DIPLOMA IN TAXATION, FINANCE AND INVESTMENT

1. SCHEME OF EXAMINATIONS
MAX MARKS

CREDIT

TOTAL
PAPER SUBJECTS
INT EXT

I SEMESTER

Paper - I Financial Management 6 25 75 100

Paper – II Financial Markets and Services 4 25 75 100

Structure of Taxation and General Principles of

Paper - III 4 25 75 100
Income Tax

Paper - IV Income tax Law and Practice 6 25 75 100

II SEMESTER

Paper - V Customs Law and Basic Framework of GST 4 25 75 100

Paper – VI Administrative Mechanisms of GST 4 25 75 100

Paper – VII Stock and Commodity trading 6 25 75 100

Paper – VIII Investment analysis and Portfolio Management 6 25 75 100

2.SYLLABUS

SEMESTER I
Paper I- Financial Management
Learning Objectives:
• To impart knowledge on the fundamentals of finance function in business and to develop
skills in financial analysis and decision making
• To enable the students to obtain in depth knowledge on capital structure theories and
working capital management in the business

UNIT I- Financial Management- An Introduction: Introduction - Meaning and Objectives

of Financial Management - Functions of Financial Management. Finance - Importance of
Finance - Sources of Finance - Role of Financial Manager in Financial Management.
UNIT II - Capital Structure: Capital Structure- Meaning and definition - Factors affecting
Capital Structure - Planning - Theories of Capital Structure - Determining Debt Equity
Proportion - Leverage Concept.
UNIT III- Cost of Capital: Cost of Capital- Meaning and Definition - Cost of Equity
Capital - Cost of Preference Capital - Cost of Debt - Cost of Retained Earnings - Weighted
 Average (or) Composite cost of capital (WACC).
UNIT IV- Dividend: Dividend - Meaning and Definition - Dividend Policies - Factors
affecting Dividend Payment - Provisions on Dividend Payment in Company Law - Dividend
Models - Walter’s Model - Gordon’s Model - M.M. Model - Hypothesis Model.
UNIT V- Working Capital: Working Capital - Meaning and importance - Factors
Influencing Working Capital - Determining (or) Forecasting of Working Capital requirements
– Working Capital Operating cycle.-Management of cash- Management of debtors.
Note: Questions in Section A, B & C shall be in the proportion of 40:60 between theory
and problem
Reference Books
1. I.M. Pandey, Financial Management, Vikas Publishing House
2. Prasanna Chandra, Financial Management, Tata McGraw Hill Publications
3. S.N. Maheswari, Financial Management, Sultan Chand & Sons
4. Y. Khan and Jain, Financial Management, Sultan Chand & Sons
5. Srivatsava, Financial Management, Himalaya Publications
 Paper II- Financial Markets and Services
Learning Objectives:
• To provide conceptual understanding to the students pertaining to the working
mechanism of financial markets
• To enable the students to gain in depth knowledge of merchant banking and financial
services offered by various financial institutions in India

UNIT I – Financial Markets – An Introduction : Meaning, role, functions and constituents

of financial markets – Financial instruments – Indian Money and Capital Markets – Money
Market: Meaning, characteristics, objectives, importance, general functions and segments of
money market - Characteristics of a developed money market.
Unit II- Capital Markets and Stock Exchange: Indian Capital Market – Functions-
Constituents of Indian Capital Market - New Financial Institutions and Instruments -Money
market Vs Capital market –Investor Protection - Stock Exchange Functions - Services -
Features - Role - Stock Exchange Traders -Regulations of Stock Exchanges - Depository -
SEBI - Functions and Working- Credit rating- Mutual Funds- Types- Benefits.
Unit III- Financial Services- Concept and Players: Financial Services - Concept -
Objectives - Functions - Characteristics - Financial Services Market - Concept - Constituents -
Growth of Financial Services in India - Financial Services Sector Problems - Financial
Services Environment - The Forces - Players in Financial Markets - Interest Rate
Determination - Macro Economic Aggregates in India.
Unit IV- Merchant Banking and Public Issue Management : Definition - Functions -
Merchant Bankers Code of Conduct - Public Issue Management-Concept - Functions -
Categories of Securities Issue - Mechanics of Public Issue Management - Issue Manager –
Role of issue Manager - Marketing of Issue - New Issues Market Vs Secondary Market -
Underwriting - Types - Benefits Functions.
Unit V- Financial Services: Leasing - Types - Participants - Hire Purchase - Lease
Financing Vs Hire Purchase Financing - Factoring - Consumer Finance - Sources - Modes -
Demand for Consumer Finance -Consumer Finance Insurance- Venture capital- Hedge funds
Reference Books
1. Gurusamy S, Essentials of Financial Services, Vijay Nicole Imprints, Chennai, 2014
2. Gomez Clifford, Prentice Hall of India, Financial Markets, Institutions and Financial
Services, 2008
3. Meir Kohn, Financial Institutions and Markets, Oxford University Press
4. Rajesh Kothari, Financial Services in India: Concept and Application, Sage publications,
2012, New Delhi.
5. Madhu Vij& Swati Dhawan, Merchant Banking and Financial Services, Jain Book
Agency, 2000, Mumbai
6. Vasant Desai, Financial Markets and Financial Services, Himalayan Publishing House
Pvt Ltd, 2000, Mumbai
 Paper III - Structure of Taxation and General Principles of Income Tax
Learning Objectives:
• To enable the students to gain in depth knowledge about the Indian Taxation structure
• To provide comprehensive understand to the students on the Income Tax Act and
various concepts associated with Income Tax Act

Unit I- Tax Structure in India: Tax system in India- Direct Tax- Indirect Tax- Tax
collection bodies in India- GST- Constitutional Provisions- Seventh schedule (Article 246)
Central list, State list and Concurrent List.
Unit II - Merits and demerits of Direct and Indirect Tax: Merits and Demerits of Direct
Tax- Special features of indirect Taxes- Merits and demerits of indirect Taxes- Difference
between direct and indirect taxes.
Unit III– Income Tax: Income Tax Act 1961 & Relevance of Finance Act – Definition of
important terms – Income- Sources of Income- Basic Concepts- Person- Assessee-
Assessment Year and Previous Year.
Unit IV - Capital and Revenue: Classification of Capital and Revenue Items- Capital
receipts Vs Revenue Receipts- Capital expenses Vs Revenue expenses-capital losses Vs
Revenue Losses.
Unit V - Residential Status And Exempted Incomes: Taxable entities – Classification of
Residential Status of taxable entities - Residential Status – Individuals, Firms, AOP, HUF
and Companies – Incidence of Tax- Classification of exempted incomes – Incomes
excluded from total income – Income forming part of total income but exempted from Tax.
Note: Questions in Section A, B & C shall be in the proportion of 80:20 between
theory and problem
Reference Books
1. Indirect Taxation, Sultan Chand & Sons - V. Balachandran
2. Indirect Taxes, Dr Jaya Vasudevan susheela, Eastern Book company
3. Indirect Taxes, by Dr. H.C. Mehrotra (Author), Prof. V.P. Agarwal
4. Income Tax Law and Practice, V.P Gaur, D.B Narang, Puja Gaur and Rajeev Puri
5. Income Tax Law and Practice, Dr H C Mehrotra, Dr S P Goyal
6. Principles of Income Tax Law and Practice, Dr Naveen Mittal
7. Dr. Vinod K Singhania & Dr. Kapil Singhania - Income Tax
8. T.S. Reddy & Dr. Y. Hari Prasad Reddy - Income Tax theory, law and practice.

Paper IV - Income Tax Law and Practice

Learning Objectives:
• To provide the understanding to the students on the legal provision and computation of
Income under various heads of the Income tax Act
• To impart the knowledge to the students with regard to assessment of individuals and
computation of tax liabilities for the individuals

Unit I - Income from Salaries: Different forms of salary – Provident Funds – Allowances
– Perquisites – Other items included in Salary – Qualifying amount for deduction u/s 80(c).
Unit II - Income from House Property : Computation of Income from House Property –
Let-out house – Self occupied house – Deduction allowed from house property –
Unrealized rent – Loss under the head house property.
Unit III- Profits and Gains of Business and Profession: Introduction – Computation of
profits and gains of business and profession – Admissible deductions – Specific
Disallowances – Depreciation – Loss under the head business and profession.
Unit IV - Capital Gains and Income from Other Sources: Capital Assets – Meaning and
Kinds – Procedure for computing Capital Gains – Cost of Acquisition – Exemption of
Capital Gains – Loss under head Capital Gains.- Income chargeable to tax under the head
Income from Other Sources – Dividends – Interest on Securities – Casual Income – Other
Incomes – Deduction from Income from Other Sources – Loss under the head Other
Sources
Unit V- Assessment of Individuals: Assessment of Individuals – Tax rates – Computation
of Tax liability of Individuals- Income tax authorities – procedure for assessment – PAN
(Permanent Account Number) – Types of assessment- Tax deducted at source- Concept of
TDS, TDS on Salary, TDS on Interest other than Securities, TDS on Rent and TDS on
Contractor
Note: Questions in Section A, B & C shall be in the proportion of 60:40 between
theory and problem
Reference Books
1. Income Tax Law and Practice, V.P Gaur, D.B Narang, Puja Gaur and Rajeev Puri
2. Income Tax Law and Practice, Dr H C Mehrotra, Dr S P Goyal
3. Priniciples of Income Tax Law and Practice, Dr Naveen Mittal
4. Dr. Vinod K Singhania & Dr. Kapil Singhania - Income Tax
5. T.S. Reddy & Dr. Y. Hari Prasad Reddy - Income Tax theory, law and practice.

SEMESTER II
Paper V-Customs Law and Basic Framework of Goods and Services Tax
Learning Objectives:
• To provide conceptual understanding of various Tax legal framework replaced by
GST
• To facilitate the students to gain in depth knowledge about the legal provisions
related to Customs duty
• To impart knowledge on the basic principles of Goods and Services Tax (GST)

Unit I- Introduction to Indirect Taxation and Tax laws before GST: Indirect taxation in
India – Tax laws replaced by GST -Excise duty (Central and State)- Sales Tax- Kinds of
Sales Tax- Features and Objectives- Tax liability- Subsequent sales- Provisions relating to
inter-state sales-Service Tax – concept of service tax- Service tax registration- Service Tax
payment- Service Tax exemptions- VAT-Meaning, Setoff- Input Tax Credit.
Unit II – Customs Duty: Customs Duty - Meaning - Levy and Collection of Customs
Duty - Organization of the Customs Department - Officers of the Customs - Powers -
Appellate Machinery - Infringement of the law - Offences and Penalties - Exemption from
customs Duty - Customs Duty Drawback - Duty Free Zones
Unit III –Overview of Goods and Services Tax
Goods and services Tax- Concept- Salient features of GST- Definition – Objectives- Scope
and Coverage- Advantages and Limitations of GST- Components of GST-Power to levy
GST-GST Rates on Goods & Services- HSN Codes & SAC codes.
Unit IV- Taxation Mechanism – Taxable Event, Input Tax Credit, RCM: Meaning and
Scope of Supply -Exemptions, Exempted Supplies and zero rated supplies- Time, Value
and Place of Supply - Input Tax Credit (ITC)- Concept- definition- Who can Claim ITC-
Documents for claiming ITC- Reconciliation of ITC-Reverse Charge Mechanism (RCM) –
Purchases from Unregistered Dealers- P&L items covered under RCM- Goods exempted
from RCM
Unit V- Levy and Collection of GST: Levy and collection of GST- Components of
GST- CGST/SGST/IGST, Liability of being taxed under CGST/SGST/IGST- Taxable
Persons - Composition Levy- GST on Exports and Imports - Valuation of taxable services-
Major services and rates of GST on Taxable services- Exempted services- Job work, E-
Commerce and Online transactions- Practical problems related to valuation of various
services.
Reference Books
1. Goods and services Tax, Dr H.C. Mehrotra and Prof. V.P Agarwal, Sahitya Bhawan
Publications
2. GST Law & Practice, Taxman Publishers- Shweta Jain
3. GST in India, New Century Publications
4. Layman’s Guide on GST, Taxman Publications-. Datta, D C,
 Paper VI- Administrative Mechanisms of GST
Learning Objectives:
• To enable the students to gain knowledge on the GST councils and registration under
GST
• To provide in-depth understanding about the accounting practices, returns and payment of Tax
pertaining to GST
• To facilitate the students to understand the conceptual framework pertaining to
administrative aspects of GST

Unit 1: GST Council and GST Network: Meaning of GST council- Role and Functions
of GST council- GST Network- Functions and Services of GST Network- Goods and
Service Tax Identification Number- GSTIN- Role of GSTN with Tax administration-
Salient features of GSTN- GST portal and services of GST- Common portal to taxpayers
Unit II- Registration under GST: Need for Registration- Persons liable for Registration-
Procedure of Registration- Documents for registration- GSTIN – multiple GST
registrations – Registration under Composition Scheme—Benefits of registering under
GST-amendment of Registration- cancellation of registration- Various forms of registration
under GST
Unit III- Returns and Payment of Tax: E-way Bill System- GST Returns – Filing of
Returns-Auto population mechanism- Types of Returns –Regular dealers, Dealers under
Composition scheme, Specific registered dealers- Annual Returns-Due dates for filing
returns, Late fees for non-filing of returns-Tax deduction at Source (TDS) under GST- Tax
collection at source (TCS) under GST- Payment of Tax- Taxes to be paid under GST-
IGST,CGST, SGST- Calculation of Tax to be paid- Dealers liable to pay GST-Methods of
Payment of GST- Electronic cash ledger- Electronic Credit ledger-Availing Input tax credit
–Penalty for non-payment or delayed payment.
Unit IV - Invoices, Accounts and Refund of Tax: Tax invoice- Contents of Tax invoice-
Time of Issuance of Tax invoice- Details about Tax invoice- Receipt voucher in case of
advance collection- delivery challan- credit and debit notes- Accounts and record
maintenance - Refund of Tax to taxpayer- Time limit of refund of Tax- Procedure for
claiming refund of tax
Unit V- GST Assessment, Audit and Administration: Assessment- Types- GST Audit-
Provisions related to Demand of Tax- Mode of recovery of Tax- GST administration-
Powers of Officers- Penalties and Prosecution- Offences under GST- Appeals- Appellate
authorities- Advance ruling- Impact of GST on trade- manufacture and services etc.
Reference Books
1. Goods and services Tax, Dr H.C. Mehrotra and Prof. V.P Agarwal, Sahitya Bhawan
Publications
2. GST Law & Practice, Taxman Publishers- Shweta Jain
3. GST in India, New Century Publications
4. Layman’s Guide on GST, Taxman Publications-. Datta, D C,
 Paper VII- Stock and Commodity Trading
Learning Objectives:
• To enable the students to gain in depth knowledge of operations of capital market
• To motivate the students to learn security trading and settlement procedures
• To impart knowledge on the commodity trading practices and enable the student to
become a successful trader and entrepreneur

Unit 1- An Introduction to Primary Market: Initial Public offer (IPO)- Book building
through online IPO- Eligibility to issue securities, Pricing of Issues- Fixed versus Book
building issues- Allotment of shares- Dematerialization of shares- Basis of Allotment- Private
placement.
Unit II- Operations of Secondary market: Securities and Exchange board of India (SEBI)-
Depositories- Stock exchanges in India- Stock price- Indices- Brokers- Sub brokers-
International Stock Exchanges- Foreign Institutional Investors (FIIs)- Portfolio Managers-
Custodians- Merchant Bankers- Bankers to Issue.
Unit III- Security Trading: Trading- Mechanism- Trading system user hierarchy- Market
phase- Log on- Log off- Market screen- Invoking an Inquiry screen- Market watch- Previous
trades- Outstanding Orders- Activity Log, order status- Market Movement.
Unit IV- Security Settlement Procedure: Introduction- Transaction Cycle, Settlement
process, settlement agencies, Risks in settlement- Settlement cycle- Securitizes Settlement-
Funds settlement.
Unit V- Commodity Trading: Introduction to Commodity Derivatives, Commodity
Exchanges and Commodity Contracts- Pricing Commodity Forward, Futures & Options-
Agricultural Price Risk Management- Gold & Electricity Price Risk Management- the cost of
carry model- clearing settlement- clearing days and scheduled time.
Reference Books
1. Sidney cottle, Roger F Murray, Frank E Block, Graham and Dodd (2010) Security
analysis, 5th Edition, Tata Mc graw Hill company Limited
2. Gurusamy S, Essentials of Financial Services, Vijay Nicole Imprints, Chennai, 2014
3. Gomez Clifford, Prentice Hall of India, Financial Markets, Institutions and Financial
Services, 2008
4. Meir Kohn, Financial Institutions and Markets, Oxford University Press
5. Rajesh Kothari, Financial Services in India: Concept and Application, Sage publications,
2012, New Delhi.
6. Madhu Vij& Swati Dhawan, Merchant Banking and Financial Services, Jain Book
Agency, 2000, Mumbai
7. Vasant Desai, Financial Markets and Financial Services, Himalayan Publishing House
Pvt Ltd, 2000, Mumbai
 Paper VIII- Investment Analysis and Portfolio Management
Learning Objectives:
• To provide knowledge on basics of investment management and to develop skill for investment
analysis and portfolio building
• To enable the students to understand Portfolio management techniques and gain knowledge in
wealth management and derivatives

Unit I- Investment Management- An Introduction: Nature and scope of investment

management -investment objectives, constraints and factors of investment- Investment Vs
speculation- savings Vs Investment - Understanding the investment environment -sources of
investment information - investment process -investment management and portfolio
management -Factors for investment analysis
Unit II- Fundamental Analysis and Technical analysis: Economic analysis-industry
analysis-impact of industrial analysis -Role of capital markets- Company analysis components
-non financial aspects -financial analysis -financial statement - Analysis of prospectus -Ratio
analysis -BPS, dividend yield -payout ratio -ROI, ROCI -Risk return - market risk -interest
rate risk -purchasing power risk -business risk - financial risk -measurement of risk- technical
analysis- charts- Fundamental analysis Vs Technical analysis.
Unit III- Portfolio Management: Portfolio-Meaning - Objectives - Terms relating to
Portfolio - Securities - Risk - Return - Management of portfolios - Role of Portfolio
Managers.
UNIT IV: Portfolio Analysis Planning - Selection - Evaluation – Revision: Portfolio
Analysis Planning - Selection - Evaluation - Revision - Various Steps involved in Portfolio
Development - Theories relating to Portfolio Analysis- Portfolio Diversification - Markowitz's
approach- Capital market theory -assumptions -risk, investors preference -capital asset pricing
model (CAPM) -estimating Betas -significance of betas in portfolio theory.
UNIT V: Wealth Management and Derivates: Need and Importance of Portfolio
Management- Wealth management- Portfolio Management Vs Wealth Management –
Introduction to derivates- futures- swaps-options.
Note: Questions in Section A, B & C shall be in the proportion of 80:20 between theory
and problem
Reference Books
1. Francis - Management of Investments, McGraw Hill
2. V.K. Bhalla - Investment Management, S Chand & Co
3. Gurusamy S, Security Analysis and Portfolio Management, Vijay Nicole Imprints,
Chennai
4. Fisher & Jordan - Security Analysis & Portfolio Management, prentice Hall
5. Punithaathi Pandian- Security Analysis & Portfolio Management, Vikas Publishing
House

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