Learn Company Secratary (CS) Coaching with Free Lessons & Tips

Chapter 1
Evolution of tax in India:
1860 – 1865
1867 by License Tax on professionals
1886 – 1917 Act levied the tax on all resident or non-resi. Exempted insurance premium, HUF as distinct entity introduced
1918 for the first time introduced a specific plan of deduction of business income from Net Income.
Income tax act 1922 laid basis of functioning or ITD and criteria of finance bills, Tax rate were to be determined by finance act itself.
IT act 1960 repealed 40 yrs old act, came into force on 1 April 1962
Tax Structure in India
A265 no tax except with authority of law
A246 – distribution of power to levy tax b/w Center and state govt.
SCHEDULE 7: " Three lists " power distribution between CG and SG
Union List exclusive CG
1. Taxes on Income other than agricultural
2. Custom inc. export duties
3. Excise onTobacco & other goods manufactured in India except for Liquor for Human Consumption, Opium and Narcotics.
4. Interstate Trade of products except for Newspaper
5. Interstate consignment of goods
6. ****matters not included in LIST 2 or 3
State List Exclusive SG
Income tax on AGRICULTURE
1. Excise on ALFHC, Narcotics, Opium
2. Octroi
3. Advertisements other than Newspaper
4. Tax on Goods & Services carried by road or inland waterways
5. Tax on Professionals/ Trade /calling and employment
Concurrent List Both have powers with CG having more powers on conflict.
Administration of Taxes
Central Board of Revenue or Dept of Revenue (apex body to levy taxes)
Is part of Ministry of Finance came into existence by CB of Revenue Act 1923 W.e.f. 1 Jan 1964
CBDT and CBEC came into existence ï? Constitution of both u/s 3 of CBRA 1963
CBDT Responsible direct tax policy and implementation through ITD
Its India’s official FATF
CBDT structure
Chairman (spell secretary to CG) + 6 more (additional Sec. to GOI) all are IRS
Members include
IT, Legislation & Computerisation, Personnel & Vigilance, Investigation, Audit and Judicial.
ITD works U/ Dept Revenue U/ MOF
Responsible for administering Income tax act 1963 & various finance acts
CBEC DoR MoF
The tax shall be:-
Equitable, Progressive, for Public welfare, Social Equality
Tax divided into
1. Direct Tax 2. Indirect Tax
Merits of Direct Tax
Socio Equality, Progressive, Balanced and certainty
Initiate saving, an inflation indicator
Demerits of Direct Tax:
More resources required for COLLECTION of taxes
Can create Non-working nature
Easy tax evasion

Merits of Indirect Tax:
The easy collection, Cannot create non-working nature, Not easy evasion of tax. automatic stabiliser
Demerits of Indirect Tax:
Regressive in nature
Not equally appropriated

Canons Of Tax
Equity: for ax implementation
Economy: shall be lower on Cost of the collection.
Certainty: shall be in prescribed rate
Convenience: As to the time of payment
Objectives of Taxation
Shall be for Revenue generation, Social Welfare, the safety of society from bad customs.

Board & Its Powers
DIR shall exercise power (conferred by AOA ) bona fide & interest of CO. DIR are not agents of Majority of Members or even all Members & Members cannot by resolution supersede the powers of DIR. & Powers of Management are vested with DIR.

From the Provisions of Sec 179 & restrictions U/ Act / MOA / AOA : power of DIR are co existive w/ tht of CO.
Section 173 --------- Meeting of Board.

First Meeting to be held within 30 days of incorp. (+) every year atleast 4 B/M with not more thn 120days b/w 2 meetings
(SS -1) plus where co incorporated must in 30 days hold B/M and one B/M in each quarter.
In case of Dormant/OPC/Small Co.: At least one B/M every half calendar year with gap b/w 2 meetng not less thn 90 dy
• Sec 8 co to hold 1 b/m every 6 mnths.
NOTICE of B/M:: (application of SS)
Atleast 7 days before meeting (SS – 1 states addntl 2 days for speed post or reg. post) &
If meeting called on SHORT NOTICE than 1 ID to be present, if not present than desicin shall be ratified by ID .
As good governance Agenda shall be sent with Notice 7 days prior.
Requirement & Procedures of convening B/M:: RULE 3 of Co(Meeting of Board & its Powers)rules 2014
Arrangement of A/v conferencing (option available to attend meeting in A/v mode be sent with NOTICE Section173(3).
Dir who opts to attend by A/v mode shall inform CHAIRPRSN of BOD and such option by DIR is valid for 1 year else it is deemed tht every DIR to attend in person.
At commencement of meet chairprsn shall ROLLCALL for record (for DIR participating through A/v) after tht
Chairman or CS shall inform Quorum present and person othwer thn DIR present there w/ permission.
MINUTES to include names of DIR through A/v also.
Within 15 days minutes shall be circulated among all DIR & DIR must approve/comment in 7 days of receipt of same or its deemed to be approved.
After completion minutes to be entered in Minutes book and signed by CHair prsn.
Items not to be dealt with A/v MODE:: Approval of F/s or B/report or Prospectus or matters of amalgamation, merger ,demerger etc.

Hi Sakshi,

Best strategy to learn FM is by following more practical and real time scenarios rather than theories.

For e.g. capital budgeting, working capital management, forex all these to be learnt by solving more and more practical problems from various books and study materials. The more you practice on these problems the more clarity will emerge about fundamental concepts.

Mr Bhupesh Anand is one of the renowned professor when it comes to learning financial management.

or take classes from some one who has experience in similar departments like international trade finance, forex and working capital management.

Best of luck!