Structure of Taxation is pivotal for all developed nations including developing nations. Countries following proper taxation system grow properly. We all know that taxation system generates revenue for the Central Government including State Governments, Local Bodies , Municipalities etc. made from time to time by the Central Board of Direct Taxes are also important. The Income Tax Act is amended from time to time. All the amendments of the Income Tax Act are to be studied by the law students. Hence, it is the duty of law colleges to encourage students so that they can be interested in taxation law. Law college in Coochbehar also encourages students to know more about new rules and regulations of tax law.
Topics Covered in Principles of Taxation Law :
Important definitions mentioned in the Income Tax Act such as Person, assessment year and previous year etc. are covered in this subject. After that, meaning of total income, scope of total income as mentioned in the Sections 5 and 6 of the Income Tax Act are added in the syllabus. Another important topic which is very much important is incomes which do not form part of total income enumerated in Sections 10, 10AA and 11 to 13A. Various heads of Income are also added in the syllabus. Law colleges primarily focus on these five heads of income. Law college in Coochbehar emphasizes all the important concepts of taxation specially five heads of income and their permissible deductions.
Five Heads of Income :
There are five heads of income in the Income Tax Act such as income from salary, income from house property, income from profits and gains of business or profession, income from capital gains and lastly income from other sources. It starts from Section 15 and the last section is Section 59. Sections 15 to 17 deal with Income under the head salaries. Sections 22 to 27 deal with income under the head income from house property. Sections 28 to 44D deal with income under the head profits and gains of business or profession. Sections 45 to 55A deal with income under the head capital gains. Sections 56 to 59 deal with income under the head income from other sources. Basis of charge, various allowances such as house rent allowance, entertainment allowances, various perquisites gratuit are very important facet of salary.
Permissible Deductions :
Standard deductions under Section 16, deductions from income from house property mentioned in Section 24, deductions mentioned in Sections 35AD, 35CCC, 35CCD, 35E, 36, 37etc, exemptions under Sections 54GA, 54GB are crucial in tax law.
Conclusion :
Since India is the largest economy in the current world, it needs more strong and rampant tax law. Therefore, constant amendment is required to achieve the desired results.
