MBA Semester III - K. K. Wagh Education Society

(304B)- DIRECT TAXATION
1. Accessibility Criteria (6)
Definitions, Basic concept, person, Assessment year; previous year, assesses, Residential status;
Incidence of tax, income exempt from tax.
2. Computation of Income Under Various Heads
a. Income under head salary: Meaning of salary, Basis of charge of salary income, different
forms of salary, different forms of allowances, perquisites, permissible deductions from salary
income, tax treatment of provident fund & approved superannuation fund, special tax treatment
of salary income of non resident technicians, deduction under section-80C, FBT. (6)
b. Income from house property: Basis of charge, property income not charge to tax, basis of
computing income from let out house property, computing income from self occupied property.
(5)
c. Profits and gains of business or profession: chargeable incomes; expenses expressly allowed
as deduction; general deductions; expenses specifically disallowed; compulsory maintenance of
accounts, compulsory audit, assessment in special cases, (retail, transport, exploration of mineral
oil) Computation of taxable income as profit and gain from business or profession. (6)
d. Capital gains: Meaning of capital asset, valuation of capital asset; transfer, considered to be
transfer, chargeability; computation of capital gain: short term and long term; computation of tax
on capital gains. Exemption from capital gains. (5)
e. Income from other sources: basis of charge; chargeable incomes; specific deductions;
amount not deductible; computation of taxable income from other sources. (5)
f. Computation of net taxable income: computation of total income, carry forward and set-off
of losses and deductions under sec 80 and net taxable income and tax thereof. Cases of Indian as
well as foreign companies, provision of minimum alternate tax and declaration and payment of
dividend, Tax provision in case of mergers, acquisition or amalgamation of company. (7)
3. Income –tax Payment and Assessment (5)
Tax deduction at source; advance tax; self-assessment tax; assessment procedure regular and best
judgment assess revision, rectification and appeal, provision relating to interest and refund of tax.
4. Tax Planning (8)