Good morning friends - encouraged by ysdays posting on Key factor - Here's a discussion on how to prepare for Income Tax - in Final
Student reactions and challenges
> Too many section to cover . How to allocate time for Nov exams.
> When to read Case law ? How to read case law ? Is it enough to cover only past 2 years decided case laws
> How to link a 2 sections - Is there a method to do that
> What are circulars ? Why do we read that
> Do i need to memorise sections?
> Which author to use , Which notes to Read ?
and the list goes on ....
Lets take example of Profits and Gains - buisness or profession. Students skip the basics and move on to the charging sections and try to understand by way of solving problems . This may be good to do in inter but when it comes to final. The students should have basic understanding of the chapter. Spend first few days in the chapter by asking yourself the questions on basics.
a. What is business, What is profession. --- Understand with layman examples
b. What is commercial expediency
c. What is business loss
d. What is Test of endurance
and the list goes on..here too
Post that try reading the Bare Act and also have your Preferred textbook/notes in the side to prepare for the classes. Always go to classes after reading the sections. If the coaching instituate has planned for to cover say Sec 32 to 37 this week. prepare for the same before going to the class. There is nothing new on provisions which you are epxected to learn. You need to understand the application of the sections in the final and htat is being tested by way of decided case laws, Interpretation of the sections, Department views , Circulars etc.
Question by student
It is difficult to read from Bare Act...I sleep/doze of after reading first 2 sub sections..I cant understand it..What should i do .
Recommendation
The answer to this lies in ---First dont Treat Tax as a Burden..Its only burden on the tax payers..Its not burden on you.
Love the subject - Start liking it - then it becomes easy
Sections are structured in a systematic way - Lets discuss Section 33AB. If you can adopt the below method and start understanding and reading every section ...you will know how the section is structured. There is a good chance that you can remember this in a flow which can be easy to remember.
Also when you read these sections - try to identify the linkages. For ex: In this sections the withdrawal is allowed say durng Partition of HUF..it is good to keep and mark it to understand the provisions of HUF in the nearest time so that its clearly understood. if you donot know what is HUF and how HUF is treated - it woudl not be good way to do the same.
In the later part of section - it i sbeing discussed about Sale or Transfer. So how the transfer is being treated in Capital gains needs to be linked to. and understood.
Also - in the exam - The question may be asked about its a Tea company who wants to avail this provisions. Students should go back to basics to check if Tea company is an Agriculture business in that case - how do we treat the same.
Section 33AB - Demystified
SubSection 1 talks about : Where and How (much deduction)
with conditions (PROVIDED)
subSection 2 talks about : Further conditions on when it is allowed
subSection 3 talks about : When to withdraw
Subsection 4 talks about : if amount spent for various other purposes - what happens
subsection 5 to 7 talks about : referring to above subsection 3 and 4 - the deduction previously allowed is charged back
Subsection 8 : What happens to the asset sold or transferred bought in accordance with teh scheme? How to treat the same
Subsection 9 : Superseeding section - powers of Government.
Cheers.
Happy Learning.
CAclubindia
