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There are 6 papers at this level that equip the students with basics of financial accounting, cost accounting, Economics and business mathematics and statistics. Students may be eligible for exemption of any or all of the papers of this level if they possess a professional qualification from a body we recognize.

ASSESSMENT PRINCIPLES

Assessment principles of Foundation Level are as under:

  • Students can take any number of papers in one seat to examination.
  • There are no rules for order in which these papers shall be taken. A student a can take any of the papers alone or in combination with other papers at this level.
  • The assessment exam for each paper shall be of 3 hours duration with 50% pass marks.
  • The foundation exams contains 100% mandatory questions to ensure that students study all the syllabus in details for passing the exams.


PL1: TAXATION PRINCIPLES
Learning Objectives

The objective of the syllabus is to build basic knowledge of the scope taxation system including direct and indirect taxes.

Key Competencies

On successful completion of this exam, the student shall be able to:

  • Explain the scope of income tax and value-added tax.
  • Describe the various types of taxable incomes.
  • Explain the tax compliance obligations of the taxpayers.
  • Calculate the tax liabilities of individuals who are residents and non-residents.
  • Deal with CGT issues.
  • Compute the tax liabilities related to dividend income. with taxation
  • Explain the effect of value-added taxes on businesses.

GRID Weightage
Basic Concepts including residency rules, return due dates 10-15
Computation of individual tax liabilities including ex-pat concessions from salary income 15-25
Taxation of Dividends, interest income, Capital gains, and Property Income 15-20
Tax reimbursement methods & tax credits 10-15
Basic concepts of VAT, registration requirements, VAT rates, and return filings 20-30
Total 100
Components
Residency Rules

  • Criteria for determining the residency of individuals and corporates.
  • How does the residency status impact tax obligations?
  • Tax return requirements for residents and non-residents.
Computation of Income Tax Liability of Salaried individuals
  • Prescribe the categories of income subject to income tax.
  • Describe the deductions available in determining the taxable income along with any related conditions thereto.
  • Describe the tax-exempt incomes for salaried individuals.
  • Compute the taxable income and tax liability of resident from the given data
  • Compute the taxable income and tax liability of non-residents from the given data
  • Taxation of salary earned from working abroad.
  • Relief of foreign taxes paid.

Tax Reimbursement Methods, Withholding taxes and Tax Credits
  • What are the methods of tax reimbursements?
  • Concept of tax prepayments/estimates/withholding taxes including PAYE and PAYG.
  • Describe the concept of tax credits along with their rules of application especially tax credits available on:
    • Child care expenses
    • Charitable donations
    • Service cheques
    • Mortgage payments
    • Pension saving plans contributions
    • Life insurance plans contributions

VAT Concepts Registration, rates filing requirements
  • Types of the transaction on which VAT is applicable.
  • Concept of the place of supply and time of supply rules
  • What are the VAT registration requirements?
  • VAT rates applicable to various types of goods/services
  • VAT Return filing requirements