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Unit-I: Introduction to Income Tax

Syllabus: Constitutional basis of power of taxation — Article 265 of Constitution of India – Basic concept of Income Tax — Outlines of Income Tax Law – Definition of Income and Agricultural Income under Income Tax Act — Residential Status – Previous Year — Assessment Year — Computation of Income.

Part A: 6-Mark Questions

1. Types of Residential status.
2. Persons chargeable to Income Tax.
3. Assessee.
4. Non Resident under the Income Tax Act.
5. Financial year and Assessment Year.

Part B: 15-Mark Questions

1. “Taxation Power is derived from Article 265 of the Constitution of India” – Explain the object of Taxation.
2. When an Individual becomes Resident, Resident but not ordinary resident and Non – Resident? What is the incidence of tax in the case of Non-Residents?
3. What is Agricultural Income? Explain what the sale of agricultural land constitutes Agricultural Income? Explain with the support of the provisions under the Act.

Unit-II: Heads of Income

Syllabus: Heads of Income and Computation — Income from Salary, Income from House Property. Profits and Gains of Business or Profession, Capital Gains and Income from other sources – The Taxation Law (Amendment) Act. 2019.

Part A: 6-Mark Questions

1. Perquisites under the head Income from Salary.
2. Commutation of Pension.
3. Capital Gains.
4. Heads of Income under IT Act.
5. Long term Capital gains.
6. Profit in lieu of Salary.

Part B: 15-Mark Questions

1. Explain the scheme of taxation of estimated income U/s 44 AD, 44ADA & 44 AE of the Income Tax Act.
2. Define Allowances? How many kinds of allowance are there? Provide and explain Allowances fully taxable under IT Act?
3. When and to what extent Capital Gains are exempted from Tax under Income Tax Act?

Unit-III: Income Tax Procedure and Authorities

Syllabus: Law and Procedure — P.A.N. — Filing of Returns — Payment of Advance Tax — Deduction of Tax at Source (TDS) — Double Tax Relief — Law and Procedure for Assessment, Penalties, Prosecution, Appeals and Grievances — Authorities.

Part A: 6-Mark Questions

1. Defective Return U/s 139 (9).
2. Permanent Account Number.
3. Income Tax Authorities.
4. Belated Return under Income Tax Act.
5. Due dates of advance tax payments.
6. Double Taxation Relief.

Part B: 15-Mark Questions

1. What are the conditions precedents to be complied for claiming exemption of expenses incurred for the treatment of specified deceases under section 80 DDB of the Income Tax Act?
2. What is PAN, its importance and what are the rules regarding PAN for opening Bank Account.

Unit-IV: GST – Introduction and Levy

Syllabus: GST ACT, 2017 – Goods and Services Tax Act, 2017: Introduction –Background – – Basic Concepts – salient features of the Act – Kinds of GST – CGST, SGST & IGST – Administration officers under this Act – Levy and collection of tax – scope of supply – Tax liability on composite and mixed supplies – Input tax credit – Eligibility and conditions for taking input tax credit.

Part A: 6-Mark Questions

1. Composite supply and Mixed supply under GST.
2. Kinds of GST.
3. “Input tax credit” under GST.
4. Works Contract.

Part B: 15-Mark Questions

1. Define “Value of Supply”. Explain how value of supply determined in the case of goods and services under GST Act?
2. Write a note on Administrative Officer under SGST & IGST Act. What are their powers?
3. Write a note on tax liability on composite and mixed supplies.

Unit-V: GST – Procedural Compliance

Syllabus: GST ACT, 2017:- Registration – persons liable for registration – persons not liable for registration – procedure for registration – returns – furnishing details of outward and inward supplies – furnishing of returns – payment of tax, interest, penalty and other amounts – tax deducted at source – collection of tax at source – Demand and Recovery – Advance Ruling – Definitions for Advance Ruling – Appeals and revision – Appeals to Appellate Authority – Powers of revisional authority – Constitution of Appellate Tribunal and benches thereof – offences and penalties.

Part A: 6-Mark Questions

1. Reverse Charge under GST.
2. Persons not Liable for registration under GST.

(No 15-mark questions were came for this unit.)

10 Mark Taxation Law IMP Questions

1. Mr. X sells a residential house property for Rs. 60 Lakhs and the Long Term Capital Gain is Rs. 20 lakhs. Invested Rs. 30 Lakhs on construction of first floor of another house owned by him. He believes that he is not liable for capital gains tax. What is your advice to him? Explain him with the provisions under the Income Tax Act.
2. M/s ABC Ltd. pays rent of Rs. 40,000/- per month for 6 months during the financial year from October to March and has not made TDS. M/s ABC Ltd claims that they are not liable for making TDS. What is your advice? Explain along with the provisions under Income Tax Act.
3. Mrs. X paid Life Insurance Premium for her children Rs. 30,000/-, for her husband Rs. 50,000/-, for her mother Rs. 60,000/-, and for her grandson Rs. 25,000/- and claimed deduction under Section 80C. The Income Tax Officer partly rejected her claim. What is your advice to Mrs. X?
4. M/s American Express Pvt. Ltd makes the following gifts in a Financial Year – Manager Rs. 75,000/- other three employees each Rs. 40,000/-. The GST officer treated the said gifts as Supply and demanded GST. What is your advice to the Company?
5. The assessee during the financial year 2016-17 estimated his income and calculated the tax which is around Rs. 20,000. The assessee did not pay any instalment of advance tax as envisaged under the Income Tax Act, nor he had any TDS. He paid the assessing officer while assessing and passing the assessment order how will you impose the tax as per the provisions of the Income Tax Act.
6. Prepare the proforma statement of income for the A.Y. 2017-18 of the assessee pertains to his heads of income from salary, house property and long term capital gains (on sale of his house property), by correctly applying the following sections – Sec. 16, 10(13), 10(14), 80 DDB and 30% statutory deduction, 45(1A), 48, 54, deduction under chapter VIA-80C, TDS and calculate tax liability.
7. The assessee is a retired employee and he is having income from salary (pension), income from house property, income from other sources. His taxable income for the financial year 2017-18 was 2,85,000/-. In the month of April 2018 he became senior citizen. Since he has attained 60 years of age and since the exempted income of the senior citizen Rs. 3,00,000/-, he has filed nil return. The assessing officer assessed the income and levied tax and interest. You as the consultant advise the assessee.
8. The assessee an NRI wants to sell the house property of his father who purchased forty years back and died leaving behind his legal heirs i.e. his wife, son and his two daughters. The assessee needs your advise on the following issues: Do he has to pay tax on the amount that he receives? How he can avoid paying Tax? Does his mother who is a senior need to pay any tax? As tax consultant advise the party accordingly with explanation.
9. The assessee an NRI wants to sell the house property of his father who purchased forty years back and died leaving behind his legal heirs i.e. his wife, son, and his two daughters. The assessee needs your advise on the following issues:
   (a) Do he has to pay tax on the amount that he receives?
   (b) How he can avoid paying Tax?
   (c) Does his mother who is a senior need to pay any tax?
   As tax consultant advise the party accordingly with explanation.
10. An employee retires from service and his monthly pension is fixed at Rs. 3000/- PM. He commuted Rs. 2500/- out of his pension and received Rs. 2,00,000/- as commuted value of pension. Work out the amount of commuted pension exempt in the above both: 1. Employee received Gratuity and 2. Employee not received gratuity.
11. Prepare the proforma statement of income for the A.Y. 2017-18 of the assessee pertains to his heads of income from salary, house property and long term capital gains (on sale of his house property), by correctly applying the following sections – sec 16, 10(13), 10(14), 80DDB, *30% statutory deduction, 45(1A), 48, 54, deduction under chapter VIA-80C, TDS and calculate tax liability.
12. The assessee during the financial year 2016-17 estimated his income and calculated the tax which is around Rs. 20,000/-. The assessee did not pay any installment of advance tax as envisaged under the income tax Act, nor he had any TDS. He paid the assessing officer while assessing and passing the assessment order how will you impose the tax as per the provision of the Income Tax Act?
13. A has a house property which was let out during the financial year 2016-17, at Rs. 25,000/- p.m. He paid municipal tax 6000/- p.a., premium on fire insurance Rs. 5000/- p.a., land revenue 3,500/-, fire-fighting expenses Rs. 3,500/-, 3,00,000/- from HDFC, and paid house loan principal 30,000/-, and interest Rs. 65,000/- p.a. Compute the net taxable income for the assessment year, 2017-18.
14. ‘A’ a government employee draws Rs. 20,000/- p.m., receives HRA of Rs. 24,000/- and he resides in his own house. During the year, he paid medical bills of Rs. 15,000/- and paid interest Rs. 60,000/-, P.F. Rs. 30,000/-, Tuition fees 20,000/-. He has undergone treatment for renal failure in a private hospital as advised by a specialist doctor and the treatment was certified by a specified physician. He claimed deduction u/s 80 DDB.
15. Under section 80C of the Income Tax Act, deduction can be had for tuition fee paid to any college or school on account of full-time education of any two children, from own income. Clarify whether any expenditure for self-education for oneself can also be claimed as deduction under the above section.
16. Prepare the proforma statement of income from Salary, House property applying appropriately the provisions of Sections 10(3), 16, 24, 80DDB, 80E, and 80C.

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