CS (Company Secretary) Tax Laws and Practice Syllabus

Tax Laws and Practice syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Tax Laws and Practice in CS (Company Secretary), not a summary of it.

1. 1

   Direct Taxation - Income Tax

   5 topics

   • Basic Concepts and Residential Status
     • Assessee, previous year and assessment year
     • Scope of total income and residential status
   • Heads of Income
     • Salaries and house property
     • Profits and gains of business or profession
     • Capital gains and other sources
   • Deductions and Total Income
     • Chapter VI-A deductions
     • Clubbing and set-off of losses
   • Assessment and Returns
     • Return filing and assessment procedures
     • TDS, TCS and advance tax
   • Taxation of Companies
     • Computation of company income
     • MAT and corporate tax rates
2. 2

   Indirect Taxation - Goods and Services Tax

   4 topics

   • GST Framework and Concepts
     • Constitutional framework and GST Council
     • CGST, SGST, IGST and UTGST
   • Supply, Levy and Exemptions
     • Concept and scope of supply
     • Composite and mixed supply
     • Exemptions and reverse charge
   • Valuation, Time and Place of Supply
     • Time of supply for goods and services
     • Place of supply rules
     • Valuation provisions
   • Input Tax Credit and Returns
     • ITC eligibility and conditions
     • GST registration and returns
     • E-way bill and invoicing
3. 3

   Customs and Tax Procedures

   3 topics

   • Customs Law Basics
     • Levy and types of customs duties
     • Valuation and classification
   • Tax Planning and Management
     • Tax planning, avoidance and evasion
     • GAAR overview
   • Appeals and Penalties
     • Appellate hierarchy under tax laws
     • Penalties and prosecution

Tax Laws and Practice flashcards for CS (Company Secretary)

20 of 51 cards from the Tax Laws and Practice deck — real questions with worked answers.

1. Under the Income-tax Act, who is a 'Resident and Ordinarily Resident' (ROR) individual?

   An individual who is a resident (satisfies a basic condition) AND satisfies BOTH additional conditions: (1) resident in India in at least 2 of the 10 preceding previous years, and (2) present in India for 730 days or more during the 7 preceding previous years.

2. What are the two basic conditions to determine residential status of an individual in India?

   (1) Stay in India for 182 days or more in the previous year; OR (2) Stay of 60 days or more in the previous year AND 365 days or more in the 4 preceding previous years.

3. What is the scope of total income for a Resident and Ordinarily Resident (ROR)?

   Global income is taxable — income received/accrued in India AND income accruing/arising outside India, regardless of source.

4. How is the residential status of a company determined under Indian income tax?

   A company is resident if it is an Indian company, OR if its Place of Effective Management (POEM) is in India during the year.

5. Distinguish between 'Previous Year' and 'Assessment Year'.

   Previous Year is the financial year in which income is earned (e.g., 2023-24); Assessment Year is the following financial year in which that income is assessed and taxed (e.g., 2024-25).

6. What are the five heads of income under the Income-tax Act?

   (1) Salaries, (2) Income from House Property, (3) Profits and Gains of Business or Profession, (4) Capital Gains, (5) Income from Other Sources.

7. How is income from a let-out house property's Net Annual Value (NAV) computed?

   Gross Annual Value (higher of expected rent/actual rent) LESS municipal taxes paid by owner = Net Annual Value.

8. What standard deduction is allowed under the head Income from House Property?

   30% of the Net Annual Value (under Section 24(a)), allowed irrespective of actual expenditure.

9. What is the maximum interest deduction on a self-occupied house property loan under Section 24(b)?

   Rs. 2,00,000 per year (for a self-occupied property where the loan is for acquisition/construction completed within the prescribed period).

10. How are short-term and long-term capital assets distinguished for listed equity shares?

    Listed equity shares held for more than 12 months are long-term capital assets; held for 12 months or less they are short-term.

11. What is 'indexation' in the context of capital gains?

    Adjusting the cost of acquisition/improvement of a long-term asset using the Cost Inflation Index (CII) to account for inflation, thereby reducing the taxable capital gain.

12. Under which section is salary income's standard deduction allowed and at what amount?

    Section 16(ia) allows a standard deduction of Rs. 50,000 (or salary, whichever is less) from gross salary.

13. What deduction is available under Section 80C and what is its limit?

    Deduction for specified investments/payments (LIC, PPF, ELSS, principal on housing loan, tuition fees, etc.) up to a maximum of Rs. 1,50,000.

14. What does Section 80D allow a deduction for?

    Premium paid on health/medical insurance for self, family, and parents (with higher limits for senior citizens) and preventive health check-ups.

15. How is 'Gross Total Income' different from 'Total Income'?

    Gross Total Income is the aggregate of income under all five heads after set-off of losses; Total Income is GTI minus deductions under Chapter VI-A (80C to 80U).

16. What is the deduction under Section 80E?

    Deduction for interest paid on a loan taken for higher education, available for 8 assessment years (no upper monetary limit on interest).

17. What is a 'self-assessment' under Section 140A?

    Assessment where the taxpayer computes their own income and tax, pays any balance tax with interest before filing, and files the return of income.

18. What is the difference between 'summary assessment' (143(1)) and 'scrutiny assessment' (143(3))?

    143(1) is a preliminary processing with arithmetic/prima facie adjustments and no detailed examination; 143(3) is a detailed scrutiny after notice where the Assessing Officer examines evidence to determine correct income.

19. What is 'best judgment assessment' under Section 144?

    Assessment made by the Assessing Officer using best judgment when the taxpayer fails to file a return, comply with notices, or maintain proper accounts.

20. Who must mandatorily get accounts audited under Section 44AB (tax audit) for business?

    A business whose total sales/turnover/gross receipts exceed Rs. 1 crore (Rs. 10 crore if cash receipts and payments are within 5%) in the previous year.

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