University School of Business

Bachelor of Business
Administration
Corporate tax planning BAD-211
Lecture -1
Akanksha Kaushik
BASICS OF TAXATION
DISCOVER . LEARN .
EMPOWER
 CANONS OF TAXATION

Course Objective

To Impart knowledge among the students regarding the

Tax laws in India and its planning

Course Outcome
CO Title Level
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CO The students will be able to know how the tax Remember rlz=1C1CHZL_enIN710IN710&tbm=isch&sa=1
1 planning is done   &ei=
CO The students will be able to understand the Understand
2 various aspects relating to taxation to be  
considered before starting any business
CO To know the tax planning with respect to Understand 2
3 various management decisions
CANONS OF TAXATION
Canon Of Taxation
Canons of Taxation are the main basic principles (i.e.
rules) set to build a 'Good Tax System'.
•Adam Smith gave following four important canons of
taxation, they are:
– Canon of Equity
– Canon of Certainty
– Canon of Convenience
– Canon of Economy
 CANON OF TAXATION

Canon Of Taxation
1.Canon of Equity:
•Every person should pay to the government depending
upon his ability to pay
•Rich people pay high ?
•because without the protection of the government
authorities (Police, Defence, etc.) they could not have
earned and enjoyed their income
 CANON OF CERTAINITY
2.Canon of Certainty:
•The tax which an individual has to pay should be
certain, not arbitrary
•The tax payer should know
•In advance how much tax he has to pay
•At what time he has to pay the tax, and
•in what form the tax is to be paid to the government
CANON OF
CONVENIENCE
3.Canon of Convenience:
•The mode and timing of tax payment should
be as far as possible, convenient to the tax
payers
• For example,
•land revenue is collected at time of harvest
•income tax is deducted at source
CANON OF ECONOMY
4.Canon of Economy:
•This principle states that there should be
economy in tax administration
• The maximum part of tax collection should be
brought to the government treasury
 FAQ
• What do you mean by Tax
• What do you mean by canons of tax planning
• What do you mean canon of equity
ASSESSMENT
PATTERN

9
 APPLICATIONS

• To know the Tax planning

• To know the Tax evasion and avoidance
• To know their difference

10
 REFERENCES
• http://www.charteredclub.com/tax-planning-evasion-avoidance/
• http://www.academia.edu/9487453/TAX_AVOIDANCE_TAX_EVASION_AND_TAX_P
LANNING
• http://taxguru.in/income-tax/tax-planning-tax-evasion.html
 SUMMARY
This ppt will help the student understand the
canons of taxation. Canons are the basic
principles set to build good tax systems.
THANK YOU

For queries
Email: akanksha.usb@cumail.in