TAX PLANNING Paper Code: 404 FIN/TAX/ACC Exam Duration: 3 hours PPW: 5 Maximum marks: 80+20 IA OBJECTIVE: To acquaint

the student with theoretical and practical knowledge of tax planning Techniques. UNIT-I: INTRODUCTION: Nature of tax Essential components in levy of tax Legal principles of taxation laws- Five basic rules of interpretation of statutes Law Lexicon and Legal MaximsConcepts of Tax Avoidance, Tax Evasion, Tax Planning and Tax Management (Theory Only). UNIT-II: TAX PLANNING - INDIVIDUALS: Planning with reference to all five heads of Income for individuals- Salaries, House property, Profits from Business& Profession, Capital gains and Other Sources (Theory and Simple Problems) UNIT-III: TAX MANAGEMENT DECISIONS: Tax considerations arising with regard to specific management decisions, such as make/buy, own/lease, retain/replace, export/local sale, shut down/continue, Expand or Contract, Merger and Amalgamations and new capital investment, Guidelines to Tax planning- Reliefs- Concessions- Rebates- Deductions- IncentivesPayment of Advance Tax- Filing of Returns- Refunds- Penalties for non-compliance. (Problems on Tax planning with reference to tax liability of Firms and Companies should be worked out) (Theory and Simple problems). UNIT-IV: TAX PLANNING - NEW INDUSTRIAL ESTABLISHMENTS & INVESTMENTS: Tax planning with reference to New Industrial Establishment- Tax considerations in developing capitalization Structures- Short term loans- Term loans- Public DepositsBonus IssuesDividend Policies (Theory only). UNIT-V: TAX PLANNING INCENTIVES AND EXPORT PROMOTION: Schemes for encouraging exports- Import duty reliefs schemes- Highlights of Export Oriented units (EOUs), Special Economic Zones (SEZ), Export Processing Zones (EPZ)- Duty drawback provisions- Types of Drawback rates- Drawback claim procedures- Salient features of software Technology Part (STP), Electronic Hardware Technology Parks (EHTP)- Other export promotion schemes under EXIM policy (Only Theory). SUGGESTED READINGS: 1. Vinod K. Singhania: Taxmanns Indirect Tax Laws 2. Bhagawati Prasad: Direct Tax Laws and Practice 3. V. S. Datey: Indirect taxes, Taxman Publications.