BSL301:INCOME TAX LAW AND PRACTICE

L:3 T:1 P:0 Credits:4

Course Outcomes: Through this course students should be able to

CO1 :: interpret the basic principles of direct tax laws

CO2 :: apply the rules associated with the calculation of income under the head salaries, house
property, business or profession, capital gains and other sources

CO3 :: articulate the various statutory deductions available to individuals

CO4 :: analyze the regulatory guidelines related to computation of total income and income tax of
individuals

CO5 :: develop critical thinking and problem-solving skills to resolve income tax issues

CO6 :: practice the provisions of the Income-tax act for e-filing of Income-tax returns

Unit I
Introduction to Income tax laws : Basic concepts and definitions, Concepts of revenue and capital
receipts, expenditures, Capital receipts Vs. Revenue receipts, Tests of distinction, Capital expenditure
Vs. Revenue expenditure
Basis of charge : Residential status of person, Incidence of Tax

Unit II
Computation of income under the head salaries : Computation of salary income, Allowances,
Perquisites, Deductions from gross salary
Unit III
Computation of income under the head house property : Basic terminology, Determination of
annual value under different situations, Deductions u/s 24
Computation of income under the head capital gains : Meaning and types of capital gain, Basis
of charge, Computation, Exemptions
Unit IV
Computation of income under the head business & profession : Difference between business
and profession, Allowable expenses, Expenses expressly disallowed, Computation of Book Profits and
total income under the head Business and Profession
Provisions of depreciation : Concept, Conditions and rates, Methods and computation

Computation of income from other sources : General incomes, Specific incomes

Unit V
Clubbing of income : Assessability of income from assets transferred to spouse, sons, wife or
another person for the benefit of spouse, Circumstances under which the individuals is assessable in
respect of remuneration of spouse, Assessability in respect of income of minor child, Circumstances
under which the individual is assessable in respect of remuneration of the spouse
Set off and carry forward of losses : Set-off within head, Set-off outside head, Carry forward of
losses
Deductions from total income : Deductions under section 80C to 80U

Unit VI
Assessment of individuals : Computation of total income after set-off of losses less deductions
under sections 80C to 80U, Computation of tax liability, Rounding off of income as well as tax,
Rounding off of total income & tax payable, Computation of total income and tax liability
Filing of return : Meaning of PAN, Provisions of PAN, Filing Application of PAN under Income Tax Act,
Forms used in filing of return, Provisions relating to filing of return, revised and belated returns, e-
filing of ITR-1 form, E-filing of ITR forms
Agricultural income : Integration of agricultural income with non-agricultural income, Computation,
Tests, Definition
Exempted incomes : Incomes exempted under section 10

Text Books:
1. INCOME TAX LAW AND PRACTICE by V.P. GAUR AND D.B. NARANG, KALYANI PUBLISHERS

References:

Session 2023-24 Page:1/2

References: 1. INCOME TAX LAW AND ACCOUNTS by H.C. MEHROTRA AND S.P. GOYAL, SAHITYA
BHAWAN PUBLICATIONS
2. STUDENTS' GUIDE TO INCOME TAX INCLUDING GST by VINOD K. SINGHANIA & MONICA
SINGHANIA, TAXMANN PUBLISHER

Session 2023-24 Page:2/2