SUBJECT : FUNDAMENTALS OF BUSINESS TAXATION

Module: 1:- Introduction

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Modules
Module 1: Introduction

Module 2: Computation of Taxable Income under the different heads of

Income

Module 3: Computation of Total Taxable Income of an Individual

 
Module 4: Customs Act & GST

 
Module 5: GST

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 Liquidity
Security

Features of tax
 It is compulsory payment to be paid by the citizens who are liable to pay it,
hence refused to pay tax is a punishable offence.
 It is levied to meet public expenditure incurred by the government in the common
interest of the nation.
 The payment of tax by a person does not entitle him to receive any direct
benefits from the government in return for the tax.
 There is no direct relationship between the tax paid by the person and the
benefits that he may receive as a result of government expenditure.
 It has to be paid regularly and periodically as determined by the tax authority.

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Types of taxes
 Direct Taxes
 Indirect Taxes
Particulars Direct Tax Indirect Tax
Meaning It is a kind of tax where in It is a kind of tax where in
incidence and impact is on the ‘incidence’ and ‘impact’ is on two
same person. different persons.
Examples Income Tax, Wealth Tax, Excise Duty, Customs Duty, Sales
Property Tax etc. Tax, Service Tax etc.
Nature of Tax Progressive in nature. Regressive in nature.
Levy and Levied and collected from the Levied and collected from the
Collection Assessee. consumer
Shifting of Tax burden is borne by the Tax burden is shifted to the
Burden person on whom it is levied. subsequent or ultimate user.
Hence, the burden cannot be
shifted.
Tax Collection Tax is collected on the income At the time of sale or purchase or
for a year is earned. rendering of services.

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 Principles or Canons of taxation:

 Canon of Equality
 Canon of Certainty
 Canon of Convenience
 Canon of Economy
 Canon of Productivity
 Canon of Elasticity
 Canon of Simplicity
 Canon of Flexibility
 Canon of Co-ordination

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 Thank you

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