Law of Taxation – Income Tax

Unit I — Introduction

Meaning, Nature and Development of tax laws, Direct and Indirect Forms of Taxation Definition:- Definition of Assessee, Definition of Person, Definition of Income, Agricultural, Income, Previous year and Assessment year, Other Terms.

• 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 — Receipts and Expenditure

Capital Receipts and Revenue Receipts, Capital Expenditure and Revenue Expenditure.

Unit III — Basis of Charge and Scope of Total Income

Basis of Charge, Scope of Total Income, Gross of Total Income, Rounding Off.

• Calculation of Gross Total and Taxable income, Tax rebate and Computation of Tax Liability

Unit IV — Constitution of India and Tax Laws

Sources of Power to tax in Indian Constitution, Entries in Schedule, Financial Relation between Centre and State Planning Commission and Finance Commission, Fundamental Rights and taxing statues

• Constitutional provisions relating to Taxation
• Intergovernmental Fiscal Relations in India — Centre — State Fiscal Relationship and Finance Commission

Unit V — Residential Status and Tax Liability

Determination of Status, Incidence of Tax, Income Received or Deemed to be received, Income accrues or arises or deemed to accrue or arise.

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

Unit VI — Heads of Income

Income from Salary, Income from House Property, Income from Profits and Gains of Business or Profession, Income from Capital Gains, Income from Other sources,

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

Unit VII — Exemption & Deductions

Exemption- Income not forming part of total income, Specific Deduction under Chapter VI.

• Tax Liability Exemption, Deduction, related to individual, Expenses & Income, Rebate, Deemed income and clubbing of income

Unit VIII — Advance Payments & Other Provisions

Provisions in respect of T.D.S., Advance Payment of Tax, Withholding of Tax.