COURSE PLAN OF PRINCIPLE OF TAXATION LAW

Semester V of B.A.LL.B.(Hons)
August 2020 to December 2020
PRINCIPLES OF TAXATION LAW

Course name Principles of Taxation Law Semester V

Name of Faculty Dr. Rana Navneet Roy Type Compulsory

No. of Contact 60 Hours Credits - Pre-requisites Prior reading of the

Hours study material

ABOUT THE COURSE:

Income Tax holds its importance because it is one of the major sources of revenue for the
government, and hence tends to support the running of our government. Thus, it helps meet the
funds required to raise the infrastructure and develop the country.

The legislative framework and judicial pronouncements on the tax laws are constantly evolving
along with globalization, economic shifts, and different operational adjustments. The tax laws of
the country undergo significant changes every year on the passing of Annual Finance Act. Apart
from the amendments coming out every year through the Finance Act, various
circulars/notifications/clarifications are also issued by the regulating bodies, i.e., Central Board of
Direct Tax (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) for implement the
different provisions of the Act and further clarifying the scope of some provisions.

The Income Tax Act, 1961 provides for levy, administration, collection and recovery of income
tax. It further provides progressive rate schedule, exemption limits, and incorporates number of
incentive provisions.

COURSE OBJECTIVE:

The objective of the course is as follows:

1. To understand the basic concepts of principles of taxation law.

2. To assess the income tax liability of individual.

3. To provide students with the critical faculties necessary in an academic environment, on
the job, and in an increasingly complex and interdependent world.
 4. To assist students in the development of intellectual flexibility and creativity so that they
may engage in life-long learning.

5. To interpret and apply the provisions of the Income Tax Act, 1961 critically.

EXPECTED OUTCOME:

1. The student will understand and demonstrate the conceptual and working knowledge of the
principles of taxation laws.
2. Students would be able to apply critical and practical approaches to the reading and
analysis of various provisions of tax laws.

3. Students would be familiar with the computation of different heads of income tax.

BRIEF COURSE OUTLINE:

Chapters Topics Sessions

1 Tax – At a Glance 5

2 Meaning and Concept of Income Tax 7

3 Incomes which do not Form Part of Total Income 5

4 Various Heads of Income under the Income Tax Act, 1961 20

5 Deductions from Gross Total Income and Rebate & Relief 5

6 Rule of Set Off and Carry Forward 5

7 Income Tax Authorities and their Power of Search & Seizure 7

8. Tax Avoidance, Tax Evasion and Tax Planning 6

DETAILED COURSE OUTLINE:

Chapters Particulars Sessions

TAXES – AT A GLANCE

History of Taxation in India

Classification of Taxation

Difference between Direct Tax and Indirect Tax

Chapter 1 Characteristics of Tax, Fee and differences between both 5

Meaning of Tax, Duty, Cess and Surcharge

Objectives of Taxation
Canons of Taxation by Adam Smith and Additional/Modern Canons

Administration

MEANING AND CONCEPT OF INCOME TAX

Introduction

Residential Status of Assessee

Basic Concept of Total Deduction at Source (TDS)

Assessee [Section 2(7)]

Assessment Year [Section 2(9)]

Chapter 2 7
Previous Year [Section 3]

Income [Section 2(24)]

Person

Charge of Income Tax [Section 4]

Residential Status [Section 6]

Scope of Total Income
Chapters Particulars Sessions
Agricultural Income and Its Tax Treatment
Agricultural Income and Its Tax Treatment

Meaning and Scope of Total Income (Section 5)

Tax Rates F.Y.2020-2021

Case Laws

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

Background
Chapter 3 5
Incomes which do not form Part of Total Income

Case Laws

VARIOUS HEADS OF INCOME UNDER THE INCOME TAX ACT,

1961

PART I – INCOME UNDER THE HEAD “SALARIES”

Introduction

Basis of Charge

Meaning and Characteristics of Salary

Chapter 4 Relationship of Employer and Employee 20

Allowances and Perquisites

Profits in Lieu of or in Addition to Salary

Deductions from Gross Salary

PART II – INCOME UNDER THE HEAD HOUSE PROPERTY

Basics of Charge
Chapters Particulars Sessions

Determination of Annual Value

Deemed Ownership

Case Laws

PART III – PROFIT AND GAINS FROM BUSINESS / PROFESSION

Meaning of terms ‘Business’ or ‘Profession’

Income Chargeable to Tax under the Head Business or Profession (Section

28)

Method of Accounting

Scheme of Deductions and allowance

Basic principles governing admissibility of deduction under section 30 to

44DB

Deduction expressly allowed in respect of expenses/allowance

Expenses which are not allowed

Deemed Profits

Case Laws

PART IV – INCOME FROM CAPITAL GAINS

Capital Gains

Capital Asset

Short-term & long-term Assets

Transfer of Capital Assets

Mode of Computation
Chapters Particulars Sessions

Exemption to Tax on Capital Gains

Case Laws

PART V – INCOME FROM OTHER SOURCES

Income Chargeable Under the Head ‘Income from Other Sources’

Casual Income

Income from Family Pension

Taxation of Dividends

Deductions Allowable in Computing Income from Other Sources

Amounts Not Deductible [Section 58]

Case Laws

DEDUCTIONS FROM GROSS TOTAL INCOME AND REBATE &

RELIEF

Introduction
Chapter 5 5
Important Deductions

Relief and Rebate in Respect of Income-Tax

Case Law

Chapter 6 RULE OF SET OFF AND/OR CARRY FORWARD OF LOSSES

5
Introduction

Set Off of Losses

Carry-Forward of Losses
Chapters Particulars Sessions

Carry Forward and Set Off of Losses

INCOME TAX AUTHORITIES AND THEIR POWER OF SEARCH

& SEIZURE

Introduction

Appointment of Tax Authorities

Chapter 7 7
Power of Search and Seizure under Section 132

Fulfilment of statutory Conditions

Test of ‘Reason to believe’

Case Law

TAX AVOIDANCE, TAX EVASION AND TAX PLANNING

Introduction

Basic Concept of Tax Avoidance, Tax Evasion and Tax Planning

Chapter 8 Reason of Tax Avoidance, Tax Evasion

6
Distinction between Tax Avoidance and Tax Evasion

Recommendation of Wanchoo Committee to Fight Tax Evasion

Effect of Tax Avoidance and Tax Evasion

Case Law

EVALUATION COMPONENTS:

Components of Course Evaluation Marks

 Mid-term Examination 25
End-term Examination 50
Internal Assessment 25
Total 100

RECOMMENDED TEXT BOOK:

Dr. Vinod K. Singhania & Dr. Kapil Singhania, Direct Taxes Law and Practice by Taxmann
publications

REFERENCES:

1. Dr. Girish Ahuja & Dr. Ravi Gupta, Direct Taxes Ready Reckoner with Tax Planning,
Wolters Kluwer publications
2. Sampath Iyengar, Law of Income Tax, Bharath Law House, New Delhi.
3. Kanga and Palkiwala, The Law and Practice of Income Tax, LexisNexis.
4. S. Bhattacharya & H.R. Garg, Handbook of Direct Taxes (2010) Eastern Law House,
Calcutta.
5. Vinod k Singhania- Direct Taxes
6. A C Sampath Iyengar, The Law of Income Tax, Bharat Law House

WEBSITES:

1. https://www.finmin.nic.in/
2. https://dor.gov.in/
3. http://financialservices.gov.in/
4. http://www.indiataxlaw.com/
5. https://www.icsi.edu/home/
6. https://www.icai.org/