CS Executive Tax Laws Syllabus

Tax Laws 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 in CS Executive, not a summary of it.

1. 1

   Direct Taxes

   3 topics

   • Income Tax Act, 1961
   • Tax Planning and Management
   • Tax Deductions and Exemptions
2. 2

   Indirect Taxes

   3 topics

   • Goods and Services Tax (GST)
   • Customs Act, 1962
   • Excise Duty
3. 3

   Tax Administration and Compliance

   3 topics

   • Tax Authorities
   • Tax Returns and Assessments
   • Penalties and Prosecutions

Tax Laws flashcards for CS Executive

18 of 50 cards from the Tax Laws deck — real questions with worked answers.

1. Under the Income Tax Act, 1961, what is a 'Previous Year' and 'Assessment Year'?

   Previous Year is the financial year (1 April to 31 March) in which income is earned. Assessment Year is the following financial year in which that income is assessed and taxed.

2. What are the five heads of income under Section 14 of the Income Tax Act, 1961?

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

3. How is residential status of an individual determined under Section 6 of the Income Tax Act?

   An individual is resident if present in India for 182+ days in the PY, OR 60+ days in the PY and 365+ days in the preceding 4 years. Otherwise, non-resident. Resident status is further split into Ordinarily Resident and Not Ordinarily Resident.

4. What income is taxable for a Resident and Ordinarily Resident (ROR) in India?

   Global income — both income earned/received in India and income accruing or arising outside India is taxable for an ROR.

5. Define 'Gross Total Income' (GTI) versus 'Total Income' under the Income Tax Act.

   Gross Total Income is the aggregate of income under all five heads before Chapter VI-A deductions. Total Income is GTI minus deductions under Chapter VI-A (Sections 80C to 80U), and tax is computed on Total Income.

6. What is the difference between short-term and long-term capital assets for listed equity shares?

   For listed equity shares/equity-oriented funds, holding up to 12 months is short-term; more than 12 months is long-term. (For most other assets the threshold is 24 or 36 months.)

7. What is the maximum deduction available under Section 80C of the Income Tax Act?

   Up to Rs. 1,50,000 per year for investments/payments such as LIC premium, PPF, ELSS, EPF, principal repayment of housing loan, tuition fees, NSC, etc.

8. Under Section 80D, what is the deduction limit for health insurance premium?

   Up to Rs. 25,000 for self, spouse and children; an additional Rs. 25,000 for parents (Rs. 50,000 if parents are senior citizens). Maximum Rs. 1,00,000 where both taxpayer and parents are senior citizens.

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

   Up to Rs. 2,00,000 per year for interest on a housing loan for a self-occupied property (subject to construction/acquisition conditions).

10. What is the difference between tax exemption and tax deduction?

    An exemption removes certain income entirely from the tax base (it is never included in total income, e.g. agricultural income). A deduction is subtracted from gross total income to reduce taxable income (e.g. Section 80C).

11. Distinguish between tax planning, tax avoidance and tax evasion.

    Tax planning is arranging affairs within the law to reduce tax (legal and legitimate). Tax avoidance uses loopholes/technicalities to reduce tax (legal but against legislative intent). Tax evasion is illegal non-payment by concealment or misrepresentation.

12. What is GAAR under the Income Tax Act?

    General Anti-Avoidance Rules (Chapter X-A) empower tax authorities to declare an arrangement an 'impermissible avoidance arrangement' lacking commercial substance and deny tax benefits obtained mainly to avoid tax.

13. What is the difference between TDS and Advance Tax?

    TDS (Tax Deducted at Source) is tax withheld by the payer at the time of payment. Advance Tax is tax paid by the assessee in installments during the year on a 'pay-as-you-earn' basis when tax liability exceeds Rs. 10,000.

14. What are the advance tax installment due dates and percentages for individuals?

    15 June: 15%, 15 September: 45% (cumulative), 15 December: 75% (cumulative), 15 March: 100% (cumulative) of the estimated tax liability.

15. What is set-off and carry forward of losses under the Income Tax Act?

    Set-off is adjusting a loss against income within the same year (intra-head, then inter-head). Carry forward allows unabsorbed losses to be set off in subsequent years (e.g. business loss for 8 years, speculative loss for 4 years).

16. What is clubbing of income under the Income Tax Act?

    Clubbing (Sections 60-64) includes another person's income in the assessee's total income, e.g. income of a minor child or income from assets transferred to spouse without adequate consideration, to prevent tax avoidance through diversion.

17. What is Goods and Services Tax (GST) and when was it introduced in India?

    GST is a comprehensive, destination-based, multi-stage indirect tax levied on the supply of goods and services, with input tax credit at each stage. It was introduced in India on 1 July 2017.

18. What are the four main components of GST in India?

    CGST (Central GST), SGST (State GST), UTGST (Union Territory GST), and IGST (Integrated GST levied on inter-state supplies and imports).

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