Principle of Taxation

Unit I — Introduction

a. Historical background of the Income Tax Legislation a. Basic concept oftax; how taxis different fromcess,toll and surcharge; direct and indirect taxes · b. Meaning of terms:Income, persons, Assessee,Previous year, Assessment year [sections 2(24), 2(31), 2(7), 3, 2(9) of the Income Tax Act, 1961] · c. Understanding the concept of (i)' application of income' and 'diversion of income. (ii)' capital receipts' and' revenue receipts'; the differences between the two terms and their tax implications. · d. New Act of 2025 – introduction

• History of Tax Law in India
• Nature and Scope of Tax
• Definition: Persons, Assessees, Previous year, Assessment years, Financial year, Income, Gross Taxable Income, Taxable Income, Agricultural Income, Tax Evasion and Tax Avoidance

Unit II — Agricultural Income

a. Definition of' agricultural income'[Section2(IA)I · b. Exemption of agricultural income from Income Tax Act 1961[Section10(1))

Unit III — Residence and Scope of Total Income

a. Determination of residential status of an Assessee (Section 6);Total Income of an Assessee (Section 4 and 5); Income deemed to accrue or arise in India (Section 9) · b. Understanding Place of Effective Management in respect of Control and Management · c. 3. POEM Guidelines, Tax Jurisdictions in global perspective · d. 4.Double Tax Avoidance Agreement and Glimpse of DTAA in Indian Context

• Income Tax, Residential Status: Rules (Sec.6)

Unit IV — Heads of Income

a. Mutual exclusivity of each of the heads of income (Section14) · b. Income from' Salary'(Sections15 to 17), deductions applicable to salaried individuals. · c. Income from House Property (Sections 22 to 27) · d. Income from Profits and Gains of Business or Profession (Sections 28 to 44) · e. Income from Capital Gains (Sections 45 to 55) · f. Income from Other Sources (Sections 56 to 59)

• Heads of Income: Income from Salary, House property, Business and Profession, Capital Gain and other sources

Unit V — Income of Other Persons included in Assessee's Total Income

a. Clubbing of Income (Sections 60 to 63) · b. Clubbing of Income(Section 64)

Unit VI — Assessment

a. Filing of return, belated return and revised return · b. Types of assessment: Self assessment, Scrutiny assessment. Best Judgment assessment (Sections 139 to 145) · c. Income Escaping assessment (Sections 147 to 153)

• Assessment Procedure
• Types of Assessment Income Tax Authority: Their function, Duties and Powers, Appeal, Offences, Fines and Penalties, Settlement of grievances and Prosecution, Income Tax Act, 1961, Income Tax Rules