1.

1 Introduction To E-filling Income Tax Return Industry

Electronic filling or e-filling first began in India as part of a proposal for internet based electronic
tax administration system for service tax. The central board of Excise and Custom’s efforts made
the introduction of e-filling of tax return possible for the first time in India in April 2003, but its
benefit was available only to a few service tax providers.

In the year 2007, the Income Tax Department started the facility to E-File Income Tax Return
(ITR) online for individual tax pay. Under its agenda of E-governance. Today e-filing of ITR is
among the most popular facilities introduced by the government of India. In the financial year
2012-2013, more than 16 million returns were filled online i.e. 4000% growth in 5 years.
However the adoption of this facility is still too rich its optimum penetration. Once people realize
how secure and easy online tax filling is.

Cutting edge technologies have made solutions more user-friendly in terms of ease-of-use.
Appealing user interface and smooth navigation make the experience easier than ever. Anybody
with a digital Form 16 can attach this document and email it to get the return e-filed
instantaneously. Moreover, there are platforms that provide 1 click e-filing solution to the
employees of large organizations, from within the payroll software. What has been simplified
here to a great degree is the process of information collection. Leading e-filing websites provide
return preparations and filing service that automatically retrieves the relevant data from Form 16,
Form 16A, Form 26AS, bank statements, and brokerage statements. This eliminates the need for
the user to find required details from various sources and fill all the entries manually. Moreover,
users can be free of worries with respect to selecting the appropriate form (ITR1, ITR2, ITR4,
etc).The portal does that on its own.

With e-filing becoming mandatory from AY2013-2014 for individuals with total income above
Rs. 10 lakh and for those having assets abroad, electronic return filing will become the preferred
way of filing for all the taxpayers. If you are able to understand and prepare your tax return
independently, otherwise e-file through e-return intermediary websites, you can manage your
taxes with ease and security!

1
Most authorized e-return intermediaries, evaluated for their security and confidentiality, store
only relevant data. They do not store any information related to credit card or payment details.
Similarly, session related information is never stored in cookies directly. There are certifications
like the CERT-In(Indian Computer Emergency Response Team, Department of Information
Technology, Government of India). For information security audit for hardware/software and
security complaints. Such certifications attest the fact that service providers audited for them are
free from any vulnerability and malicious code, which could be exploited to compromise and
gain unauthorized access with escalated privileges.

2
1.2 Introduction to Project
I am mayuri andekar of MM’IMERT, Pune an MBA student. I have done my internship ASBK
& Associates Chartered Accountants. The summer internship project involved the training on e-
filing of income tax return process, it includes the start to end process of online income tax return
filing for ITR-1 and ITR-2 form and the various supporting documents which are required for
ITR filling. The training was given on the details of income tax with respect to individual
assessee who is having income from Salaries, Income from house property, Income from capital
gains and Income from other sources. This means training includes tax return. The various
deductions which will reduce the overall taxable income of individual assessee and it also
covered the various set off and carry forward of losses to subsequent years. It also included the
various tax saving instruments which will reduce tax liability and as well generate better returns
in future. So, Training covered all the important concepts and procedures under income tax act
and the various advantages of online tax return filing.

The ideal subject relating to my project was to understand and learn the provision of taxes and e-
filing of forms in detail according to the information provided by the client of company and
further assisting the clients by helping in filing the return and providing various remedies as per
the requirement varying from case to case realated to income tax and filling of return.
Income Tax Act is the guiding baseline for all the content in this report and the tax saving tips
provided herin are a result of analysis of option available in current market. Every individual
should know that tax planning in order to avil all the incentives provided by the government of
india uder statures is legal
This project is all about income tax e-filling for a salaried individual. While working with
ASBK & Associates Pvt Ltd designated as tax

3
1.3Objectives

 To study the process of filing ITR return

 Awareness of online E-filing process among the client of ASBK.

 To study awareness of various tax saving instrument among the client of ASBK .

4
1.4SCOPE AND LIMITATIONS

 This project studies the online filing of tax returns of individual assessee.

 This project study includes online income tax return filing process only for individual
assessee who will be using ITR-I AND ITR-II forms and even it does not include the
manual process for income tax return filing.

 This project study includes tax planning only for individuals assessed who will be using
ITR-I AND ITR-II forms.

 This project will be help to company get database about clients for there income tax
planning and financial planning for corporate employees.

 Create awareness about online filing of income tax returns of individual assessee and
income tax return filing will be increase.

5
2.1 INDUSTRY PROFILE :

INTRODUCTION
India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby adding
to the types of entities operating in the sector. However, the financial sector in India is
predominantly a banking sector with commercial banks accounting for more than 64 per cent of
the total assets held by the financial system.
The Government of India has introduced several reforms to liberalise, regulate and enhance this
industry. The Government and Reserve Bank of India (RBI) have taken various measures to
facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These
measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises,
issuing guideline to banks regarding collateral requirements and setting up a Micro Units
Development and Refinance Agency (MUDRA). With a combined push by both government and
private sector, India is undoubtedly one of the world's most vibrant capital markets. In 2017,a
new portal named 'Udyami Mitra' has been launched by the Small Industries Development Bank
of India (SIDBI) with the aim of improving credit availability to Micro, Small and Medium
Enterprises' (MSMEs) in the country. India has scored a perfect 10 in protecting shareholders'
rights on the back of reforms implemented by Securities and Exchange Board of India (SEBI).

MARKET SIZE
The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under Management
(AUM). Total AUM of the industry stood at Rs 23.80 trillion (US$ 340.48 billion) between April
2018-February 2019. At the same time the number of Mutual fund (MF) equity portfolios
reached a high of 74.6 million as of June 2018.
Another crucial component of India’s financial industry is the insurance industry. The insurance
industry has been expanding at a fast pace. The total first year premium of life insurance
companies reached Rs 214,673 crore (US$ 30.72 billion) during FY19.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed
rapid expansion. The total amount of Initial Public Offerings (IPO) increased to US$ 1.2 billion
raised from 37 between April – June 2018.
Over the past few years India has witnessed a huge increase in Mergers and Acquisition (M&A)
activity. In H12018, 74 deals of acquisition took place in financial sector. The total value of such
transactions was US$ 4.166 billion. *
Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint venture
with Ebix Inc to build a robust insurance distribution network in the country through a new
distribution exchange platform.
INVESTMENT/ DEVELOPMENT

6
7
8
3.1 COMPANY PROFILE :

ASBK & Associated

Commenced in 2013

The Head Office of the firm is situated in Pune with 2 branches at Aurangabad and Nanded.

Team comprising of 3 partners , 12 employees and 9 articles together we deliver the best.

Our mission is to provide our clients with the highest quality services delivered in a timely,
efficient and innovative manner by a professional team

Our vision is to be a leading, recognized and highly successful accounting and consulting firm,
and the first choice in our chosen market.

Our professional approach blended with personal touch has earned us enormous confidence of all
our clients, which is reflected in an enduring business relationship that we enjoy with them as
also in the consistent growth in portfolio of our services.

The client list consist of

PSUs,

PSBs

Government undertakings (central and state)

MNCs

Foreign companies

HNI clients etc.

ASBK & Associates has been providing services to all types of sectors such as

Manufacturing

Education,

Infrastructure & Real Estate

IT

E-commerce

9
across various services including Audits (internal, concurrent and statutory), Direct and Indirect
Taxation, Secretarial Services and Company Law matters, Corporate Advisory across fund
raising & Merger and Acquisitions, etc.

CA ALOK AGRAWAL:

• CA Alok has worked with Borkar & Muzumdar and Deloitte Haskins & sells.

• He Works in field of Direct & Indirect Taxes, Project Financing and DIC for PSI.

• CA Alok has B.Com from Sydenham college of Commerce & economics and
completed CA from ICAI.

CA DEEPAK SONI:

• CA Deepak has worked with firms like M/s Rajiv Shah & Co and Pipaliya Singhal &
Associates.

• He was a part of Risk Advisory Practice and Internal Audit in Mumbai and has
gained diversified experience across Real Estate, Manufacturing, Logistics, Mining,
Retail & Financial Services.

• He is mainly working in Assurance, Auditing &Taxation.

• CA Deepak has completed his Chartered Accountancy from ICAI & B.Com. from
SRTMU, Nanded.

CA NIRAJ BORA

• CA Niraj started his career as an intern with Hari bhakti & Co (then member of BDO
International) and later joined Ernst & Young's Transaction Advisory Practice.

• He has diversified experience in Project Financing, Transaction Advisory,

Assurance, Taxation, etc across Infrastructure & Real Estate, E- commerce, Retail,
Financial Services, Media & Entertainment and Education Segment.

• He has worked with key corporate group in India including Reliance Industries,
M&M, HCL Group, Aditya Group, Piramal Group, Reliance Group, Essel Group,
Axis Bank, Kotak Group, etc

• He has secured AIR17, AIR41 andAIR6 in CA and CS Exams

10
OUR SERVICES

TAXATION

AUDIT ACCOUNTINGG

OUR
SERVICES

ADVISORY COMPANY LAW

CORPORATE & PROJECT

FINANCE

11
3.1LITERATURE REVIEW

Hite and McGillIn their study state that tax practitioners must be a credible source of
information for tax payers they are to offer tax advice and have it receipted. As tax system
become more complex tax payers turn to tax practitioners for expert advice. Kalyani2 in her
study on tax planning of salaried employees in Coimbatore city of the financial year 1998-1999.
Identified. That older the age. Higher the tax liability. Private sector employees get higher
income than the government employees. Tax payment decreases when tax saving investment
increases tax saving along with the income and employees preferred to invest in life insurances
corporation provident fund and national savings certificates.

Kennedy and Henry A in their study state that, the Income Tax Act may appear as though it is
difficult to comprehend but oncea methodical approach is employed in reading and using
it,understanding the income tax law becomes easier. The readershould find out who is liable to
pay the tax, based upon whichthe tax will be levied, the tax rates to be applied to the tax baseand
how or when the tax is to be paid. These are the fourrequirements of a tax law which can be
found in the divisions ofeach part of the act. When these are identified, understanding ofthe other
structural elements will not be difficult

12
4.1 Introduction to Income Tax

Income tax is a tax that governments impose on income generated by all entities within
their jurisdiction. In India, Income Tax Act, 1961 governs the taxation of incomes
generated within India and by incomes generated by Indians overseas.

Income tax is an annual tax on income. The Indian Income Tax Act (Section 4) provides
that in respect of the total income of the previous year of every person, income tax shall
be charged for the corresponding assessment year at the rates laid down by the Finance
Act for that assessment year. Section 14 of the Income tax Act further provides that for
the purpose of charge of income tax and computation of total income all income shall be
classified under the following heads of income:

A. Income from Salaries

B. Income from house property
C. Income from business or profession
D. Income from Capital gains
E. Income from other sources.

The total income from all above heads of income is calculated in accordance with the
provisions of the Act as they stand on the first day of April of any assessment year.

The Income Tax ACT, 1961 as amended by Finance Act 2010, under Section 139 makes
it obligatory upon any person to file return if the person's total income or the total income
of any other person in respect of which he is assessable under this Act during the
previous year exceeded the maximum amount which is not chargeable to income-tax.

13
4.2 Introduction To E-filing of IT Return

Traditionally filing of Income Tax Return is seen as a complicated and tiresome task, and
therefore, most people keep putting it off till the last possible moment. People had to
travel miles and wait in long queues outside the Tax Department to file their Income Tax
returns. But a few years ago, the Income Tax Department introduced a convenient way to
file these returns online. The process of electronically filling your Income Tax Returns
through the internet is know E-filing return. It offers convenient of time and place to Tax
payers and is available around the clock to Tax payers located in any place in the world.
The initiatives taken by the Government in simplifying the rules and the filing process,
the task has become less daunting. With increasing prosperity and higher income levels,
larger numbers of people have become eligible for filling income tax returns. E-filing of
income tax returns has made process user friendly.
The central board of Excise and customs efforts made the introduction of e-filing of tax
returns possible for the first time in India in April 2003, but its benefits was available
only a few service tax providers.

Considering the comforts for tax payers across the country and also technology lending a
helping hand, both the Central and State governments decided to extend e-filing of tax
returns to the other types of taxes including Income Tax, Excise and VAT.

Under the income tax law, this facility was introduced by the Central Board of Direct
Taxes (CBDT). For the first time during assessment year 2006-07, wherein corporate
assessee had to mandatorily e-file their Income Tax returns.

The process of electronically filing Income Tax returns through the Internet is known as
e-filing. It is mandatory for the companies and firms requiring section 44AB audit to
submit the Income Tax returns electronically for year 2007-08 as well as 2008-09. Any

14
 company and firm requiring section 44AB audit return without an e-filing receipt will not
be accepted.

4.3E-filing process:

The Process of electronically filing your income tax returns through the internet is known
as e-filing return. It offers convenient of time and place to tax payers and is available
round the clock to tax payers located in any place in the world.
Section 139(1) of the Income tax act 1961 provides that every person whose total income
during the previous year exceeded the maximum amount not chargeable to tax shall
furnish a return of income. The return of Income can be submitted in following manner.

1. A paper form.
2. E-filing
3. A bar-coded paper return.

Where the return is furnished in paper format, acknowledge slip attached with the return
should be dully filled in. A return in new forms is not required to be filed in duplicate.

Returns can be e-filed through the internet. E-filing of the returns is mandatory for
companies and firm requiring Statutory audit U/S 44AB. From A.Y. 2012-14, it is now
also mandatory for all business entities (including individuals/HUF) liable to tax audit to
e-file their income of return. E-filing becoming mandatory from A.Y.2013-14 for
individuals with total taxable income above Rs.12Lakhs.

E filing can be done with or without digital signature:

a. If the returns are filed using digital signature, then no further action is required from
the tax payers.

15
 b. If the returns are filed without using digital signature, then the tax payers have to file
ITR-V with the department within 120days of e filing.

c. The tax payers can e file the returns through an e- intermediary also who will e file an
assist him in filing of ITR-V within 120 days.

Where the return of income is furnished using bar-coded return, then the tax payers need
to print two copies of form ITR-V. Both copies should be verified and submitted. The
receiving official shall return one copy after affixing the stamp and seal. The finance act,
2005 has provided that w.e.f. 01-04-2006 every person shall file a return of income on or
before the relevant due date even if his total income exceeds the maximum amount not
chargeable to tax.
 Advantages of e-filing income tax return
 You can e-file your return from home or through a tax professional using an authorized
software package
 You can e-file your return any time of the day or night
 We’ll process your return more quickly,so you’ll receive your refund quicker
 No personnel Interface
 Quick processing of refunds
 No long queues

Three types of e-filing returns

Option 1

Use digital signature in which case no paper return is required to be submitted.

Option 2

File without digital signature in which case ITR-V form is to submitted to CPC Bangalore within
120 days of e-filing. This is a single page receipt cum verification form.

Option 3

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File through an e-filing intermediary who would do e-filing and also assiat the assessee file the
ITR-V form.

Selecting the appropriate form for filling Income Tax returns

Form No It is for

ITR 1 For individuals having income from salary/pension/family pension) & interest

ITR 2 For Individuals having income from dividend profits from mutual funds and
shares,rental income etc.

17
ITR 3 For individuals having who are partners in a partnership firm.

ITR 4 For individuals having income from a proprietary business and profession

ITR 5 For Association of persons (AOP) or Body of Individuals (BOI)

ITR 6 For companies other than companies claiming exemption under section 11

ITR 7 For persons including companies required to furnish return under section 139(4A)
or section 139(4B) or section 139(4C) or section 139(4D)

ITR-7 will not be available for e-filing

ITR-8 is discontinued for e-filing from AY2010-11 on ward

Due dates for filing income tax returns

I The assessee is a company 31 October to the assessment

year

II The assessee is a person:-

a)  In a case where the 31 October of the assessment

accounts of the year
assessee are to be
audited or
 In case of a working
partner of firm whose
accounts necessary to
be audited under the
income Tax Act or
any other low

b) If the income return is to be 31 October of the assessment

filed under the one-by-six year
criteria

c) Any other assesse 31 July of the Assessment

year

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Steps for e filing IT Return

 Log on to the official website using the User ID and password you used to register
yourself. The User ID is your Permanent Account Number (PAN).Read the instructions
given on the website
 Once you’re logged in, click on ‘e-file’ to get the ‘Income Tax Return’ options. Click on
this.
 On the page that opens up, select the type of ITR, the relevant Assessment Year
(AY2019-20 for FY2018-19), and how you want to submit the form (choose the ‘prepare
and submit online’ option)
 Some of your details will be automatically filled by the website based on your account
information and government records. You can also choose the details that you want to
be filled automatically. After this, click on ‘Continue’.
 You will now get a page where you will be able to fill up a form. Before doing this, make
sure you read the ‘General Instructions’ to ensure you do this correctly.
 After this, fill the required details such as General Information, Income Details, Taxes
Paid and Verification, Tax Details, and 80G.
 Once you’re done filling in these details, check your entries again. Make sure there are
no errors. Then, click on ‘Preview and Submit’.
 ou will now be able to preview your form before you do the final submission. Verify the
details once again to make sure they’re all accurate. This is extremely important.
 ou will now be able to preview your form before you do the final submission. Verify the
details once again to make sure they’re all accurate. This is extremely important.
1. Through the Electronic Verification Code (EVC) method, or
2. Via Aadhaar-linked One Times Password (OTP), or
3. By taking a printout of ITR-V, signing it, and physically mailing it to CPC,
Bengaluru. This must be done within 120 days of the e-filing date.
 Your ITR-V is the acknowledgement of your tax return being successfully uploaded on
the website. This will immediately be sent to your email ID. You can also download this
acknowledgement from your e-filing account on the website.

19
  Once you’ve verified the ITR you’ve submitted, it will be processed by the I-T
department. You will get updates about this on your registered mobile number and via
email as well.
 This ends the filing process.

Supporting Documents:

Supporting documents require to calculate the tax liability and for preparing the IT
Returns:
Form NO. 16 received from the employer: Form 16 is the annual salary statement issued by
your employer and provides details about the income earned and tax deducted during the year.

Form NO. 16A received from all the payers who have got their tax deducted: This form needs to
be collected from the parties who have deducted the tax while making payment to you during the
year. This includes banks and companies (with whom you have kept fixed deposits and so on).

Form NO. 26AS: The Income Tax Department through the National securities depository
limited (NSDL) sends tax payers a document called the 'Annual tax Statement' or Form 26AS.
This statement gives information about tax deducted and collected at source by entities such as
employers and banks for your permanent account number (PAN) in a certain year. It also lists
information about advanced tax\self assessment tax\regular assessment tax deposited by you in
the Bank.

Summary of account: It is important to have a summary of all bank accounts that you operated in
the last fiscal year.

It is important to have receipts and details of property owned during the last fiscal year.

Details of sale and purchase with respect to investments sold during the year.

Details of any other tax payments made during the year.

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It is mandatory to quote the PAN while filing the return.

IMPORTANT CONCEPTS & PROCEDURES UNDER THE INCOME TAX ACT

 Assessee (Section 2(7)): An assessee is a person by whom any tax or any other sum of
money is payable under the Act.

 Assessment Year (Section 2(9)): Assessment year means the period of 12 months starting
from 1st April of every year and ending on 31st March of the next year.

 Previous year (Section 3): Income earned in a year is taxable in the next year. The year in
which income is earned is known as the previous year and the next year in which income
is taxable is known as the assessment year.

 Receipt Vs. accrual of income: Income is said to have been received by a person when
payment has been actually received whereas income is said to have accrued to a person if
there arises in the person a fixed and unconditional right to receive such income.

 Belated Return: Section 139(4) provides that a return which has not been furnished by the
due date may still be furnished as a belated return before the expiry of one year from the
end of the assessment year or before the completion of assessment, whichever is earlier.
However, on any return of income that has not been filed by the end of the relevant
assessment year, penalty of Rs.5000/- u/s 271F shall be levied.

 Revised Return: If a person having filed his return within the due date, discovers any
omission or wrong statement therein, he may file a revised return before the expiry of one
21
 year from the end of the assessment year or completion of assessment whichever is
earlier.

 Processing u/s 143(1): The Finance Act 2008 has reintroduced provisions in respect of
correcting arithmetical mistakes or internal inconsistencies at the stage of processing of
returns. It has, thus been provided that, during the stage of processing, the total income
shall be computed after making adjustments in respect of any arithmetical error in the
return or any incorrect claim apparent from information in the return and if on such
computation, any tax or interest or refund is found due on adjustment of TDS or advance
tax or self assessment tax, then an intimation specifying the amount payable shall be
prepared/generated or issued to the assessee. If any refund is found due, it is to be sent
along with an intimation to such effect. If no demand or no refund arises, the
acknowledgement of the return is deemed to be an intimation. Such intimation is to be
sent within one year from the end of the financial year in which the return is filed.

 Assessment u/s 143(3): If the Assessing Officer, on the basis of the return filed by the
assessee, considers that it is necessary to ensure that the assessee has not understated his
income, he shall serve on the assessee a notice u/s 143(2) and, after obtaining such
information as he may require, complete the assessment ( commonly referred as scrutiny
assessment) u/s 143(3).

 Rectification of mistake u/s 154: If any order passed by an income tax authority suffers
from a mistake apparent from record, the assessee may make an application for rectifying
the same before the expiry of four years from the end of the financial year in which the
above order was passed. The Finance Act 2001 has provided that where an application
for rectification under this Section is made by the assessee on or after 1.6.2001, the same
shall have to be acted upon by the income tax authority within a period of six months
from the end of the month in which the application is received.

22
  Interest on refunds u/s 244A: If the refund due to the assessee is more than 10% of the tax
payable by him, he shall be entitled to receive simple interest thereon at rate of 0.5% per
month (substituted in place of 0.67% per month w.e.f. 8.9.2003) or part thereof, from 1st
April of the assessment year to the date on which the refund is granted.

 Tax Return Preparers Scheme:- For enabling specified classes of tax payers in preparing
and furnishing income tax returns, the Board has notified the ‘Tax Return Preparer
Scheme’ under which specially trained and authorized Tax Return Preparers will provide
assistance to tax payers in this regard. Details of the Scheme may be viewed
at http://www.incometaxindia.gov.in/.

Who is a person as defined under the Income Tax Act

Section 2(31) of Income Tax Act defines a person. The definition includes

(i) An individual
(ii) A Hindu undivided family
(iii) A company
(iv) A firm
(v) An association of persons or a body of individuals, whether incorporated or not
(vi) A local authority, and
(vii) Every artificial juridical person, not falling within any of the preceding sub-clauses

Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts. Tax evasion
often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax
authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less

23
income, profits or gains than the amounts actually earned, or overstating deductions. Tax evasion
is an activity commonly associated with the informal economy. One measure of the extent of tax
evasion (the "tax gap") is the amount of unreported income, which is the difference between the
amount of income that should be reported to the tax authorities and the actual amount reported.

Tax Avoidance:
Tax avoidance may be considered to be the dodging of one's duties to society, or alternatively the
right of every citizen to structure one's affairs in a manner allowed by law. Tax avoidance is the
legal usage of the tax regime to one's own advantage, to reduce the amount of tax that is payable
by means that are within the law. Tax sheltering is very similar, and tax havens are jurisdictions
which facilitate reduced taxes. The term tax mitigation is sometimes used; its original use was by
tax advisers as an alternative to the pejorative term tax avoidance.

Rates of Income Tax for A. Y. 2019-20

1. In the case of every individual, being a woman resident in India, and below the age of sixty
years at any time during the financial year:

Net Income Income Tax Rate Education cess Secondary &

Higher
Education cess
(1) Where the total income does not Nil Nil Nil
exceed Rs.2,50,000
(2) Where the total income exceeds Rs. 5% of (Total 2% of Income 1 % of Income
2,50,000 but does not exceed Rs. 5,00,000 income – Rs.2.5 Tax Tax

lakhs)
(3) Where the total income exceeds Rs. Rs.25,000 + 20% 2% of Income 1 % of Income
5,00,000 but does not exceed Rs. of (Total income – Tax Tax

10,00,000 Rs.5 lakhs)

(4) Where the total income Rs.1,12,500 + 30% 2% of Income 1 % of Income

24
exceeds Rs. 10,00,000 of (Total income – Tax Tax
Rs.10 lakhs)

2. In the case of every individual, being a resident in India, who is of the age of sixty years or
more but less than eighty years at any time during the financial year:

Net Income Income Tax Rate Education cess Secondary &

Higher
Education cess
(1)Where the total income does not exceed Nil Nil Nil
Rs.3,00,000
(2)Where the total income exceeds Rs. 5% of (Total 2% of Income 1 % of Income
3,00,000 but does not exceed Rs. 5,00,000 Income – Rs.3 Tax Tax

lakhs)
(3)Where the total income exceeds Rs. Rs.10,000 + 20% 2% of Income 1 % of Income
5,00,000 but does not exceed Rs. of (Total income – Tax Tax

10,00,000 Rs.5 lakhs)

(4)Where the total income exceeds Rs. Rs.1,10,000 + 30% 2% of Income 1 % of Income
10,00,000 of (Total income – Tax Tax

Rs.10 lakhs)

3. In the case of every individual, being a resident in India, who is of the age of above eighty
years at any time during the financial year:

Net Income Income Tax Education cess Secondary & Higher

Rate Education cess
(1)Where the total income does not exceed Nil Nil Nil
Rs.5,00,000
(2)Where the total income exceeds Rs. 20% of (Total 2% of Income 1 % of Income Tax

25
5,00,000 but does not exceed Rs. 10,00,000 Income – Rs.5 Tax
lakhs)
(3)Where the total income exceeds Rs. Rs.1 lakh + 2% of Income 1 % of Income Tax
10,00,000 30% of (Total Tax

income –
Rs.10 lakhs)

Income From Salary

Salary is the remuneration received by or periodically to an individual for service rendered as a

result of expressed or implied contract.

Compensation or remuneration even in the following circumstances is chargeable to Income-tax

under the head salaries.

a) When due from the former employer or present employer in the previous year, whether
paid or not.
b) When paid or allowed in the previous year, by or on behalf of a former employer or
present employer, though not due or before it because due.
c) When arrears of salary are paid in the previous year by or on behalf of a former employer
or present employer, if not charged to tax in the period to which it relates.

It is. Therefore, clear that apart from current year’s salary, even advance salary and/or arrears of
salary may be taxed in the year of receipt. More specifically and elaborately, the Income-tax Act
has stipulated that salary includes:-

i. Salary, including advance /arrears of salary b) Wages c) fees d) Commission e)

Pension f) Annuity g) Perquisite

26
Perquisite may be defined as any causal emolument or benefit attached to an office or position in
addition to salary or wages. Perquisite is defined in the section 17(2) of the Income Tax Act as
including:

I. Value of rent-free/concessional rent accommodation provided by the employer.

II. Any sum paid by employer in respect of an obligation which was actually payable by the
assessee.
III. Value of any benefit/amenity granted free or at concessional rate to specified employees
etc.
IV. Value of any specified security or sweat equity share allotted or transferred, directly or
indirectly, by the employer, or former employer, free of cost at concessional rate to
assessee.
V. The amount of any contribution to an approved superannuation fund by the employer in
respect of the assessee, to the extent it exceeds one lakh rupees; and
VI. The value of any other fringe benefit or amenity as may be prescribed. As general rule,
the taxable value of perquisites in the hands of employees is cost to employer.

Profit in lieu of salary

Any compensation due to or received by an employee from his employer or former employer at
or in connection with the termination of his employment or modification of the terms and
condition relating thereto.

Any payment due to or received by an employee from his employer or from a provident or other
fund to extent it does not consist of contribution or any sum/bonus received under a keyman
Insurance policy.

Any amount whether in lump sum or otherwise, due to received by an assessee from his
employer, either before his joining employment or after cessation of employment.

The definition of “Salary” is inclusive and not exclusive.

27
Income from salaries is computed after making the following deduction:

a)Elimination of Standard Deduction for Salaried Employees:

Standard deduction u/s16 (1) is not available from A.Y2006-07
b) Entertainment allowance [u/s 16(2)]

The entertainment allowance received is first included in the employees income and then a
deduction is allowed in case of government servants only, for a sum equal to 1/5 of the salary or
Rs.5000 or actual allowance received, whichever is less. Other assessee (i.e., assessee who are
not in receipt of salary from the government) - No deduction is available from AY 2002-03

c) Tax on employment (Professional Tax) [section16 (3)]

Where an employee has paid tax on employment under the relevant state Law, the tax so paid or
recovered from his salary is deductible from his gross salary income. The dedication is available
in the year in which the tax is actually paid by the employee.

Income from House Property

The annual value of a house property is taxable as income in the hands of the owner of the
property. House property consists of any building or land, or its part or attached area, of which
the assessee is the owner. The part or attached area may be in the form of a courtyard or
compound forming part of the building. But such land is to be distinguished from an open plot of
land, which is not charged under this head but under the head ‘Income from Other Sources’ or
‘Business Income’, as the case may be. Besides, house property includes flats, shops, office
space, factory sheds, agricultural land and farm houses.

COMPUTATION OF ANNUAL VALUE

i. GROSS ANNUAL VALUE (G.A.V.) is the highest of
(a) Rent Received or receivable.
(b) Fair Market Value.

28
 (c) Municipal Valuation.
It may be noted that if the let out property was vacant for whole or any part of the previous year
and owing to such vacancy the actual received or receivable is less than the sum referred to is
clause (a) above, then the amount actually received/receivable shall be taken into account while
computing the G.A.V. If any portion of the rent is unrealizable, (condition of unreliability of rent
is laid down in Rule 4 of I.T Rules) then the same shall not be included in the actual rent
received / receivable while computing the G.A.V.

ii. NET VALUE (N.A.V)is the GAV less the municipal taxes paid by the owner.

Provided that the taxes were paid during the year.

iii. ANNUAL VALUE is the N.A.V. less the deduction available u/c24.

DEDUCTION U/S 24: Are exhaustive and no other deduction are available –
i. A sum equal to 30 % of annual value as completed above.
ii. Interest on money borrowed for acquisition/construction/repair/renovation of property
is deductible on accrual basis.

Interest paid during preconstruction/acquisition period will be allowed in 5 successive financial

years starting with the financial year I which construction/acquisition is completed. This
deduction is also available in respect of a self-occupied and can be claimed up to maximum Rs.
30,000. The financial act, 2001 had provided that w.e.f. A.Y. 2002-03 the amount of deduction
available under this clause would be available up to Rs. 1, 50,000 in case the property is acquired
for constructed with capital borrowed on or after 1.4.1999 and such acquisition or construction is
completed before 1.4.2003. the finance Act, 2002 has further removed the requirement of
acquisition/construction being completed before 1.4.2003 and has simply provided that the
acquisition/construction of the property must be completed within three year from the end of
financial year in which the capital was borrowed.

Income from Capital Gain

29
Any profit or gains arising from the transfer of capital assets effected during the previous year is
chargeable to income tax under the head “ Capital Gains “and shall be deemed to be the income
of that previous year in which the transfer takes place. Taxation of capital gain thus, depends on
two aspects – “Capital asset and transfer”.

Capital Asset
Capital asset means property of any kind held by an Assessee including property of his business
or profession, but excludes non-capital assets.

Transfers Resulting in Capital gains

 Sale or exchange of assets

 Relinquishment of assets
 Extinguishment of any rights in assets
 Compulsory acquisition of assets under any law
 Conversion of assets into stock-in-trade of a business carried on by the owner of asset
 Handing over the possession of an immovable property in part performance of a contract
for the transfer of that property
 Transactions involving transfer of membership of a group housing society,, company,
etc…, which have the effect of transferring or enabling enjoyment of any immovable
property of any rights therein;
 Distribution of assets on the dissolution of a firm, body of individuals or association of
persons;
 Transfer of a capital asset by a partner or member to the firm or AOP, whether by way of
capital contribution or otherwise; and
 Transfer under a gift or an irrevocable trust of shares, debentures or warrants allotted by a
company directly or indirectly to its employees under the Employees stock option plan or
scheme of the company as per Central Govt. guidelines.

Year of Taxability

30
 Capital gains from part of the taxable income of the previous year in which the transfer
giving rise to the gains takes place. Thus, the capital gain shall be chargeable in the year
in which the sale , exchange, relinquishment, etc. takes place. Where the transfer is by
way of allowing possession of an immovable property in part performance of an
agreement to sale, capital gain shall be deemed to have arisen in the year in which such
possession is handed over. If the transferee already holds the possession of the property
under sale, before interring agreement in to the sale. The year of taxability of capital
gains is the year in which the agreement is entered in to.

Classification Of Capital gains

Short Term capital Gain
Gains on transfer of capital assets held by assessee for not more than 36 months (12
months in case of a share held in a company or any other security listed in a recognize
stock exchange in India, or a unit of the UTI or of a Mutual Fund specified u/s 10(23D))
immediately preceding the date of its transfer.

Long Term Capital Gain

The capital gains on transfer of capital assets held by the assessee for more than 36
months (12 months in case of shares held in a company or any other listed security or unit
of UTI or of a specified mutual fund).

Rates of Tax on Capital Gains:

Short Term Capital gains

31
 Short-term Capital gains are included in the gross total income of the assessee and after
allowing permissible deductions under chapter VI-A. rebate under section 88, 88B and 88C is
also available against the tax payable on short-term capital gains.

Long-term Capital Gains

Long-term capital gains are subject to a flat rate of tax @ 20%. However, in respect of long term
capital gains arising from transfer of listed securities or units of mutual fund/UTI, tax shall be
payable @ 20% of the capital gain computed after allowing indexation benefit or @ 10% of the
capital gain computed without giving the benefit of indexation, whichever is less.
Capital Loss
The amount, by which the value of consideration for transfer of an asset falls short of its cost of
acquisition and improvement/indexed cost of acquisition and improvement, and the expenditure
on transfer, represents the capital loss. Capital Loss may ne short-term or long-term, depending
upon the period of holding of the asset.

Income from the Other Sources

This is the last and residual head of charge of income. Income of every kind which is not to be
excluded from the total income under the income tax act shall be charged to tax under the head
income from other sources, if it is not chargeable under any other four heads income from
salaries, income from house property, profit and gains for business and profession and capital
gains. In other words, it can be said that the residuary head of income can be resorted to only if
none of the specific head if applicable to the income in question and that its come into operation
only if the preceding heads are excluded.

Some typical examples of items that are included in the head are –

 Lease rent from vacant land

32
  Higher charges from letting out furniture, machinery or plant.
 Dividend from companies/cooperative societies.
 Interest on deposits/debentures.
 Seating fees received by company directors.
 Commission on by a insurance agents of P.O.Schemes, etc. royalties.
 Winning from lottery, card games, crosswords, puzzles, horse races,etc.
 Certain other insurance money
 Contribution to employees to provident fund or superannuation fund or any other welfare
fund.
 Income from sub-letting house property.

SNAPSHOT OF DEDUCTIONS FROM TAXABLE INCOME

Section Permissible limit Type of investment Eligible claimants
expense or income
80C Maximum Rs 1,50,000 (aggregate of 80C, PPF, EPF, Bank FD's, Individuals, HUFs
80CCC and 80CCD) NSC, LIC premium,
tuition fees
80CCC Maximum Rs 1,50,000 (aggregate of 80C, Pension funds Individuals
80CCC and 80CCD)
80CCD Maximum Rs 1,50,000 (aggregate of 80C, Pension fund initiated by Individuals
80CCC and 80CCD) central government
80TTA Up to Rs. 10,000 per year Interest on bank savings Individuals and
account HUFs

33
80CCG 50% of amount invested subject maximum Equity saving schemes Individuals
of Rs. 25,000
80CCF Up to Rs. 20, 000 Long term infrastructure Individuals and
bonds HUFs
80D For individual taxpayers- Premium up to Rs. Medical insurance Individuals and
25,000 in case of individuals and up to Rs. premium and Health check HUFs
30,000 for senior citizens up
For HUFs- Premium up to Rs. 25,000 and up
to Rs. 30,000 in case the member insured is
a senior citizen or super senior citizen
80E No limit defined Interest on repayment of Individuals
Education loan
80EE Maximum Rs. 50,000 Interest on loan payable Individuals
for acquiring a residential
house property
80G Differs with the amount of donation General donations of any Individuals, HUF's,
recognized society Companies, Firms
80GGA Depends on quantum of donation Donations to Scientific Those who do not
Research or Rural have income from
development business or
profession
80GGB Depends on quantum of donation Donations to political Indian companies
parties
80GG Rs. 5000 per month or 25% of total income Rent paid if HRA is not Individuals not
whichever is less received receiving HRA

DEDUCTIONS FROM TAXABLE INCOME

Deduction under section 80C

Deduction under section 80CCC

Deduction under section 80D

Deduction under section 80DD

34
Deduction under section 80DDB

Deduction under section 80E

Deduction under section 80G

Deduction under section 80GG

Deduction under section 80GGA

Deduction under section 80CCE

Deduction under section 80C

Deductions on Investments

You can claim a deduction of Rs 1.5 lakh your total income under section 80C. In simple terms,
you can reduce up to Rs 1,50,000 from your total taxable income, and it is available for
individuals and HUFs.
80C
 This section is applicable from the assessment year 2006-2007.Under this section
100%deduction would be available from Gross Total Income subject to maximum ceiling
given u/s 80CCE.Following investments are included in this section

 Contribution towards Employee Provident Fund/General Provident Fund

 Unit Linked Insurance Plan (ULIP).

 NSC VIII Issue

 Interest accrued in respect of NSC VIII Issue

 Equity Linked Savings Schemes (ELSS).

 Repayment of housing Loan (Principal).

 Tuition fees for child education.

Investment in companies engaged in infrastructural facilities

35
 Notes for Section 80C

1. There are no sectorial caps (except in PPF) on investment in the new section and the

assessee is free to invest Rs. 1, 00,000 in any one or more of the specified instruments.

2. Amount invested in these instruments would be allowed as deduction irrespective of the

fact whether (or not) such investment is made out of income chargeable to tax.

3. Section 80C deduction is allowed irrespective of assessee income level. Even persons

with taxable income above Rs. 10, 00,000 can avail benefit of section 80C.

80CCF

Subscription to long term infrastructure bond. Subscription made by individual or HUF to the
extent of Rs.20,000 to notified long term infrastructure bonds is exempt from A.Y 2012-13
onwards.

80D
Mediclaim premium - Maximum Rs. 15000 (additional Rs.20000 in case of premium on the
health of Dependent – Sr. Citizens)

80DD
Expenditure on Handicapped Dependent / Deposits made with LIC, etc for maintenance of
handicapped Dependents – adhoc amount of Rs.50000 (In case of disability exceeding 80% the
deduction will be Rs. 1 lac)
24(1) (VI)
Relief for Housing Loan Interest payment (Any prescribed financial Institution) for self
occupied property – for loan taken before 1.4.99 maximum Rs. 30000 & for loan taken after

36
1.4.99 – maximum Rs.150000 provided house acquired / constructed within 3 years from date of
loan.

Sec 80DDB
Exp. Incurred on specified disease or ailment (Cancer/AIDS etc.) – Maximum Rs.40000/-
(Rs.60, 000/- in case of expenses on or by senior citizen aged above 65 years.)

Sec80U
A deduction of Rs. 75,000 is allowed for people with disabilities, and Rs. 1,25,000 deduction for
people with severe disability.
Sec 80E
Interest on educational loan (for self education) from Charitable or financial institution (No
Limit)

Sec10 (13A)
House Rent Exemption, lower of the following:
-Rent Paid less 10% of Basic.
-Actual HRA Received.
-40% of Basic (50% if residing in specified Cities / Metro)

80G
Donation given (10% of the basic can be given as donation for relief funds. Cry etc.) )

5.1 Research Methodology

The research is done by using both Primary and secondary data.

37
  Primary Data:
The sources from which information is gathered for the first time is known as primary
sources and information thus gathered is called primary data.
The analysis of client's data who filled their Income Tax returns with Steadfast Advisory
which is Primary in nature. Collecting his\her form 16 for online filing returns.

 Secondary data:
Secondary data refers to the data which has already been collected by someone else for
other purpose. Secondary data may either be published data or unpublished data.
For collecting the secondary data, I have searched in various websites, books, news
journal made on Income Tax return filing and Tax planning with respect to various
rebates and deductions, which enabled me to complete this project efficiently.

DATA PRESENTAION, DATA ANALYSIS AND DATA INTERPRETION

6.1 Sex-wise classification of the individual tax payers

Sex No. of respondents Percentage

38
 Male 56 56

Female 44 44

100 100
Total

Table No.1

44.00%
Male
Female
56.00%

Chart No.1
The above chart reveals that 56% of the respondents are male,and 44% of the respondents are
female. It is inferred from the above that majority of the individual tax payers are male (56%).

6.2 Educational qualification wise the individual

Tax payers are given below

Educational qualification No. of Percentage

39
 Respondents

Below S.S.L.C/HSC 73 73

Degree holders 34 34

Diploma 15 15

Postgraduates 14 14

Total 100 100

Table No.2

Educational

80%
70%
60%
50%
40%
30%
20%
10%
0%
Below S.S.C/HSC Degree Holder Diploma PG

Chart No.2

The above chart reveals that out of 100respondents, 37 percent of the individual tax payers are
studied upto S.S.L.D / HSC, 34 percent of the individual tax payers aredegree holders, 15 percent
of the individual tax payers arediploma holders, and 14 percent of the individual tax payers
arepostgraduates. It is inferred from the above that majority of theindividual tax payers are
studied up to S.S.L.C / HSC.

6.3 The classification of the respondents based on their sources

Of awareness regarding e-filing of income tax

40
 Sources of Awareness No. of respondents Percentage

Newspapers 44 44

Friends 23 23

Auditors 23 23

Advertisement 10 10

Total 100 100

Table No.3

Sources

50%
40%
30%
20%
10%
0%
Newapaper
Friends
Auditors
Advertiesment

Chart No.3

The above chart reveals that, out of 100respondents 85% of the respondents are highly aware of
the using software of the e-filing and it is ranked first, 75% of the respondents are highly aware
of the registration number and it is ranked second. On the other hand 20% of the respondents are
Highly no aware of the filling the Chelan for payment and it is ranked last

1) LIFE INSURANCE

Life Insurance Products provides

41
  Protection against risk for the family of the insured
 Painless saving premium is less, being long term saving
 Liquidity - generally policies accepted as collateral for loans from banks and financial
institutions, after stipulated period

Various types of policies are available. Common ones are

-Term Insurance: Pays death insurance to the legal heirs of the person insured, if he/she
dies during the term of the policy. There may not be survival benefits to the insured.
-Whole life Insurance: guarantees death benefit to legal of the insured, throughout the
course of life. Premiums are payable for 35 years or till the age of 80, whichever is more.
-Endowment Assurance: Pays out either on the death of assured, whenever it occurs or after
a fixed number of years.
-Annuities: A form of pension, in which an Insurance company makes a series of periodic
payments to a person or his legal heirs over a number of years.
-Money Back Policies: provides payment of certain percentage of sum assured on survival
for fixed period, during the tenure of the policy assured on survival for fixed period.
Combination of the benefits of the above policies is possible. Riders (Double accident
benefit, Health insurance etc) are also permitted. There are also special products for women
and children.

Varishtha Pension BimaYojana of LIC:

This scheme launched on 14/07/2003, guarantees a lifelong pension at 9% interest for Senior
citizens above 55 years. This is a government subsidized scheme and LIC has been given the
sole privilege to operate the scheme. In the event of unfortunate death of pensioner, purchase
price will be returned to the nominee. Minimum pension Rs.250/- per month and maximum
pension Rs.2000/- per month.

2.PUBLIC PROVIDENT FUND (PPF)

A] Any individual can open only one Account besides his GPF Account.

42
B] Option to pay each contribution in one Account in one lump sum p.a., or in 12 installments,
not necessarily monthly.
C] Period: 15 years (minimum 16 Annual contributions) – option to continue maturity in blocks
of 5 years for any number of blocks.
D] No withdrawal can be made till end of 6th financial year. Only one withdrawal per year is
permissible thereafter.
E] Investment: min. 500, max. 70000 p.a.
F] After 15 years entire balance can be withdrawal.
G] Interest at 8% compounded annually.
H] Account can be opened in Post office, any branch of SBI or its subsidiaries or in specified
nationalized banks.
I] limited loan facility available up to 6 years.

3. FIXED DEPOSITS IN BANKS

Fixed deposits with banks are also referred to as term deposits. Minimum investment period for
bank FDs is 30 days. Fixed deposits in banks are for those investors, who have low risk appetite.
Bank FDs is likely to be lower than money market fund returns. Deposits in banks are very safe
because of the regulations of RBI and the guarantee provided by the deposit insurance
corporation. The interest rate on fixed deposits varies term of the deposits. Bank deposits enjoy
exceptionally high liquidity. Loans can raised against bank deposits.

4. TERM PLANS
A term plan is the most basic type of insurance plan. In this, only the mortality charges and the
sales and administration expenses. There is no saving element; hence the individual does not
received any maturity benefits. A term plan should form a part every individual’s portfolio.

5. PENSION/RETIREMENT PLANS

43
Planning for retirement is an important exercise for any individual. A retirement plan from a life
insurance company helps an individual to ensure is life for a specific sum assured. At the same
time, it helps in accumulating a corpus, which he receives at the time of retirement. Premium
paid for pension plans for life insurance companies enjoy tax benefits up to Rs. 10,000 u/s
80CCC. Individual while conducting their tax planning exercise could consider investing a
portion of their insurance money in such plans.

INCOME HEAD-WISE TAX PLANNING TIPS

Income from salary
Income can be charged under this head only if there is an employer employee relationship
between the payer and payee. Salary includes basic salary or wages, any annuity or pension,
gratuity, advance of salary, leave encashment, commission, perquisites in lieu of or in addition to
salary and retirement benefits.
The aggregate of the above incomes, after exemptions available, is known as

Gross Salary and this is charged under the head income from salary.
Basic salary along with commissions and bonuses is fully taxable.
Allowances: An allowance is a fixed monetary amount paid by the employer to the employee for
expenses related to office work. Allowances are generally included in the salary and taxed unless
there are exemptions available.
The following allowances are fully taxable: dearness allowance, city compensatory allowance,
overtime allowance, servant allowance and lunch allowance.
Specific exemptions are available for some allowances as shown below.
Conveyance Allowance: Up to Rs 800/- a month is exempt from tax.
House Rent Allowance (HRA): Hop over the House Rent Allowance article to check on
calculation and exemptions available.
Leave Travel Allowance (LTA): LTA accounts for expenses for travel when you and your family
go on leave. While this is paid to you, it is tax free twice in a block of 4 years.
Medical Allowance: Medical expenses to the extent of Rs 15,000/- per annum are tax free. The
bills can be incurred by you or your family.

Perquisites: Perquisites (or personal advantage) are benefits in addition to normal salary to
which an employee has a right by way of his employment. Examples of these are rent free
44
accommodation or car loan. There are some perquisites that are taxable in the hands of all
categories of employees, some which are taxable when the employee belongs to a specific group
and some that are tax free.
Your employer will give you Form 16 which will contain all the earnings, deductions and
exemptions available.

Income from house property

Any residential or commercial property that you own will be taxed as well. Even if your piece of
real estate is not let out, it will be considered earning rental income and you will need to pay tax
on it.
The income tax blokes are a bit easy going on this – they tax you on the capacity of the real
estate to earn income and not the actual rent. This is called the property’s Annual Value and is
the higher of the fair rental value, rent received or municipal rent.
The Annual Value can go through a standard deduction of 30% and if you reduce the interest on
borrowed capital, then you get the value which is charged under the head income from house
property.
Profits and gains of business or profession
Income earned through your profession or business is charged under the head “profits and gains
of business or profession”. The income chargeable to tax is the difference between the credits
received on running the business and expenses incurred.
The deductions allowed are depreciation of assets used for business; rent for premises; insurance
and repairs for machinery and furniture; advertisements; travelling and many more.

Income from Capital gains

Any profit or gain arising from transfer of capital asset held as investments are chargeable to tax
under the head “capital gains”.
Hop over to the Long Term and Short Term capital gains article to read more about this. Might
be worth reading to see how indexation is used in long term capital gains scenario to reduce tax
outgo.

Income from other sources

Any income that does not fall under the four heads above is taxed under the head “income from
other sources”. An example is interest income from bank deposits, winning from lottery, any

45
sum of money exceeding Rs. 50,000 received from a person (other than from relative, on
marriage, under a will or inheritance).
Here is a snapshot of the above 5 heads of income, courtesy Outlook Money.

46
7.1FINDINGS

 For filings of income tax return I found that lots of Assessee is satisfied with the online
filing of tax returns because fast process and tax liability and tax refund is done.

 Forms are sending to Bangalore for filing the income tax Return whenever there is more
work load in pune, which increases the processing time for delivering the services.

 Form filing Income Tax Return we got database clients(individuals assessee) And there
form 16.So,According to the financial position of assessee company financial Advisors
give suggestion’s about various instruments for investments.

47
7.2 SUGGESSIONS

Suggestion to steadfast advisory

For
E-filing Income Tax Return Project in Pune branch

As of now forms are send to Bangalore for filing the Income Tax Return whenever there is more
work load in Pune, which increasing the delivering the services. Which will increase the
efficiency of services provided to clients and will also have certain benefits given below.

1) It will reduce the cost of sending the clients forms, from Pune to Bangalore for filing.
2) It will reduce the processing time to generate ITR-V (Acknowledgement of income tax filing
from income tax department)
If clients have forgot to give some data or he wants to give some data latter ,in such cases it
becomes difficult to co-ordinate, as the form are send to Bangalore for filing the Income Tax
Return.

48
7.3 CONCLUSION

This summer internship project report covers all the details of income tax with respect to
individuals assessee who will be using ITR-1 and ITR-2 form for filing there income tax return.
It includes the whole start to end process of online income tax return filing for ITR-I and ITR-2
form.

Online income tax return filing industry in India is only 6 yearsold, but it is growing at very
rapid pace-filing income tax return become the preferred choice, as it is very user-friendly in
nature and it offers various advantages over manual filing. Still adoption of this facility has to
reach its optimum penetration once people realize how secure and easy online tax filing is.

49
BIBLIOGRAPHY

http://www.incometaxindia.gov.in
http://www.myitreturn.com
http://www.taxpanner.com
http://www.incometaxindiaefiling.gov.in
http://simpletaxindia.net

Books
1) Author: Vinod k Singhania&KapilSinghania, publicationYear: 2012, Tital of book:
Direct Taxes Law And Practice Covering Income Tax.
2) Author:Taxman’s, Publication Year: 2012, Tital of Book : Employees How To Save
Income Tax.

50
FORM NO.16 (CASE STUDY-1)

FORM NO.16

[See rule 31(1)(a)]

Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source on Salary

TDS Certificate
Financial year
number#

If Amended give Previous TDS Certificate

Whether Original / Duplicate / Amended
number

TAN of Deductor Name of Deductor

PAN of Deductee Name of Deductee

Whether PAN uploaded

TDS Unique Transaction Number (UTN) as Gross Amount
was validated by Income TDS/TCS Amount
provided by Income Tax Department Paid / Collected
Tax Department? (Y/N)

Gross amount of TDS / TCS

Total TDS amount where PAN was found valid by Income Tax Department*

Details of Salary paid and any other income and tax deducted

1 Gross Salary

(a) Salary as per provisions contained in sec.17(1) Rs

Value of perquisites u/s 17(2) (as per Form No.12BB,

(b) Rs
wherever applicable)

51
 Profits in lieu of salary under section 17(3)(as per Form
(c) Rs
No.12BB, wherever applicable)

(d) Total Rs

52
2 Less: Allowance to the extent exempt u/s 10 Rs

Rs

Rs Rs

3 Balance(1-2) Rs

4 Deductions :

(a) Standard deduction Rs.

(b) Entertainment allowance Rs.

(c) Tax on employment Rs.

5 Aggregate of 4(a) to (c) Rs

6 Income chargeable under the head 'salaries' (3-5) Rs

7 Add: Any other income reported by the employee Rs

Rs

Rs Rs

8 Gross total income (6+7) Rs

9 Deductions under Chapter VIA

Qualifying Deductible
Gross Amount
Amount Amount

(a) Rs Rs Rs

(b) Rs Rs Rs

10 Aggregate of deductible amount under Chapter VIA Rs

11 Total Income (8-10) Rs

12 Tax on total income Rs

53
13 Rebate and relief under Chapter VIII

I. Under section 88 (please specify)

Qualifying Tax rebate/

Gross Amount
Amount relief

(a) Rs Rs

(b) Rs Rs

(f) Total [(a)

Rs Rs
to (e)]

II (a) Under section 88B Rs

(b) Under section 88C Rs

III Under section 89 (attach details) Rs

Aggregate of tax rebates and relief at 13 above [I(f) +

14 Rs
II(a)+ II(b) + III]

15 Tax payable (12-14) and surcharge thereon Rs

16 Less: Tax deducted at source Rs

17 Tax payable/refundable (15-16) Rs

I _____________________________________, son/daughter of _________________________________ working in the

capacity of ________________________________________ (designation) do hereby certify that a sum of Rs.
____________________________ [Rupees ____________________________________________
_____________________________________________________________________________ (in words)] has been
deducted at source and paid to the credit of the Central Government. I further certify that the information given above is
true and correct based on the books of accounts, documents and other available records.

Place

Date Signature of person responsible for deduction of tax

Designation Full Name

54