Individual Tax Management and Planning

Syllabus
Introduction:
1. Features of Income Tax
2. Scope of Income Tax Act and Importance of Income Tax payment for development of Country.

Definitions:

1. Income
2. Person
3. Assessee
4. Deemed Assessee
5. Assessment Year
6. Previous Year
7. Agricultural Income
8. Exempted Income
9. Gross Total Income (GTI)
10. Total Taxable Income (TTI)
11. Residential Status of an Assessee
12. PAN
13. TAN
14. Concept of
a. Capital receipts
b. Revenue receipts
c. Capital Expenditure
d. Revenue Expenditure
15. Five Heads of Income
16. Deductions u\s-80C, 80CCC to 80 U
17. Total Taxable Income
18. Income Tax calculation of Individual
19. Education cess and Higher Education cess
20. Surcharge
21. Due dates of filing return
22. E-Filing of Income tax return and forms used
23. Advance Tax
24. Annual Information Return (AIR)
25. Specified Financial Transactions (SFT)

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 Introduction
Tax: Tax is the compulsory levy by the government on income, commodity, services, activities or transaction.
 The word ‘Tax’ derived from the Latin word ‘taxo’.
 Taxes are basic source of revenue for the govt. used for welfare of public.
 It is levied on the Total Income of the Previous year of every person, subject to residential status of that person.
Income Tax Act 1962:
 Income Tax of India is governed by Income tax Act 1961 (Came into force from 1.4.1962)
 The Law provides for determination of Taxable Income, Tax liability, procedures for assessment, appeal, penalties, and prosecutions.
 The Finance Act shall bring amendment to this Act year by year.
 Finance Minister presents Finance Bill in the Both the Houses of Parliament.
 Once the Bill is passed in the parliament and get assent of the president it becomes the FINANCE ACT.
Administration of Tax:
 The Administration of Direct Taxes is with CBDT (Central Board of Direct Taxes).
 Income Tax Act 1961 empowers CBDT to frame rules from time to time
 Ministry of Finance

 Department of Revenue

 Central Board of Direct Tax (CBDT)

 Central Board of Indirect Tax and Customs (CBIC)

Taxation:
UNION LIST STATE LIST CONCURRENT LIST
ENTRY NO.82 -=tax on income other than Entry no 46 = taxes on agricultural income Criminal laws & Procedure,
agri. Income
ENTRY NO 83 = Duties of custom incl. export Entry No. 51 = Excise duty on alcoholic liquors, Civil Procedure
duty. opium, narcotics
ENTRY NO 84 = Duties of Excise Entry No. 52 = Octroi Trust & Trustees,
ENTRY NO 85 = Corporation tax Entry No 54 = Vat (Intra state sale) Economic & Social Planning
ENTRY NO 92A = CST (Interstate Trade & Trade Unions
Pur)
ENTRY NO 92B = Tax on consignment of Charitable Institution, Price control
goods. etc.
ENTRY NO 92C = Service tax (amendments
passed by Parliament on 15-1-2004, but not yet
made effective.)
ENTRY NO 97 = Any other matter not
included in List II, III

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