How to Extra Prepare For CS Executive Tax Laws

In this article, we will highlight the core strategy which  every student should keep preparing for this paper this post contains important tips and study plans for CS Executive tax laws which should not be missed by students.

Income taxes are a direct tax that is it is a tax levied directly on the income of a person. Income tax at the CS  executive level largely involves the application of  provisions of the Income Tax Act 1967 to solve computational problems, and is, therefore, a very  interesting, and at the same time a dynamic subject on  account of the major changes which take place in the income tax law every year. 

Since this subject of income tax is new to the students, you must have an idea of the constituents or elements that make up the income tax law.

Students need to understand the basic concepts, especially the concept of income on which the tax is levied under. The concept of the assessment year and the previous year are equally imperative. most importantly, the student needs to comprehend the computation of total income, on which income taxes are levied.

Be acquainted with the Elements or constituents of income Tax Law

The income tax law, which governs the levy of income  tax in India Has the following elements or constituents

  • income tax act 1961
  • income tax rules 1962 Income Tax Act 1961
  • Annual Finance Act
  • Circulars/ Notifications

Understand the fundamental concepts of income Tax laws

  • Concept of “income”
  • Concept of “previous year and “ assessment  year”
  • Concept of “person”
  • Concept of assessee

Understand the process of computation of total income tax and liability 

How to Extra Prepare For CS Executive Tax Laws

Income tax is a tax lived on the total income of  the previous year of every person. the levy of income tax is therefore on the total income of  assessee. The total income has to be computed as per the provision of the Income  Tax Act 1961 in the following manner- 

  • Ascertain residential status
  •  Exclude income which does not form part of  total income 
  • Identifying group income under the respective  head 
  • Compute the income under each head
  • Applied clubbing provisions 
  • give effect to the provisions for set off and  carry forward and set off of losses  
  • determine the gross total income 
  • allowed deductions permissible from gross  total income 
  • find out the total income 
  • calculate the tax liability 
  • reduce tax deducted at source an advanced  tax to arrive at the net tax liability 
  • return off income 

Know your syllabus an expected level of  knowledge 

Having understood the basic concepts of income tax law it is important that you were aware of the scope of the syllabus and the level of knowledge expected so that you can plan your study accordingly. 

The syllabus of part 1 – income tax of CS Executive Course : Taxation comprises of-

  • Important definitions in the Income Tax Act  1961 
  • Basis of charge, rates of taxes is applicable for a different type of assesses 
  • Concepts of the previous year and assessment  year  
  • Residential status and scope of total income
  • Incomes that do not form part of total  income 
  • heads of income and the provisions governing  computation of income under different heads,
  • Income of other persons included in assesses total income 
  • Aggregation of income, set-off or carry  forward and set off losses 
  • Deduction from gross total income 
  • Computation of total income and tax liability  rebates and reliefs 
  • Provisions concerning advanced tax and tax reduction and source and working knowledge of the above topics as required at the CS Executive level.

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