DME LAW

SCHOOL 

Paper Code: LLB

403
                SUBJECT: TAX LAW
SEMESTER: 7 TH 

CREDITS:5
VRL No.1.1 & Tutorial Lecture No.
1.1
Date of Lecture......... / Week
1 

Objective: This lecture focuses upon enhancing the understanding of

the student on the topics of Direct and indirect tax ,previous year .The
topic shall familiarize the students that which period needs to be
considered for computation of total income. 

Outcome: The students will be familiarized with important concept of

previous year and to make clear the difference between calendar year
and financial year .

Methodology: For the purpose of studying students can refer Bare Act
as primary source and text books,e-articles  as secondary source.

Tutorials: Video Lectures as uploaded over Collpoll. Student is required

to watch the video lecture for topic 1.1 thoroughly and grasp the
concepts enumerated in the same, before attending the tutorial. 

Topics

1. Direct tax and indirect tax .

Direct tax is a type of tax where the incidence and impact of taxation fall on the same entity.
 In the case of direct tax, the burden can’t be shifted by the taxpayer to someone else. These
are largely taxes on income or wealth .e.g. income tax ,property tax.

An indirect tax is collected by one entity in the supply chain (usually a producer or retailer)
and paid 
to the government, but it is passed on to the consumer as part of the purchase price of a
good or service. The consumer is ultimately paying the tax by paying more for the product. 
e.g. GST 

2. Concept of Previous year .

Income earned in a year is taxable in the next year.

The year in which income is earned is known as previous year and the next year in which
income is taxable is known as assessment year.
e.g. income earned during the PY 2019-20 is taxable in the immediately following AY
i.e.2020-21.

Uniform Previous year :All the assesse are required to follow financial year (i.e. April 1 to
st

March 31 ) as the previous year for all sources of income

st

Essential Reading:
Section  3 of Income tax Act 1961 .
E -Pack 
1.The Finance Act 2020.
http://egazette.nic.in/WriteReadData/2020/
218938.pdf
PSDA 
Topic 1:Concept of Direct and Indirect Tax.
Topic 2  :Concept of Previous year .

Questions to be discussed
1.What do you mean by previous year ?
2.Difference between direct and indirect tax?
3.What is the difference between calendar
year and financial year ?
  4. Numerical  examples to be discussed in the class.