HOW TO STUDY TAX?

HOW  TO  STUDY TAX ?

Hello guys, how are you? I hope you all are fine. And giving your best efforts in preparation. Don’t take too much stress about exams just give your best.  And still guys we have time( JUNE 2020 STUDENTS). Just you have to do few things.

1)    Proper revision.

2)    Writing practice ( I meant to say solve one or two case law base question with writing practice.)

3)    Bifurcate all the chapter into 3 categories.

A CATEGORY : MOST IMP CHAPTERS.

B CATEGORY : PREPARE B CATEGORY CHAPTERS  ALONG WITH A CATEGORY CHAPTERS TO THE PASS THE EXAMS.

C CATEGORY : LESS IMP CHAPTERS. ( IT DOES NOT MEAN WE COULD SKIP C CATEGORY CHAPTERS.  

LISTEN FRIENDS I AM JUST TELLING YOU TO BIFURCATE. WE HAVE TO DO ALL THE CHAPTERS. BUT 1^ST WE WILL GIVE PRIORITY TO A CATEGORY THEN  B CATEGORY AND C CATEGORY.

Today we are going to talk about HOW TO STUDY TAX? As CS student I can understand tax is headache for almost students but there are so many students who loves to study tax.

As company secretary student we should have proper command in company law, economic and commercial laws, security laws, labour laws etc. But we must have common understanding about tax subject.

Image may subject to copyright. i am using that image for education and fair purpose. and not violating any provision of  copyright act,1957.

Before we start let’s understand objective OF TAX LAW AND PRACTICE PAPER IN CS EXECUTIVE.

IN THE CORPORATE WORLD CS HAS TO DEAL WITH MANY LAWS. CS SHOULD BE WELL EQUIPPED WITH BASICS OF TAX PRACTICES. THIS HELPS STUDENTS TO LEARN AND UNDERSTAND INCOME TAX ACT, GST, AND CUSTOM ACT.

See the video why we have to study tax?    . to see  click here.

the video credit goes to cma vipul shah sir.

WITHOUT WASTING ANY TIME LET’S GET STARTED.

IN EXECUTIVE LEVEL TAX LAWS ARE DIVIDED INTO 2 PARTS.

PART 1 : DIRECT TAX 50 MARKS.

PART 2 : INDIRECT TAX 50 MARKS.

CS executive tax laws paper is being held in the OMR format, whereby students are required to answer MCQ question on OMR sheet. I know I know guys what you are thinking is  tax laws paper in MCQ based question format. Tax is combination of practical as well as theory. In mcq based paper one mark is awarded for each correct answer.

I am trying to say this   choose appropriate option ,otherwise you will not get any marks. In descriptive based paper you will get steps marking subject to such terms and conditions. But in MCQ format you will not get any steps marks.

HOW TO PREPARE TAX ?

TAX is vast subject. Preparation should be begin well in advance. And tax is divided into 2 parts it becomes very easy for us to make effective plan.

In case you start with 1^st part that is direct tax , you should do selective reading of particulars chapters.

Preparation strategy :  1^st do introduction part.

·       2nd  income exempt from tax. ( imp chapter because this chapter has so many linkage in other chapters. So my suggestion is please learn this chapter and revise properly.

·      3rd  Do all 5 heads ( it is not only imp from exam point of view but it is very useful in practical life also.) &  also solve practical questions of all 5 head and yes main point is read theory of salary, income from other sources, capital gain because these chapters are full of with theory provision.

·        There are some easy chapters which you should learn . that is clubbing of income, set off and carry forward. These chapters are easy to learn. And guys do not skip these chapters . I know these are small chapters but ICSI ask theory question ( range up to 4 to 7 marks) from these chapters in almost every attempt.

·        Now lets talk about those chapters which is loaded with procedural provision. For example deductions, self assessment of tax, appeal and revision . I suggest you guys please do these chapters. I know this chapters are full of with theory and procedural provision .  but in case examiner wants to set hard paper these chapters are useful.  So don’t skip it.

·        There are some chapters which are combined with theory as well as practicals.  A) advance payment of tax  B) TDS  C) AMT AND MAT ( do this chapter with full concentration because AMT and MAT chapters will be useful in CS professionals.  D) computation total income.

Some important points :

ü Selection of book. ( read from good reference book. Solve question from scanner.)  you can refer suchita prakashan scanner, Bangar, taxmann scanner is also better option. But main point is stick to the one material which is best suitable for you.

ü  As I said earlier start from the introduction chapter  then do income exempt from tax. After these two chapter you can start with the five heads of income. 

SEQUENCE OF FIVE HEAD.  

1)    Start with income from house property

2)    Income from salaries.

3)    Profit & gain from business and profession AND capital gain ( guys very very imp chapter.( for this chapter you can refer video lectures on you tube. For those who are doing self study.) and prepare some short notes regarding these chapters which will help you in revision.

4)    Don’t skip income from other sources.

ü Make your own handwritten notes for IMP chapters. It will help you in last minute revision. You can either prepare them in paragraph forms or chart forms.

PREPARATION AS PER HEADS :

CAPITAL GAIN:

   The imp part of this chapter is exemption starting from section 54.the best way to remember the provision of these section along with the section number by preparing their tabular format.

·        Then cover definition of capital gain and main point is prepare your separate notes which are not considered transfer such as points covered in section 13

.

·        Then understand LTCG, STCG, cost of acquisition, and practice indexation.

·        There are plenty of amendments in the capital gain. Also refer amendments.

·        After finishing the chapter don’t just put your book aside. You have to revise this chapter on regular basis.

PGBP : 

 PGBP is lengthy but interesting topic.  You have to thoroughly read the chapter but still, there are some mistakes which most of the students commit while attempting the PGBP question.

·        Carefully read depreciation under section 32, section 32AD, section 32AC and revise the rate of depreciation for exams.

·        Similar to section 50C and there is a section 50CA in PGBP which deals with the sale of land by the builders or property developers. Read it twice and don’t get confused between section 50C and section 50CA.

·        Carefully read section 43B ( deduction on actual payment basis)

·        Sometimes, the employer pays the tax on NON-MONETARY perquisites which are given to the employees, these are not allowed as deduction to employer.

·        TDS is required to be deducted only when assessee was required to get his books of accounts audited in the previous year.

IN NEXT post I am going to discuss with you  how to prepare indirect tax. stay tuned for more updates.

READ THESE POINTS CAREFULLY AS IT COVERS SOME GENRAL MISTAKES WHICH MOST OF STUDENTS COMMIT WHILE LEARNING THIS CHAPTER.

NOW LET’S TALK ABOUT FOR THOSE STUDENTS WHO CAN NOT ATTENDING FACE TO FACE CLASSES DUE TO VARIOUS REASONS.

IF YOU WANT TO STUDY TAX THROUGH VIDEO LECTURES , I CAN SUGGEST YOU TWO FACULTIES  WHICH IS THE BEST IN TAXATION SUBJECT.

1)    CMA VIPUL SHAH SIR’S TAX CLASSES.

2)    CA VIVEK GABA SIR ‘S TAX VIDEO CLASSES.

AVAILABLE  IN BOTH FORMAT : DOWNLOADABLE LINK OR  IN PENDRIVE MODE.

BOTH FACULTIES ARE THE BEST. AND  DON’T ASK WHICH ONE IS BETTER. THERE IS NO COMPARISON BETWEEN BEST.

I HOPE YOU LIKE THIS ARTICLE. AND IF YOU LIKE THIS ARTICLE THEN  PLEASE SHARE IT WITH YOUR FRIENDS. AND DO COMMENTS ON WHICH TOPIC YOU WANT THEORY NOTES , OR  ANY  GUIDANCE. WE WILL GIVE OUR BEST.

THANK YOU SO MUCH.

HAPPY LEARNING.