Studying while holding down a job is a whole new ball game, requiring a considerable amount of planning, including around factors you might not have much control over – such as workload pressure or the demands of your boss. Our advice - plan ahead:
1. Give yourself a break – accept that achieving the perfect balance between work, study and your personal life is a ‘big ask’; that doesn’t mean you shouldn’t try, but don’t beat yourself up about occasionally having to make compromises.
2. Develop the habit of good habits – no-one wants to be stuck in a rut, but having a structure that allows you to stay disciplined while allowing a degree of reasonable flexibility will help you get into the groove of your studies without feeling straitjacketed.
3. Identify when you’re at your most alert – optimise your studies by keeping this time free for your textbooks and homework; if that means finding a quiet room in the office during your lunch hour, or before or after work, so be it – and your diligence and dedication will be on display to the powers-that-be.
4. Maintain a study diary – and add your study schedule into your office diary; you’ll be far less likely to break the commitment you’ve made yourself if your sessions are written down in black and white.
5. Less is more – a two or three-hour study session might seem like a good idea when you’re bursting with energy and enthusiasm, but loses its allure at the end of a long, gruelling day at work; by all means put aside evenings to study but take plenty of breaks, especially if you’re reading reams of text on a screen.
6. Just five minutes – it’s easy to convince yourself there’s little point in studying for much less than 15 or 30 minutes; but short bursts can pay huge dividends; try writing key points in colours on small filing cards to revise on public transport or when waiting to meet friends.
7. Take physical breaks – crouching over a book or laptop and concentrating on taking in all you read will take a physical as well as mental toll; stretch, take short walks; even try breathing exercises to re-energise yourself and ensure you don’t give up because of discomfort.
8. Seize the day – everyone’s different but many of us are better at assimilating complex information during the daytime.
9. Brain food, but at the right time – certain foods boost our brain power and wellbeing, so ensure you have a balanced diet that includes protein-rich staples (such as fish, broccoli, nuts, dairy products) and sources of serotonin (such as pasta, starchy vegetables and cereals) but be careful not to load up immediately prior to a study session; let your body’s digestive system do its work before you settle down.
10. Don’t head to bed on your studies – you need quality sleep to be an effective student (and be fit for the office); allow yourself time to relax between studying and sleeping; read or do something to take your mind off the subject.
Friday, October 9, 2009
CS Notes - Income Tax| Executive Program| CALCULATION OF INCOME TAX
1. Income of every person is chargeable to tax at the rates prescribed in the Finance Act such as slab rates. However some of the income tax rates are not mentioned in Finance Act but they have been mentioned in Act itself, such as Tax on lottery income is 30% as per section 115BB and tax on long-term capital gains is 20% as per section 112 and if equity shares are sold after 1/10/2004 the STCG are taxable at 15% as per section 111A.
2. Individuals, HUF, AOP, BOI and every artificial juridical person get their income taxable on the basis of slab rate.
3. Surcharge @ 10% is leviable on the tax liability in the case of individual and HUF where their taxable income exceeds Rs. 10 lakhs and Rs. 100 Lakhs in case of firms and companies for the AY 2009-2010.
4. Firms & domestic companies are chargeable at a flat rate of 30%.
5. Surcharge leviable for the AY 2009-2010 has been 10% except in case of foreign companies where it is 2.5%.
6. No surcharge is imposed on local authority and co-operative societies.
7. Every person whose total income of the assessment year exceeds the maximum amount not chargeable to tax shall pay the tax as per the rates mentioned in the finance act, in the previous year itself. Such total income is to be calculated on the basis of the residential status of a person.
8.Education cess for the AY 2009-2010 is 2% for primary education and 1% for higher and secondary education. We should not calculate and charge education cess at 3%, it would be principally wrong.
2. Individuals, HUF, AOP, BOI and every artificial juridical person get their income taxable on the basis of slab rate.
3. Surcharge @ 10% is leviable on the tax liability in the case of individual and HUF where their taxable income exceeds Rs. 10 lakhs and Rs. 100 Lakhs in case of firms and companies for the AY 2009-2010.
4. Firms & domestic companies are chargeable at a flat rate of 30%.
5. Surcharge leviable for the AY 2009-2010 has been 10% except in case of foreign companies where it is 2.5%.
6. No surcharge is imposed on local authority and co-operative societies.
7. Every person whose total income of the assessment year exceeds the maximum amount not chargeable to tax shall pay the tax as per the rates mentioned in the finance act, in the previous year itself. Such total income is to be calculated on the basis of the residential status of a person.
8.Education cess for the AY 2009-2010 is 2% for primary education and 1% for higher and secondary education. We should not calculate and charge education cess at 3%, it would be principally wrong.
CS Notes- Income Tax | RESIDENTIAL STATUS
1. Section 6(1): An Individual can be resident or a non resident in India. To be a resident he has to satisfy one of the following conditions:
1. Stay in India >/= 182 days in a PY OR
2. Stay in India >/= 60 days in a PY and Stay in India >/= 365 days in preceeding 4 PYs.
II) For the b) condition above, we have 3 exceptional cases. In all these 3 cases 60 days shall be taken as 182 days:
1. A citizen of India who leaves India for the employment purposes.
2. A citizen of India who leaves India as a member of crew of Indian ship.
3. An Individual who is a citizen of India OR is a person of Indian origin who comes to India on a visit.
III) Section 6(6)(a): A Resident individual can be ROR or NOR. ROR is one who satisfies both of the following conditions
1. Resident in 2/10 preceeding PYs.
2. Stay in India >/= 730 days in a 7 preceding PYs.
IV) For an individual, residential status is determined based on the period of stay in India. However, for HUF, Firm, AOP and other non-corporate entities the control and management is critical in determining residential status.
V) While determining residential status of HUF period of stay of karta is not at all relevant. What is important is whether control and management of such HUF is situated in India or not. Further to check whether HUF is ROR or NOR residential status of karta as an individual becomes relevant.
VI) An Indian company is always regarded as a Domestic Company. A company incorporated outside India may also be treated as a domestic company if certain conditions are fulfilled.
VII) An Indian company is always a resident. A Company incorporated outside India is treated as `resident’ only if control and management is wholly in India.
VIII) Resident and ordinarily resident is taxed on his global income.
IX) Not ordinarily resident is taxed in respect of Indian Income. In respect of foreign income he is taxed only if it is from business controlled in India or profession set up in India.
X) Non resident is taxed in respect of Indian Incomes only.
XI) Remittance in India is never taxed in India, since it is the second receipt.
XII) Agriculture income from a land in India is always exempt from tax. However, if land is not in India then agriculture income will be taxed in India.
XIII) Dividend from Domestic Company is not taxed but from foreign company it is fully chargeable to tax. Dividends from cooperative societies are fully taxable.
1. Stay in India >/= 182 days in a PY OR
2. Stay in India >/= 60 days in a PY and Stay in India >/= 365 days in preceeding 4 PYs.
II) For the b) condition above, we have 3 exceptional cases. In all these 3 cases 60 days shall be taken as 182 days:
1. A citizen of India who leaves India for the employment purposes.
2. A citizen of India who leaves India as a member of crew of Indian ship.
3. An Individual who is a citizen of India OR is a person of Indian origin who comes to India on a visit.
III) Section 6(6)(a): A Resident individual can be ROR or NOR. ROR is one who satisfies both of the following conditions
1. Resident in 2/10 preceeding PYs.
2. Stay in India >/= 730 days in a 7 preceding PYs.
IV) For an individual, residential status is determined based on the period of stay in India. However, for HUF, Firm, AOP and other non-corporate entities the control and management is critical in determining residential status.
V) While determining residential status of HUF period of stay of karta is not at all relevant. What is important is whether control and management of such HUF is situated in India or not. Further to check whether HUF is ROR or NOR residential status of karta as an individual becomes relevant.
VI) An Indian company is always regarded as a Domestic Company. A company incorporated outside India may also be treated as a domestic company if certain conditions are fulfilled.
VII) An Indian company is always a resident. A Company incorporated outside India is treated as `resident’ only if control and management is wholly in India.
VIII) Resident and ordinarily resident is taxed on his global income.
IX) Not ordinarily resident is taxed in respect of Indian Income. In respect of foreign income he is taxed only if it is from business controlled in India or profession set up in India.
X) Non resident is taxed in respect of Indian Incomes only.
XI) Remittance in India is never taxed in India, since it is the second receipt.
XII) Agriculture income from a land in India is always exempt from tax. However, if land is not in India then agriculture income will be taxed in India.
XIII) Dividend from Domestic Company is not taxed but from foreign company it is fully chargeable to tax. Dividends from cooperative societies are fully taxable.
Saturday, October 3, 2009
BASIC CONCEPTS AND DEFINATIONS
1.The Income-tax Act, 1961 came into force with effect from 1/4/1962. It has XXIII chapters and 298 sections in all.
2. India: Section 2(25A) India means the territory of India as referred to in Article 1 of the Constitution, its territorial waters, seabed and subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other maritime Zones Act, 1976 and the air space above its territory and territorial waters.
3. Person: Section 2(31) includes seven types of persons namely an individual, a Hindu undivided family (HUF), A company, A firm, An association of persons (AOP) or a body of individuals (BOI), A local authority, Every artificial juridical person not falling within any of the preceding sub clauses.
4. The 2 basic differences between AOP and BOI are:
a) In BOI there are only individuals but in AOP there can be any type of persons.
b) BOI is creation of law whereas AOP can be created by different persons coming together for doing some income producing activity on the voluntary basis.
5.Assessee: Section 2(7) means any person by whom tax, interest or penalty is payable under any provision of this act and includes:
1.deemed assessee
2.assessee in default
3.Person against whom any income tax proceedings have been started for the assessment of his income or loss or the income of some other person or the loss for whom he is liable.
6.Assessment year: Section 2(9) means the period of 12 months starting from 1st April every year and ending on 31st march of the succeeding year.
7. Previous year: Section 2(34) means the year immediately preceeding to assessment year. Income for the previous year is always taxed in the assessment year. The following are the exceptions to the general rule that income of every previous year is chargeable to tax in the relevant assessment year.
Section 172: Shipping business of a non-resident;
Section 174: Person leaving India;
Section 174A: An AOP formed for the purpose of a particular event.
Section 175: Persons likely to transfer property to avoid tax;
Section 176: Discontinued business or profession
8.Income includes the gifts received in excess of Rs.50000. If anyone has received gift in cash exceeding Rs.50000 from a non-relative then whole of such amount received shall be considered his income.
9. However gifts received from relatives shall not be covered in the said 8) point above.
10. Section 14: Gross total income is the aggregate of income from all five heads of Income, namely
Income under the head salary
Income under the head house property
Income under the head business and profession
Income under the head capital gains
Income under the head other sources
11. Section 14A: while computing total income no deduction shall be allowed for that expenditure which has been incurred to earn exempted income.
12. Section 2(45): Total income is income after reducing the deduction under chapter VI-A from the gross total income. This income is also called taxable income on which tax has to be imposed.
13. Section 288A: The total income shall be rounded off in the multiples of Rs. 10.
14.APPLICATION OF INCOME V/S DIVERSION OF INCOME: Application of income means spending the money after it has been earned by the assessee. Such an amount is always included while computing taxable income in the hands of assessee. In other words once an income has been earned it could not be excluded on the grounds that it has been applied for some purpose. On the other hand diversion of income is the process of diverting the income before it is earned by the assessee.
FOR EXAMPLE: J Ltd sells a unit of a product at Rs.100 with very clear message to customer that out of Rs.100 Rs.5 will go to the charitable institution. Now only Rs.95 shall be regarded as the income in the hands of company and Rs.5 will be known as diversion of income.
FOR EXAMPLE: Mr. J inherited property from his father but subject to the right of residence in favour of mother of Mr. J. This means that Mr. J has the right over the ownership of the property but mother has right over residence in the house. If the house is to be sold then for the effective sale of house both should transfer their rights in house. From the total sales consideration Mr. J can not be held liable for the tax on that portion which represents the right of his mother.
15.REVENUE VS CAPITAL: Any receipt of money can either be categorized as revenue or capital. Revenue receipts are always fully taxable unless specific exemption has been provided for that. Capital receipts are never taxable. That’s why amount received from insurance company at the time of maturity is not taxed u/s 10(10D). Similarly loan taken is also not taxed. However, some of the capital receipts are taxable since they have been specifically provided in the definition of Income such as tax on Capital gains on sale of Capital asset.
2. India: Section 2(25A) India means the territory of India as referred to in Article 1 of the Constitution, its territorial waters, seabed and subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other maritime Zones Act, 1976 and the air space above its territory and territorial waters.
3. Person: Section 2(31) includes seven types of persons namely an individual, a Hindu undivided family (HUF), A company, A firm, An association of persons (AOP) or a body of individuals (BOI), A local authority, Every artificial juridical person not falling within any of the preceding sub clauses.
4. The 2 basic differences between AOP and BOI are:
a) In BOI there are only individuals but in AOP there can be any type of persons.
b) BOI is creation of law whereas AOP can be created by different persons coming together for doing some income producing activity on the voluntary basis.
5.Assessee: Section 2(7) means any person by whom tax, interest or penalty is payable under any provision of this act and includes:
1.deemed assessee
2.assessee in default
3.Person against whom any income tax proceedings have been started for the assessment of his income or loss or the income of some other person or the loss for whom he is liable.
6.Assessment year: Section 2(9) means the period of 12 months starting from 1st April every year and ending on 31st march of the succeeding year.
7. Previous year: Section 2(34) means the year immediately preceeding to assessment year. Income for the previous year is always taxed in the assessment year. The following are the exceptions to the general rule that income of every previous year is chargeable to tax in the relevant assessment year.
Section 172: Shipping business of a non-resident;
Section 174: Person leaving India;
Section 174A: An AOP formed for the purpose of a particular event.
Section 175: Persons likely to transfer property to avoid tax;
Section 176: Discontinued business or profession
8.Income includes the gifts received in excess of Rs.50000. If anyone has received gift in cash exceeding Rs.50000 from a non-relative then whole of such amount received shall be considered his income.
9. However gifts received from relatives shall not be covered in the said 8) point above.
10. Section 14: Gross total income is the aggregate of income from all five heads of Income, namely
Income under the head salary
Income under the head house property
Income under the head business and profession
Income under the head capital gains
Income under the head other sources
11. Section 14A: while computing total income no deduction shall be allowed for that expenditure which has been incurred to earn exempted income.
12. Section 2(45): Total income is income after reducing the deduction under chapter VI-A from the gross total income. This income is also called taxable income on which tax has to be imposed.
13. Section 288A: The total income shall be rounded off in the multiples of Rs. 10.
14.APPLICATION OF INCOME V/S DIVERSION OF INCOME: Application of income means spending the money after it has been earned by the assessee. Such an amount is always included while computing taxable income in the hands of assessee. In other words once an income has been earned it could not be excluded on the grounds that it has been applied for some purpose. On the other hand diversion of income is the process of diverting the income before it is earned by the assessee.
FOR EXAMPLE: J Ltd sells a unit of a product at Rs.100 with very clear message to customer that out of Rs.100 Rs.5 will go to the charitable institution. Now only Rs.95 shall be regarded as the income in the hands of company and Rs.5 will be known as diversion of income.
FOR EXAMPLE: Mr. J inherited property from his father but subject to the right of residence in favour of mother of Mr. J. This means that Mr. J has the right over the ownership of the property but mother has right over residence in the house. If the house is to be sold then for the effective sale of house both should transfer their rights in house. From the total sales consideration Mr. J can not be held liable for the tax on that portion which represents the right of his mother.
15.REVENUE VS CAPITAL: Any receipt of money can either be categorized as revenue or capital. Revenue receipts are always fully taxable unless specific exemption has been provided for that. Capital receipts are never taxable. That’s why amount received from insurance company at the time of maturity is not taxed u/s 10(10D). Similarly loan taken is also not taxed. However, some of the capital receipts are taxable since they have been specifically provided in the definition of Income such as tax on Capital gains on sale of Capital asset.
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