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Income is taxed under five heads of income namely:
• Income from salary
• Income from house property
• Income from business and profession
• Income from capital gains
• Income from other sources

Tax incidence on an assessee depends on his residential status. For instance, any income that accrues to an individual outside India, shall be taxable in India depending upon the residential status of the individual in India. Similarly, any income earned by a foreign national in India is taxable in India, depending on the residential status of the individual, rather than on his citizenship. Therefore, the determination of the residential status of a person is very significant for determining his tax liability

Broadly, the status of an individual may be that of a resident or a non-resident. To be a resident of India, an individual has to satisfy one of the following conditions: ( He should be in India in the previous year for a period of 182 days or more. “OR” (b) He should be in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

Income generated under the head Income from Salary is taxable under this head only if there is an Employer-Employee relationship between the assessee and the source he is deriving the income from. Ordinary, the term “salary” is understood to mean the periodical payment for services rendered by an employer. However, for the purposes of tax, the following items are considered as “salary”: • Dearness allowance • Bonus • Commission • Compensatory allowance • Any annuity or pension • Any fees, commission, perquisite or profits in lieu of, or in addition to, any salary or wages • Any advance of salary • Any payment received by an employer while in service in respect of any period of leave not availed of by him • The portion of the annual accretion in any previous year to the balance at the credit of an employee participating in a recognized provident fund, consisting of employer’s contribution in excess of 12% of the salary of an employee.

Income from House Property is the income derived as rent from any buildings or lands appurtenant thereto. The gross annual value of the house property has to be computed. From the gross annual value, a deduction of the payment of property tax is allowed, to arrive at the net annual value (NAV). A mandatory deduction at the rate of 30% of the net annual value and any interest on borrowed capital for purchase/construction of the property is allowed as deduction from the NAV.

Under the head Business and Profession, revenue receipts which are generated from the business or profession are computed. Any expenditure incurred wholly and exclusively for the purpose of the business is allowed as a deduction. Any expenditure in the nature of personal/capital expenditure is allowed. A few instances of such allowable expenditure are salary, electricity expenses, printing and stationary, travelling, rent, interest, freight, audit fees, etc

According to the Income Tax Act depreciation is calculated only by the WDV method. Depreciation is admissible at the rates specified in the schedule on the basis of Block of Assets. A few rates of depreciation allowed are as follows: 1. Tangible assets being • Buildings used mainly for residential purpose @ 5% • Buildings used for other than residential purpose @ 10% • Furniture including electric fittings @ 10% • Plant & machinery including motor cars, scientific apparatus etc. @ 15% • Plant & machinery being computers including computer software etc. @60% 2. Intangible assets allowed are technical know-how, patents, franchisee, copyrights, trade marks etc. @ 25%

Business is subjected to Tax Audit if the turnover (sales) exceeds Rs. 60 lakhs in the case of a business, and gross receipts exceed 15 lakhs for a profession, for the Assessment Year 2012-2013. From the Assessment year 2013-2014, the turnover limit of a business will be Rs. 100 lakhs, and for profession gross receipts will be 25 lakhs. From the financial year 2010-11 onwards, a person carrying on a business referred to will also have to get the accounts audited. The audit on such cases is mandatory if the income admitted from such business is less than 8% of the turnover.

The term capital asset means a property of any kind held by an assessee, whether or not it is connected with his business or profession, but does not include: • Stock in trade, consumable stores or raw materials held for purpose of business or profession, • Personal effects held for personal use. • 61/2% Gold bonds, 1977, 7% Gold bonds, 1980, National Defence Gold Bonds, 1980, Special Bearer Bonds, 1991, Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999, notified by the government and • Agricultural land in India. Any gain arising on the transfer (sale) of a capital asset is chargeable to tax under the head Capital Gains. Incidence of tax For assets being shares in a company or any other security listed on a recognized stock exchange in India, or a unit of the UTI/Mutual fund specified u/s 10(23D) or a zero coupon bond held for not more than 12 months, would be termed as short term capital asset. If the same is held for more than 12 months, then it is a long term capital asset and would be out of the tax purview as a long term capital gain on shares and securities and is exempt u/s10(38). Assets other than those specified above and held for not more than 36 months are termed as short term capital assets.

The following exemptions are available: Long Term Capital Gain from the Transfer of a Residential House Property (Section 54) The exemption under Section 54 is available only to an individual or a HUF who transfers (or sells) a residential house/property that results in a long-term capital gain and then invests the amount of capital gain in acquiring a new residential house. This exemption is available subject to the fulfilment of the following requirements: (i) The transferor shall be an individual or a HUF, (ii) The asset to be transferred must be of long-term capital asset, being buildings or lands appurtenant thereto, (iii) The income from such residential house shall be assessable under the head "Income from House Property", (iv) The transferor assessee should purchase a residential house in India within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and, (v) The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction. Amount of Exemption. The amount of exemption under section 54 is • Equal to the amount of the capital gain if the cost of the new house property is more than the capital gain, or • Equal to the cost of the new house property if the cost is less than the capital gain. Capital Gains Accounts Scheme. Where the amount of capital gain is not so utilized for the purchase or construction of a new residential house before the due date of furnishing of the return of income, it shall be deposited by him on or before the due date in an account with a public sector bank in accordance with the Capital Gain Account Scheme, 1988. The amount already utilized on the new house together with the amount deposited shall be deemed to be the amount utilized for the purchase of new house under section 54. If the amount deposited is not utilised for the purpose of purchase or construction of new house within the stipulated period, then the amount not so utilized will be treated as long term capital gain of the previous year in which the period of three years expires. In such case the assessee is entitled to withdraw the amount from the bank. Consequences of Selling the New House Before 3-years. If the new house property is transferred within a period of three years from the date of the purchase or construction, the amount of capital gains arising therefrom, together with the amount of gains exempted earlier, will be chargeable to tax in the year of sale of the house property. Further, the amount of exemption under section 54 shall be reduced from the cost of acquisition of the new house, while calculating short-term capital gains on the transfer of the new asset. Long Term Capital Gain Exemption for Investment in Certain Bonds (Section 54EC) This exemption is available to an individual, a HUF, company or any other person who invests the long term capital gain, within 6 months of the transfer of the capital asset, in any of the specified bonds (issued on or after April 1, 2006) and redeemable after 3 years: • National Highway Authority of India (NHAI), or • Rural Electrification Corporation Ltd. (REC) The investment in the specified bonds mentioned above is subject to ceiling of Rs. 50 lakhs during any financial year. The face value of each bond is Rs. 10,000 and in multiples thereof and the rate of return is around 6%. The interest income from such bonds is taxable. Long Term Capital Gain from the Transfer of a Capital Asset other than Residential House Property (Section 54F) The long term capital gain arising from the transfer of any capital asset, not being a residential house, will be exempt if the assessee has purchased or constructed a residential house subject to fulfilment of the following conditions: (i) the assessee is an Individual or HUF; (ii) the capital gain arises from the transfer of any long term capital asset (hereafter referred to as original asset) other than a residential house; (iii) within a period of one year before or two years after the date of transfer or sale of the original asset, the assessee purchases a residential house or constructs a residential house(hereafter referred to as new asset) within three years after the date of the transfer/sale of original asset; (iv) where the amount of net consideration is not appropriated or utilised for acquisition of the new asset before the due date of furnishing the return of income, it should be deposited by the assessee in an account with any specified bank or institution in the Capital Accounts Scheme 1988 mentioned above; (v) the cost of purchase or construction of the new asset is not less than the net consideration in respect of the original asset; (vi) on the date of transfer of original asset the assessee: does not own more than one residential house, other than the new asset, b) does not purchase within one year or construct within three years after that date, any residential house, other than the new asset, and c) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head “income from house property”. If these conditions are satisfied, the capital gain arising on sale or transfer of original asset will be wholly exempt from tax. Where only a part of the net consideration is invested in the new asset (viz. residential house), then only a proportionate capital gain will be exempt. After availing the exemptions the assessee: has to retain the new asset (residential house) for a period of not less than three years from the date of its purchase or construction, and (i) should not purchase any residential house other than new asset for a period of two years from the date of transfer of original asset or construct any residential house other than new asset for a period of three years from the date of transfer of original asset. If the above conditions are not satisfied, then the capital gain originally exempted on transfer of the original asset, shall be treated as long-term capital gain of the previous year in which such new asset is sold or a residential house other than new asset is purchased or constructed, as the case may be. The residential house may be let out or self-occupied

Income from other sources includes: 1. Interest income such as FD interest, SB interest, NSC interest etc. excluding PPF interest 2. Winnings from a lottery 3. Winnings from crossword puzzle 4. Winnings from horse races 5. Any other income which is not taxable under the four heads above

The term Relative includes spouse, son and daughter, brother or sister, father and mother, brothers and sisters of parents and the spouses and the spouse’s parents. Any receipt of money or property received as gift from a relative is exempt from tax.

There are certain deductions available under chapter VI A of the Act. Some of the important/common deductions are as follows: 1. 80C: Investments in specified savings like life insurance premium, PPF, RPF, NSC, housing loan repayment, Five year time deposit (tax saver scheme), senior citizen fixed deposit scheme etc. with a ceiling limit of Rs. 1 lakh. 2. 80D: The medical insurance premium deduction limit is Rs. 20,000/- for senior citizens and Rs. 15,000/- for others. 3. 80E: Deduction in respect of interest on loan taken for higher education. 4. 80G: Deduction in respect of donations to certain funds, charitable institutions, etc.

Provisions of TDS are as follows Section and Nature of Income When to deduct TDS At what rate is TDS is to be deducted Sec 192: Salary Monthly at the time of payment where estimated taxable salary exceeds threshold limit Monthly on pro-rata basis on the tax calculated on the estimated taxable salary. Sec 194A: Interest other than interest on securities At the time of payment or credit, whichever is earlier, when the aggregate sums payable during the financial year exceeds Rs 5,000/- (Rs. 10,000/- in the case of bank interest) At the rate of 10% Sec 194C: Payments to contractors/sub-contractors. At the time of credit or payment, whichever is earlier, where the amount credited or paid exceeds Rs 30,000/- per payment or Rs 75,000/- in the aggregate during the financial year. 1% for HUF/Individual 2% for other than HUF/individual Sec 194H: Commission or brokerage payable by a person other than an Individual/HUF At the time of credit or payment, whichever is earlier, where the amount of sum credited or paid exceeds Rs 5,000/- At the rate of 10% Sec: 194I: Rent payable by a person other than an Individual/HUF At the time of credit or payment, whichever is earlier, where the amount of sum credited or paid exceeds Rs 1,80,000/- At the rate of 2%: For plant and equipment At the rate of 10%: for land and buildings Sec: 194J: Fees for professional service and technical service At the time of credit or payment, whichever is earlier, where the amount of sum credited or paid exceeds Rs 30,000/- aggregated per year At the rate of 10%

Direct Tax	Indirect Tax
It is levied on income directly on the income of the person.	It is levied on products and services. Tax burden is shifted to the end consumer.
Tax Collection is relatively difficult.	Tax collection is relatively easy
Eg. Income Tax	Eg. GST, Custom duty

GSTR1 must be filed on or before 11^th of the subsequent month.

GSTR3B must be filed on or before 22^nd / 24^th of the subsequent month for depending on the state in which taxable person is registered.

GSTR5 must be filed on or before 20^th of the subsequent month.

GSTR6 must be filed on or before 13^th of the subsequent month.

GSTR7 must be filed on or before 10^th of the subsequent month.

GSTR8 must be filed on or before 10^th of the subsequent month.

Normally, the supplier of goods and services pays the tax on supply of goods and services or both. But in the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed.

1. Individuals registered under the Pre-GST Law (i.e., Excise, VAT, Service Tax etc.)

2. Businesses with turnover above the threshold limit of Rs. 40 Lakhs/20 Lakhs (Rs. 10 Lakhs for North-Eastern States, J & K, Himachal Pradesh and Uttarakhand).

3. Casual taxable person / Non-Resident taxable person.

4. Agents of a supplier & Input service distributor.

5. Those paying tax under the reverse charge mechanism.

6. Person who supplies via e-commerce aggregator.

7. Every e-commerce aggregator.

8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

1. Register of goods produced.

2. Purchase Register.

3. Sales register.

4. Stock register.

5. Input tac credit availed.

6. Output tax liability.

7. Output tax paid.

8. Other Specified records.

1. Entities who have had land resumed by a constrcting authority such as a City Council.

2. Constructing authorities such as a City Councils who have resumed land.

3. People and entities who are in a shareholder dispute.

4. People and entities who are suing another party for damages resulting from a breach of contract, or who have been provided with false and misleading information, leading to a course of action which has caused a financial loss.

5. The victims of, and those accused of fraudulent activity.

A fraud risk assessment is a review undertaken by a forensic accountant that rates the businesses policies and procedures against a best practise standard. The fraud risk assessment identifies areas where the business needs to improve its policies and procedures, and will offer assistance to achieve these improvements, as well as prioritizing these improvements.

In terms of court proceedings, a forensic accountant is considered to be an expert witness and as such, can provide opinion evidence that can't be provided by a nornal witness. As an expert witness, the forensic accountant has an obligation to assist the Court in relation to the matters it must decide, and is not an advocate for the party who pays his or her fees. The benifit of this is the court will give more weight to the evidence given by a forensic accountant than it would if that same evidence was led by a party to the proceedings.

1. Independence

2. Objectivity

3. Experience and Specialization

• Review of the effectiveness of current organization.

• Adequacy of Treasury policy and procedures documentation.

• Evaluation of procedures, and practices for effectiveness, appropriateness, and security.

• Review and access the adequate segregation of duties in the treasury function exists.

• Review and access reporting of Treasury positions in terms of detail and fequency.

• Reviewing the adequacy of safeguarding of the company's cash assets.

• Review and access reconciliation, recording, monitoring processes.

• Review and access authorization levels within the Treasury function and

• Review and access the systems utilized to undertake the Treasury function.

Review of Bank services currently for appropriateness to stated needs, as defined by the treasury staff.

• Review of the organization's bank charges, as detailed on bank account analysis statements and other bank information for appropriateness for the services offered.

• Compensation methods and levels are evaluated and compared with standard benchmarks (where possible).

• Review of the effectiveness of the organization's cash flow forecasting activities is measured against plan, trended over time.

• Evaluation of its impact on investing and/or browsing activities.

• Review of investment strategies and activities.

• Review of organization’s investment policy and guidelines for reasonability and effectiveness.

• Comparison of Yields on investments with appropriate standard benchmarks to measure performance.

• Whether the organization has established procedures for
- reviewing and accesssing the performance benchmarks,
- reviewing and accessing the credit structure,
- reviewing and accessing product management.

• Review of various aspects of current credit lines.

• Comparison of actual vs. planned credit line usage,

• Effectiveness of the organization's borrowing policy and levels of compensation.

• Average loan price will be compared with appropriate standard rates to measure performance.

• Whether the organization has established procedures for
- Reviewing and accessing the borrowings strategy.
- Reviewing and accessing the borrowing limits.
- Reviewing and accesssing interest rate risk management.
- Reviewing and accessing the company's debt to equity ratio and
- Reviewing and accessing the composition of borrowings.

• Evaluation of the steps and strategies of the organization's financial risk management activities.

• Comparison of risk management activities with appropriate standard benchmarks.

• Assessment of the foreign exchange policies in relation to the effectiveness in reducing the impact of exchange rate variances on the reported annual earnings and operating cash flow.