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CA Madhukiran Reddy (CHARTERED ACCOUNTANT)     02 March 2011

My Tips and Tricks for Taxation - Self study

MY TIPS AND TRICKS FOR THE TAXATION

Hi Friends, after writing my article on MY TIPS AND TRICKS FOR THE ACCOUNTS many of our friends asked me to write an article on the other subjects also.

So, As per our friends request I am now sharing my tips and tricks for Taxation subject, which in my opinion highly scoring area in CA exams. As I already said earlier if u manage to get above 60 in Accounts, Taxation and Law there is no aggregate problem for you in your exams. To achieve the same consistent study, hard work and knowledge about the subjects is required.

When coming directly into the subject!!!

Taxation is categorized into three categories

INCOME TAX (IT) – 50 Marks

SERVICE TAX (ST) – 25 Marks

VALUE ADDED TAX (VAT) –25 Marks

 

INCOME TAX:

When coming to Income Tax the Very Very Important aspect is HEADS OF INCOME, only from which u can get

1 total income problem nearly about 16 marks,

Minimum of 2 practical problems on individual heads (for ex: Some times from HP, Salaries, CG or from other heads) which covers of 10 – 15 marks.

To answer the total income problem u should also be thorough with the Sec 10 exemptions, Sec 80C – 80U deductions and setoff and carry forward of losses.

  If u Able to complete the specified chapters above, within a specified time, Nearly 75% of income Tax (For IPCC) will be completed.

The only remaining is minor chapters like Residential Status, Clubbing of Income, Advance Tax, Interest and one major chapter is TDS.

From the above you will be able to complete another 20% of syllabus in IT.

The balance 5%, from where we get everybody doesn’t know. Most of the cases that 5% part is covered with twisted questions (u can also say unexpected questions) which are from misc. chapters not covered from above.

 

RELEVANCY OF SECTIONS IN EXAMS:

Quoting of Sections in exams is not at all relevant and no marks will be deducted for NOT quoting of sections instead will be deducted only for WRONG quoting of sections.

Instead of Sections learn the provisions carefully. Each and every minor provision is very relevant in examination.

Quote & have idea about the following sections when computing the total income.

INCOME FROM SALARIES

Deductions:

16(ii) – Entertainment Allowance

16(iii) – Professional Tax

 

INCOME FROM HOUSE PROPERTY

Standard deductions U/s 24

 

INCOME FROM BUSINESS OR PROFESSION

Especially in this chapter learning of sections from 30 to 44 is very important because sometimes examiner will give the questions in the following manner.

“Compute the Income under section _______ of Mr.X for the AY 2011-12”

If the examiner gives questions like this we should able to answer the questions. To this idea about the sections and provisions in PGBP is very important.

The worst possibility of giving the questions like the above is from PGBP only.

 

INCOME FROM CAPITAL GAINS

Section 54 is relevant

 

INCOME FROM OTHER SOURCES

Provisions from Dividend, Gift, Interest etc., are relevant.

For the purpose of Gift u should also know the meaning of relative.

 

GENERAL

Finally, Deductions under section 80C – 80U and

TDS under section 194.

 

SERVICE TAX & VAT:

SERVICE TAX

One of the advantages for IPCC is introducing the ST & VAT for 50 marks.

These are very simple topics and the questions will be straight forward.

Nearly More or Less 130 services are there but you need not read all services for the examination. Our Institute will give 5 to 6 services for the examination purpose.

Only one practical problem will be given in examinations from the services said by institute and all others are straight forward questions.

VAT

Value Added Tax is also a very simple concept only straight questions will be there. Nothing will be twisted.

Here also one problem will be given in exam.

 

Our aim in TAXATION is to get above 40 only from SERVICE TAX & VAT and because of Taxation we should cross 70 marks in aggregate.

To achieve this systematic study is required without wasting our time.

Try the following pattern, Hope it is useful.

After completing the Accounts till 1th march 2011, we will start the tax from 12th onwards

 

 

 

DATE

TOPIC

No. of days

Marks

 

1.  INCOME TAX

 

March 12

Basic concepts, Residential status and House Property

1 day

10 - 12

March 13

Salaries and Capital Gains

1 day

15 - 16

March 14 - 15

Business or Profession and other Sources

2 days

20

March 16

Section 10 Exemptions and Section 80C – 80U deductions

1 day

No separate question will be asked.

March 17

TDS and Advance tax

1 day

5 - 10

March 18

Set Off and carry forward of losses and Clubbing of Income and misc.

 

March 19

2.  SERVICE TAX

1 day

25

March 20

3.  VAT

1 day

25

 

The above time schedule is created based on my analysis. For some one PGBP chapter is difficult, another TDS is difficult and others Capital gains are difficult. If someone lack in one chapter spend more time on that chapter and spend less time another chapter which you feels easy.

By following the schedule

From March 1st to March 11th   -  Accounts (Group 1 & Group 2) will be completed and

From March 12th to March 20th  -  Taxation will be completed.

Another 4 subjects in 40 days.

Friends I am article assistant in one audit firm and regularly carrying audits because of which I don’t have enough time to prepare study schedule for all the subjects as and when I get a time I will prepare for each subject. As I already said just like the above prepare the study schedule and time table for the remaining subjects by you and follow the time table. This would be more useful for your examinations.

By this I will conclude this topic. Don’t leave any question in examination hall attempt all questions. This could be possible only if you put consistent study and hard work.

 

ALSO PLEASE SEE MY OTHER RELATED ARTICLE on the same category:

My tips and tricks for accounts



 45 Replies


(Guest)

THANKS FOR SHARING 

2 Like
BALU....

BALU.... (CCI STUDENT....)     02 March 2011

Great one bro, where were ru this days..Suddenly you came to CCI like sunami..hehehehheh;)....great writing bro, so many writer entered in CCI and great tips for subjects...

 

Best of luck...

2 Like
raman jot

raman jot (ca final)     02 March 2011

really nice..thanx for sharing...

1 Like
CA.Pravinchandra

CA.Pravinchandra (Executive (F&A))     02 March 2011

Very helpfull..

1 Like

(Guest)

THANKS FOR SHARING

IT IS VERY USEFUL FOR ME 

BCOZ I AM DOING SELF STUDY

1 Like
Simranjeet Singh

Simranjeet Singh (Proprietor at S Simranjeet & Associates Company Secretaries)     02 March 2011

Thnks for sharing good taxation tips and tricks.......

keep sharing.....

1 Like

(Guest)

nice...

1 Like
CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (https://www.facebook.com/pages/Life-and-Promises/553962034682487)     02 March 2011

Wow Kiran u have choosen my fav. subject for your article. I am crazy abt. Taxation. 

Ya toh Company law ya fir tax. First of all I wanna congratulate you on this brilliant effort. I loved the content and presentation both. You have used Bradley for Introduction and conclusion which is my fav. font so  for the presentation. 

You have made the detailed analysis for this Article and done a brilliant job by including all the relevant points..

As this is my fav. subject so I wanna add something to it:-

* Friends taxation is not only the scoring but one of the most interesting subject u wl come across during CA. It is very useful in your professional life too and money wise too;)..lolz 

*I agree with most of the points which Kiran has mentioned here. But I think you s'd give atleast 2 hrs each day to taxation along with A/c's. You don't need to prepare separate schedule for it. Just do it with A/c's and Costing aur aapko pta bhi nahi chalega ki course kab khatam ho gaya...

*VAT & Service Tax portion is very easy and too much scoring. I w'd suggest you to attempt it first if it comes as a separate section.

*Capital Gain is a bit tricky one so requires multiple reading and too much practice. In Exam too read the question of C.Gain twice before attempting it.

*House Property, Clubbing, Set-off, Residential Status, TDS & Advance tax are the scoring portions too.

*PGBP is very imp. for exam purpose and for professional purpose too.

*In salary pay special attention to retirement benefits, exempted limit and meaning of Govt. employee. 

Regards

Pulkit

9 Like
CA.Sandeep Goyal

CA.Sandeep Goyal (Practice)     02 March 2011

g8 work done

2 Like
CMA.  PRAVEEN  V    CA FINAL

CMA. PRAVEEN V CA FINAL (cost accountant)     02 March 2011

wonderful tips and tricks ...............thanks for sharing....................keep sharing............................

1 Like
M. N. JHA

M. N. JHA (CA)     02 March 2011

MY THANKS FOR THIS ARTICLES

1 Like
Sunshine

Sunshine (Helping All)     02 March 2011

very nice article with nice presentation....keep it up...keep sharing..!!

1 Like
Gopal Sengar

Gopal Sengar (CA STUDENT)     02 March 2011

1 Like
Vikas Gupta

Vikas Gupta (CHARTERED ACCOUNTANT)     02 March 2011

Originally posted by : raman

really nice..thanx for sharing...

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