the Head “Capital Gains” Meaning of Capital Gain and Basis of charge (Section 45 and sub sections)

Capital Gain on distribution of assets by companies on liquidation (section 46), Transactions not regarded as transfers, Computation of Capital Gains (section 48), Deemed cost of acquisition (section 48), Computation of capital gain in case of depreciable assets

(section 50) Provisions of section 51, 54, 54B, 54D, 54EC, 54F, 54G, 54GA, 54GB, 54H, Cost of improvement and cost of acquisition, Provisions of section 111A, 112, 115F, 115I.

Essential Readings: 
  • Professional Approach to Direct Taxes- GirishAhuja& Ravi Gupta( Bharat Law House Pvt Ltd, New Delhi
  • Income Tax-Patel ,Choudhary, Sharma, Modi, Bardiya (ChoudharyPrakashan)
  • Income Tax- Agarwal, Jain, Sharma ,Shah, Mangal ( Ramesh Book Depot)
References: 
  • Direct Tax Laws- T.N Manoharan, Snowwhite Publications (P) Ltd
  • Direct Tax Law and Practice- V.K Singhania (Taxmann Publication, New Delhi) Law and Practice of IncomeTax, MrDinkarPagare, (M/S Sultan Chand& Sons)
  • Income Tax for Students-SharadBhargav, (Mashbara Industries)
  • Income Tax; Law and Accounts:- H.C Mehrotra(SahityaBhawan)

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: