PRINCIPLES OF TAXATION (SEMESTER - V)

Module-I: Historical Perspective and Introduction

Unit-1: Historical Perspective of Taxation
Unit-2: Meaning of Tax
a. Types of Tax
b. Difference between Direct Tax and Indirect Tax
c. Characteristics of Tax, Fee and its differences
d. Difference between Tax and Duty
e. Concept of Cess and Surcharge
f. Principle of Ability/Capacity to pay

Unit-3: Taxation under the Indian Constitution

Unit-4: Canons of Taxation and Laffer curve
Unit-5: Characteristics of a Good Tax System.

Module-II: General Perspective

Unit-1: Important Definitions
a. Previous Year g. Agricultural Income
b. Assessment Year h. Average Rate of Income Tax
c. Income i. Business
d. Assesse j. Capital Asset
e. Person k. Company
f. Total Income

Unit 2- Charge (Section 4)

Unit-3: Residential Status of Assesse
Unit-4: Scope of Total Income
Unit-5: Income Exempt from Tax

Module-III: Income from Salaries

Unit-1: Meaning and Characteristics of Salary
Unit-2: Relationship of Employer and Employee
Unit-3: Income from Office not amounting to Employment
Unit-4: Incomes Forming Part of Salary
(a. Basic Salary b. Fees, Commission and Bonus c. Taxable Value of Allowances d. Taxable
Value of Perquisites e. Retirement Benefit)
Unit-5: Deductions from Gross Salary (Section 16 and 80)
Unit-6: Computation of Income from Salary
Module-IV: Income from House Property
Unit-1: Basis of Charge (Section 22)
Applicability of Section 22 (Buildings or lands appurtenant thereto, Ownership of
house property, Property used for own business or profession, Rental income of a
dealer in house property, House property in a foreign country)
Unit-2: Property Income Exempt from Tax
Unit-3: Computation of Income from Let Out House Property
(Determination of annual value, Gross annual value, Deductions under section 24)
Unit-4: Computation of Income from Self Occupied House Property
Unit-5: Deduction from Income from House Property

Module-V: Income from Profit and Gains of Business or Profession

Unit-1: Concept of Profit and Gains
Unit-2: scope of Section 28 (Basis of Charge)
Unit-3: Business, Profession and Vocation
Unit-5: Different Deductions under This Head
a. Schemes of Business Deductions
b. Specific Deductions under this Act
c. Deductions under sections 30 & 31

Module VI Income from Capital Gains and Income from Other Sources
Unit-1: Short Term and Long Term Capital Gains
Unit-2: Set Off and Carry Forward Rule

Module VII Income Tax Authorities

Unit-1: Hierarchy
Unit-2: Appointment
Unit-3: Powers: Search and Seizure- Section 132
a. Fulfillment of statutory Conditions
b. Test of Reason to believe

Module-VIII: Tax Avoidance, Tax Evasion and Tax Planning

Unit-1: Basic Concept of Tax Avoidance, Tax Evasion and Tax Planning
Unit-2: Reason of Tax Avoidance, Tax Evasion
Unit-3: Distinction between Tax Avoidance and Tax Evasion
Unit-4: Recommendation of Wanchoo Committee to Fight Tax Evasion
Unit-5: Effect of Tax Avoidance and Tax Evasion

Module-IX: Miscellaneous

Unit-1: Service Tax

Unit-2: Central Sales Tax and VAT
Unit-3: Introduction to DTC Bill
Unit-4: Introduction to GST Bill
Prescribed Books:

1. A C Sampath Iyengar, The Law of Income Tax, Bharat Law House

2. Chaturvedi and Pithisarias Income Tax Law

3. Girish Ahuja & Ravi Gupta, Direct Tax- Law and Practice

4. Girish Ahuja & Ravi Gupta, Direct Taxes Ready Reckoner (Bharat Publication)

5. Kanga, Palkhiwala and Vyas, The Law and Practice of Income Tax (Lexis Nexis
Butterworths)

6. Vinod K Singhania and Kapil Singhania, Taxmans Direct Tax- Law and Practice.