This presentation helps in knowing why, when on what income tax has to be paid in India. It gives the information about the differences between direct and indirect taxes also.

1. B.COM ( HONS),BCOM(REG)
B.Com (Computers) III/VI
& B.COM. (HONS-HBA)
By
Dr. J V R Geetanjali, Assistant Professor, Department of Commerce,
Bhavan’s Vivekananda College, Secunderabad

2. 1.Introduction to Tax
2. Need for Taxation
3. Objectives of Taxation
4. Structure of Indian Taxation system
5. Constitutional provisions
6.Types of Taxes
7. History of Income –Tax Act
8.Sources of Income
9. Features of Income Tax
10.Cannons of taxation

3. INCOME TAX-I
PAPER CODE: BCH355 PPW: 5
YEAR/SEMESTER:II/III NO OF CREDITS: 5
Course Objective: To summarizeconceptual and legal knowledge about Income Tax provisions relating to computation of Income
from different heads with reference to an Individual Assessee
UNIT- WISE COURSE OBJECTIVES
COb1:To annotate types of taxes and concepts of Income Tax
COb2:To evaluate agricultural income and computation of residential status of a person
COb3:To apply the provisions of IT in calculating income from salaries
COb4:To estimate house property income following the deductions under section 24
COb5:To articulate the computation of the income from business and profession
UNIT-I: INTRODUCTION:
Direct and Indirect Taxes –- Features and History of Income Tax in India – Definitions and Basic Concepts of Income Tax:
Assessee , Deemed Assessee , Assessee-in-default – Assessment Year – Previous Year – Person – Income – Gross Total
Income – Total Income – Incomes Exempt from Tax
UNIT-II: AGRICULTURAL INCOME AND RESIDENTIAL STATUS
Introduction – Definition – Tests to determine Agricultural Income – Partly Agricultural and partly Non-Agricultural Income
– Integration of Agricultural Income (simple problems)
Residential Status and Scope of Total Income: Residential Status of Person – Incidence of Tax – Types of Incomes –
(Simple Problems)

4. UNIT-III: INCOME FROM SALARIES:
Definition of Salary – Characteristics of Salary – Computation of Salary Income: Salary u/s 17(1) – Allowances – Perquisites – Profits in lieu
of Salary – Deductions u/s 16 – Problems on computation of Income from Salary
UNIT-IV: INCOME FROM HOUSE PROPERTY:
Definition of House Property – Annual Value – Determination of Annual Value for Let-out House and Self-occupied House – Deductions
u/s24 Problems on computation of Income from House Property
UNIT-V: PROFITS AND GAINS OF BUSINESS OR PROFESSION:
Definition of Business and Profession – Procedure for computation of Income from Business and Profession– Revenue and Capital nature of
Incomes and Expenses – Allowable and disallowable expenses Depreciation: Conditions for charge of depreciation –– Block of Assets –
Rates of Depreciation –– Computation of Depreciation (short problems) Problems on computation of Income from Business and
Profession
SUGGESTED READING:
Income Tax Law and Practice: VP Gaur & DB Narang, Kalyani Publishers
Direct Taxes Law & Practice: Dr Vinod K Singhania & Dr Kapil Singhania, Taxmann
Income Tax: BB Lal, Pearson Education
Taxation: RG Saha, Himalaya Publishing House Pvt Ltd
Income Tax: Johar, McGrawHill Education
Taxation Law and Practice: Balachandran &Thothadri, PHI Learning
COURSE OUTCOMES:
At the end of the course, the students will be able to
BCH355 CO1:Identify types of taxes and explain Income Tax concepts
BCH 355 CO 2:Summarize the agricultural income and the scope of residential status of a person
BCH 355 CO3:Enumerate the Income from Salaries
BCH 355 CO4:Assess income from house property of an individual
BCH 355 CO5:Determine the profits and gains from business and profession
Employability
The students are facilitated with basic concepts of IT, computation of income from Salary, House Property , Business / Profession and which
enables them to prepare for competitive exams for Government jobs

6. What is tax?
Why should
I pay tax

7.  The term tax is derived from Latin term “Taxore”.
 To Estimate or Appreciate.
 It is compulsory contribution from a
person to the public expediency.

10.  It’s a major a source of revenue
 To provide basic facilities to the public
 To protect the country
 To strengthen the country to compete with other countries

11. I.PRIMARY/MAIN OBJECTIVES
1.Revenue Generation
2.Social improvement in
standard of living
3.Reduction of economic
disparities
4.Balanced Regional
Development
5.Administration of social
justice
II. SUBSIDIARY OBJECTIVES
1. Encourages savings and accelerates
2. investments.
3. 2.Growth of industries
4. Generation of Employment
5. Restricts spending and
consumption of goods
6. Enables Indian industry to compete
on global platform.

12. Article 246 (seventh Schedule ) of the Indian Constitution
contains the legislative powers of Union Government and the
State government
List I Central List/ Union List
Entry 82,83 etcTaxes on income other than agricultural
Income,Taxes on sale and purchase of newspapers
List- II State list
Land revenue ,Taxes on agricultural income, Alcohol,
Taxes on Luxuries, taxes on amusements etc
List III Concurrent List
GST

13.  Article 265- Every tax shall be levied or collected in India only
by sanction of constitution
TYPES OF
TAXES
DIRECT INDIRECT

15. Context DirectTax IndirectTax
Levied on Incomes and Profits Goods and Services
Paid by Individuals and Corporates End Consumers
Transferability Burden of tax cannot be
transferred
Burden of tax can be
transferred
Nature of tax Progressive (Depends on
the income earned)
Regressive (same for
everyone)
Collection of tax During specific dates as
prescribed
Regular ( at every point of
transfer of goods/services)
Tax Evasion Possible Not possible

16.  Firstly British Rulers- 1860
Up to Sepoy Mutiny 1857
 First Income tax Act -1886
 Secondly Income Tax Act- 1918
 Replaced in Income tax Act-1922
 After independence
 New Income Tax Act -1961
 The Act came into force from April 1st,1962

17.  It’s a comprehensive Act comprising 298 sections grouped
under XXIII Chapters and along with XIV Schedules

18. Income from Salary
Income from House property
Income from Business/Profession

19. Income from other sources
Income from Capital Gains

20. 1. Levied as per the constitution
2. Levied by Central Government
3. Direct Tax
4. Annual Tax
5. Tax on Person
6. Tax on Income
7. Income of previous year is assessable in Assessment year
8. Charged at prescribed Rates
9. Administered by Central Government
10. Applicability – Including J&K

21. 1Equality 2Certainty
3Canon of
Convenience
4 Canon of
Economy

22.  Canons are principles/ guidelines to satisfy conditions for
imposing taxes
 Equality- Economic Justice
 Certainity-Protect the tax payers
 Convenience- Timings of tax payment should be convinient
 Economy- Cost of collection of taxes should be minimum

23. Canon of
Productivity
Canon of
Buoyancy
Canon of
flexibility
Canon of
simplicity
Canon of
diversity

24.  Productivity- Fiscal Adequacy
 Buyoancy- Inherrent tendency to increase along with National
Income
 Flexibility- Able to revise tax structure
 Simplicity- Should not be complicated
 Diversity- Equitable different sections of authority

27.  http://llb5wikidotcom/income-tax
 General Principles ofTaxation & IncomeTax
 https://quizlet.com/_8j021k?x=1qqt&i=2vvhuq