B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

B.Com (Tax Practices and Procedures)

(w.e.f. 2016–2017)

Second Year Syllabus (CBCS)

..

FACULTY OF COMMERCE, OSMANIA UNIVERSITY

HYDERABAD - 500 007 T.S.

2017

DEPARTMENT OF COMMERCE, O.U.

Structure of B.Com ((Tax Practices & Procedures) (CBCS) for Osmania University, Hyderabad.
(w.e.f. Academic Year 2016-17)

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

DEPARTMENT OF COMMERCE, O.U.

Structure of B.Com ((Tax Practices & Procedures) (CBCS) for Osmania University, Hyderabad.
(w.e.f. Academic Year 2016-17)
B.COM (Tax Practices & Procedures) PROGRAMME
FIRST YEAR:
SEMESTER-I
Sl.No. Code Course Title Course Type HPW Credits
(1) (2) (3) (4) (5) (6)
1. BC101 A/B/C/D AECC-1 2 2
2. BC102 English CC-1A 5 5
3. BC103 Second Language CC-2A 5 5
4. BC104 Financial Accounting - I DSC-1A 5 5
5. BC105 Business Economics DSC-2A 5 5
6. BC106 Business Organization DSC-3A 4 4
7. BC107 Information Technology DSC-4A 3T+2P 4
Total 31 30
SEMESTER-II
8. BC201 A/B/C/D AECC-2 2 2
9. BC202 English CC-1B 5 5
10. BC203 Second Language CC-2B 5 5
11. BC204 Financial Accounting - II DSC-1B 5 5
12. BC205 Managerial Economics DSC-2B 5 5
13. BC206 Principles of Management DSC-3B 4 4
14. BC207 Foreign Trade DSC-4B 4 4
Total 30 30
SECOND YEAR:
SEMESTER-III
15. BC301 Principles of Insurance SEC-1 2 2
16. BC302 English CC-1C 5 5
17. BC303 Second Language CC-2C 5 5
18. BC304 Advanced Accounting DSC-1C 5 5
19. BC305 Income Tax-I DSC-2C 5 5
20. BC306 Business Statistics-I DSC-3C 4 4
21. BC307 Entrepreneurial Development & Business DSC-4C 4 4
Ethics
Total 30 30
SEMESTER-IV
22. BC401 Practice of Life Insurance SEC-2 2 2
23. BC402 English CC -1D 5 5
24. BC403 Second Language CC-2D 5 5
25. BC404 Corporate Accounting DSC-1D 5 5
26. BC405 Income Tax-II DSC-2D 5 5
27. BC406 Business Statistics-II DSC-3D 4 4
28. BC407 Auditing DSC-4D 4 4
Total 30 30
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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

THIRD YEAR:
SEMESTER-V
29. BC501 Practice of General Insurance SEC-3 2 2
30. BC502 GE-1 2 2
31. BC503 Cost Accounting DSC-1E 4 4
32. BC504 Business Law DSC-2E 4 4
33. BC505 Banking Theory & Practice DSC-3E 4 4
34. BC506 Computerised Accounting DSC-4E 3T+2P 4
35. BC507 Direct Tax-I DSE-1A 5 5
36. BC508 Indirect Taxes DSE-2A 5 5
Total 31 30
SEMESTER-VI
37. BC601 Regulation of Insurance Business SEC-4 2 2
38. BC602 GE-2 2 2
39. BC603 Managerial Accounting DSC-1F 4 4
40. BC604 Company Law DSC-2F 4 4
41. BC605 Financial Institutions & Markets DSC-3F 4 4
42. BC606 Commerce Lab DSC-4F 2T+4P 4
43. BC607 Direct Tax-II DSE-1B 5 5
44. BC608 Tax Planning & Management DSE-2B 5 5
Total 32 30
GRAND TOTAL 184 180
AECC: Ability Enhancement Compulsory Course; SEC: Skill Enhancement Course; DSC: Discipline
Specific Course; DSE: Discipline Specific Elective; GE: Generic Elective; T=Theory; P=Practicals;

SUMMARY OF CREDITS
Sl. No. Course Category No. of Courses Credits Per Course Credits
1 AECC 2 2 4
2 SEC 4 2 8
3 CC Language 8 5 40
DSC 8 5 40
16 4 64
4 DSE 4 5 20
5 GE 2 2 4
TOTAL 44 180
Commerce Total 28 124

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 304) : ADVANCED ACCOUNTING

Paper: BC 304 Max. Marks: 100

PPW: 5 Hrs Exam Duration: 3 Hrs
Credits : 5
Objective: to acquire accounting knowledge of partnership firms and joint stock companies

UNIT-I: PARTNERSHIP ACCOUNTS-I:

Meaning – Partnership Deed - Capital Accounts (Fixed and Fluctuating) – Admission of a
Partner – Retirement and Death of a Partner (Excluding Joint Life Policy)(Including problems)

UNIT-II: PARTNERSHIP ACCOUNTS–II:

Dissolution of Partnership – Insolvency of a Partner (excluding Insolvency of all partners) – Sale
to a Company(Including problems)

UNIT-III: ISSUE OF SHARES, DEBENTURES, UNDERWRITING AND BONUS

SHARES:
Issue of Shares at par, premium and discount - Prorata allotment – Forfeiture and Re-issue of
Shares – Issue of Debentures with Conditions of Redemption – Underwriting:Meaning –
Conditions- Bonus Shares: Meaning – SEBI Guidelines for Issue of Bonus Shares – Accounting
of Bonus Shares(Including problems)

UNIT-IV: COMPANY FINAL ACCOUNTS AND PROFIT PRIOR TO

INCORPORATION:
Companies Act 2013: Structure – General Instructions for preparation of Balance Sheet and
Statement of Profit and Loss – Part-I: Form of Balance Sheet – Part-II: Statement of Profit and
Loss – Preparation of Final Accounts of Companies - Profits Prior to Incorporation- Accounting
treatment. (Including problems)

UNIT-V: VALUATION OF GOODWILL AND SHARES:

Valuation of Goodwill: Need – Methods: Average Profits,Super Profits and Capitalization
Methods -Valuation of Shares: Need –Net Assets, Yield and Fair Value Methods. (Including
problems)

SUGGESTED READINGS:
1. Principles and Practice of Accounting: R.L. Gupta & V.K. Gupta,Sultan Chand & Sons.
2. Advanced Accountancy: Shukla and Grewal, S.Chand & Co.
3. Advanced Accountancy: R.L.Gupta&Radhaswamy, Sultan Chand & Sons.
4. Advanced Accountancy (Vol-II): S.N.Maheshwari&V.L.Maheswari, Vikas.
5. Accountancy–III: Tulasian, Tata McGraw Hill Co.
6. Advanced Accountancy: Arulanandam; Himalaya.
7. Accountancy–III: S.P. Jain & K.L Narang, Kalyani Publishers.
8. Guidance Note on the Revised Schedule VI to the Companies Act, 1956, The Institute of
Chartered Accounts of India.
9. Advanced Accounting (IPCC): D. G. Sharma, Tax Mann Publications.

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 305) : INCOME TAX – I

Paper: BC 305 Max. Marks: 100
PPW: 5 Hrs Exam Duration: 3Hrs
Credits : 5
Objective: to acquire conceptual and legal knowledge about Income Tax provisions relating to
computation of Income from different heads with reference to an Individual Assessee.
UNIT–I: INTRODUCTION:
Direct and Indirect Taxes – Canons of Taxation - Features and History of Income Tax in India –
Definitions and Basic Concepts of Income Tax: Assessee – Deemed Assessee – Assessee-in-
default – Assessment Year – Previous Year - Income Tax general rule and Exemptions to the
Rule– Person – Income – Gross Total Income – Total Income –– Incomes Exempt from Tax.
Residential Status and Scope of Total Income: Meaning of Residential Status – Conditions
applicable to an Individual Assessee – Incidence of Tax – Types of Incomes – Problems on
computation of Total Income of an Individual based on Residential Status.
UNIT-II: AGRICULTURAL INCOME:
Introduction – Definition – Tests to determine Agricultural Income – Partly Agricultural and
partly Non-Agricultural Income – Integration: conditions – provisions – computation of Tax on
Integration process. Heads of income: Gross Total Income – Taxable Income – Income Tax
Rates.
UNIT–III: INCOME FROM SALARIES:
Definition of ‘Salary’ – Characteristics of Salary – Computation of Salary Income: Salary u/s
17(1) – Annual Accretion – Allowances – Perquisites – Profits in lieu of Salary – Deductions u/s.
16 – Problems on computation of Income from Salary.

UNIT–IV: INCOME FROM HOUSE PROPERTY:

Definition of ‘House Property’ – Exempted House Property incomes– Annual Value –
Determination of Annual Value for Let-out House and Self-occupied House – Deductions u/s.24
– Problems on computation of Income from House Property.

UNIT–V: PROFITS AND GAINS OF BUSINESS OR PROFESSION:

Definition of ‘Business and Profession’ – Procedure for computation of Income from Business –
Rules – Revenue and Capital nature of Incomes and Expenses – Allowable Expenses u/s. 30 to
37 – Expenses expressly disallowed – Deemed Profits – Valuation of Stock – Miscellaneous
provisions u/s 44. Depreciation: Meaning – Conditions for charge of depreciation – Assets used
for Business – Block of Assets – Rates of Depreciation – Miscellaneous Provisions about
depreciation – Computation of Depreciation –problems on computation of Income from
Business. Income from Profession: Rules– procedure – problems on computation of Income
from Profession.

SUGGESTED READINGS:
1. Income Tax Law and Practice: V.P. Gaur & D.B Narang, Kalyani Publishers.
2. Direct Taxes Law & Practice: Dr. Vinod K. Singhania & Dr. Kapil Singhania, Taxmann
3. Income Tax: B.B. Lal, Pearson Education.
4. Taxation: R.G. Saha, Himalaya Publishing House Pvt. Ltd.
5. Income Tax: Johar, McGrawHill Education.
6. Taxation Law and Practice: Balachandran & Thothadri, PHI Learning.

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 306) : BUSINESS STATISTICS-I

Paper: BC 306 Max. Marks: 100

PPW: 4Hrs Exam Duration: 3hrs
Credits : 4
Objective :to inculcate analytical and computational ability among the students.

UNIT-I: INTRODUCTION:
Origin and Development of Statistics – Definition - Importance and Scope - Limitations of
Statistics - Distrust of Statistics. Statistical Investigation: Planning of statistical investigation -
Census and Sampling methods - Collection of primary and secondary data - Statistical errors and
approximation - classification and Tabulation of data - Frequency distribution.

UNIT – II: DIAGRAMMATIC AND GRAPHIC PRESENTATION:

Diagrammatic presentation: One Dimensional and Two Dimensional Diagrams – Pictograms –
Cartograms Graphic presentation: Technique of Construction of Graphs - Graphs of Frequency
Distribution - Graphs of Time Series or Histograms.

UNIT-III: MEASURES OF CENTRAL TENDENCY:

Introduction –Significance -Arithmetic Mean- Geometric Mean - Harmonic Mean - Mode –
Median - Quartiles and Percentiles - Simple and Weighted Averages - Uses and Limitations of
different Averages.

UNIT-IV: MEASURES OF DISPERSION, SKEWNESS AND KURTOSIS:

Measures of Dispersion: Significance - Characteristics - Absolute and Relative Measures - Range
- Quartile Deviation - Mean Deviation- Standard Deviation - Coefficient of Variation. Measures
of Skewness - Karl Pearson’s Coefficient of Skewness - Bowley’s Coefficient of Skewness -
Kelly’s Measure of Skewness – Kurtosis: Mesokurtosis, Platy kurtosis and Leptokurtosis.

UNIT-V: CORRELATION:
Meaning -Types - Correlation and Causation – Methods: Scatter Diagram - Karl Person's
Coefficient of Correlation - Probable Error and Interpretation of Coefficient of Correlation -
Rank Correlation - Concurrent Deviation Method.

SUGGESTED READINGS:
1. Statistics for Management: Levin & Rubin, Pearson
2. Fundamentals of Statistics: Gupta S.C, Himalaya
3. Statistics: E. Narayanan Nadar, PHI Learning
4. Business Statistics: Dr. J. K. Thukral, Taxmann Publications
5. Business Statistics: K. Alagar, Tata McGraw Hill
6. Fundamentals of Statistical: S. P Gupta, Sultan Chand
7. Business Statistics: J. K. Sharma, Vikas Publishers
8. Business Statistics: S. L Aggarwal, S. L. Bhardwaj, Kalyani Publications
9. Statistics-Problems and Solutions: Kapoor V.K, S. Chand
10. Statistics - Theory, Methods and Applications: Sancheti D.C. & Kapoor V.K
11. Business Statistics: S. K. Chakravarty, New Age International Publishers
12. Statistics: Andasn,Sweenly,Williams,Cingage.

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 307) ENTREPRENEURAL DEVELOPMENT & BUSINESS ETHICS

Paper: BC 307 Max. Marks: 100

PPW: 4 Hrs Exam Duration: 3Hrs
Credits : 4
Objective :to have exposure to the entrepreneurial culture, development and business ethics to set up and
manage small units.

UNIT–I: INTRODUCTION:
Entrepreneur: Evolution-Concept - Functions - Characteristics – Importance of Entrepreneur– Types of
Entrepreneurs - Entrepreneurship-Entrepreneurial Competencies-Women Entrepreneurs in India –
Opportunities & Challenges-Entrepreneurship today.

UNIT–II: ENTREPRENEURIAL DEVELOPMENT:

Entrepreneurial opportunities in India-Environment Scanning– Idea Generation – Transformation of Ideas
into Opportunities - Idea & opportunity assessment – Market assessment – Trend spotting – Creativity
&Innovation – Innovative process – Selection of the right opportunity.

UNIT–III: PROJECT AND MSMEs:

Project: Concept -Classification - Identification - Formulation – Design - Planning and Appraisal
- Social Cost-Benefit Analysis – Budget and Planning Financial Analysis &Project Financing -
MSME – Government Policy and Support.

UNIT–IV: ENTTREPRENEURALDEVELOPMENT POLICIES AND PROGRAMMES:

Entrepreneurship Development Programmes – Policies of the Government – Institutions for
Entrepreneurship Development Training (EDIs) in India: CED, MDI, EDII, IED, NIESBUD,
EMC, STEPs, XISS, SIDO, SISIs - Role of Consultancy Organizations: IDCs, TCOs – Role of
Financial Institutions and Banks.

UNIT–V:BUSINESS ETHICS:
Concept of Business Ethics-Moral Values-Utilitarianism and Universalism -Business Standards
and Values - Concept of Corporate Social Responsibility

SUGGESTED READINGS:
1. Entrepreneurship Development: A.Shankaraiah et al, KalyaniPublishers.
2. Fundamentals of Entrepreneurship: K.K. Patra, Himalaya Publishing House.
3. Entrepreneurship Development:Dr.S.S.Khanka, S.Chand.
4. Entrepreneurship Development: V.Gangadhar et al, Kalyani Publishers.
5. Entrepreneurship Development & Small Business Enterprises: Poornima Charantimath, Pearson.
6. Entrepreneurship: Robert D. Hisrich, McGraw Hill
7. Entrepreneurship: Arya Kumar, Pearson
8. The Dynamics of Entrepreneurial Development & Management: Vasanth Desai, Himalaya
9. Business Ethics: Chandra Kumar Roy, Prabhat Kumar Roy, Vikas Publishing House Ltd.
10. Business Ethics: Sanjeev K. Bansal, Kalyani Publishers.
11. Entrepreneurial Development and Business Ethics : Prof.Sarma V.S.Veluri, Prof.M.Yadagiri,
Dr.Surender Gade,Sarita Madipelli

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 401) : PRACTICE OF LIFE INSURANCE

Paper: BC 401 Max. Marks: 100
PPW: 2 Hrs; Credits : 2 Exam Duration: 3 Hrs
Objectives: The objectives of the course are : 1) to provide an insight into the different types of Life Insurance
Plans. 2) enable the students to understand the importance of Nomination and Assignments 3) give an Overview of
Policy Claims
UNIT I: PRACTICE AND PLANS OF LIFE INSURANCE : a) Practice of Life Insurance:
Overview of the Indian Insurance Market – Growth of Insurance Business in India – Organizational
Structure of LIC – Postal Life Insurance – Organizational Structure of Postal Life Insurance –
Appointment of Life Insurance Agents and their Functions – Need of an Agent in Life Insurance Selling –
Appointment of Agents – Remuneration to Agents – Trends in Life Insurance Distribution Channels. b)
Plans of Life Insurance: Types of Life Insurance Plans – Term Plan – Endowment Plan – Money Back
Insurance Plan – Whole Life Insurance Plan – Unit Linked Insurance Plans (ULIPs) – Joint Life
Insurance Plans – Child Insurance Plans – Rider Benefits – Industrial Life Insurance – MWP Policies –
Keyman Insurance – Health Insurance and its types
UNIT II: PREMIUMS, BONUSES AND ANNUITIES : a) Premiums & Bonuses: Concept of
Premium – Types of Premium – Factors considered in calculating Premium – Premium Calculations -
Surrender Value and Non-forfeiture Options – Revival of Lapsed Policies and its Types – Revival of
Postal Life Insurance Policies - Bonus in Policies –Types of Bonus in Life Insurance Policies. b)
Annuities: Understand Concept of Annuity – Types of Annuity Plans – Advantages and Disadvantages of
Annuity – Annuity Vs. Life Insurance – Terminology in Annuity
UNIT III: GROUP INSURANCE AND LINKED LIFE INSURANCE POLICIES : a) Group
Insurance: Importance of Group Insurance Schemes – Features of Group Insurance Schemes – Eligibility
Conditions in Group Insurance – Types of Group Insurance Schemes – Group Term Insurance Scheme –
Group Gratuity Scheme – Group Superannuation Scheme – Types of Group Superannuation Schemes –
Group Leave Encashment Scheme – Employees Deposit – Linked Insurance Scheme – Group Insurance
Scheme in Lieu of EDLI – Social Security Scheme. b) Linked Life Insurance Policies : Concept of Unit
Linked Policies – ULIP Premium and its Break-up – Types of Funds in ULIPS – Traditional Plans Vs.
ULIPS – Working Mechanism – Top-up and NAV – Features of ULIPS – Revival of ULIPS – IRDA
Guidelines on ULIPS
UNIT IV: POLICY DOCUMENTS AND ASSIGNMENT, NOMINATION &
SURRENDER OF POLICY : a) Policy Documents: Life Insurance Policy Application and Process –
Proposal Form and Related Documents - Importance of a Policy Document – Format of a Policy
Document – Policy Schedule and its Various Components – Conditions and Privileges in a Policy
Document – Duplicate Policies. b) Assignment, Nomination & Surrender of Policy: Assignment of Life
Insurance Policies – Conditional Assignment – Absolute Assignment – Process of Assignment –
Nomination – Process of Nomination – Features of Nomination – Assignment Vs. Nomination –
Surrender of Policies – Foreclosure of Insurance Policies
UNIT V: POLICY CLAIMS : Types of Policy Claims – Survival Benefits – Death Claims – Maturity
Claims – Submission of Proof of Title at Claim Processing Stage – Early Claims and Non–early Claims –
Documents required for Processing Early Claims – Death due to Un-natural Causes or Accidents –
Nomination – Assignment – Waiver of Evidence of Title – Claims Concession Clause and Extended
Claims Concession Clause – Presumption of Death – Insurance Riders – Accidental Death Benefit Rider
– Permanent Death Benefit Rider – IRDA Regulations for Claim Payments
SUGGESTED READINGS : 1. Risk Management and Insurance: Vaughan and Vaughan., 2.) Risk Management : A Publication of the
Insurance Institute of India., 3). Guide to Risk Management: Sagar Sanyal 4). Insurance and Risk Management: P.K. Gupta 5). Insurance Theory
and Practice: Tripathi PHI 6). Principles of Insurance Management: Neelam C Gulati, Excel Books 7). Life and Health Insurance: Black, JR
KENNETH & Harold Skipper, Pearson 8). Principles of Risk Management nd Insurance: (13 th Edition), George E ejda 9) . Risk Management
and Insurance : Trieschman ,Gustavson and Hoyt 10) South Western College Publishing Cincinnati, Ohio, 10). Life Insurance: Vol I, II, III
(LBRARO) : ICFAI Course Book. 11). Life and Health Insurance Handbook: Davis W.Gregg
Suggested Websites : www.irda.gov.in. 2) www.polocyholder.gov.in . 3) www.irdaindia.org.in

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 404) CORPORATE ACCOUNTING

Paper: BC 404 Max. Marks: 100

PPW: 5 Hrs Exam Duration: 3 Hrs
Credits : 5

Objective: to acquire knowledge of AS-14 and preparation of accounts of banking and insurance
companies.

UNIT-I: COMPANY LIQUIDATION:

Meaning – Modes - Contributory Preferential Payments – Statements of Affairs - Liquidator’s
Remuneration - Preparation of Liquidator’s Final Statement of Account (Including problems)

UNIT-II: AMALGAMATION (AS-14):

Amalgamation: In the nature of merger and purchase – Calculation of Purchase Consideration –
Accounting Treatment in the books of transferor and transferee companies. (Including problems)

UNIT-III: INTERNAL RECONSTRUCTION AND ACQUISITION OF BUSINESS:

Internal Reconstruction: Accounting treatment – Preparation of final statement after
reconstruction- Acquisition of business when new set of books are opened- Debtors and
Creditors taken over on behalf of vendors- When same set of books are continued(Including
problems)

UNIT-IV: ACCOUNTS OF BANKING COMPANIES:

Books and Registers maintained – Slip system of posting – Rebate on Bills Discounted – Non-
Performing Assets – Legal Provisions relating to final accounts - Final Accounts. (Including
problems)

UNIT-V: ACCOUNTS OF INSURANCECOMPANIES AND INSURANCE CLAIMS:

Introduction – Formats-Revenue Account–Net Revenue Account - Balance Sheet - Valuation
Balance Sheet – Net Surplus – General Insurance - Preparation of final accounts with special
reference to Fire and Marine Insurance - Insurance claims- Meaning – Loss of Stock and Assets
– Average Clause – Treatment of Abnormal Loss - Loss of Profit. (Including problems)

SUGGESTED READINGS:
1. Advanced Accountancy (Vol-II): S.N.Maheshwari&V.L.Maheswari, Vikas.
2. Accountancy–III: Tulasian, Tata McGraw Hill Co.
3. Advanced Accountancy: Arulanandam; Himalaya
4. Accountancy–III: S.P. Jain & K.L Narang, Kalyani Publishers
5. Advanced Accounting (Vol-II): Chandra Bose, PHI
6. Advanced Accountancy: Shukla and Grewal, S.Chand& Co
7. Advanced Accountancy: R.L.Gupta&Radhaswamy, Sultan Chand & Sons
8. Corporate Accounting: Sakshi Vasudeva, Himalaya.

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 405) INCOME TAX – II

Paper: BC 405 Max. Marks: 100

PPW: 5 Hrs Exam Duration: 3Hrs
Credits : 5

Objective :to acquire conceptual and legal knowledge about Income Tax provisions relating to
computation of Income from different heads with reference to an Individual Assessee.

UNIT-I: CAPITAL GAINS:

Introduction - Meaning – Scope of charge – Basis of charge – Short term and Long term Capital
Assets – Transfer of Capital Asset – Deemed Transfer – Transfer not regarded as Transfer –
Determination of Cost of Acquisition – Procedure for computation of Long-term and Short-term
Capital Gains/Losses – Exemptions in respect of certain Capital Gains u/s. 54 – Problems on
computation of capital gains.

UNIT–II: INCOME FROM OTHER SOURCES:

General Incomes u/s. 56(1) – Specific Incomes u/s. 56(2) – Dividends u/s. 2(22) – Interest on
Securities – Gifts received by an Individual – Casual Income – Family Pension – Rent received
on let out of Furniture- Plant and Machinery with/without Building – Deductions u/s. 57 -
Problems on computation on Income from Other Sources.

UNIT-III: CLUBBING AND AGGREGATION OF INCOME:

Income of other persons included in the total income of Assessee – Income from Firm and AOP
– Clubbing Provisions – Deemed Incomes – Provisions of set-off and Carry forward of losses –
computation of Gross Total Income – Deductions from GTI u/s 80C to 80U – Problems on
Computation of Taxable Income

UNIT-IV: ASSESSMENT OF INDIVIDUALS:

Computation of Tax Liability – Applicability of Alternate Minimum Tax on Individual u/s
115JC – Problems on Computation of tax liability

UNIT–V: ASSESSMENT PROCEDURE:

Income tax returns – Types of returns – Filing of e-return – Assessment – Types of assessment –
Self assessment – Provisional assessment – Regular assessment – Best judgement assessment –
Reassessment – Rectification of mistakes – Notice on demand.

SUGGESTED READINGS:
1. Income Tax Law and Practice:V.P. Gaur & D.B- Narang, Kalyani Publishers.
2. Direct Taxes Law & Practice: Dr. Vinod K. Singhania & Dr. Kapil Singhania, Taxmann
3. Income Tax: B. Lal, Pearson Education.
4. Income Tax: M.Jeevarathinam & C. Vijay Vishnu Kumar, SCITECH Publications.
5. Taxation: R.G. Saha, Himalaya Publishing House Pvt. Ltd.
6. Income Tax: Johar, McGrawHill Education.
7. Taxation Law and Practice: Balachandran & Thothadri, PHI Learning

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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 406) BUSINESS STATISTICS-II

Paper: BC 406 Max. Marks: 100
PPW: 4Hrs Exam Duration: 3hrs
Credits : 4
OBJECTIVE: to inculcate analytical and computational ability among the students.

UNIT-I: REGRESSION:
Introduction - Linear and Non Linear Regression – Correlation Vs. Regression - Lines of
Regression - Derivation of Line of Regression of Y on X - Line of Regression of X on Y - Using
Regression Lines for Prediction.

UNIT-II: INDEX NUMBERS:

Introduction - Uses - Types - Problems in the Construction of Index Numbers - Methods of
Constructing Index Numbers - Simple and Weighted Index Number (Laspeyre - Paasche,
Marshall – Edgeworth) - Tests of Consistency of Index Number: Unit Test - Time Reversal Test
- Factor Reversal Test - Circular Test - Base Shifting - Splicing and Deflating of Index
Numbers.

UNIT-III: TIME SERIES:

Introduction - Components – Methods-Semi Averages - Moving Averages – Least Square
Method - Deseasonalisation of Data – Uses and Limitations of Time Series.

UNIT-IV: PROBABILITY:
Probability – Meaning - Experiment – Event - Mutually Exclusive Events - Collectively
Exhaustive Events - Independent Events - Simple and Compound Events - Basics of Set Theory
– Permutation – Combination - Approaches to Probability: Classical – Empirical – Subjective -
Axiomatic - Theorems of Probability: Addition – Multiplication - Baye’s Theorem.

UNIT-V: THEORETICAL DISTRIBUTIONS:

Binomial Distribution: Importance – Conditions – Constants - Fitting of Binomial Distribution.
Poisson Distribution: – Importance – Conditions – Constants - Fitting of Poisson Distribution.
Normal Distribution: – Importance - Central Limit Theorem - Characteristics – Fitting a Normal
Distribution (Areas Method Only).

SUGGESTED READINGS:
1. Statistics for Management: Levin & Rubin, Pearson,
2. Fundamentals of Statistics: Gupta S.C, Himalaya
3. Business Statistics: Theory & Application, P. N. Jani, PHI Learning
4. Business Statistics: Dr. J. K. Thukral, Taxmann Publications
5. Business Statistics: K. Alagar, Tata Mc Graw Hill
6. Fundamentals of Statistical: S. P Gupta , Sultan Chand
7. Business Statistics: J. K. Sharma,Vikas Publishers
8. Business Statistics: Vora, Tata Mc Graw Hill
9. Statistics-Problems and Solutions: Kapoor V.K, S. Chand
10. Statistics-Teory, Methods and Applications: SanchetiD.C. & Kapoor V.K
11. Business Statistics: S. K. Chakravarty, New Age International Publishers
12. Business Statistics-G.Laxman,Vasudeva Reddy, K.Goud, TaxmannPublications,Hyderabad.
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B.Com (Tax Practices & Procedures) (CBCS) Faculty of Commerce, O.U.

Paper : (BC 407) AUDITING

Paper: BC 407 Max. Marks: 100

PPW: 4Hrs Exam Duration: 3Hrs
Credits : 4

Objective: to understand meaning and elements of auditing and gain knowledge for execution of
audit.

UNIT-I: INTRODUCTION:
Auditing: Meaning – Definition – Evolution – Objectives – Importance -Types of Audit –
Standards of Auditing – Procedure for issue of standards by AASB.

UNIT–II: AUDITOR AND EXECUTION OF AUDIT:

Appointment – Qualification and Disqualification – Qualities – Remuneration – Removal –
Rights – Duties – Civil and Criminal Liabilities of Auditors – Commencement of Audit –
Engagement Letter – Audit Program – Audit Note Book – Audit Workbook – Audit Markings.

UNIT–III: INTERNAL CONTROL, INTERNAL CHECK AND INTERNAL AUDIT:

Meaning and Objectives of Internal Control – Internal Check and Internal Audit – Internal Check
Vs.Internal Audit – Internal Control vs. Internal Audit.

UNIT–IV: VOUCHING:
Meaning – Objectives – Types of Vouchers – Vouching of Trading Transactions – Vouching
Cash Transaction – Auditing in an EDP Environment.

UNIT–V: VERIFICATION AND VALUATION OF ASSETS:

Meaning and Definition – Distinction – Verification and Valuation of various Assets
andLiabilities – Audit Committee – Role of Audit Committee – Audit Reports.

SUGGESTED READINGS:
1. Principles and Practice of Auditing: RG Saxena, Himalaya Publishing House.
2. Auditing and Assurance for CA Integrated Professional Competence: SK Basu, Pearson.
3. Auditing: ArunaJha, Taxmann Publications.
4. Auditing Principles, Practices & Problems: Jagdish Prakash, Kalyani Publishers.
5. Auditing and Assurance: Ainapure&Ainapure, PHI Learning.
6. Principles and Practice of Auditing: DinkarPagare, Sultan Chand & Sons.
7. Fundamentals of Auditing: Kamal Gupta andAshok Arora, Tata McGraw-Hill
8. A Hand Book of Practical Auditing: B.N. Tandonetal., S. Chand.

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