Corporate Tax planning

Course Code: IIBLW 30601 Credit Units: 04

Course Objective:
The purpose of teaching corporate tax planning to students is
• To provide working knowledge of framework of taxation system in India.
• To prepare professional practioners, develop ability to apply in a given situations
• To provide thorough knowledge of various concepts and their application relating to direct tax
laws with a view to integrating the relevance of these laws with financial planning and
management decisions.
• To provide thorough knowledge of laws and practices of indirect taxes viz. central excise, services
tax, customs and central sales tax in all aspects including tax planning and management.

Learning Outcomes:
On the successful completion of this module the student will be able to:
• Understand the Indian tax environment and types of taxation therein
• Compute income and tax under the specifies heads in the Indian corporate tax system
• Develop the ability to file returns and meet the legal norms and procedures

Course Contents:

Session 1: Introductory session

This session will include the discussion on objective and learning outcomes. It will enlighten the students
about the relevance of studying taxation laws & practices in today’s world. A brief intro on meaning of
Tax, its origin and its contribution to the whole society and economy.

Module I: Income Tax Act

Session 2: Income tax Law and Act, 1961

Scope of taxation
Important concepts: Person, Assessee, Assessment Year, Previous year, Basis of charge

An introduction and conceptual knowledge about the laws governing Income tax and various acts outlining
the guidelines.a discussion on common and conceptual terms necessary for studying Income tax

Session 3: Residential status

Need to determine residential status and basic rules
Computation of Residential status

This session will include an understanding of residential status and its scope .It will include a study on
need to determine the residential status.A method to compute the residential status of various persons used
in Taxation

Session 4: Practical examples & Numerical

This session will include the brainstorming computation on residential status

Session 5: Scope of total income,

Incomes deemed to be received/ deemed to accrue or arise in India

A discussion on total income that is defined under the section 5 of the income tax Act. Distinction between
the Income that is received and that deemed to receive and time of their inclusion.
Session 6: Exempted income under section 10
Incomes which do not form part of Total Income

This session will be devoted on explanation of those incomes which do not form part of Total income and
hence come under the Exempted Incomes.

Session 7: Concept of Agriculture Income,

Capital Assets
Company, Indian Company,
Company in which public are substantially interested

This session will give the understanding on the concepts of agricultural income, capital assets and
caompany that is defined under Income tax act.

Session 8: Assignment & discussions

Module II: Computation of Income under different Heads

Session 9: Heads of Income

Provisions governing computation of income under different heads

Although there is only one tax on the income calculated under various heads, but there are different rules
of computation of income under each head and income has to be computed under that head after applying
such rules only.

Session 10: Computation of Income under the Head ‘Salary’

Theoretical framework

This session will be devoted on understanding of Section 15,16 & 17 of income tax act which deals with
computation of income under the head “Salaries”.

Session 11: Income that Comes Under Head of Salary

Allowances & perquisites

Session 12: Calculations required to be made while computing salary

This session will be devoted to practical problems as to how to compute income under salary and what are the
allowances and perquisities that would be included and what are the deductions or exemptions that will be
excluded from the salary income

Session 13: Practice questions

Session 14: Session on practical questions and case studies

Session 15: Computation of Income under the Head ‘House property’

This session will be devoted to practical problems as to how to compute income under house property

Session 16: Practice questions

Session 17: Computation of Income under the Head ‘Profits and gains of business or profession’

This session will be devoted to practical problems as to how to compute income under B&P

Session 18: Session on practical questions and case studies

Session 19: Computation of Income under the Head ‘Capital gains’

Session 20: Session on practical questions and case studies

Session 21: Income of other persons included in Assessee’s total income.

Session 22: Aggregation of Income and set off and carry forward of losses

Session 23: Deductions from Gross total income

Session 24: Deductions from gross total income

Session 25: Class test

Session 26: Clubbing of minor income

Session 27: Basic Procedures for filing returns, Assessments &Appeals

Session 28: Assignment & Discussions

Session 29: Setting off of losses inter heads of income and carry forward of losses to next year

Session 30: Principles governing levy of and exemption from Customs Duty

Session 31: Basic principles of Classification and valuation of goods

Session 32: Customs Authorities, Appointment of customs ports, warehousing stations

Session 33: viva

Session 34: Provisions governing importation and exportation of goods

Session 35: Special provisions regarding baggage, goods imported or exported by post

Session 36: Drawback of customs duty paid

Session 37: Tax Provisions on Transfer Pricing

Session 38: tax deducted at source Provisions

Session 39: Doubt sessions

Session 40: Doubt sessions

Learning Methods:

Tutorials, Interactive sessions, Case studies, Management games, Extensive research projects, Seminars,
Weekend experience in companies - the course is covered by adopting a combination of lecture methods,
class presentation by groups of students, self study sessions. Each student is required to do the back ground
reading from the specified chapters of the prescribed book before coming to class. Cases are also to be
analyzed, discussed in groups (teams) outside the class as preparatory work.
Examination Scheme:
Components PI CI CTI EEI
Weightage (%) 10 10 10 70
Text & References:
Text:
• CorporateTax, Girish Ahuja & B. K. Aggarwal

References:
• Corporate Tax Planning, Dr. V. K. Singhania, Taxman
• Chandra, Mahesh., S.P. Goyal and D.C. Shukla, “Income Tax Law and Practice”,
• Pragati Prakashan, Delhi.Pagare, Dinkar., “Law and Practice of Income Tax”, Sultan Chand and sons,
New Delhi.
• Mehrotra, H.C., “Income Tax Law”, Sahitya Bhawan, Agra.
• Lal, B.B., “Income Tax Law and Practice”, Konark Publications, New Delhi.
• Singhania, Vinod K. and Kapil Singhania, “Tax Computation on CD”, Taxmann Publications Pvt.
Ltd., New Delhi.

Journals:
• Income Tax Reports, Company Law Institute of India Pvt. Ltd., Chennai.
• Taxman, Taxmann Allied Services Pvt. Ltd., New Delhi.
• Current Tax Reporter, Current Tax Reporter, Jodhpur.
 AMITY UNIVERSITY UTTAR PRADESH
GAUTAM BUDH NAGAR

CENTRE OF INTERNATIONAL BUSINESS

AMITY BUSINESS SCHOOL

Course Title: FINANCE SPECIALISATION: CORPORATE TAX PLANNING

Course Code: MIB2311 Programme Name: MBA (IB)
Classroom contact hours: 40 hours Credit Units: 04
Tutorial Hours: 16 Practical/Lab Hours: Nil
Self Study hours: 80 hours Faculty:

Course Objective
In this unit students will learn about tax provisions for both individuals and limited companies. They will
learn how to calculate taxable income and tax payable taking account of all types of Income and relevant
expenditure and any appropriate tax-free allowances. The unit covers Income tax, corporation tax and
capital gains tax for individuals and businesses.

Learning Outcomes
On the successful completion of this module the student will be able to:
• Understand the Indian tax environment and types of taxation therein
• Compute income and tax under the specifies heads in the Indian corporate tax system
• Develop the ability to file returns and meet the legal norms and procedures.

Course Contents
Module 1
INDIAN tax environment: purpose of taxation, types of taxation (DIRECT AND INDIRECT TAX),
methods of collection. The role of the tax practitioner: issues of tax liability, client confidentiality, giving
client advice, dealing with the tax department. Basic term and concept: person, assessee, previous year,
assessment year, rate of taxes, income, total income, scope of total income and residential status& income
exempt from tax.

Module 2:
Income under the head salary
Employer–employee relationship, basis of charge, meaning of salary, treatment of gratuity, pension,
encashment of leave, , allowance, perquisites, profit in lieu of salary, leave travel concession, provident
fund, standard deduction, entertainment allowance. Income under the head house property.
Basis of charge, essential condition for taxing income under this head, concept of deemed ownership,
determination of annual value, deduction from annual value.
Income under the head of profit and gain of business & profession-
Chargeability of income under the head profit and gain of business and profession, expenses deductible,
amount not deductible, maintenance of accounts by certain person carrying out business and profession,
compulsory audit of accounts.
Income under the head capital gain
Basis of charge, type of capital asset, transaction not considered as transfer. Computation of capital gain.
Income under the head income from other sources
Cargeability, Deduction, Computation under this head

Module 3
Clubbing of minor income, income of spouse, daughter in law, members of huf, in certain cases. Setting off
of losses inter heads of income and carry forward of losses to next year
Module 4
Deduction under sec 80CCC to 80U, rebate u/s 88,88b, 88c.

Module 5
Computation of total income, net taxable income, and tax payable in case of individual, partnership firm.
provision of minimum alternate tax, dividend payment, and venture capital fund in case of companies.
Filing of return, assessment procedure, provision of advance tax, tax deducted at source.

Learning Methods
Tutorials, Interactive sessions, Case studies, Field visits, Management games, Extensive research projects,
Seminars, Weekend experience in companies - the course is covered by adopting a combination of lecture
methods, class presentation by groups of students, self study sessions. Each student is required to do the
back ground reading from the specified chapters of the prescribed book before coming to class. Cases are
also to be analyzed, discussed in groups (teams) outside the class as preparatory work.

Evaluation Scheme

Component Codes P1 C1 CT1

Weightage planned (%) 10 10 20
Date Planned W4 W6 W9
Component Codes EE1
Weightage planned (%) 60
Date planned As per University Schedule
W: Week;
P: Project
C: Case Discussion
CT: Class Test
EE: External Examination

Text Book
• Singhania V K, 2005, Corporate tax planning Taxmann,
References
• Ghosh, R.K. & Saha, S., Income Tax Rules - 02, Taxman ND 2002
• Ahuja, Girish Corporate tax planning & management Bharat Law House 2005
• Girish Ahuja and Ravi Gupta Corporate tax planning & management Bharat Law House 2005
• Taxmann's statutory manual for chartered accountants, company secretaries, cost and works
accountants, advocates. - New Delhi: Taxmann, 2005
• Ready Recknor Taxmann, 2005