Dear Friends and members,
The one of the scoring paper for both PCC and final is Taxation (both Direct tax and indirect tax). But some of the students show difficult or scoring Just 40 to 50 ranges. If you pay some additional care, you can turn this paper as a scoring paper and easily clear the exam with these additional marks.
1) Conceptual clarity
You must understand the concept behind the tax law. If you done this part well, then you will passed half of your exam. If you know the concept well you can write any practical questions set in ICAI exam. If you have doubt with the concept stop a while and refer or ask the doubt with some other knowledgeable persons. See following are the example. Read the tax law and understand what the logic behind the tax law is.
Example One Definition of Capital gain
“Gain’ arising from transfer of capital asset. In a simple reading it is a definition but which have the following implications.
The word transfer assume much important in this context. If you missed the word “Transfer” You will be penalised heavily. The word transfer differs from sale. Transfer in a layman sense just hand over the property but there is a detailed definition which deals with the word what all amounting to Transfer. Transfer is an inclusive definition. However, transfer includes sales, exchange, also.
For capital asset which also have some definition part. Property of any kind held by the assesses, whether or not connected with business or profession.
Any kind of property will be covered here. Business related or personal asset also covered under the head capital assets. Thus, the capital asset definition has more general character.
Example 2 Income from house property
Annual value of any property consisting of any building or land appurtenant thereto, of which assesses is the owner shall be chargeable to tax under the head Income from house property.
There are certain rule which is exist to calculate the annual value. Fair rent or municipal valuation whichever is less and the resultant figure is compared with Standard rent lower of these will be compared again with actual rent and if the actual rent which is higher will be taken in to the consideration. But Lower actual rent will be taken in case there is any vacancy and owing to such vacancy the actual rent receivable or received is less.
Condition second assesses must be owner (Deemed owner also considered) of the building or land appurtenants there to.
2. Preparation of good working notes
If you learn a particular area then next steps is preparing a good working notes in your own way. The notes should contain a decent heading which convey the body and Good and precious points. But the notes shall be written in your own word. If i read the definition capital gain my notes shall be in the below format and your notes may be some other format. If you adopt your own style during the exam it would be differ in your marks also.
Notes of capital gain should be in the following manner
1. It is a Gain which is arising at the point of transfer of capital asset.
2. Point of arising gain? At the time of transfer of capital asset.
3. Type of capital Gain;- Short term and long term capital gain
4. Basis of determining long term and short term capital gain
5. ( In case of shares and securities, if they held more than 12 month before the date of transfer then it is a long term capital asset and gain shall be regarded as long term and vice versa and other than shares and securities if they held more than 36 month before the date of transfer then it is a long term capital asset and gain shall be treated as LTCG and vice versa)
This note will increase your productivity and a good revision tool.
3. Revision
There will not be any compromise over the revision part. The taxation section and taxation rules are easily susceptible to forget, so do more revision with the above notes. If you doing good repetition can make a big difference in your exam Hall.
4. Past questions and answers, scanners
Keep a view on past questions of ICAI and scanners, keep a good eye over the past questions, and understand the pattern of the question. The question pattern will repeat not the question per se. Try to attend all the Past questions and answers at the time of Initial learning.
5. Recent amendment applicable for the exam
There may be practical or other questions from the amended area in order to check whether the students were updated with the changes. If you fail, this will reflected in the marks also. Never do any compromise over this part.
Wish you all the best
CA vivek M
castudenthelpdesk @ gmail.com
CAclubindia
