U16CO14

B.Com Hours per week 6

Semester-VI Credits 6

Core Course 12 (CC -12)

INCOME TAX LAW AND PRACTICE
Objective
To facilitate an understanding of the basic concepts and the computation of income

Unit I Introduction:
Basic concepts – Capital and revenue – Residential status- Incidence of Tax-Incomes exempt
from tax- Agricultural income- Tax slabs-Return of Income –Self Assessment-
Tax deduction at Source-Advance tax

Unit II Salary
Computation of income under the head Salaries- Basis of charge- Different forms of salary-
Allowances- Perquisites and their valuation – Deduction from salary- Provident funds-
Deductions under section 80C-Important 80 Subsections-Calculation of tax liability on salary
income

Unit III House Property

Computation of income under the head Income from House property- Basis of charge-
Determination of annual value- Income from let out property- Self occupied property-
Deductions allowed

Unit IV Business & Profession

Computation of Profits and gains from business and profession- Basis of charge-
Deductions –Valuation of stock

Unit V Capital Gains

Computation of income from capital gains- Basis of Charge- Computation of long term and
short term capital gains- Exemptions- Computation of income from other sources-

Books Recommended
1.Reddy and Reddy , Income Tax Law and Practice, Margham Publications, Chennai
2.Mehrotra and Goyal ,Income Tax Law and Practice, Sahitya Bhavan, Agra
3.Vinod Singhania, Students guide to Income Tax, Taxmann Publications,New Delhi

Marks Scheme
Section A (2*10=20 Marks Section B ( 5*5= 25 Marks) Section C(3*10=30Marks)
Questions 1 to 10 11a) Theory 11 b) Problem Questions 16 to 20
Theory Questions only 12a) Problem 12b) Problem Problems only
13a) Problem 13b) Problem
14a) Problem 14 b) Problem
15 a) Theory 15b) Problem