Lecture 1
Lecture 1
Lecture 1
Corporate Taxation
Lecture Corporate Tax Planning
2
Topics to be Covered
• Course Description
• Course Outcomes
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
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School of Business management
Shoolini University
Village Bajhol, Solan (H.P)