Calicut University • B.Com • Semester 5
Income Tax Law and Accounts (COM5CJ301) — Official Syllabus
Four-Year Undergraduate Programme (FYUGP) • Curriculum & Evaluation Structure
Course CodeCOM5CJ301
Course TypeMajor Core
Semester & LevelSemester V • 300–399
Total Credits / Hours4 Credits • 75 Hours
Credit Distribution: Lecture: 3 hrs/week • Practical / Tutorial: 2 hrs/week • Total: 5 hrs/week.
Course Overview & Prerequisites
Pre-requisites: Understanding basic accounting principles, such as debits and credits, ledger accounts, and preparation of financial statements (Trading, Profit & Loss Account, and Balance Sheet) provides a solid foundation for mastering income tax law.
Course Summary: This course aims to provide a comprehensive, academically rigorous understanding of direct taxation principles, statutory frameworks, and computational practices under the Income Tax Act, 1961. It equips students with the specialized knowledge and analytical skills necessary to navigate the complexities of the Indian tax system, determine residential status, compute taxable heads of income, and plan legally compliant tax strategies.
Course Outcomes (CO)
| CO | Course Outcome Statement | Level* | Category# | Evaluation Tools |
|---|---|---|---|---|
| CO1 | Demonstrate a basic understanding of the theories and practices of Income Tax. | U | C | Internal Examinations / Review Questions / Quizzes / Assignment / Seminar / External Examinations |
| CO2 | Shows the skill to calculate the taxable income from Salary, House Property, and Profit and Gains of Business or Profession. | Ap | P | Internal Examinations / Quizzes / Assignments / Seminars / External Examinations / Practicum |
| CO3 | Interpret tax laws and regulations to address complex tax issues. | An | C | Case Study / Analytical Assignments |
| CO4 | Evaluate tax planning strategies to minimize tax liabilities for individuals and businesses within the bounds of legal compliance. | E | P | Tax Planning Course Project |
| CO5 | Critically analyses and appreciates the importance of taxation in national economic development. | E | P | Debates / Group Discussions / Examinations |
* Cognitive Level: Understand (U), Apply (Ap), Analyse (An), Evaluate (E) | # Knowledge Category: Conceptual (C), Procedural (P).
Detailed Modular Syllabus
| Module | Unit | Syllabus Content | Hours |
|---|---|---|---|
| Module I | — | Basic Concepts of Income Tax | 10 Hrs |
| I | Unit 1 | Introduction to income tax — History, Constitutional basis, and Macro-economic relevance of Income Tax. | 2 |
| I | Unit 2 | Basic Concepts and Definitions: Income [Sec 2(24)], Person [Sec 2(31)], Assessee [Sec 2(7)], Assessment Year [Sec 2(9)], and Previous Year [Sec 3]. | 1 |
| I | Unit 3 | Brief Outline of Income Tax Authorities in India [Section 116], CBDT, and Investigatory Powers (Search & Seizure, Survey). | 2 |
| I | Unit 4 | Exempted Incomes under Section 10 (Catalog of major exemptions). | 1 |
| I | Unit 5 | Agricultural Income [Section 2(1A)]: Meaning, tests, composite income (Rules 7A, 7B, 8), and partial integration method. | 1 |
| I | Unit 6 | Residential Status and Incidence of Tax of an Individual [Sections 5 and 6]. | 3 |
| Module II | — | Income from Salaries | 15 Hrs |
| II | Unit 7 | Meaning and Components of Salary, Contract of Service, Basis of Charge [Section 15]. | 1 |
| II | Unit 8 | Allowances: Fully taxable, fully exempt, and partially exempt allowances (House Rent Allowance u/s 10(13A), Special Allowances u/s 10(14)). | 2 |
| II | Unit 9 | Perquisites [Section 17(2)]: Valuation of Rent-Free Accommodation (RFA), Motor Car benefits, and fringe benefits under Rule 3. | 3 |
| II | Unit 10 | Profit in lieu of salary [Section 17(3)]. | 1 |
| II | Unit 11 | Provident Funds: Comparative tax implications of Statutory PF, Recognized PF, Unrecognized PF, and Public PF. | 2 |
| II | Unit 12 | Deductions from Gross Salary under Section 16 (Standard deduction, Entertainment allowance, Professional tax). | 1 |
| II | Unit 13 | Calculation of Income from Salary — Comprehensive master computational format. | 2 |
| II | Unit 14 | Retirement benefits: Gratuity [Sec 10(10)], Commuted pension [Sec 10(10A)], Earned leave salary [Sec 10(10AA)], VRS compensation [Sec 10(10C)]. | 3 |
| Module III | — | Income from House Property | 10 Hrs |
| III | Unit 15 | Introduction to House Property: Meaning, Annual Value, Deemed ownership [Sec 27], Composite rent, and Exempted House Properties. | 2 |
| III | Unit 16 | Calculation of Gross Annual Value (GAV) [Section 23(1)], Expected Rent, Vacancy allowance, and Unrealized rent under Rule 4. | 2 |
| III | Unit 17 | Calculation of Annual Value in different situations: LOP, SOP (up to 2 houses), DLOP, partly let out, and distinct units. | 2 |
| III | Unit 18 | Deductions under Section 24: 30% Standard deduction, Interest on borrowed capital, Pre-construction interest amortization. | 2 |
| III | Unit 19 | Calculation of Income from House Property, Arrears u/s 25A, Co-ownership u/s 26, Loss set-off rules. | 2 |
| Module IV | — | Profit and Gains of Business or Profession (PGBP) | 10 Hrs |
| IV | Unit 20 | Introduction: Meaning and Definition of Business [Sec 2(13)] and Profession [Sec 2(36)], Incomes chargeable under Section 28, Speculative business. | 1 |
| IV | Unit 21 | Allowed and Disallowed Expenses: Deductions u/s 30 to 36, Scientific research u/s 35, Disallowances u/s 40, 40A, 43B, MSME payments u/s 43B(h). | 2 |
| IV | Unit 22 | General Deductions [Section 37(1)] tests, Negative list (Bribes, CSR expenditure, Doctor freebies, Political advertisements). | 1 |
| IV | Unit 23 | Calculation of Income from Business — Net Profit Adjustment Method and practical workout problems. | 3 |
| IV | Unit 24 | Calculation of Income from Profession — Cash Receipts & Payments method for doctors, advocates, and chartered accountants. | 2 |
| IV | Unit 25 | Provisions related to Depreciation [Section 32]: Block of assets, WDV calculation, 180-day half-rate rule, Additional depreciation. | 1 |
| Module V | — | Open Ended Module for Practical Exercises, Case Studies & Projects | 30 Hrs |
| V | — | Recommended Implementation Framework:
| 30 |
Recommended Textbooks & Statutory References
- Dr. Vinod K. Singhania & Dr. Monica Singhania: Direct Taxes — Law and Practice, Taxmann Publications, New Delhi.
- Dr. H.C. Mehrotra & Dr. S.P. Goyal: Direct Taxes — Law and Practice, Sahitya Bhawan Publications, Agra.
- B.B. Lal: Direct Taxes: Practice and Procedure, Konark Publishers (P) Ltd., New Delhi.
- Bhagwathi Prasad: Direct Taxes — Law and Practice, Wishwa Prakashana, New Delhi.
- Dinakar Pagare: Law and Practice of Income Tax, Sultan Chand & Sons, New Delhi.
- V.P. Gaur & D.B. Narang: Income Tax Law and Practice, Kalyani Publishers, New Delhi.
COM5CJ301Income Tax Law and Accounts
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Calicut University • FYUGP 2024 Syllabus
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