Taxation is not merely a subject—it is a discipline that reflects the dynamic legal and economic landscape of a
nation. For students, however, it often presents itself as a maze of provisions, sections, and exceptions. This
book is our humble effort to make the study of Direct Taxation clear, approachable, and application-oriented.
This is Part II of our two-part series on Direct Tax. It covers core concepts that form the backbone of the
subject including Clubbing of income, Set-off and carry forward of losses, , Deductions under Chapter
VI-A, Taxability of Agricultural Income, Computation of taxable income & Tax liability of individual and
Firms under new and old tax regime, Advance payment of Tax and Taxes Deducted and Collected at
Source and Filing of Return.
Though primarily intended for B.Com. students, this book also caters to the needs of students preparing for
CA, CS, and CMA Inter-level exams, ensuring a solid academic and practical foundation and offering them
clarity on both concepts and computations.
Key Features of the Book :
 Provision-wise Illustrations : Each provision is immediately followed by a relevant solved illustration for
better understanding.
University Exam Orientation : Includes questions from 1998 to 2025, making it a useful companion for
university preparations.
Structured Question Bank : Each chapter concludes with Short Questions, Long Questions, and Practical Questions to reinforce learning.
Practice-Rich Content : Includes ample solved sums and more than enough questions for practice, covering a wide range of difficulty levels.
Answer Key with Solutions : All practical questions come with detailed solutions and explanatory hints to aid self-learning.
"Provisions at a Glance" : A crisp summary at the end of each chapter for quick revision.
Simplification of Complex Areas : Difficult provisions have been simplified and supported with practical illustrations and easy-to-follow explanations.
Amendments by Finance Act, 2025 : Amendments as per the Finance Act, 2025, is covered at the end of the book presenting the current provisions, amendments proposed in the Finance Act and the date from which it becomes effective in a tabular format.
Tax Rates Snapshot : A summary of the current and proposed tax rates for the relevant Assessment Year is included for reference.
Fully Updated & Aligned : All amendments, as applicable to the topics in this volume, have been
incorporated.
This book aims to serve as a reliable, student-friendly, and exam-focused resource that balances theory
with practical application and conceptual depth with accessibility. We have tried our best to present
the subject in a manner that simplifies complex provisions, encourages logical understanding, and prepares
students thoroughly for examinations.
We are grateful to our mentors, colleagues, and students who continuously encouraged us to undertake this
academic initiative. We look forward to your suggestions for making Part II even more effective.