How to Prepare CS Executive Tax Laws in Exam

As we all know that the subject of Taxation itself is very complicated by its own nature and a lot of provisions involved. The complications further enhance due to its continuous refinement, amendments and changes which are very often brought by the various regulations.

These regulations are released by the Government, sometimes to boost the economy, increase the revenue, lowering the taxation burden at the consumer end etc. But all these complications still don’t make this subject unimportant or inevitable from a learning perspective.

Considering all the importance which this subject holds for any professional student, this subject becomes one of the most important subject of CS Executive examination. It is the fourth subject of the Module 1 of CS Executive. As we know that CS Executive is the second stage of the professional course of Company Secretary. The executive stage is basically designed to inculcate skills and competence of executive program passed students. 

The reason for inclusion of this important subject in the curriculum is to impart conceptual understanding to the students regarding provisions of Direct Taxes and Indirect Taxes.

An outline of Company Secretary Courses and Specialisation- Executive Programme Papers

There are 8 papers divided into 2 Modules in CS Executive Programme (wef. 01.03.2018)

MODULE 1 (4papers)MODULE 2 (4 papers)

1. Jurisprudence, Interpretation & General Laws
2. Company Law
3. Setting Up Of Business Entities And Closure
4. Tax Laws

5. Corporate & Management Accounting
6.Securities Laws & Capital Markets
7.Economic, Business And Commercial Laws
8. Financial And Strategic Management

An Overview of the subject

The subject is divided into two parts i.e. Direct Taxes and Indirect Taxes. Part I of the subject deals with Direct Taxes and Part II deals with Indirect Taxes.

The Institute has decided to change the format of this exam from descriptive to OMR, Optical Mark Recognition Format. In this case, students are required to answer multiple choice questions on OMR Sheets by darkening the appropriate choice. One mark is awarded for each correct answer. There is no negative marking in this subject.

ICSI CS Executive New Syllabus Study Material : Module 1

PaperCoverage
Tax LawsTo provide working knowledge on practical application of Direct Tax Laws and To provide conceptual knowledge of GST with practical application of GST Laws

CS Executive Examination Syllabus of this subject

Before planning the study curriculum, first of all we should know the contents of the subject. Following is the arrangement Of Study Lessons in this subject

Study Lessons Part 1 – Direct Taxes
1. Direct Taxes at a Glance
2. Basic concepts of Income Tax
3. Incomes which do not form part of Total Income
4. Computation of Income under Various Heads
5. Clubbing provisions and Set Off and / or Carry Forward of Losses
6. Deductions from Gross Total Income & Rebate and Relief
7. Computation of Total Income and Tax Liability of various entities
8. Classification and Tax Incidence on Companies
9. Procedural Compliance
10. Assessment, Appeals & Revision
Study Lessons Part 1I – InDirect Taxes
11. Concept of Indirect Taxes at a glance
12. Basics of Goods and Services Tax ‘GST’
13. Concept of Time, Value & Place of Taxable Supply
14. Input Tax Credit & Computation of GST Liability- Overview
15. Procedural Compliance under GST
16. Basic overview on Integrated Goods and Service Tax (IGST), Union Territory Goods and
Service tax (UTGST), and GST Compensation to States
17. Overview of Customs Act

Objective of introducing this subject in CS Executive course

In the present time, taxation is not just a means of transferring money to the government to spend it for meeting the public expenditures or raise revenue to the government, but taxes have become beside that, as a tool for redistribution of income and wealth in society. It also serves as a means of economic development and plays a significant role in stabilization of income. Taxation assists in finding solutions to the economic problems which are faced by a country, like unemployment, inflation, and depression. Countries practice sovereignty authority upon its citizens, through levying of Taxes.

The reason for inclusion of this important subject in the curriculum is to impart conceptual understanding to the students regarding provisions of Direct Taxes and Indirect Taxes.

  • To provide working knowledge on practical application of Direct Tax Laws and 
  • To provide conceptual knowledge of GST with practical application of GST Laws

Strategy for Preparation

  • Understanding the requirements of the subject-First of all the students should understand the requirement of the paper and subject thoroughly.
  • Dynamic subject-At the same time the student needs to remember that it is not a static subject like accounts or costing rather it involves a lot of dynamic elements because the provision keeps on changing from time to time. Every time Finance Act is released by the Government in the month of Feb which brings a lot of changes in the existing provisions.
  • Refer recent case laws-While preparing the examination, the student is required to refer relevant and important recent examples from current affairs happening in and around business.
  • Solving Practice-A lot of practice is required for attempting and clearing this paper as this paper. It is recommended that a student should practice as many problems as its possible.
  • Regular Updation- Update yourself about all the relevant circulars, clarifications, notifications, etc. issued by the CBDT, CBEC & Central Government, on or before six months prior to the date of the respective examinations.

Fundamental topics of subject-Last but not the least, the students need to be aware of the fundamentals and key provisions, amendments to the Acts, Powers, features, and functions of the provisions of the acts, especially before the examination.

Now we will make a framework for studying and preparing this subject, chapter wise.

ChapterImportant topics to be covered
Chapter 1
DIRECT TAXES – AT A GLANCE
Taxes – An Introduction 
Characteristics of Taxes 
Canons of Taxes 
Objectives of Taxation 
Direct Vs Indirect Taxes 
Background of Taxation System in India
Tax Structure in India 
Administration 
Vital Statistics and Layout
Chapter 2
Basic Concepts of Income Tax]
Overview of Finance Bill
Some basic concepts like assessment year, previous year, income, person, assessee,
Distinguish between capital and revenue receipts etc.
Basic steps in the calculation of tax liability.
Be able to determine the residential status of a person
Be aware of the importance of residential status for tax purposes
The scope of total income
The rates of tax
Chapter 3
[Incomes which do not form Part of Total Income
Background 
Incomes which do not Form Part of Total Income
Chapter 4
COMPUTATION OF INCOME UNDER VARIOUS HEADS

PART I – INCOME UNDER THE HEAD “SALARIES”
Basis of Charge 
Salary [Section 17(1)]
Allowances 
Retirement Benefits
Profits in lieu of Salary 
Provident Funds – Treatment of Contributions to and Money Received From the Provident Fund
Deductions from Salary 
Computation of Salary
Chapter 4
COMPUTATION OF INCOME UNDER VARIOUS HEADS

PART II – INCOME UNDER THE HEAD HOUSE PROPERTY
Basis of Charge [Section 22] 
Determination of Annual Value 
Deductions from Net Annual Value (Section 24) 
Deemed Ownership 
House Property Incomes – Exempted From Tax
Chapter 4
COMPUTATION OF INCOME UNDER VARIOUS HEADS

PART III – PROFIT AND GAINS FROM BUSINESS / PROFESSION
Business’ or ‘Profession’ 
Income Chargeable To Tax under the Head Business or Profession (Section 28) 
Speculation Business
Computation of Profits of Business or Profession 
Computation of Income under the Head “Profits and Gains from Business or Profession” 
Admissible Deductions 
Expenses Disallowed (Section 40) 
Expenses Restricted 
Deemed Profits 
Special Provision In Case of Income of Public Financial Institutions, Etc. (Section 43D)
Special Provisions Related To Insurance Business (Section 44) 
Compulsory Maintenance of Books of Account (Section 44AA) 
Compulsory Audit of Books of Account (Section 44AB) 
Special Provision for Computing Profits and Gains of Business on Presumptive Basis (Section 44AD) 
Presumptive Taxation for Professionals [Section 44ADA] 
Special Provisions for Computing Profits and Gains of Business of Plying, Hiring or Leasing 
Goods Carriages [Section 44AE]
Chapter 4
COMPUTATION OF INCOME UNDER VARIOUS HEADS

PART IV – INCOME FROM CAPITAL GAINS
Capital Gains 
Capital Asset [Section 2(14)]
Short-Term & Long-Term Assets
Transfer [Section 2(47)] 
Mode of Computation
Ascertainment of Cost in specified circumstances [Section 49] 
Advance Money Received [Section 51] 
Exemption of Capital Gains
Chapter 4
COMPUTATION OF INCOME UNDER VARIOUS HEADS

PART V – INCOME FROM OTHER SOURCES
Basis of Charge of Income from Other Sources [Section-56] 
Casual Income [Section 56(2)(Ib)] 
Income from Family Pension
Taxation of Dividends 
Deductions Allowable In Computing Income from Other Sources 
Amounts Not Deductible [Section 58] 
Deemed Income [Section 59]
Chapter 5
CLUBBING PROVISIONS AND SET OFF AND / OR CARRY FORWARD OF LOSSES
Transfer of Income [Section 60]
Revocable Transfer of Assets [Section 61]
Income of Spouse 
Income From Assets Transferred To Son’s Wife [Section 64(1)(vi)] 
Transfer For Immediate Or Deferred Benefit Of Son’s Wife [Section 64(1)(viii)] 
Income to Spouse Through A Third Person [Section 64(1)(vii)] 
Clubbing of Income of Minor Child [Section 64(1A)] 
Income from the Converted Property [Section 64(2)] 
Recovery of Tax 
Set-Off and Carry-Forward of Losses 
Carry-Forward of Losses 
Carry Forward and Set-Off Of Accumulated Business Loss and Unabsorbed Depreciation 
Certain Cases of Amalgamation or Demerger Etc. [Section 72A]
Carry Forward and Set Off Of Accumulated Loss and Unabsorbed Depreciation Allowance in Scheme of Amalgamation of Banking Company in Certain Cases [Section 72AA]
Treatment of Carry-Forward of Losses of Certain Assessees
Submission of Return for Loss [Section 80]
Summary of provisions regarding carry forward and set-off of losses
Chapter 6
DEDUCTIONS FROM GROSS TOTAL INCOME, REBATE AND RELIEF
Deductions
Illustration 
Relief and Rebate
Chapter 7
COMPUTATION OF TOTAL INCOME AND TAX LIABILITY OF VARIOUS ENTITIES
Taxation of Individuals
Taxation of Hindu Undivided Families
Computation of Income of HUF 
Taxation of Firms 
Alternate Minimum Tax (AMT) [Section 115JC] 
Taxation of Association of Persons /Body of Individuals 
Taxation of Co-Operative Societies 
Tax Exemptions to Political Parties (Section 13A) 
Electoral Trust 
Tax Exemptions for Charitable Trusts and Institutions
Chapter 8
CLASSIFICATION AND TAX INCIDENCE ON COMPANIES
Background & Types of Companies
Tax Incidence under Income Tax Act, 1961 419
Minimum Alternate Tax (MAT)
Mat Credit [Section 115JAA]
Dividend Distribution Tax [Section 115-O] 437
Carbon Credit [Section 115BG] 
Buy-Back of Shares 
Conversion of an Indian Branch of a Foreign Company into an Indian Subsidiary Company 
Tax on Income Distributed by Specified Company or Mutual Fund 
Equalization Levy 
Taxation Aspects Related To Conversion of Company into an LLP
Tax Liability of Companies in the Event of Liquidation 
Taxation of Share Premium 
Taxation Aspects of Amalgamations, Mergers and Demergers
Chapter 9
PROCEDURAL COMPLIANCE
Permanent Account Number [Section 139A] 458
Tax Deduction Account Number (TAN)
Tax Deducted At Source (TDS) 463
Tax Collection At Source (TCS) [Section 206C]
Time limit for the payment of TDS to the Government 
TDS Forms 
TDS Chart FY 2019-20 “AY 2020-21” 
Minimum Threshold Limit Upton Which TDS not Applicable 
Advance Payment of Tax 
Self-Assessment Tax (SAT) 
Returns 
Signing of Return [Section 140] 
Fee and Interest 
Collection and Recovery of Tax 
Refunds (Section 237 to Section 245)
Chapter 10
ASSESSMENT, APPEALS & REVISION
Income-Tax Authorities (Appointment, Jurisdiction and Powers) [Section 116]
The Central Board of Direct Taxes (CBDT)
Commissioner of Income-Tax (Appeals)
Assessment
Appeal 
Introduction
Appeals Orders before Commissioner (Appeals) 
Procedure for Filing of Appeal [Section 249(1)] 
Period of Limitation to Prefer an Appeal [Section 249(2)] 
Payment of Tax before Filing Appeal [Section 249(4)] 
Procedure in Appeal [Section 250]
Powers of the Commissioner (Appeals) [Section 251] 
Revisions 
Revision by the Commissioner of Income Tax [Sections 263 And 264]
Revision of orders prejudicial to the interest of Revenue [Section 263]
Revision of order in the interest of Assessee [Section 264] 
Circumstances in Which No Revision can be Made [Section 264(4)] 
Appellate Tribunal [Section 252] 
Appealable Orders [Section 253(1) AND (2)]
Procedure For Filing Appeal [Section 253(3), (4)&(6)] 
Order of Appellate Tribunal [SECTION 254]
Procedure of Appellate Tribunal [SECTION 255]
Appeal to High Court 
Appeal to the Supreme Court [Section 261] 
Offences and Penalties 
Offences and Prosecution
Chapter 11
CONCEPT OF INDIRECT TAXES AT A GLANCE
Background
Constitutional Powers of Taxation
Constitution Amendment Act, 2016
Goods and Services Tax Council
Compensation to States for deficit in Tax collections
Power to Remove Difficulties
Indirect Taxes in India – An Overview
Pre GST Tax Structure & Deficiencies 
Administration of Indirect Taxation in India
Administrative Mechanism at the Central Level 
Existing Tax Structure
Chapter 12
BASICS OF GOODS AND SERVICES TAX
Constitutional Framework of Goods & Services Tax 
Taxable Event 
Concept of Supply 
Levy & Collection of Tax 
Composition Scheme 
Liability to pay GST 
Exemptions Under Goods & Services Tax
Chapter 13
CONCEPT OF TIME, VALUE AND PLACE OF TAXABLE SUPPLY
Concept of Supply 
Place of Supply 
Time of Supply 
Value of Taxable Supply [Section 15 of CGST Act, 2017]
Valuation Rules : Chapter IV, CGST Rules, 2017
Chapter 14
INPUT TAX CREDIT AND COMPUTATION OF GST LIABILITY
Input Tax Credit 
Goods Sent To Job Worker
Input Service Distributor
Chapter 15
PROCEDURAL COMPLIANCE UNDER GST
Registration 
Tax Invoices, Debit & Credit Notes 
Rules for Tax Invoices, Debit & Credit Notes
Accounts and Records 
Electronic Way Bills 
Returns 
Payments 
Payment Rules [Chapter IX] 
Refunds 
Audit
Chapter 16
BASIC OVERVIEW ON IGST, UTGST AND GST COMPENSATION TO STATES ACT
Applicability of the UTGST ACT, 2017
Administration & Powers of Officers [Section 4, 5 & 6]
Levy and Collection of UTGST [Section 7] 
Exemption From GST [Section 8]
Payment of Tax [Section 9]
Input Tax Credit on Input Stocks [Section 18] 
Input Tax Credit: Taxable as well as Exempted Goods 
Switch Over from Composition Levy
Advance Ruling [Section 14 of UTGST Act, 2017] 
Constitution of Authority for Advance Ruling [Section 15] 
Constitution of Appellate Authority For Advance Ruling [Section 16]
Chapter 17
OVERVIEW OF CUSTOMS LAW
Levy & Collection of Customs Duties
Types of Customs Duties 
Classification & Valuation of Import And Export Goods 
Exemptions 
Officers of Customs Law
Administration of Customs Law 758
Import & Export Procedures under Customs Law 
Transportation & Warehousing 
Duty Drawback 
Demand & Recovery 
Confiscation of Goods & Conveyances 
Refund

Study Plan

1. Ensure complete understanding of the CS Study Material

2. Practice of solving numerical problems

3. Start with a proper Time Table

4. Setting targets

5. Analysing the actual performance every week

6. Never Do following-

  • Never go with selective topics
  • Never refer old study material
  • Try to finish your revision beforehand

The study material released by ICSI is enough for CS Executive Exam preparation. Still students can refer to the following books for preparation of CS Executive Exam which can help them in proper update and practice. These books have been taken as a reference from ICSI also.

Part A Direct Taxes

1. Mahendra B. Gabhawala: Direct Tax Ready Reckoner with Tax Planning 

2. Bharat’s Law House : Income Tax Act 

3. Bharat’s Law House : Income Tax Rules 

4. Taxmann’s : Income Tax Act 

5. Taxmann’s : Income Tax Rules 

6. Dr. Vinod K. Singhania : Direct Taxes Law and Practice & Dr. Kapil Singhania 

7. Dr. Girish Ahuja & : Direct Taxes Ready Reckoner with Tax Planning Dr. Ravi Gupta

Part B In-Direct Taxes

1. Dr. Sanjiv Agarwal : Goods & Services Tax, Laws, Concepts and Impact Analysis, Bloomsbury & Sanjeev Malhotra 

2. V.S. Datey : GST Ready Reckoner, Taxmann 

3. Dr. Sanjiv Agarwal : A Complete Guide to Goods & Services Tax Ready Reckoner in Q & A & Sanjeev Malhotra Format, Bloomsbury 

4. Dr. Yogendra Bangur : Comprehensive Guide to Tax Laws, Aadhya Prakashan 

5. Dr. Sanjiv Agarwal : Compendium of Judicial Pronouncements, Bloomsbury & Sanjeev Malhotra 

6. R.K. Jain : Customs Law Manual, Centax

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