Azi Tax Law Notes 1.pdf000000000000000000000000000000000000000

MODULE-1
GENERAL PRINCIPLES OF TAXATION LAWS
1. The law of taxation is levied in conformity with the fundamental rightsunder Indian
constitution? Discuss.
2. Explain the term tax and state the different types of taxes.
3. Write a note on difference between tax evasion and tax avoidance.*
4. Discuss history and development of tax laws in India ?
5. What are the fundamental principles of taxation ? What are objectives of Taxation ?
6. Difference between tax, fee and cess ?
MODULE-2
BASIC CONCEPTS OF INCOME TAX
1. Income, Previous year, Assesment year, Person, Assesse,
and Total Income
a) Define Assessment Year ? Difference between Assesment year and Financial Year ?
b) Define Previous Year ? Distinction between Assessment year and Previous Year ?
Exception of Previous Year or What are the cases in which income is assessed in the
same year in which income is earned ?
c) Who is Assesse ? What are the types of Assesse ?
d) Who is a person ? * Book
e) What is Income and Total Income ?* Book
f) Discuss the schemes of Taxation under the New Regime or Default Tax Regime ?*
Laptop
2.Income Not Included In Total Income
a) Explain the concept of income and mention any ten incomes that are exempted
from tax liability. * Book
3.Residential Status of an Assesse
a) Determine the Residential status of an individual ?

Problem 1
Mr. A lived in India for 26 continuous years and went to England on April 1st
2020. He
returnedto India on 15th
February 2022 to take up a salaried job. What is the residential
status of Mr. Afor the assessment year 2022-23?
Problem 2
Dr A an Indian national working in USA visits India every year to visit his parents.
What wouldbe his residential status in the following conditions?
He came to India on 19th
December and stayed up to 5th
February . His total stay
during the preceding seven years was 300 days. Compute his residential status for the
assessment year 2024-25.
Problem -3
‘ X ’ comes to India, for the first time on April 16, 2021. During his stay in India up to
Octobor ,5 2023, he stays at Delhi up to April 10, 2023 and thereafter remains in
Chennai till his departure from India . Determine his residential status for the
Problem - 4
X was born in Chennai in 1992. Later on he migrated to Canada in June 2017 and took
the citizenship of that country with effect from December 26, 2022. His parents were
born in Bengal in 1960 and his grandparents were born in India in 1946. He comes to
India during 2023-24 for a visit of 115 days. During earlier 4 years (i.e., April 1, 2019
to March 31, 2023) he was in India for 400 days. Find out the residential status of X
for the assessment year 2024-25.
Problem -5
‘X’ Foreign national ( not being a person of Indian origin) comes to India for the first
time on 15th April 2019. During the financial year 2019 - 20, 2020 - 21, 2021 –22,
2022-23 and 2023-24, he is in India for 130 days,80 days, 30 days, 210 days and 75
days respectively. Determine his residential status for the assessment year 2024-25 .
Problem -6
X, a foreign citizen (not being a person of Indian origin), leaves India for the first time
in the last 20 years on November 20, 2021. During the calendar year 2022, he comes
to India on September 1 for a period of 30 days. During the calendar year 2023, he
does not visit India at all but comes to India on January 16, 2024. Determine the
residential status of X for the assessment year 2024-25.
Problem -7
X is a foreign citizen (not being a person of Indian origin). Since 1981, he visits India
every year in the month of April for 100 days. Find out the residential status of X for

the assessment year 2024-25.
Problem-8
X is an Indian citizen. Currently, he is in employment with a multinational company
and posted in Singapore. During the previous year 2023-24, he comes to India for a
visit of 145 days. In earlier 4 years, he is in India for more than 900 days. X wants to
know his residential status for the assessment year 2024-25. His annual income for the
previous year 2023-24 is as follows :
Income from salary, rent, consultancy and interest earned and received in Singapore
29,00,000
Income from business (accrued and received outside India, controlled from Singapore)
21,00,000
Income from another business (accrued and received outside India, controlled from
India) 8,00,000
Interest on bank fixed deposits in India 11,00,000
Any other income in India or outside India NIL
Life insurance premium paid in India 2,60,000 .
b) Determine the residential status of an Hindu Undivided Family ?
Problem-1
X, an individual, is resident but not ordinarily resident in India for the assessment
year 2024-25 (previous year 2023-24). During the previous year 2023-24, the
affairs of X (HUF), a Hindu undivided family, whose karta is X since 1960, are
partly managed from Delhi and partly from Nepal. Determine the residential
status of X (HUF) for the assessment year 2024-25.
c) Discuss the relationship between residential status and the incidence of tax ?
Or
The incidence of income tax depends upon the residential status of an Assesse .
Explain .
d) Explain the tax liability of an assessee’s with reference to his residential status
?

4.Clubbing Of Income
a) Examine the provisions relating to clubbing of incomes under the Income Tax Act,
1961.
b) What is the meaning of revocable and irrevocable transfers under the Income-Tax
Act, 1961?
MODULE – 3- HEADS OF INCOME
1. Heads of Income :
a) Salaries
• Discuss the meaning of "salary" as provided under the Income Tax Act, 1961.
What is the basis of chargeability of salary income? Describe the deductions
permissible in computing the income from salary.
• Salary is taxable either on due basis or on receipt basis." Discuss.
• Give the definition of 'profits in lieu of salary' in detail. Whether perquisites
are in nature of voluntary payment?
• What are the different forms salary and how it is taxed ? What are the different
forms of allowances and how it is taxed ?
• What are the perquisites ? when it is taxable and when not ? and how it is
valued for tax puposes ?
• Problems on computation of salary Income ?
b) Income From House Property
• What is the basis of charge of Income from House Property ?
• When is property income not charged to tax ?
• What is the basis computing income from a let out house property ?
• How to compute taxable income from self occupied property ?
• What are the special provisons when unrealized rent is realized subsequently ?
• What is mode of taxation of arrears of rent ?

• Explain the factors to be considered while assessing the taxable income
from house property.
• Explain various deductions available for computation of income from house property .
• Define and explain the term ‘ owner ” in the context of house property ? Does the term
owner includes deemed owner ?
• Can annual value of the property be negative ? How to determine annual value of the
house property ? Give illustration ?
• Discuss the method calculate income from house property for income taxpurposes.
• Problems on computation of property income ?
c) Profits and gains of business and profession
• Define “ business and profession ” under the head profits and gains from business and
profession as per the income tax act , 1961 .
• What is the basis of charge of income under the head ‘ profits and gains of business
and profession ” ?
• What are the basic principles for arriving at a business income ?
• What is the scheme of business deductions / allowances ?
• Explain the various expenses deductible while computing the income under the head ‘
profits and gains from business and profession ?
• What are the deemed profits and how they are charged to tax ?
• What is block of assets ? state the conditions required for granting depreciation
allowance ?
• What are the special provisions for computation of business income ?
• What are the special provisions for computing income on estimated basis under
sections 44AD, AAADA and 44AE .
d)Capital Gains
• What is the basis of charge of income under the head capital gains ?
• Define and classify capital assets ? How to compute short term and long term capital
gains ? Provide the chart for the same ?

• What is included in and excluded from capital asset?
• What is transfer of capital asset ? What is cost of acquisition ? What is cost of
improvement ? What is full valuie of consideration ?
• When and to what extent capital gains is exempt from taxes ?
e) Income From Other Sources
• What is the basis of charge of income from other sources ?
• What deductions are permissible from income from other sources ?
f) Set Of and Carry Forward of losses
• What do you understand by ‘set of losses and carry forward of losses ’? State the
provisions relating to set of and carry forward of losses ?
• Point out the difference between inter-source adjustment and inter head adjustment ?
• What are the losses that can be set of and carry forward under the income tax act act,
1961 ?
g) Permissible Deductions from Gross Total Income
• What are the basic rules of deductions ? State the deductions available to the assesse
under chapter VI-A of the income tax act, with regard to the recent amendments ?
Or
What are the deductions available to the individual and Hindu Undivided family
under Chapter-VI-A of the Incoome Tax Act,1961 ?
h)Agricultural income and its Tax Treatment
• What is agricultural income ? What are the instances of income held to be agricultural
/ non agricultural income ?
• What is the Tax treatment of income which is partly agricultural and partly from
business ?
i) Individuals, Hindu Undivided Families, Computation of
taxable income

• How taxable income of an individual is computed ?
• What is understood by Hindu Undivided Family ? What the basic conditions for
assessment of Hindu Undivided Family ? What is the basis of computation of taxable
income of HUF ?
MODULE- V – POWER AND FUNCTIONS OF INCOME TAX
AUTHORITIES
• Discuss the power and functions of income- tax authorities under the income-tax act.
• What are the duties of the authorities under the West Bengal Sales Tax Act, 1994?
Explain.
MODULE- VI- FILING OF RETURNS AND PROCEDURE FOR
ASSESSMENT
• Classify the various types of assessment and state the procedure the assessing officer
can follow under Income-tax Act, 1961.
• State in detail the provisions relating to the filing of returns under the Income Tax Act,
1961.
• Discuss the provisions of Income Tax Act, 1961 relating to Regular assessment, Best
judgement assessment, and Reassessment.
• What is the time limit for completion of assessment in the Income Tax Act? Why
notice is issued by an Assessing Officer to an assessee under S.142(I).
• Whether belated return can be revised by the assessee? Enumerate the provisions
relating to filing of return under the Income Tax Act, 1961.
• What are the procedures of assessment of income under the Income Tax Act, 1961?
Explain in detail.
• Is it compulsory to file a return of income? If so, what is the time for submission of
the return of income? Can a return submitted by the assessee be revised? Give reason.
• What is a defective return? For the previous year 2013-14, the assessee who has not
submitted the return of income, wants to submit the same on 29-3-16, can he file the
return..
MODULE-VII- CONSTITUTIONAL ASPECT OF GST
• .Write a note on constitutional back ground of GST.

• What is the impact of GST in Centre and State Financial relations ?
MODULE- VIII- GST LAW IN INDIA
• What is dual GST model? Explain its features?
• Explain the provisions governing registration under GST.
• Explain the importance of place supply under CGST and SGST.
• Explain the term supply and state the transaction which are taxable evenwhen no
consideration is paid ?
• Explain the law relating to imposition of GST for union territories in India?
• Discuss the exception on the sale and purchase of securities in GST.
• What are the exemption goods and services under GST .
• What are the different methods of calculation of value of taxable supply ?
• When value of supply shall be the transaction value ? How to determine value of supply
when valuation under aforesaid provisions is not possible ? how to determine the value
of supply where the consideration is not wholly in money ?
• What are the conditions for taking input tax credit ? How input tax credit is allowed for
payment of CGST,SGST,UTGST and IGST .
• How to determine the apportionment of Credit .
• What is electronic liability ledger . What is electronic credit ledger . What is cash ledger
?

MODULE -1 GENERAL PRINCIPLES OF TAXATION LAWS
1:The law of taxation is levied in conformity with the
fundamental rights under Indian constitution? Discuss.
Ans:
Introduction
The system of taxation is the backbone of a nation’s economy which keeps
revenue consistent, manages growth in the economy, and fuels its
industrial activity. India’s three-tier federal structure consists of Union
Government, the State Governments, and the Local Bodies which are
empowered with the responsibility of the different taxes and duties, which
are applicable in the country. The local bodies would include local councils
and the municipalities. The government of India is authorized to levy taxes
on individuals and organisations according to the Constitution. However,
Article 265 of the Indian constitution states that the right to levy/charge
taxes hasn’t been given to any except the authority of law.
Constitutional Provisions Regarding Taxation in India
The roots of every law in India lie in the Constitution, therefore
understanding the provisions of the Constitution is foremost to have a clear
understanding of any law. The Constitutional provisions regarding taxation
in India can be divided into the following categories:
1. Only by the authority of law can taxes be levied. (Article
265)

2. Levy of duty on tax and its distribution between centre and
states (Article 268, Article 269, and Article 270)
3. Restriction on power of the states to levy taxes (Article 286)
4. Sale/purchase of goods which take place outside the
respective state
5. Sale/purchase of goods which take place during the import
and export of the goods
6. Taxes imposed by the state or purpose of the state (Article
276, and Article 277)
7. Taxes imposed by the state or purpose of the union (Article
271, Article 279, and Article 284)
8. Grants-in-Aid (Article 273, Article 275, Article 274, an
Article 282)
Article 265
Without the ‘authority of law,’ no taxes can be collected is what this article
means in simple terms. The law here means only a statute law or an act of
the legislature. The law when applied should not violate any other
constitutional provision. This article acts as an armour instrument for
arbitrary tax extraction.
In the case Tangkhul v. Simirei Shailei, all the villagers were paying Rs 50 a
day to the head man in place of a custom to render free a day’s labour. This
was done every year and the practice had been continuing for generations.
The Court, in this case, held that the amount of Rs. 50 was like a collection
of tax and no law had authorized it, and therefore it violated Art 265. Article
265 is infringed every time the law does not authorize the tax imposed.
Article 266
This article has provisions for the Consolidated Funds and Public Accounts
of India and the States. In this matter, the law is that subject to the
provisions of Article 267 and provisions of Chapter 1 (part XII), the whole or
part of the net proceeds of certain taxes and duties to States, all loans raised
by the Government by the issue of treasury bills, all money received by the

Government in repayment of loans, all revenues received by the
Government
Of India, and loans or ways and means of advances shall form one
consolidated fund to be entitled the Consolidated Fund of India. The same
holds for the revenues received by the Government of a State where it is
called the Consolidated Fund of the State. Money out of the Consolidated
Fund of India or a State can be taken only in agreement with the law and
for the purposes and as per the Constitution.
Article 268
This gives the duties levied by the Union government but are collected and
claimed by the State governments such as stamp duties, excise on medicinal
and toilet preparations which although are mentioned in the Union List and
levied by the Government of India but collected by the state (these duties
collected by states do not form a part of the Consolidated Fund of India but
are with the state only) within which these duties are eligible for levy except
in union territories which are collected by the Government of India.
Article 269
Article 269 provides the list of various taxes that are levied and collected by
the Union and the manner of distribution and assignment of Tax to States.
In the case of M/S. Kalpana Glass Fibre Pvt. Ltd. Maharashtra v. State of
Orissa and Others, placing faith in a judgement of the Apex Court in the
Case of Gannon Dunkerley & Co. and others v. State of Rajasthan and
others, the advocate from the appellant side submitted that to arrive at a
Taxable Turnover, turnover relating to inter-State transactions, export,
import under the CST Act are to be excluded. Thus, the provision of the
State Sales Tax Act is always subject to the provisions of Sections 3 and 5 of
the CST Act. Sale or purchase in the course of interstate trade or commerce
and levy and collection of tax thereon is prohibited by Article 269 of the
Constitution of India.
Article 269(A)

This article is newly inserted which gives the power of collection of GST on
inter-state trade or commerce to the Government of India i.e. the Centre
and is named IGST by the Model Draft Law. But out of all the collecting by
Centre, there are two ways within which states get their share out of such
collection
9. Direct Apportionment (let say out of total net proceeds 42%
is directly apportioned to states).
10.Through the Consolidated Fund of India (CFI). Out of the
whole amount in CFI a selected prescribed percentage goes
to the States.
Conclusion
India is a big country with people belonging to different communities and
different wealth groups and income. Taxation to all cannot be the same.
This is the reason for the tax system in India being a complicated one for
long. India has been grappling with the problem of tax evasion which seems
to be making
+++++++++++++++++++++++++++++++++++++++++
2. Explain the term tax and state the different types of taxes.
Introduction:
Ans:
The payment of tax is beneficial on multiple levels including the
development of the nation, betterment of infrastructure, the upliftment of
the society, and even for welfare activities for the nation.
Types of Taxes

There are two main categories of taxes, which are further sub-divided into
other categories. The two major categories are direct tax and indirect tax.
There are also minor cess taxes that fall into different sub-categories.
Within the Income Tax Act, there are different acts that govern these taxes.
1. Direct Tax
Direct tax is tax that are to be paid directly to the government by the
individual or legal entity. Direct taxes are overlooked by the Central Board
of Direct Taxes (CBDT). Direct taxes cannot be transferred to any other
individual or legal entity.
Sub-categories of Direct Taxes
The following are the sub-categories of direct taxes:
1. Income tax: This is the tax that is levied on the annual
income or the profits which is directly paid to the
government. Everyone who earns any kind of income is
liable to pay income tax.
For individuals below 60 years of age, the tax exemption limit is Rs.2.5 lakh
per annum. For individuals between the age of 60 and 80, the tax exemption
limit is Rs.3 lakh. For individuals above the age of 80, the tax exemption
limit is Rs.5 lakh. There are different tax slabs for different income amounts.
Apart from individuals, legal entities are also liable to pay taxes. These
include all Artificial Judicial Persons, Hindu Undivided Family (HUF), Body of
Individuals (BOI), Association of Persons (AOP), companies, local firms, and
local authorities.
2. Capital gains: Capital gains tax is levied on the sale of a
property or money received through an investment. It
could be from either short-Term or long-term capital
gains from an investment. This includes all exchanges
made in kind that is weighed against its value.

3. Securities transaction Tax: STT is levied on stock market
and securities trading. The tax is levied on the price of
the share as well as securities traded on the ISE (Indian
Stock Exchange).
4. Prerequisite Tax: These are taxes that are levied on the
different benefits and perks that are provided by a
company to its employees. The purpose of the benefits
and perks, whether it is official or personal, is to be
defined.
Corporate tax: The income tax paid by a company is defined as The
corporate tax. It is based on the different slabs that the revenue falls under.
The sub-categories of corporate taxes are as follows:
1. Dividend distribution tax ( DDT): This tax is levied on the
dividends that companies pay to the investors. It applies to
the net or gross income that an investor receives from the
investment.
2. Fringe benefit tax (FBT): This is tax levied on the fringe
benefits that an employee receives from the company. This
include expenses related to accommodation,
transportation, leave travel allowance, entertainment,
retirement fund contribution by the employee, employee
welfare, Employee Stock Ownership Plan (ESOP), etc.
3. Minimum Alternative Tax (MAT): Companies pay the IT
Department through MAT which is governed by Section
115JA of the IT Act. Companies that are exempt from MAT
are those that are in the power and infrastructure sectors.

2. Indirect tax
Taxes that are levied on services and products are called indirect tax.
Indirect taxes are collected by the seller of the service or product. The tax
is added to the price of the products and services. It increases the price of
the product or service. There is only one indirect tax levied by the
government currently. This is called GST or the Goods and Services Tax.
GST: This is a consumption tax that is levied on the supply of services and
goods in India. Every step of the production process of any goods or value-
added services is subject to the imposition of GST. It is supposed to be
refunded to the parties that are involved in the production process (and not
the final consumer).
GST resulted in the elimination of other kinds of taxes and charges such as
Value Added Tax (VAT), octroi, customs duty, Central Value Added Tax
(CENVAT), as well as customs and excise taxes. The products or services that
are not taxed under GST are electricity, alcoholic drinks, and petroleum
products. These are taxed as per the previous tax regime by the individual
state governments.
3. Other taxes
Other taxes are minor revenue generators and are small cess taxes. The
various sub-categories of other taxes are as follows:
• Property tax: This is also called Real Estate Tax or Municipal
Tax. Residential and commercial property owners are
subject to property tax. It is used for the maintenance of
some of the fundamental civil services. Property tax is
levied by the municipal bodies based in each city.
• Professional tax: This employment tax is levied on those
who practice a profession or earn a salaried income such as
lawyers, chartered accountants, doctors, etc. This tax
differs from state to state. Not all states levy professional
tax.

• Entertainment tax: This is tax that is levied on television
series, movies, exhibitions, etc. The tax is levied on the
gross collections from the earnings. Entertainment tax also
referred as amusement tax.
• Registration fees, stamp duty, transfer tax: These are
collected in addition to or as a supplement to property tax
at the time of purchasing a property.
• Education cess: This is levied to fund the educational
programs launched and maintained by the government of
India.
• Entry tax: This is tax that is levied on the products or goods
that enter a state, specifically through e-commerce
establishments, and is applicable in the states of Delhi,
Assam, Gujarat, Madhya Pradesh, etc.
• Road tax and toll tax: This tax is used for the maintenance
of roads and toll infrastructure.
++++++++++++++++++++++++++++++++++++
3. Write a note on difference between tax avoidance and tax evasion.
Introduction:
Ans:
Every assessee wants to escape from paying taxes, which encourages them
to use various means to avoid such payment. And when it’s about savings if
taxes, the two most common practices that can be seen all around the

world are tax avoidance and tax evasion. Tax avoidance is an exercise in
which the assessee legally tries to defeat the basic intention of the law, by
taking advantage of the shortcomings in the legislature.
1. Meaning
Minimization of tax liability, by taking such means which do not
violate the tax rules, is Tax Avoidance.
Reducing tax liability by using illegal ways is known as Tax Evasion.
2.Attributes
Immoral in nature, which involves bending the law without breaking it.
Illegal and objectionable, both in script and moral.
3.Concept
Taking unfair advantage of the shortcomings in the tax laws.
Deliberate manipulations in accounts resulting in fraud.
4.Legal implication
Use of Justified means Use.
Use of such means that are forbidden by law.
5. Happened when
Before the occurrence of tax liability.
After tax liability arises.
6.Type of act
Legal .
Criminal .
7.Consequences
Deferment of tax liability .

Penalty or imprisonment .
8.Objective
To reduce tax liability by applying the script of law.
To reduce tax liability by exercising unfair means.
++++++++++++++++++++++++++++++++++++++
4. Discuss History and development of Tax laws in India .
Ans:
History of income tax in India
In the year 1860, the tax was first introduced in India by Sir James Wilson
with the intention to meet the losses sustained by the government due to
the Military Mutiny of 1857. In the year 1918, a new income tax has been
passed and again it was substituted by another new act which was passed
in 1922. This Act remained in operation up to the assessment year 1961-62
with several amendments.
History of Income-tax in India in the Ancient times
In India, the system of direct taxation came into force in one form or
another even from ancient times. There are references has been made to
both in Manu Smriti and Arthasastra to a diversity of tax measures. The
thorough analysis provided by Manu Smriti and Arthasastra on the subject
clearly showed the existence of a considered taxation system, even in
ancient times. Not just this, also taxes were imposed on various classes of
individuals like actors, dancers, singers and even dancing girls. Taxes in the
ancient times were payable in the shape of gold-coins, cattle, grains, raw
materials and also by providing personal service.
Manu Smriti:

The Manusmrti is the earliest and predominant source of income tax
provisions. Manusmrti gives emphasis to the strategic imposition as well as
regulation of income tax on the subjects.
According to it, taxation must not be a painful experience for the subjects.
The taxation must be right enough that it could fulfill a reasonable revenue
target in addition to feels right towards the masses.
The Income Tax provisions as given by the Manusmrti are:
• Traders would pay 20% of Income
• Artisans would pay 20% of Income
• Agriculturists would pay1/6, 1/8, or 1/10 of the value of total
production.
The rates differ according to the circumstances influencing crop production.
Moreover, the traders and artisans were obligatory to pay Income tax in the
form of gold or silver.
Arthashastra
The Arthashastra is one more prominent source of taxation laws as well as
provisions in India. The Arthashastra could be considered as the primary
Indian text mentioning public finance, financial administration, and
financial laws in a structured manner.
The book has been written by Kautilya in around 2300 BC. It was accredited
to have a huge impact on the development of the Income Tax system in
India.
Kautilya hinted the taxation system as per the principle of “maximum
welfare to the society.”
The text considered establishing a defined taxation code. The policies, tax
slabs, and duty of tax collectors have been pre-determined in the book.
Also, the schedule of every payment, due dates of payment, quantity, and
type of commodities accepted were also encoded.
The Income Tax provisions as stated by the Arthashastra are;

• Agriculturists would pay 1/6 of produce as a flat rate for land taxation
• The affluent would pay higher taxes, and less privileged were levied with
lower taxes
• Rule of the book with limited flexibility towards tax collectors
Development of Taxation laws in Pre- independence:
The Income Tax Act of 1860
The tax policies passed by the British government of India made the most
influencing effect of the contemporary tax system of India.
The policy of income tax laws which has been structured under the British
India rule could be credited to the well-known event of mutiny. The mutiny
of 1857 through Indian soldiers of the British army caused huge losses
towards the British government of that time.
The Income Tax Act was presented in the year 1860 in order to meet the
losses experienced as a consequence of mutiny. The Act of 1860 was
applied for a period of 5 years and quashed accordingly.
The main features of the Income Tax Act 1860 are;
• Exemption of earnings from agriculture produce from taxation
• Premiums payable for Life Insurance were exempted from Taxation
• Hindu Undivided Family were addressed as a separate taxable unit
The Income Tax Act of 1918 made some major changes in the income tax
system. For the very first time, the receipts and deductions of casual or non-
occurring nature were also incorporated under the computation of taxable
incomes.
The prominent features of the Income Tax Act 1860 are as followed;
• The receipts of non-re-occurring nature happened during business or
professional operations were also incorporated in computing net income.

• Deductions of non-re-occurring were incorporated in computing taxable
income.
The income tax of 1922 was the most noteworthy milestone in the history
of the income tax system in India. The Act is accredited to represent the
primary organized income tax structure in India.
The Act of 1922 furnished the much-required flexibility in the taxation
system of India for Income Tax. Furthermore, it placed a proper system of
tax administration in India that continued to be in function for the next 40
years.
The features of the income tax act 1922 are;
• The rate of taxes was decided as per the budgetary requirements of the
prevailing period
• Amendments in the Act was no longer a necessity to make changes in
the rate of tax imposition
Tax Mechanism After independence
The Income Tax Act of 1922 was the leading book for income tax in India
until 1962. The Act then experienced many amendments ever since its
enactment.
Though, a new act, the Income Tax Act of 1961, has been enacted by the
government in the year 1961. The history of income tax in India arrived in a
new period after enactment of the same.
The Act of 1961 is the governing Act for income tax India till now. The
income tax rules of 1962 followed the Act.
The features of the Income Tax Act 1961 are as follows;
• Income tax was levied on income under five heads, they are;
1. Income from earnings
2. Income from business and profession

3. Income in the form of capital gains
4. Income from house property
5. Income from other sources
• A system for revenue audit was presented for the first time to compute
taxes in India.
• The evaluation system for the responsibilities discharged through the
income tax officers came into force
The Ancient Taxation System Impact on the History of Income Tax in India
The ancient system of taxation had a considerable influence on the present
taxation system. Numerous taxation policies and processes could be
sourced back to ancient times.
Contemporary taxation System
The current income tax system is administered through the provisions of
the Income Tax Act 1961. However, the prevailing tax system experienced
many changes and amendments from the time of the implementation of
the Act of 1961.
Although the organizational structure of the tax system is derived from
1961, the provisions changed at regular intervals. The moves were inspired
by the advisory of tax committees as well to suit the needs of the hour.
The income tax slab of a year can be inconsistent in comparison to the
previous years. There can be changes in the list of direct taxes as well as the
type of taxes that can be further defined by the government.
The present income tax system addresses the requirement for
contemporary taxpayers. The structure of taxation went through numerous
changes to make taxation a hassle-free experience for the subjects as well
as the tax collection authorities.
Conclusion

The History of income tax in India assists to understand the origin of current
income tax practices. The intuitive legacy of ancient tnaxation rules
functions as a guiding light for the existing tax administration in India.
+++++++++++++++++++++++++
5. What are the fundamental principles and Canons of taxation ? What
are objectives of Taxation ?
Ans:
Fundamental Principles of Taxation :
The objective of raising funds for developmental activities of the
government is based on the following principles of taxation. The principles
of taxation are
1. Neutrality
2. Non-neutrality
3. Equality, and
4. Equity
Equality principle is divided into two again, that are
a. The benefit principle, and
b. The ability to pay principle
Similarly, Equity principle is again sub divided into there, that are;
a. Horizontal equity
b. Vertical equity, and
c. The benefit principle
Principles of taxation and its sub divisions are explained below.
1. Neutrality: Tax system should be designed to be neutral.
That is, it should disturb market forces as little as possible.
The concept of ‘tax neutrality’ refers to a tax system that
does not influence personal and financial choices and does

not create a bias for taxpayers in choosing one investment
over another. Some investments will give us tax benefits.
For example, approved donations, investments in mutual funds, shares and
pension funds, life insurance and health insurance premiums etc.
2. Non-Neutrality: There is, however, an important
modification that must be made to the neutrality principle.
In some cases, it may be desirable to disturb the private
market. The government might tax polluting activities so
that firms will do less polluting. This is needed for
protecting the environment for future generations.
Another example is the tax on cigarettes, or alcohol which, in addition to its
prime object of raising revenue for the government, also discourages
cigarette and alcohol consumption. So, there is the need to meet social
objectives by imposing taxes. Thus, non-neutrality concept is opposite of
neutrality concept. Both these principles are used by the government while
taxing income based on the criteria and need of the hour.
3. Equality: Taxes represent both sacrifice and compulsion.
Therefore, it is important that, taxes be both fair and give
the appearance of being fair.
There are, however, two different principles for judging fairness, which are
explained below:
(a) The Benefit Principle: The Benefit Principle simply
holds that, different individuals should be taxed in
proportion to the benefit they receive from
government programmes. A person’s taxes should
be related to his (or her) use of collective goods like
public roads, government hospitals, dam,
streetlights, subsidies or parks. Those who receive
numerous benefits should pay more than those
who receive few.

(b) The Ability-to-pay Principle: It is the principle that
states that, individuals should pay taxes according
to their ability to pay. But if it sets taxes according
to ability to pay, the rich should pay more than the
poor. The ability-to-pay principle simply states that,
the amount of taxes people pay should relate to
their income or wealth.
4. Equity: Taxation involves compulsion. Therefore, it is
important for the tax system to be fair. On grounds of
equity, it has been suggested that a tax system should be
based on a principle of equal sacrifice or ability to pay. The
latter is determined by (a) income or wealth, and (b)
Personal circumstances.
Equity can be of three types, horizontal, vertical equity and the benefit
principle which are explained below;
(a) Horizontal Equity: There are three distinct
concepts of tax equity. The first is horizontal equity.
Horizontal equity is the notion that, equally
situated individuals should be taxed equally. More
specifically, persons of equal income should pay
identical amounts in taxes.
(b) Vertical Equity: The ethical base of this principal
rests on the assumption that, one rupee paid in
taxes by a rich person represents less sacrifice than
does the same rupee tax paid by a poor man and
that fairness demands equal sacrifice by both rich
and poor in support of government. Thus, a rich
man must pay more money in taxes than would a
poor man for each to bear the same burden in
supporting services provided by the government.
(c) The Benefit Principle: The principle recognises
that, the purpose of taxation is to pay for

government services. If taxes are imposed
according to the benefit principle, people pay taxes
in proportion to the benefits they receive from
government welfare measures.
So, it is not possible to implement the principle in practice. Most people will
enjoy the benefits of public expenditure, subsidies etc, but will be reluctant
to pay taxes. To overcome this problem, an alternative principle has been
suggested, viz., the ability to pay principle.
+++++++++
CANONS OF TAXATION
Cannons of taxation are important to tax income. Economist Adam smith
has suggested that tax system should be based upon some principles or
canons. These are also known as the qualities of a good tax system. The
following are the canons of taxation;
• Canon of Ability
The canon of ability states that, a person should be made to pay taxes
according to his ability to pay.
• Canon of Certainty
The principle of certainty requires that, the tax which every individual has
to pay should be certain and not arbitrary. Similarly, when to pay, where to
pay, how much to pay etc.
• Canon of Convenience
The time and manner of tax payments should be made as convenient to tax-
payers as possible. As we can pay taxes and file returns online.
• Canon of Economy
This cannon insists on minimizing the expenditure of tax collection.
Accordingly, e- filing is introduced for assesses to pay tax online. Similarly,
GST, the indirect tax is also collected and paid online and monthly
statements are entered online.

• Canon of Elasticity
A tax should be sufficiently elastic in yield. The amount of tax ought to be
so contrived that, it can be varied according to the needs of the
government. The government will increase the income tax according to the
requirements of government. Especially in times of COVID government has
increased the income tax to meet the government expenses.
• Canon of Productivity
All taxes should be productive. It is better not to impose a tax whose yield
is negligible. The canon of proproductivity implies that, taxes should be
imposed in such a manner as not to hamper production or to decrease the
volume of resources collected. In other words, the levy of a tax should not
only increase the income of the State, it must not also destroy the
incentives of the people to undertake productive enterprises.
+++++++++
OBJJECTIVES OF TAXATION
The main objective of taxation is to raise revenue to meet huge public
expenditure to meet the macroeconomic objectives of the government.
The objectives of taxation are explained below:
• Economic Development: One of the important objectives
of taxation is economic development. Economic
development of any country is largely conditioned by the
growth of capital formation. To step up both public and
private investment, government taps tax revenues. The tax
policy has to be employed in such a way, investment occurs
in the productive sectors of the economy, including the
infrastructural sectors, thus promoting economic growth
and development.
• Redistribution of Income: To finance the government
policy of redistribution of income and wealth, governments
usually take money from the wealthier members of the
economy, usually through Progressive taxation, and gives it

to the those on lower incomes often through benefits,
public services etc. Luxury items are taxed heavily and
essential items are not. For example, state governments are
distributing essential Items kit for ration card owners and
migrant workers. So, they will not be affected with
lockdown, curfew, loss of job etc.
• Price stability: One of the objectives of the government is
to ensure price stability. Taxes are regarded as an effective
means to control Inflation. By raising the rate of direct
taxes, spending can be controlled. In case of Deflation,
demand can be increased by cutting taxes, which will result
in an increase in disposable income and increase in
aggregate demand
• Full employment: To achieve full employment of resources
in the economy, a country must cut down taxes.
Consequently, disposable income will rise and hence
demand for goods and services will rise. Increase in demand
will stimulate investment, leading to rise in income and
employment through the multiplier mechanism.
• Reduction in Balance of Payment difficulties- Tax policy
may be introduced to promote exports and imports could
be restricted by imposing higher import duty such as tariffs.
A rise in income tax will reduce disposable income, leaving
households less income to spend on imports. This will help
to correct Balance of Payment difficulties.
In short, we can say that, taxes are the source of income for government.
All the expenditure of government are met through taxes, whether it is
providing public utilities, balance of payments, government subsidies,
welfare schemes etc.

++++++++++++++++++++++++++
6.difference between Tax, Fee and Cess ?
Ans:
Tax:
The term tax is derived from the Latin word “taxo” and “taxare”, which
means “rate” and “to assess”, respectively.
According to Dalton, a tax is a compulsory contribution imposed by a public
authority, irrespective of the exact amount of service rendered to the
taxpayer in return and not imposed as a penalty for any legal offence.
In Commissioner HR & CE v. Lakshmendra, the court defined “tax” as a
compulsory extraction of money by public authority for public purpose
enforceable by law and is not payment for service rendered.
In Mathews v. Catchory Marketing Board, the court defined “tax” as a
public levy which cannot be weighed in terms of actual services rendered.
❖ Cess:
According to Jas Bains, cess is used to describe a tax on a tax.
Cess is a form of tax levied over and above the existing tax liability of
taxpayer. It is usually imposed when the state or Central government looks
to raise funds for a specific purpose. For example, the government levies an
educational cess to generate additional revenue for funding primary
secondary and higher education.
❖ Difference between Tax and Cess:
1. Cess is different from taxes such as direct tax, indirect tax, excise duty,
etc. as it is charged over and above existing taxes.
2. All the tax collected goes to consolidated fund of India or of respective
state, but in cess it must be used for the purpose which it was collected. If
the cess collected in a particular year goes unspent, it cannot be allocated
for other purposes. The amount gets carried over to the next year and can
only be used for the cause it was meant for.
❖ Difference between Tax and Fee:

1. Tax is a compulsory levy and enforced by law,
whereas, fee is only compulsory if one needs to render its services.
2. All the tax collected are merged with the consolidated fund,
whereas, fees collected are not merged with consolidated fund.
3. In case of tax it is left to the discretion of the government to use it
for any public benefit,
whereas in case of fee it is set apart only to cover the expenses for
which it is collected.
4. Tax is discriminatory in nature,
whereas, fee is not discriminatory in nature.
5. The ultimate object of tax in a welfare state is to bring social order,
whereas, the ultimate object of fee can only be for regulation of
social order.
6. Tax changes when the base changes and the capacity to pay
principle is followed,
where are used in case of fees it is levied uniformly and no capacity
to pay principle is followed.
++++++++++++++++++++++++++
MODULE-2
BASIC CONCEPTS OF INCOME TAX
Income, Previous year, Assesment year, Person, Assesse, and Total
Income
• Define Assessment Year ? Difference between Assesment year and
Financial Year ?
Ans:
Assessment Year
Tax is levied on the total income of the previous year of an assessee in the
respective assessment year. This is given under section 4 of the Income Tax
Act 1961.This statement explains the two basic terms which are related to

each other and very important terms in learning income tax. The two terms
are (a) assessment year, and (b) previous year
Assessment Year: Section 2(9)
Assessment year is the twelve months commencing on the first day of April
every year.
For example, this year the assessment year is April 1st
2022 to March 31st
2023.From1990 onwards, it is uniform financial year followed by all
assesses, that is April 1st to March 31st
. This rule is important as people
follow different financial year to maintain books of accounts like Diwali to
Diwali, January to December, Ugadi to Ugadi etc. For filing tax returns
irrespective of the way, they keep books of accounts uniform financial year
is followed.
Difference Between Assessment Year and Financial Year
Assessment year comes after the financial year. We have to evaluate the
income of the previous year and pay tax for that. Nobody can be asked to
pay tax before it is earned. Some people may change jobs, make new
investments, sell assets etc. These changes may happen during the financial
year. Thus, assessment year starts after the financial year ends. The
distinction between assessment year and financial year is given in the
following table;
1.Based on Income Tax perspective
Assessment year : Assessment year is the Year in which your income is
assessed .
Financial year : Financial year is the year you earn income.
2.Sequence
Assessment year: Assessment year follows
Financial year : Financial year comes first.
3.Represented as :
Assessment year: A.Y

Financial year – F.Y
++++++++++++++++++++++++++++
• Define Previous Year ? Distinction between Assessment year and
Previous Year ? Exception of Previous Year or What are the cases in
which income is assessed in the same year in which income is
earned ?
Ans:
Previous Year Section 3
Previous year is the year preceding the assessment year. The current financial
year is the previous year. The previous year for This year is 2019 April 1st
to
March 31st
2021.All the assesses are required to follow the April 1st
to March 31st
financial year, even if in the case of a newly set up business, or a new job where
the Financial year can be less than twelve months. From the subsequent years,
it will automatically become twelve months like in all other assesses. The
financial year cannot exceed twelve months.
Distinction Between Assessment Year and Previous Year:
1.Meaning
Assessment year is the year in which income is earned and assessed .
Previous year is the year in which the sources of income are collected.
2.Duration
Assessment year :It has to be twelve months .
Previous year : It can be less than or equal to twelve months, if the activity
started late or twelve months if the activity continued for the Entire year.

3.Relation with Financial year
Assessment Year : It is the current financial year.
Previous year: It is the financial year. Preceding the current financial year
Exceptions :
Cases in which Income is Assessed in the Same Year in which it is Earned General
rule for income tax assessment is that, income earned during the previous year
is taxed in the immediately preceding assessment year. But there are certain
exemptions
To this rule, because, if it is not taxed in the year of receipt it may be difficult to
collect tax in these cases.
• Non – Resident Shipping Companies: These shipping companies
carry cargo and passengers from Indian ports. The income is
taxed in the same year itself, if they do not have any
representative in India to pay tax during the assessment year.
• Persons Leaving India: People leaving India with no intention to
come back or migrating to a foreign country, there income is
taxed in the year in which it is earned and before they leave
India.
• Association of Persons or Body of Individuals or Artificial
Juridical Person formed for a limited period: For example, if an
association of persons is formed for six months for construction
of a flyover, or building after the construction is over, the
business organization is discontinued. Therefore, tax is
calculated in the year of receipt itself.
• In the case of persons who are likely to transfer their assets to
avoid tax: For persons those who are likely to sell their assets
for example, a person cheated bank and trying to leave country
with an intention to avoid tax, income of such person or persons
is taxed in the year of receipt itself.

• In case of discontinued business: In the case of discontinued
business, the income of the business is taxed in the same year it
is discontinued. For example, due to COVID 19, many businesses
were closed down. Income tax due for the income they earned
so far is collected along with the closure.
++++++++++++++++++++++++++
• Who is Assesse ? What are the types of Assesse ?
Ans:
Assesse Section 2(7)
An assesse is a person who is liable to pay tax for the income earned or loss
suffered for a particular assessment year
Assesse also includes every person in respect of whom any proceeding
under the Income Tax Act has been taken for the assessment of his income
or loss or the amount of refund due to him.
For example, a salaried employee has not filed his tax returns despite his
income is above the taxable limit. Then the income tax department will
send an intimation to file the returns and remit the tax payable within a
specified time. Then he is called an assesse.
An assesse may be an individual liable to pay tax on behalf of himself or on
behalf of others. For example, if I am the power of attorney holder of my
sister living in U.K who has taxable income in India and if I have not paid her
income tax on time, I will be an assesse in default.
Types of Assesses :

Income Tax Act 1961 has classified assesses into four categories;
• Normal assesse
• Representative assesse
• Deemed assesse, and
• Assesse in default
1.Normal Assesse: A normal Assesse is an individual who is liable to pay
taxes for the income earned by him for a particular financial year. This list
extends to people who have to pay interest, penalty or has to get refund
from the income tax department.
2.Representative Assesse: Many times, it so happens that an individual is
liable to pay taxes for income or losses incurred not only by him, but also
for income or losses incurred by a third party. Such an individual is known
as Representative Assesse. Basically, he acts as a representative for people
who themselves are not in a position to file and pay their taxes themselves.
Generally, the people who need representatives are non-residents, minors
or lunatics.
The people representing them are either their agents or guardians. Such
people are deemed to be Representative Assesses. For example, if a minor
child cine artist is earning an income above the exempted limit of income
tax, and if his father is filing his tax returns or clubbing his income in father’s
income, then the father is the representative assesse of his son.
3.Deemed Assesse
Deemed Assesse is an individual who is put in a position to pay taxes for
some other person by the legal authorities. Generally, the individuals who
are treated as Deemed Assesses

• The executors or the legal heirs of the property of a
deceased person.
• The eldest son or any other legal heir of a deceased, who
died without writing a will
• The guardian of a minor, a lunatic or an idiot
• The agent of a Non-Resident Indian, having taxable income
in India
4.Assesse-in-default
An Assesse-in-default is an individual who has failed to file income tax
returns and pay tax. Every employer has to deduct tax at source from their
salaries and remit to government treasury. An employer is deemed to be an
Assesse in default, if he fails to submit the TDS and pay to treasury before
distributing salary.
• Who is a person ?
• What is Income and Total Income ?
• Discuss the schemes of Taxation under the New Regime or Default
Tax Regime ?
++++++++++++++++++

3. Income Not Included In Total Income
• the concept of income and mention any ten incomes that are
exempted from tax liability.
Ans:
4. Residential Status of an Assesse
• Determine the Residential status of an individual ?
Problem 1
Mr. A lived in India for 26 continuous years and went to England on April
1st
2020. He returned to India on 15th
February 2022 to take up a salaried
job. What is the residential status of Mr. A for the assessment year 2022-
23?
Problem 2
Dr A an Indian national working in USA visits India every year to visit his
parents. What would be his residential status in the following conditions?
He came to India on 19th
December and stayed up to 5th
February .
His total stay during the preceding seven years was 300 days. Compute his
residential status for the assessment year 2024-25.

Problem -3
‘ X ’ comes to India, for the first time on April 16, 2021. During his stay in
India up to Octobor ,5 2023, he stays at Delhi up to April 10, 2023 and
thereafter remains in Chennai till his departure from India . Determine his
residential status for the assessment year 2024-25.
Problem – 4
X was born in Chennai in 1992. Later on he migrated to Canada in June
2017 and took the citizenship of that country with effect from December
26, 2022. His parents were born in Bengal in 1960 and his grandparents
were born in India in 1946. He comes to India during 2023-24 for a visit of
115 days. During earlier 4 years (i.e., April 1, 2019 to March 31, 2023) he
was in India for 400 days. Find out the residential status of X for the
Problem -5
‘X’ Foreign national ( not being a person of Indian origin) comes to India
for the first time on 15th April 2019. During the financial year 2019 – 20,
2020 – 21, 2021 –22, 2022-23 and 2023-24, he is in India for 130 days,80
days, 30 days, 210 days and 75 days respectively. Determine his
residential status for the assessment year 2024-25 .
Problem -6
X, a foreign citizen (not being a person of Indian origin), leaves India for
the first time in the last 20 years on November 20, 2021. During the
calendar year 2022, he comes to India on September 1 for a period of 30

days. During the calendar year 2023, he does not visit India at all but
comes to India on January 16, 2024. Determine the residential status of X
for the assessment year 2024-25.
Problem -7
X is a foreign citizen (not being a person of Indian origin). Since 1981, he
visits India every year in the month of April for 100 days. Find out the
residential status of X for the assessment year 2024-25.
Problem-8
X is an Indian citizen. Currently, he is in employment with a multinational
company and posted in Singapore. During the previous year 2023-24, he
comes to India for a visit of 145 days. In earlier 4 years, he is in India for
more than 900 days. X wants to know his residential status for the
assessment year 2024-25. His annual income for the previous year 2023-
24 is as follows :
Income from salary, rent, consultancy and interest earned and received in
Singapore 29,00,000
Income from business (accrued and received outside India, controlled
from Singapore) 21,00,000
Income from another business (accrued and received outside India,
controlled from India) 8,00,000

Interest on bank fixed deposits in India 11,00,000
Any other income in India or outside India NIL
Life insurance premium paid in India 2,60,000 .
• Determine the residential status of an Hindu Undivided Family ?
Problem-1
X, an individual, is resident but not ordinarily resident in India for the
assessment year 2024-25 (previous year 2023-24). During the previous
year 2023-24, the affairs of X (HUF), a Hindu undivided family, whose karta
is X since 1960, are partly managed from Delhi and partly from Nepal.
Determine the residential status of X (HUF) for the assessment year 2024-
25.
• Discuss the relationship between residential status and the
incidence of tax ?

Or
The incidence of income tax depends upon the residential status of an
Assesse . Explain .
Explain the tax liability of an assessee’s with reference to his residential
status ?
5. Clubbing Of Income
• the provisions relating to clubbing of incomes under the Income
Tax Act, 1961.
• is the meaning of revocable and irrevocable transfers under the
Income-Tax Act, 1961?
MODULE – 3- HEADS OF INCOME

Salaries
• the meaning of “salary” as provided under the Income Tax Act,
1961. What is the basis of chargeability of salary income? Describe
the deductions permissible in computing the income from salary.
• is salary taxable either on due basis or on receipt basis.” Discuss.
• Give the definition of ‘profits in lieu of salary’ in detail. Whether
perquisites are in nature of voluntary payment?
• What are the different forms salary and how it is taxed ? What are
the different forms of allowances and how it is taxed ?
• What are the perquisites ? when it is taxable and when not ? and
how it is valued for tax puposes ?
• Problems on computation of salary Income ?

Income From House Property :
• What is the basis of charge of Income from House Property ?
• When is property income not charged to tax ?
• What is the basis computing income from a let out house property
?
• How to compute taxable income from self occupied property ?
• What are the special provisons when unrealized rent is realized
subsequently ?
• What is mode of taxation of arrears of rent ?

• Explain the factors to be considered while assessing the taxable
income from house property.
• Explain various deductions available for computation of income
from house property .
• Define and explain the term ‘ owner ” in the context of house
property ? Does the term owner includes deemed owner ?
• Can annual value of the property be negative ? How to determine
annual value of the house property ? Give illustration ?
• Discuss the method calculate income from house property for
income tax purposes.

• Problems on computation of property income ?
Profits and gains of business and profession :
• Define “ business and profession ” under the head profits and gains
from business and profession as per the income tax act , 1961 .
• is the basis of charge of income under the head ‘ profits and gains
of business and profession ” ?
• What are the basic principles for arriving at a business income ?
• What is the scheme of business deductions / allowances ?

• Explain the various expenses deductible while computing the
income under the head ‘ profits and gains from business and
profession ?
• What are the deemed profits and how they are charged to tax ?
• What is block of assets ? state the conditions required for granting
depreciation allowance ?
• What are the special provisions for computation of business income
?
• What are the special provisions for computing income on estimated
basis under sections 44AD, AAADA and 44AE .

Capital Gains :
• What is the basis of charge of income under the head capital gains
?
• Define and classify capital assets ? How to compute short term and
long term capital gains ? Provide the chart for the same ?
• What is included in and excluded from capital asset?
• What is transfer of capital asset ? What is cost of acquisition ? What
is cost of improvement ? What is full valuie of consideration ?

• When and to what extent capital gains is exempt from taxes ?
Income From Other Sources :
• What is the basis of charge of income from other sources ?
• What deductions are permissible from income from other sources ?
Set Off and Carry Forward of losses :

• do you understand by ‘set of losses and carry forward of losses ’?
State the provisions relating to set of and carry forward of losses ?
• out the difference between inter-source adjustment and inter
head adjustment ?
• What are the losses that can be set of and carry forward under the
income tax act act, 1961 ?
• Permissible Deductions from Gross Total Income

• What are the basic rules of deductions ? State the deductions
available to the assesse under chapter VI-A of the income tax act,
with regard to the recent amendments ?
Or
What are the deductions available to the individual and Hindu Undivided
family under Chapter-VI-A of the Incoome Tax Act,1961 ?
Agricultural income and its Tax Treatment
• is agricultural income ? What are the instances of income held to
be agricultural / non agricultural income ?
• What is the Tax treatment of income which is partly agricultural and
partly from business ?

• Individuals, Hindu Undivided Families, Computation of taxable
income
• How taxable income of an individual is computed ?
• What is understood by Hindu Undivided Family ? What the basic
conditions for assessment of Hindu Undivided Family ? What is the
basis of computation of taxable income of HUF ?
MODULE- V – POWER AND FUNCTIONS OF INCOME TAX
AUTHORITIES

• the power and functions of income- tax authorities under the
income-tax act.
• What are the duties of the authorities under the West Bengal Sales
Tax Act, 1994? Explain.
MODULE- VI- FILING OF RETURNS AND PROCEDURE FOR
ASSESSMENT
• the various types of assessment and state the procedure the
assessing officer can follow under Income-tax Act, 1961.
• State in detail the provisions relating to the filing of returns under
the Income Tax Act, 1961.

• Discuss the provisions of Income Tax Act, 1961 relating to Regular
assessment, Best judgement assessment, and Reassessment.
• What is the time limit for completion of assessment in the Income
Tax Act? Why notice is issued by an Assessing Officer to an assessee
under S.142(I).
• Whether belated return can be revised by the assessee? Enumerate
the provisions relating to filing of return under the Income Tax Act,
1961.

• What are the procedures of assessment of income under the
Income Tax Act, 1961? Explain in detail.
• Is it compulsory to file a return of income? If so, what is the time for
submission of the return of income? Can a return submitted by the
assessee be revised? Give reason.
• What is a defective return? For the previous year 2013-14, the
assessee who has not submitted the return of income, wants to
submit the same on 29-3-16, can he file the return..

MODULE-VII- CONSTITUTIONAL ASPECT OF GST
• Write a note on constitutional back ground of GST.
• What is the impact of GST in Centre and State Financial relations ?
MODULE- VIII- GST LAW IN INDIA
• What is dual GST model? Explain its features?
• Explain the provisions governing registration under GST.

• Explain the importance of place supply under CGST and SGST.
• Explain the term supply and state the transaction which are taxable
even when no consideration is paid ?
• Explain the law relating to imposition of GST for union territories in
India?
• Discuss the exception on the sale and purchase of securities in GST.

• What are the exemption goods and services under GST .
• What are the different methods of calculation of value of taxable
supply ?
• When value of supply shall be the transaction value ? How to
determine value of supply when valuation under aforesaid
provisions is not possible ? how to determine the value of supply
where the consideration is not wholly in money ?

• are the conditions for taking input tax credit ? How input tax credit
is allowed for payment of CGST,SGST,UTGST and IGST .
• How to determine the apportionment of Credit .
• What is electronic liability ledger . What is electronic credit ledger .
What is cash ledger ?

Azi Tax Law Notes 1.pdf000000000000000000000000000000000000000

More Related Content

Similar to Azi Tax Law Notes 1.pdf000000000000000000000000000000000000000

Recently uploaded

Azi Tax Law Notes 1.pdf000000000000000000000000000000000000000