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.
- Be acquainted with the Elements or constituents of income Tax Law
- Understand the fundamental concepts of income Tax laws
- Understand the process of computation of total income tax and liability
- Know your syllabus an expected level of knowledge
- The syllabus of part 1 – income tax of CS Executive Course : Taxation comprises of-
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
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-
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.