TYBCOM SYLLABUS

Accounts 1: Financial Accounting

1. *Company final accounts
2. *Profit prior to Incorporation
3. *Amalgamation in nature of Merger & Purchase (AS-14)
4. *Buy back of Shares and own Debentures
5. *Redemption of Preference shares
6. Redemption of Debentures
7. *Capital reduction and Internal reconstruction
8. Valuation of Goodwill and Shares
9. Personal Investment accounting (AS-13)
10. *Accounting for foreign Currency transactions (AS-11)

TYBCOM 2010 SYLLABUS

Management and Production Planning (MPP)

Section I

1. Introduction to Management
2. Evolution of Management Thought
3. Planning and Decision Making
4. Organising
5. Human Resource Development
6. Motivating and Leading
7. Performance Appraisal
8. Controlling
9. Management of Globalised Organisation

Section II

10. Introduction to Production Management
11. Productivity
12. Production Planning
13. Locating Production Facilities
14. Production Standards and Work Measurement
15. Quality Control
16. Materials Planning
17. Inventory Control

TYBCOM 2010 Syllabus

Development issues in Indian Economy (Economics)

Section I

Module 1 – Development experience since Independence

1. Economic Growth and Structural Changes Since Planning in India
2. Problem of Poverty in India
3. Population Growth in India
4. Inequalities of Income in India
5. Ninth Five Year plan

Module 2 – Labour Market

6. Labour Force Growth and Participation
7. Trends & Structure of Employment in India
8. Human Development

* Module 3 – Developments in Agriculture

9. Agricultural Production and Productivity Since Planning
10. Institutional Constraints & Reforms in Agriculture
11. Agricultural Financing
12. Agricultural Marketing
13. Agricultural Pricing
14. Agricultural Research and Trade
15. National Agricultural Policy
16. Food Security in India

* Module 4 – Structural Transformation in Industry

17. Industrial Growth and Diversification during the Plan Periods
18. Industrial Policy
19. Small – Scale and Cottage Industries
20. Disinvestment – Policies and Issues

21. Section II

    Module 5 – Financial Markets

    21. Money Market in India – Features & Reforms
    22. Commercial Banking & Reforms in India
    23. The Reserve Bank of India – Monetary Management
    24. Development of Capital market and SEBI

    * Module 6 – Fiscal System

    25. Indian Tax System & Tax Reforms
    26. Public Expenditure – Composition & Management
    27. Public Debt Management
    28. Fiscal Responsibility of the Government

    * Module 7 – External Sector-Emerging Issues

    29. India’s Foreign Trade - Structural Changes
    30. India’s Balance of Payments Problem
    31. Trade Policy of India
    32. Foreign Direct Investment & External Debt Burden

    Module 8 – Challenges Before the Indian Economy

    33. Mobilisation of Resources
    34. Development of Infrastructure – Energy sector
    35. Development of Infrastructure – Transport of Communications in India
    36. Facing the Challenges of WTO
    37. Changing Role of State

CONCEPT OF CAPITAL AND REVENUE EXPENDITURE IS DIFFERENT IN TAX

CONCEPT OF CAPITAL AND REVENUE EXPENDITURE IS DIFFERENT IN TAX

Go ahead read the fine print….
Please also note that the concept of replacement and capital expenditure is totally
different in the case of accounts and in the case of income tax.
For e.g. If there is a car which has a petrol engine and which is replaced by a diesel
engine then in accounts this is termed as a capital expenditure but this a totally revenue
expenditure in the case of income tax
Please note that income tax has the following opinion.
Even before replacement there was an engine and now also there was an engine, so
the matter is irrelevant whether this is a diesel engine and the previous one was a petrol
engine. It has not created a new asset and so this is not considered as a capital
expenditure and is merely a replacement and this TREATED AS A REVENUE
EXPENDITURE AND ALLOWED TO BE DEBITED TO THE PROFIT AND LOSS
ACCOUNT. [Nathalal Bankatlal Parikh Vs. CIT]
The fact that the assessee is doing one kind of business does not stop him from
claiming the deduction of interest on loan taken for the purpose of other business. In a
case of C.T. Desai Vs CIT it was decided as follows.
The assessee was engaged in the business of paper manufacturing and he had had
taken for developing a garment business then interest on the loan taken for garment
business can be allowed as deduction from the business of paper manufacturing even if
the business of garment is not started or yet to start or did not start at all.
Replacement of asbestos roof to a concrete roof is considered as a replacement and
not a capital expenditure [Dhakeshwari Mills Vs CIT]
Replacement of a low power engine to a high power engine to a ship is considered as a
replacement and allowed to be debited to the profit and loss account [Scindia Shipping
Vs CIT]

Depreciation and its chargeability under the act [section 32]

Depreciation and its chargeability under the act [section 32]
Calculation of depreciation in accounts is very much different from the depreciation that
is calculated under the income tax act.
Block concept of depreciation
Income tax follows the block concept of depreciation. Under this concept the assets are
grouped in one block not on the basis of type of assets but they are grouped on the
basis of common rate of deprecation. The following example will make it clear.
If an assessee has the following assets which are of the given value and the rate of
depreciation the distinction of the assets as per accounts would be different from that of
income tax

Particulars Amount Rate of
Dep
Motor car Local 135000 20%
Office Building 500000 10%
Delivery vans 450000 25%
Factory building 750000 20%
Furniture 200000 10%
Fittings and Equipments 150000 25%
Motor car Imported 500000 25%


The classification of the assets as per accounts is on the basis of the type of assets
whereas in the case of income tax it is on the basis of rate of depreciation.
AS PER ACCOUNTS AS PER INCOME TAX
Particulars Amt Amt Particulars Amt Amt
Motor cars and
Vehicles
Block A Rate
10%
Motor car local 135000 Office Building 500000
Motor car Imported 500000 Furniture 200000 700000
Delivery vans 450000 1085000
Buildings Block B Rate
20%
Factory buildings 750000 Motor car Local 135000
Office buildings 500000 125000 Factory building 750000 885000

Some important points of depreciation of assets.
According to the provision of section 32 depreciation is charged the normal rate
prevailing for the assets as per the schedule given under the act.
If an asset is purchased and in the first year it is used for 180 days or more in the
previous year then the full rate of deprecation has to be provided for that year.
For example is an asset was purchased for Rs 200000 on 1st of august 2001 and if the
rate of depreciation is 15% then the amount of depreciation would be Rs 30000 i.e. 15%
of 200000 for the full year. Actually the asset was purchased in the month of august
2001 and it was used for eight months from Aug to March 2002 then also deprecation
has to be charged for the entire year and not only for eight months.
Similarly if an asset is purchased and in the first year used for less than 180 days
in the previous year then half rate of deprecation has to be provided for that year.
For example is an asset was purchased for Rs 200000 on 1st of December 2002 and if
the rate of depreciation is 15% then the amount of depreciation would be Rs 15000 i.e.
50% of 30000 for half year. Actually the asset was purchased in the month of December
2001 and it was used for four months from Dec 2001 to March 2002 then also
deprecation has to be charged for the six months and not only for four months. Thus it
also means that if the asset is purchased on the last day of the year then also the
same would be depreciated for half year even if the asset was used for only one
day.
No depreciation is to be provided in the year of sale. In fact there is no method of
calculating deprecation nor profit or loss on sale of individual assets.

BASIC PRINCIPLES FOR ARRIVING AT BUSINESS INCOME: -

BASIC PRINCIPLES FOR ARRIVING AT BUSINESS INCOME: -

Deductions allowed from Income
Since there are different types of businesses and each business has different types of
expenses and incomes it is practically impossible to mention each and every type of
expense under the act hence we follow the general guidelines that will help us in
deciding which expenses would be allowed as deduction and which would be
disallowed by the act
1. Personal Expenses of the proprietor are not allowed to be debited to the profit
and loss account of the business.
2. Expenses in the nature of penalty are not allowed as deduction
3. Capital Gains or capital losses, which are incurred in the sale of capital assets,
are not allowed as deduction.
4. The particular expense should not be disallowed by the income tax act
1961[meaning there are some expenses which are totally disallowed, like
advertisements related to political party]
5. Expenses of capital nature are not allowed to be debited to the profit and loss
account except capital expenditure on scientific research.
6. Anticipatory expenses, which are contingent in nature, which depend on the
happening or the non-happening of a certain future event, are not allowed. such
as reserve for doubtful debts or provision for a pending legal case etc.
7. Expense should be incurred in the previous year
8. The expense should be related to the business of the assessee. While applying
this rule it should be noted that the standard business practices and principles of
just and reasonable should be allowed.

Profits and Gains of Business and Profession

Profits and Gains of Business and Profession
Basic concepts that one must know
This is the largest head of income
It includes every body from a Panwala having a shop at the roadside to as high as the
biggest business owner of the country, Mr. Narayan Murty. This head of income covers
the largest number of persons who could be taxed under the act. This includes profits
and gains that are earned in practically every business activity known and hence has
the widest of the sections and provisions so that most of them are covered under the
act.
There are 2 main bodies involved in this head.
The tax paying body which is also known as the assessee and the tax collection body
which, is the income tax department
Requirements for claiming a business activity
It includes all activities, which are done with the intention of earning profits and are
distinguished from the activities that are done purely for drawing pleasure. Thus in order
to include any activity as a business the following conditions are to be satisfied.
1. It should include some kind of trade commerce or manufacture or any adventure in
the nature of trade commerce and manufacture.
2. There should be a profit motive
3. The assessee should have an absolute or major control over the activities of the
business so that so as to define any activity as business.
What is business?
Business as defined by section 2[17] of the income tax act is ‘’ an activity which includes
trade, commerce and manufacture and any adventure in the nature of trade commerce
and manufacture.
What is adventure in the nature of trade commerce and manufacture?
It means even a single activity can be also called as a business. So for business
definition it is not necessary that the activity should be carried out regularly and
continuously. Even if there is an isolated transaction then also it is liable to be called for
business.
Rendering of services is also termed as business
Even the rendering of services comes under the preview of business and need not
always be a manufacturing and processing activity.
Business cannot be carried out with one self
Business cannot be carried out with own self. It means that there has to be some
bilateral relations between two or more persons and business done with self does not
make sense and it therefore not entertained under law.
Entire income is not taxable
It means that what ever is the sales of the business is not taxed. Expenses that are
legitimate and related to the business are allowed as deduction and then the net income
is taxable.
Gross income – Expenses required for earning the income. = Net Income
Basis of charge section 28
This section deals with the various types of businesses that are included in the preview
of business and gains.
What income are business incomes but still not taxed as business incomes?
1. Any rent received from house property even if the same is kept in by the assessee as
stock in trade is liable for to be taxed as income from House Property and not income
from business.
2. Dividends received from companies, which are taxable under section 56, would be
liable to be taxed under income from other sources even if shares are maintained by the
assessee as stock for sale.
3. Winning from lotteries and races are termed as income from other sources even if the
person is in the business of engaging in lotteries and races