Lecture 1

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Course Code : 1984

Corporate Taxation
Lecture Corporate Tax Planning

2
Topics to be Covered

• Course Description

• Course Outcomes

• Shoolini Vision & Mission


Course Description & Objective

• Corporate Taxation course aims at making students


conversant with the concept of the India tax laws and
basics of Corporate Taxation, as also their implications
for corporate management. The course considers the
government's laws and regulations drafted for taxation
income of a taxpayer, monitor the working of companies
and the factors which govern the company's taxation
rules.
Course Syllabus

Unit A: Overview and Basics of Unit B: Income Tax Heads, and


Income tax Corporate tax Planning
• Overview of taxes in India • Heads of Income
• Introduction to Income Tax Act, 1961 • Total Income and Tax Payable
• Basic Definitions Overview
• Basis of charge of Income Tax/Levy of • Corporate Tax: Planning and
Income Tax Management
• Scope of Income • Tax Avoidance & Evasion
• Residential Status – Individual vs. • Corporate tax planning and types of
Entity companies
• Concept of Place of Effective • Tax planning and financial decisions
Management (‘POEM’) • Case Study
• Rates of Income tax viz. Individuals
Old vs. New Regime
• Rates of corporate tax and others
Course Syllabus

Unit C: Tax Incidence, Unit D: Non-Residents and


Liabilities, and Financial Assessments
• Special provisions relating to non-
Decisions
residents
• Tax Incidence of Companies, tax • Double taxation relief
concessions and incentives for corporate
• Provisions regulating transfer pricing
decisions
• Tax liabilities and MAT, tax on distributed • Scrutiny of companies: Assessment vs.
profits, tax planning with reference to Reassessment
setting up of a new business • Advance Rulings
• Treatment of Depreciation, losses and • Appellate Authorities and appeal
unabsorbed losses, set off and carry process in India
forward of losses •
• Case Study
Computation of corporate tax liability,
advance tax and TDS
• Tax planning with reference to financial
management decisions of capital structure,
dividend including deemed dividend, and
bonus shares
• Tax and business reorganizations, mergers
and acquisitions, slump sales, and
demergers
Course Outcomes

At the end of the course, the student should be able to:

 CSU1984 -1 Explain the Fundamentals of Direct Taxation


 CSU1984 -2 Interpret and Apply Corporate Taxation Rules and
Regulations
 CSU1984-3 Identify and Analyze Corporate Tax Exemptions
 CSU1984-4 Calculate and Evaluate Corporate Tax Strategies
Shoolini Vision & Mission

Vision of the School Of Business


Management:

1. To provide world-class and relevant


management education
2. To provide global employment and
entrepreneurial opportunities to students
3. To produce socially responsible business
leaders and entrepreneurs
4. To have a sizable economic and social
impact on the community through
relevant research & innovation
Shoolini Vision & Mission

Program Vision: MBA

Deliver a world-class MBA education that combines cutting-edge knowledge,


practical skills, and experiential learning opportunities to prepare students for
successful careers in a global business environment.

Foster a culture of entrepreneurship, innovation, and responsible leadership,


equipping graduates with the capabilities to create value, drive organizational
growth, and contribute to sustainable development.

Facilitate global employment and networking opportunities, connecting students


with industry leaders, alumni, and international business networks to enhance
their professional prospects.
Lecture 1 Corporate Tax Planning

1
0
Topics to be covered
1. Overview of Income tax Act, 1961
2. Introduction of Income tax Act, 1961
3. Why tax is levied
Income Tax Act, 1961
• The levy of income tax is governed by Income tax Act, 1961
('the Act')
• The Act came into force on 1st April, 1962;
• The Act contains 298 sections and XIV Schedules;
• The Act undergo amendments every year with additions and
deletions brought about by Finance Act passed by parliament;
Finance Act
• Every year Finance Minister of India presents budget to the
Parliament;
• Part A of Budget speech contains proposed policies in fiscal
areas;
• Part B of Budget speech contains the detailed tax proposals;
• In order to implement the proposed changes, Finance Bill is
introduced in Parliament
• Once Finance Bill is passed by parliament and gets approval of
President, it becomes Finance Act
o It takes approx. 74 days for a bill to become an Act
Income tax Rules, 1962
• Administration of income tax is taken care by Central Board of
Direct Taxes ('CBDT');
• The CBDT is empowered to make rules carrying out the purpose
of the Act
• Rules are framed time to time for proper administration of the
Act
Judicial Precedents
• Judiciary hear the disputes between parties and give decisions
on various issues
• The Supreme Court is the Apex Court and law laid down by
Supreme Court becomes the law of land
Circulars & Notifications
• Circulars are issued by CBDT from time to time to deal with
specific issues and to clarify doubts regarding the scope and
meaning of the provisions
• These circulars are issued for the guidance of the officers
and/or assessees.
• The department is bound by the circulars. While such circulars
are not binding the assessees they can take advantage of
beneficial circulars.
Why taxes are levied
• Tax is a fee charged by Government on a product, service or
income
• The main reason of levy of tax is that they are the main source
of revenue to the government
• Revenue so earned is utilised by Government for economic
development of the country
Summary
• Overview of Indian Taxes
• The reason for levy of taxes
Thank you

XXXX
School of Business management
Shoolini University
Village Bajhol, Solan (H.P)

XXXXXX ( Mob No.)


nupurvats@shooliniuniversity.com

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