Subject: Taxation

Module Number: 1

Module Name: Introduction to Taxation

1
Subject: Taxation

Syllabus

Introduction, Canons of Taxation, Types of Taxes, Definitions- Income, Person, Assesses, Assessment
year, Pervious year, Agricultural Income (simple numerical problems). Exempted Incomes U/S 10,
Capital and Revenue Income and expenditure, Residential Status and Incidence of Tax

2
Subject: Taxation

AIM:
To acquaint the students with the basics of taxation so that they can understand the tax history, canons
of taxation, types of taxes, important concepts of taxation, gross total income and total income,
exempted income, capital and revenue receipts and expenditure, the concept of residential status and
incidence of tax.

3
Subject: Taxation

Course Objectives:
• Explain the tax history in India and the canons of taxation

• Explain different types of taxes along with the important concepts of taxation

• Describe the important features of income

• Determine gross total income, total income and the exempted incomes u/s 10

• Explain the capital and revenue receipts and expenditure

• Describe different types of residential status

• Explain how to determine the residential status of different categories of persons

4
• Describe the concept of incidence of tax
Subject: Taxation

Course Outcomes :
• Outline the tax history in India and the canons of taxation

• Identify different types of taxes along with the important concepts of taxation

• Outline the important features of income

• Calculate gross total income, total income and the exempted incomes u/s 10

• Identify the capital and revenue receipts and expenditure

• Review different types of residential status

• Review how to determine the residential status of different categories of persons

5
• Identify the concept of incidence of tax
Subject: Taxation

Table of Content:
• Introduction

• Canons of Taxation

• Types of Taxes

• Definitions- Income, Person, Assesses, Assessment year, Pervious year

• Exempted Incomes U/S 10

• Capital and Revenue Income and expenditure

• Residential Status and Incidence of Tax

6
Subject: Taxation

Introduction
Government collects revenue from their citizens to arrange funds for the public expenditure, such as
developing infrastructure, healthcare, education, etc. these revenues are called as taxes.

Taxes can be defined as mandatory financial contributions imposed by a country’s government on its
citizens to meet their public expenditures.

Thus, knowledge of taxation help individuals to not only determine the amount of tax they need to pay
to the government but how they can reduce it.

7
Subject: Taxation
Canons of Taxation
The four canons given by Adam Smith have been eminent in the field of taxation.

Canon of Canon of Canon of Canon of

Equality certainty Convenience Economy

8
Subject: Taxation
Canons of Taxation

Rich people are capable of paying high taxes as compared to poor people. Therefore,
Canon of justice demands that a person having greater ability to earn and pay must pay more
Equality
taxes and therefore there are different tax rates as per different slabs of income.

Canon of The time of payment, the way of payment, the amount to be paid means tax liability
certainty must be clear and straight to the contributor and to everyone.

Canon of It should be convenient. According to A. Smith “Every tax ought to be levied at

Convenience time or the manner in which it is most likely to be convenient for the contributor to
pay it.”

Canon of
Economy The cost of tax collection should be as low as possible.
9
Subject: Taxation
Self Assessment Question
1.Which of the following is an old canon given by Adam Smith?
a. Canon of Elasticity
b. Canon of Certainty
c. Canon of flexibility
d. Canon of desirability
Answer: b

2. What is the ten digit unique identification number issued by the Income Tax Department?
a. Aadhar number
b. PAN
c. Income Tax Number
d. Revenue deposit number
Answer: b 10
Subject: Taxation
Types of Taxes

Direct Tax Indirect Tax

Income Tax Goods and Service Tax

Customs Duty

11
Subject: Taxation

Types of Taxes Direct Tax Indirect Tax

Direct Tax-: These taxes are levied and paid directly by the person to the government. Here, the incidence and
impact fall on the same person. This tax is being managed by the Ministry of Finance through Central Board of
Direct Taxes (CBDT).
Indirect Tax-: These taxes are levied and paid indirectly by the person to the government. The person collects tax
from the service recipient/ customer first and then pay it to the government. Here, the incidence and impact fall on
two different person. Here, burden of tax is passed to the other person i.e. final consumer. : It refers to the tax paid
indirectly by the consumers to the Government through intermediaries (manufacturers or retailers). Indirect tax is
levied on goods and services only and consumers pay taxes indirectly while purchasing products or availing
services. This tax is being managed by the Ministry of Finance through Central Board of Indirect Tax & Custom
(CBIC). 12
Subject: Taxation

Basic Concepts ofDirect

Taxation
Tax (Definitions) Indirect Tax
Income-: The definition of income in the Income Tax Act, 1961 is inclusive but not exhaustive.
According to the act, certain types of earnings can be held as income. Nonetheless, the general meaning
of income (any activity that provides benefits in the form of cash or kind is considered as income) is used
for accounting purpose in taxation.
1. Income from salary
2. Income from house property
3. Income from business and profession
4. Income from capital gains
5. Income from other sources
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Subject: Taxation
Basic Concepts of Taxation: Income
 Some of the important earnings or benefits that can be held under income are:
1. Profits and gains, Dividends
2. Any type of monetary benefits or perquisites in the hands of employee or director
3. Capital gains
4. Winnings from different contests like lotteries, puzzles, races, and card games
5. Amount received by an employee under his/her superannuation or provident fund
6. Amount received under insurance policy
7. Benefits received by an individual in the previous year in the form of cash and kind.

14
Subject: Taxation
Basic Concepts of Taxation: Person
In taxation, an entity, whose income in the previous year is liable for taxation is known as
person, including:
 • An individual: A natural human being such as male, female, minor or a person of sound or
unsound mind.
• A Hindu Undivided Family (HUF): A Hindu Undivided Family comprises individuals
descended from single common male ancestor & includes their wives & unmarried daughters..
Thus, the income earned by HUF is assessable for taxation income derived from the joint family
corpus. Income of individuals in HUF is taxed as their personal income and not brought under
the common income of HUF. Thus, both income from a proprietary firm (in individual capacity)
and income from a business of HUF are eligible for separate tax exemptions. A HUF business
can be run by the head, who is called ‘Karta’.
15
Subject: Taxation
Basic Concepts of Taxation: Person
•An association of person (AOP): AOP includes a group of persons (whether individuals, HUF,
companies, firms and so on.) brought together for shared purpose(s). An association is formed only when
all the persons associate themselves in an income-producing activity.
• Body of individuals (BOI): Comprise a group of persons (individual only) coming together for
common purpose(s) or common action whether or not to earn income.
• A company comprises:
•Any Indian company.
•Any corporate established by or under the laws of country outside India.
•Any institution, association or body which is or was assessable or was assessed as a company for any
assessment year on or before April 01, 1970.
•Any institution, association or body, whether incorporated or not and whether Indian or non-Indian,
which is declared by general or special order of the Central Board of Direct Taxes to be a company 16
Subject: Taxation
Basic Concepts of Taxation: Person
•A partnership firm: Refers to a business organization run by different individuals who agree to
share profits of the business conducted by all, or anyone of them on behalf of others. Such
members of partnership firm are individually known as partners. A partnership firm is a separate
taxable entity apart from its partners.
• A local authority: Includes any municipal committee, district board, body of port
commissioners, or other authorities, legally entitled to control and manage a municipal or local
fund by the Government.
• Every artificial, judicial person which is not included in any of the above categories: It is not a
natural person. Ex: Deities, Idols, Universities.

17
Subject: Taxation
Basic Concepts of Taxation: Assessee
Assessee is the person who is liable for paying income tax under the Income Tax Act. However, the taxable
income of the assesse may not necessarily be his/her own income. According to section 2(7) of the Income
Tax Act, an assessee “means a person by whom any tax or any other sum of money is payable under this
Act and includes the following:
a. Every person in respect of whom any proceeding under this Act has been taken for the assessment of
his/her income or of the income of any other person in respect of which he/she is assessable, or of the loss
sustained by him/her or by such other person, or of the amount of refund due to him or to such other
person;
b. Every person who is deemed to be an assessee under any provision of this Act.
c. Every person who is deemed to be an assessee in default under any provision of this Act.
  18
 Subject: Taxation
Basic Concepts of Taxation: Assessee
In other words, according to the Income Tax Act, assessee is a person who is:
• Liable to pay tax, interest or penalty.
• Deemed to be an assessee, as per the act.
• Default assessee, as per the act.
• Entitled for refund of tax.
 There are primarily three types of assessee, including:
1. Ordinary assessee: An assessee who pays tax, penalty or interest and is eligible to get refund on tax from
the income tax department is an ordinary assessee.
 

 
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 Subject: Taxation
Basic Concepts of Taxation: Assessee
2. Deemed assessee: A deemed assessee is a representative assessee for the income of another individual. This
assessee has to pay taxes on his income as well as on the income of another person. For example, the guardian
of a minor, agent of a non-resident, the legal representative of a deceased person and so on are called deemed
assessee.  
3. Assessee in default: An assessee who fails to fulfill his duty or obligation is an assessee in default. For
example, if an individual needs to submit the return of income but he/she has not submitted the same, then
he/she is called assessee in default. A person, who was liable to deduct tax but has failed to do so, shall be
treated as an ‘assessee in default’.
 

 
20
Subject: Taxation
Basic Concepts of Taxation:
Previous year
It is the year for which the income of an assessee is evaluated for income tax. For instance, the previous year
(PY) for the assessment year (AY) 2022–23 will be 2021-22.It is the year in which income is earned.
Business or profession being newly set-up- Beginning with the date of setting up of the business & ending on
31st March of that financial year.
A source of income newly coming into existence- Beginning with the date on which the new source of income
comes into existence & ending on 31st March of that financial year.
 Assessment year
It comprises of 12 months starting from 1st April to 31st March of every year. Generally, the previous year’s
income of an assessee is taxed and assessed during the subsequent assessment year, at the rates prescribed by the
relevant Finance Act of that year. For example, the assessment year 2022-23, starts from 1st April 2022 to 31st
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March 2023.
Subject: Taxation
Self Assessment Question
3.Which concept of taxation comprises of Salary?
a. Income
b. Assessee
c. Agricultural Income
d. Person
Answer: a

4. Which of the following tax is an indirect tax?

a. Income Tax
b. Goods and Service Tax
Answer: b

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 Subject: Taxation
Self Assessment Question
5. Ascertain the previous year of the income in relation to assessment year 2017-18 in the following cases:Dinesh
started a cloth business on 27.02.2017
A. 1.4.2016-31.3.2017
B. 27.2.2017-31.3.2017
C. 1.4.2017-31.3.2018
D. 30.3.2017-31.3.2017
Answer : B
6. Ascertain the previous year of the income in relation to assessment year 2021-22
A. 1.4.2021-31.3.2022
B. 27.2.2021-31.3.2022
C. 1.4.2020-31.3.2021
D. 30.3.2020-31.3.2020
23
Answer : C
Subject: Taxation
Gross Total Income and Total Income

 Gross Total Income can be defined as the aggregate of different heads of incomes, such as Income
from house property, gains from business, salary, capital gains and any gains from other sources.
Income particulars Amount
Income from salary XXX
Income from house property
Income from business XXX
Income from capital gains
Income from other sources XXX
Gross Total Income
XXX
 Total Income, on the other hand, can be defined as the remaining after allowing the deductions u/s 80c to
XXX
80u from the gross total income.
XXX
 The taxable income shall be rounded off to the nearest multiple of ten rupees . Any paise shall be
ignored. If the last digit is five or more then the amount shall be increased to the next higher amount
24
which is multiple of ten.
 Subject: Taxation
Exempted Income
There are some specific exemptions made in the Income Tax Act under Section 10. Incomes exempted under the
act are the ones which are not considered as a part of total income; therefore, are not taxed. Following are some
of the exemptions made under section 10:

• Exemption U/S 10(1): Agricultural Income

• Exemption U/S 10(2): Share from income HUF

•Exemption U/S 10(2A): If a firm is separately assessed, then its partners get full tax exemption on their
share in the firm.

• Exemption U/S 10(4) (i): Interest on securities/bonds for non-residents are exempted.

•Exemption U/S 10(4) (ii): Interest received by a non-resident on external account is exempted.

• Exemption U/S 10(4B): Interest on specific saving certificates.

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 Subject: Taxation
Exempted Income (Contd.)
• Exemption U/S 10(5): Value of leave travel concession.

• Exemption U/S 10(6A): Tax paid by Government on Royalty or Fees for Technical Service

• Exemption U/S 10(6B): Tax paid by Government on Income of a Non-resident or a Foreign Company

• Exemption U/S 10(6C): Fees for Technical Services in Project connected with Security of India.

• Exemption U/S 10(7): Allowance or Perquisites paid to Indian citizen outside India
• Exemption U/S 10(8B): Income associated with the technical assistance program

• Exemption U/S 10(10): The gratuity up to Rs. 10,00,000 received under the payment of Gratuity Act.
• Exemption U/S 10(10AA): Amount received as leave encashment on retirement.

• Exemption U/S 10(10BB): Any payment made under Bhopal Gas Leak 1985.
26
 Subject: Taxation
Exempted Income (Contd.)

• Exemption U/S 10(BC): Amount received by an individual from the Govt. or local authority as
compensation.

• Exemption U/S 10(10CC): Tax paid by Employer on behalf of Employee on Non-monetary Perquisites.

• Exemption U/S 10(10D): Amount received from life insurance policy.

• Exemption U/S 10(11): Payments made from provident fund.

• Exemption U/S 10(12): Payment from recognized provident funds.

• Exemption U/S 10(13A): Minimum of the following is exempt:

• 50 percent if a person’s house is situated at Delhi, Mumbai, Chennai or Kolkata or 40 percent if a
person’s house is located at any other place
• Actual HRA received 27
Subject: Taxation
Exempted Income (Contd.)

• Exemption U/S 10(15) (iib): Interest on capital investment bonds.

• Exemption U/S 10(16): The complete amount of scholarships.

• Exemption U/S 10(17): Daily allowances or constituency allowances received by an MLA or MP.

• Exemption U/S 10(18): Pension or family pension received from Central or State government by an
employee.

• Exemption U/S 10(20): Income of local authorities including municipality, panchayat, district boards, etc.

• Exemption U/S 10(21): Income of an approved Scientific Research Association.

• Exemption U/S 10(23AA): Income received by regimental fund.

•Exemption U/S 10(24): Income received from house property and from other sources by the registered trade
28
unions.
Subject: Taxation
Exempted Income (Contd.)

• Exemption U/S 10(25): Income received by the trustees on behalf of a recognized provident fund .

• Exemption U/S 10(25A): Income received from an employee’s state insurance fund.

• Exemption U/S 10(26): Income of member of scheduled tribes.

• Exemption U/S 10(30): Subsidy received by Tea board.

• Exemption U/S 10(32): Up to Rs 1500 is exempted if a minor’s income is clubbed with individual.

• Exemption U/S 10(33): Dividend declared by a domestic company is exempted in the hands of
shareholder.

• Exemption U/S 10(35): Income received on units of UTI and mutual funds covered under section
10(23D).
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Subject: Taxation
Exempted Income (Contd.)

• Exemption U/S 10(37): Capital gains received from Compulsory acquisition of agricultural land in
urban areas.

• Exemption U/S 10(38): Income received from the transfer of equity shares.

• Exemption U/S 10(39): Income obtained from notified international sports event held in India.

• Exemption U/S 10(42): Specified income of a notified non-profit body or authority

• Exemption U/S 10(43): Loan amount received by an individual in a reverse mortgage

transaction either in instalments or lumpsum.

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Subject: Taxation
Self Assessment Question
7. Which of the following is a taxable income?
a. Tax paid by Employer on behalf of Employee on Non-monetary Perquisites.
b. Income of an approved Scientific Research Association
c. Income of member of scheduled tribes
d. Salary received from employer
Answer: d

8. Which of the following is not an exempted income ?

e. Agricultural income
f. Amount received as arrears in salary
g. Share of income from HUF
h. Pension amount received from the Central or State Government by an employee
Answer: b 31
Subject: Taxation
Capital and Revenue Receipts
Capital Receipt
Fixed capital is considered as capital receipt.
Income received by selling an asset used in
business is capital receipt.
Subsidies or grants received from government for
capital purposes fall under capital receipt.
Insurance received on capital asset is regarded as
capital receipt.
Revenue Receipt
Revenue receipt is circulating capital.
Resale of any asset, purchased for the same, is
revenue receipt
Subsidies or grants received from government for
trading fall under revenue receipt
Insurance received on trading asset is revenue
receipt.
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Subject: Taxation
Capital Expenditure and Revenue Expenditure

Capital Expenditure Revenue Expenditure

Purchase of assets for

Fixed assets purchase
resale
The improvement The maintenance of
of earning fixed assets
capacity
Expenditures for Expenditure for
issuing of receiving a
shares loan

33
Subject: Taxation
Self Assessment Question
9. Which expenditure is regarded as capital expenditure
a. Fixed assets purchase
b. Purchase of assets for resale
c. Receipt on account of circulating capital
d. Compensation for temporary disablement
Answer: a

34
34
 Subject: Taxation

Residential Status-Introduction

• In India, income tax is governed by the Central Board for Direct Taxes (CBDT).

•According to the Income Tax Act, income tax shall be imposed upon the income of entities for the assessment
year based on the rates established for that assessment year.

• Income tax is imposed on income earned by an assessee in the previous year.

• Incidence of tax depends on the residential status of the assessee.

•Residential status has to be determined for each previous year and a person can be resident in India and
another country in the same assessment year.

•Citizenship and residential status are two different concepts. A citizen of India may not be a resident in India for the
35
Subject: Taxation
Residential Status

 Description of residential status for tax purpose is given under Section 6 of the Income Tax
Act 1961

 For levying the taxes, it is imperative to determine the residential status of the assessee, such
as individual, HUF, company and so on.

 To assess residential status, the income tax department need to determine the following:

The residential status of an assessee for the previous year

The number of days spent by the assessee in the country

during the financial year

The location of the assessee’s income and employment

36
Subject: Taxation
Types of Residential Status

Resident

Types of Residential Status

Non Resident

37
Subject: Taxation
Residential Status of an Individual

Basic Conditions Additional Conditions

The individual must be a resident of

The period of staying of the individual
India in at least 2 out of 10 years
during the relevant previous year must
immediately preceding the relevant
be 182 days or more in India previous year

OR AND

The stay of the individual during the

current previous year must be 60 days He/she must have a stay of 730 days or
or more and for a total of 365 days in more within the 7 years immediately
the 4 years immediately preceding the preceding the existing previous year
relevant previous year in India

38
Subject: Taxation
Residential Status of an Individual
An individual is said to be a resident in India, if he satisfies any one of the basic
Basic Conditions Additional Conditions
conditions

An assessee who is not satisfying any of the basic conditions shall be treated as a non-resident in
India for the relevant previous year

A resident individual in India can further be categorized as –

i) Resident and ordinarily resident in India
ii) Resident but not ordinarily resident in India

If a resident individual satisfies both two additional conditions, he will be treated as resident &
ordinarily resident in India
If a resident individual does not satisfy both additional conditions, he is “Resident but not ordinarily
resident in India”
39
Subject: Taxation
Residential Status of a HUF

• HUF is identified as resident in India if its management or control is located in India either wholly
or partly during the relevant previous year.

• On the other hand, HUF is non-resident if its management or control is wholly situated outside
India.

A resident HUF is said to be ordinarily resident if the karta of the HUF satisfies the following
additional conditions:

• He/she has been resident in India for at least 2 out of 10 years immediately preceding the
previous year

• Karta had been living in India for the period of 730 days or more out of seven years immediately
preceding the previous year 40
Subject: Taxation
Residential Status of a Company under Section 6(3)

Indian Company Foreign Company

• Always resident in India
• Control and management is wholly
located in India in the previous year:
Resident in India
• Control and management is wholly or
partially located outside India in the
previous year: Non Resident

41
Subject: Taxation
Residential Status of a Firm and AOP

 Firm- a commercial business organisation established to earn profits by getting by selling of goods
and services to consumers.

 AOP- an association of persons who have come together without establishing any partnership.

 To be resident in India, following conditions must be satisfied by a firm or AOP:

• The control and management of the firm and AOP must be wholly located in India, or

• The control and management of the firm and AOP must be partially located in India and
partly located outside India.
• A firm or AOP shall be given the status of non-resident In India, if the management and
control of the firm or AOP is wholly located in foreign land for the specific previous year
42
Subject: Taxation
Residential Status of BOI and Other Persons

 Body of Individuals (BOI) -A group of individuals established to achieve a common purpose.

 The purpose of the group may/may not be profit oriented.

 Determination of residential status of BOI

 Resident of India, if the control and management of their affairs are located wholly/partly
in India for the specified previous year.
 Non-resident in India if their affairs are controlled and managed outside India for the
specified previous year.

43
Subject: Taxation
Self Assessment Question

10. What is the residential status of an individual who stays for a period of 182 days in India
in the relevant previous year?

a. Resident

b. Non Resident

Answer: a

14
44
Subject: Taxation
Self Assessment Question

11. Which of the following person is resident?

a. The management and control of the business of an HUF is controlled wholly outside
India
b. The individual leaves India for the first time for employment in the previous year 2020-21 on 27th
June ,2020
c. The individual stays abroad and spends on 19 days in India in year 2020-21
Answer: a- Non Resident
b- Resident
c- Non Resident

15
45
Subject: Taxation
Incidence of Tax

 “incidence of tax is the direct monetary burden borne by the ultimate tax payer”
–Dalton

 Incidence of tax depends on the residential status and place and time of accrual or receipt of income.

46
Subject: Taxation
Indian Income and Foreign Income
Indian Income
(Income earned from domestic
Foreign Income
source)

Income received or deemed to be received in Income is not received in India and Income
India during the previous year and does not arise or accrues or deemed to arise or
simultaneously arises or accrues or deemed accrue in India during the previous year
to arise or accrue in India during the
previous year.
• Income received or deemed to be received in
India but arises or accrues outside India
during the previous year.
• Income received outside India but it arises or
accrues or deemed to arise or accrue in India
during the previous year.
47
Subject: Taxation
Relationship between Residential Status and Incidence of Tax
ROR(Resident RNOR(Resident not
Type of Income ordinarily ordinarily resident) Non-Resident
resident)
Indian Income Taxable Taxable Taxable
Foreign Income

Income accrued and received outside India from a

business controlled in or profession set-up in India. Taxable Taxable Not taxable

Income accrued and received outside India from a

Not taxable Not taxable
business controlled or profession set-up outside Taxable
India.

Income accrued and received outside India in the

Not taxable Not taxable
previous year (it makes no difference if the same is Taxable
later remitted to India).

Income accrued and received outside India in any year Not taxable Not taxable
preceding the previous year and later on remitted to Taxable
India in current financial year.
Any other Foreign Income Taxable Not taxable Not taxable
48
Subject: Taxation
Self Assessment Question

12. Which of the following is a taxable income?

a. Business Income of non residents if business is held outside India

b. Foreign income of non-residents

c. Income generated within India by the residents

Answer: c

49
Subject: Taxation
Summary
 Taxes can be defined as mandatory financial contributions imposed by a country’s
government to meet their public expenditures.

 The canons of taxation include canon of equality, certainty, convenience, economy.

 Assessee is the person who is accountable for paying income tax under the Income
Tax Act.

 Previous year refers to the year for which the income of an assessee is earned and
evaluated for income tax.

 Assessment year comprises the period of 12 months beginning on 1st April every
year and ending on 31st March of the next year immediately following the previous
year. 50
Subject: Taxation
Summary
 Gross total income can be defined as the summation of different heads of incomes, such as
house property, gains from business, salary, capital gains and any income from other
sources.
 Total income can be defined as the remaining income after allowing the deductions (under
u/s 80C to 80 U) from the gross total income.
 Incomes exempted under section 10 of the Income Tax Act are the ones which are not
considered as a part of total income; therefore, are not taxed.

 Fixed capital is considered as capital receipt, while revenue receipt is circulating

capital.

 Capital expenditure cannot be deducted from the gross income at the time of
calculation of business income, whereas revenue expenditure is deductible 51
Subject: Taxation
Summary
 For levying the taxes, it is imperative to determine the residential status of the assessee, such as
individual, HUF, company and so on.

 Incidence of tax is the extent of a specific tax to be paid by consumers,

employees, producers etc.

 Incidence of tax depends on the residential status and place and time of accrual or receipt of
income.

 Accrued Income refers to the income that is earned for a specific period of time but yet to be
received.

 If an Indian resident earns his/her income from any country outside India, the income shall be
treated as foreign income for taxation purposes 27
52
Subject: Taxation
ACTIVITY
Brief description of activity

• Description:
• Product Soft Inc., a foreign company situated in
Singapore, is engaged in the sale of hardware;
along with the installed software which is
imported from India. An MOU(Memorandum of
Offline Activity Understanding) was signed between the Indian
(20 min) company and Product Soft Inc. that the software
shall be directly installed by the Indian company
to the hardware sold at the customer site. Can the
sale proceeds received to Product Soft Inc. be
construed as income deemed to accrue or arise
in India? Justify your answer.

53
Subject: Taxation
ACTIVITY
Brief description of activity

• Description:
• Study the Income Tax Act, 1961. Identify the
basis of exemptions of section 10 and list the basis
Offline Activity of exemptions along with appropriate heads of
(20 min)
income. Students to present this activity in
groups.

54
Subject: Taxation
ACTIVITY
Brief description of activity

• Description:
Calculate the residential status of five relatives of
yours.
Offline Activity
(20 min)

55
Subject: Taxation

Document Link
Topic URL Notes

Savla. B. Full Overview http://

of Direct & Indirect trak.in/tags/business/2015/03/09/overview-direct-indirect-t
axation-tax- structure- Notes on Taxation
Taxation Structure In
India. india/.

ICAEW ,Taxation in Notes on Taxation

http://www.icaew.com/en/library/subject-gateways/tax/tax-
India. by-country/india

Caclubindia.com. http://
Notes on Residential Status
Residential Status vs. www.caclubindia.com/articles/residential-status-vs-taxabilit
Taxability of Income y-
of-income-8485.asp.

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Subject: Taxation
Video Link

Topic URL

https://www.youtube.com/watch?v=5YOwPFIoJkM
Residential Status https://www.youtube.com/watch?v=yHMvthHlmxk
https://www.youtube.com/watch?v=CDJpZFlJXdg

https://www.youtube.com/watch?v=vf-mtNvRNKs
Incidence of Tax
https://www.youtube.com/watch?v=Rqgb0G0bEpA
https://www.youtube.com/watch?v=Chg74US8GN0

57
Subject (Helvetica Bold- 24pt)

E- Book Link

Ebook name Chapter Page No. Notes URL

https://
www.incometaxindia.gov.
Direct taxation 1-2 1-11 Introduction to taxation
in/pages/acts/income-tax-
act.aspx

58
Subject: Taxation

References

1. Singhania,V. K. & Singhania, M.(2021). Student’s guide to income tax. Taxmann Publications.
2. Pathak, A., & Godiawala, S.(2021). Business taxation, New Delhi: McGraw Hill Education (India)
Private Limited.
2. Lal, B.B. (2021). Income tax. New Delhi: Dorling Kindersley (India) Private Limited

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