A

Dissertation
on

“E-FILLING OF INCOME TAX RETURN: A CASE STUDY OF INDIVIDUAL

ASSESSEE”

Submitted by

MR. SHIVPRASAD RAJENDRA MAHAJAN

MBA II year IV Sem

Under the Guidance of

Prof. Pravin Thorat

Submitted to
Savitribai Phule Pune University
in Partial Fulfillment of

Masters of Business Administration (MBA: 2018-20)

Submitted through

Dr. D. Y. Patil Pratishthan's

D. Y Patil Institute of Master of Computer Applications &
Management
Akurdi, Pune 411 044
 Dr. D. Y. Patil Pratishthan's

D. Y. Patil Institute of Master of Computer Applications and

Management
(MBA Program)
(Approved by AICTE, New Delhi & Affiliated to Savitribai Phule Pune University)
Dr. D. Y. Patil Educational Complex, Sector 29, Pradhikaran, Akurdi, Pune - 411
044
Ref. No. DYPIMCAM/ Acad./ Cir/03/20 Date:- / /2020

CERTIFICATE

This is to certify that the Dissertation titled “E-FILLING OF INCOME TAX

RETURN: A CASE STUDY OF INDIVIDUAL ASSESSEE”
” is a bonafide work carried out by Mr.SHIVPRASAD RAJENDRA MAHAJAN of
MBA- II of Dr. D. Y. Patil Institute of Master of Computer Applications and
Management, Akurdi PUNE 411044 as a partial fulfillment of Master of Business
Administration, Degree of Savitribai Phule Pune University.

He has worked under our guidance and satisfactorily completed his Dissertation work.

Place: Pune Prof. Pravin Thorat Dr. Shalaka Parkar

Date: Dissertation Guide Director –DYP MBA
 DECLARATION

I, SHIVPRASAD RAJENDRA MAHAJAN a bonafide student of MBA in DYP

Institute of MBA and MCA,Akurdi 411044 would like to declare that the
dissertation entitled “E-FILLING OF INCOME TAX RETURN WITH
RESPECT TO INDIVIDUAL ASSESSEE”
”submitted by me in partial fulfillment of the requirements for the award of the
Degree of MBA under Savitribai Phule Pune University is my original work.

Place: Pune Signature of the candidate

Date: Mr. SHIVPRASAD RAJENDRA MAHAJAN
 ACKNOWLEDGEMENT

It is indeed a pleasure to acknowledge the contribution of those who have helped me in preparation of
this project.

I am thankful to our Prof., my guide; Prof. Pravin Thorat; Dr. Shalaka Parkar, Director DYP MBA and
honorable faculty members and staff members of DYP institute of MBA and MCA for their constant
guidance and support. As my teachers and mentors, they have taught me more than I could ever give
them credit for here.

I am grateful to all of those with whom I have had the pleasure to work during this and other related
projects. Each of the members of Project Committee has provided me extensive personal and
professional guidance and taught me a great deal about both research and life in general. I would
especially like to thank

Nobody has been more important to me in the pursuit of this project than the members of my family. I
would like to thank my parents, whose love and guidance are with me in whatever I pursue. They are the
ultimate role models.

Place: Pune SHIVPRASAD RAJENDRA MAHAJAN

Date: MBA II year IV Sem

4
 INDEX
SR.
NO PARTICULARS PAGE NO.
.

1 Introduction 8
2 Objectives of the Study 28
3 Research Methodology 30

4.1Meaning of Research

4.2Data Collection
4.3Statement of Problem
4.4Hypothesis

4.5 Research Design

4.6Data Analysis Techniques

5 Data Analysis, Data Presentation &Hypothesis Testing 33

6 Findings 49

7 Suggestions & Recommendations 51

8 Conclusions 53

Appendix

9 Annexure 55

5
 LIST OF TABLES
SR
NO. PARTICULARS PAGE NO.

1 Gender wise classification of the individual tax payer  

2 Regular tax payers  

3 Heads of income under which income becomes taxable  

4 Income range of the tax payer  

LIST OF CHARTS AND GRAPHS
5 Services provided by tax consultant  

SR NO. PARTICULARS PAGE NO.

Notification by tax consultant for various provisions and submissions of
6 all taxes
1 Gender wise classification    

7 Information about taxation to various individual  

2 Regular tax payer  
8 Years of filing income tax return by the individual assesse  
3 Mode of filing  
9 Reason for filing the first income tax return by individual assesse  
4 Heads of income under income becomes taxable  
10 Preparation for filing of income tax return  
5 Level of income  
Filing of income tax return by the tax consultant after providing
6 Services
11 required provided
documents    

12 Penalties faced by
7 Timely an individual
notification assesse
by tax consultant    

8 Information
Satisfaction level of about taxationassessee with respect to e-filing
an individual  
13 process  
9 years of filing return  

10 Reason for filing return  

11 preparation for filing of return  

12 due dates  
6
13 Penalties  

14 Satisfaction level  
INTRODUCTION

7
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 company and firm requiring section 44AB audit
return without an e-filing receipt will not be accepted.

8
 INTRODUCTION TO INCOME TAX ACT, 1961

Tax Regime in India

The tax regime in India is currently governed under The Income Tax, 1961 as amended
by The Finance Act, 2007 notwithstanding any amendments made thereof by recently
announced Union Budget for assessment year 2008-09.

Chargeability of Income Tax

As per Income Tax Act, 1961, income tax is charged for any assessment year at
prevailing rates in respect of the total income of the previous year of every person.
Previous year means the financial year immediately preceding the assessment year.

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.

9
 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
year from the end of the assessment year or completion of assessment whichever is
earlier.

 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 notunderstated
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 assesse 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.

10
 Interest on refunds u/s 244A: If the refund due to the assesse 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.

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

Total Income

For the purposes of chargeability of income-tax and computation of total income, The
Income Tax Act, 1961 classifies the earning under the following heads of income:

 Salaries(Section 15)
 Income from house property ( Section 22)
 Profits and gains of business or profession (Section 28)
 Capital gains (Section 45)
 Income from other sources (Section 56)

11
 INCOME FROM SALARIES(Section 15)

Incomes termed as Salaries:

The meaning of the term ‘salary’ for the purpose of income tax is much wider than what
is normally understood.
Every payment made by an employer to his employee for the service rendered would be
chargeable to tax as income from salaries.
The term salary for the purpose of Income Tax Act will include both monetary payments
(e.g.- Basic Salary , Bonus , Commission , Allowances etc.)
Salary includes:
1. Wages.
2. Any annuity or pension.
3. Any gratuity.
4. Any fees, commission, perquisites or profits in lieu of or in addition to any salary or
wages.
5. Any advance salary.
6. Any payment received by an employee in respect of any period of leave not availed by
him.
7. The annual accretion to the balance at the credit of an employee participating in an
recognized provident fund, to the extent to which it is chargeable to tax.
8. The aggregate of all sums that are comprises in the transferred balance of an employee
participating in an recognized provident fund, to the extent to which it is chargeable to
tax; and
9. The contribution made by the Central Government or any other employer in the previous,
to the account of an employee under a notified pension scheme referred to in section
80CCD.
Although the above incomes are included in salary, but there are certain incomes, which
aer either fully exempt or exempt upto a certain limit.
The aggregate of above incomes, after the exemptions available if any is known as
‘Gross Salary’.

12
 From the gross salary, the following two deductions are allowed under Sec 16:
1) Entertainment Allowance [Section 16 (ii)]
2) Tax on Employment [ Section 16 (iii)]
The amount arrived at, after allowing the above deductions, is the I ncome under the head
‘Net Salary’.

INCOME FROM HOUSE PROPERTY( Section 22)

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.
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.

13
 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 BUSINESS AND PROFESSION(Section 28)

Meaning of Business: [Sec 2(13)]

Business includes,
a) Trade
b) Commerce
c) Manufacture
d) Any adventure or concern in the nature of trade, commerce or manufacture.

Meaning of Profession: [Sec 2 (36)]

 Profession includes vocation.
14
 Profession requires purely intellectual skill or manual skill on the basis of some special
learning.

Income from Business & Profession

-:- Key Points -:-
 Must be carried on by Assessee.
 Must be carried on during the previous year.
 Only profit of the previous year are to be taxed.
 Income includes negative income i.e. Loss.
 Relevance of method of accounting ( Cash or Mercantile)
 There is no difference between legal & illegal business for taxation purpose. Even
income from illegal business shall be taxable.

Income chargeable to income tax under the head “Profits and gains of business and
Profession”-
1) The profits and gains of any business or profession which was carried on by assesse at
any time during the previous year.
2) Speculation income treated as separate and distinct source.
Speculative transactions are defined to be the transactions settled by payment of
difference in price of goods or securities and not by actual delivery.
Loss from this head cannot be set off against any other head of income but carried
forward for 8 years.
3) Compensation for agency termination.
4) Export incentives: cash assistance, duty drawback, DEPB etc.
5) Profits on sale of import licences.
6) Income derived by the trade, professional or similar association from specific services
performed for its members.
7) Partners remuneration from a firm by way of salary fees, commission etc.
8) Value of any benefit or perquites like gifts whether in cash or kind.
9) Non- compete agreements.

15
10) Any sum received in cash or in kind.
11) Any sum received under Keyman insurance policy.
12) Amount recovered on account of bad debts allowed in the earlier years.
13) Profits on sale of capital assets if used for scientific research and allowed in the earlier
years.

Expenses Deductible from Business or Profession:

Following expenses incurred in furtherance of trade or profession are admissible as
deductions.
 Rent, rates, taxes, repairs and insurance of buildings.
 Repairs and insurance of machinery, plat and furniture.
 Depreciation
 Investment Allowance.
 Tea/Coffee/Rubber/ Development Account.
 Site Restoration Fund.
 Reserves for shipping business.
 Scientific Research expenses.
 Amortisation of telecom licence fees.
 Expenditure on eligible projects or scheme.
 Deduction in respect of expenses on specific business.
 Payment to association and institution for carrying out rural development program.
 Weighted deduction for expenditure incurred on agricultural extension project.
 Weighted deduction for expenditure for skill development
 Amortisation of preliminary expenses.
 Amortisation of expenditure on development of certain minerals.

-: Deduction U/s 36 :-
 Insurance premium.
 Insurance premium paid by a federal milk co-operative society for cattle owned by a
member.
16
  Insurance premium paid for the health of employees.
 Payment of bonus or commission to employees.
 Interest on borrowed capital.
 Discount on zero coupon bond.
 Provident and superannuation fund contribution.
 Approved gratuity fund contributions.
 Transfer to special reserve.
 Family planning expenditure.
 Contribution to credit guarantee trust fund.
 Revenue expenditure incurred by entities established under any central, state or
provincial Act.
 Banking cast transaction tax securities transaction tax.
 Commodities transaction tax.
 Advertisement expenses.

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

 Higher charges from letting out furniture, machinery or plant.

17
 Dividends.
 Interest on deposits/debentures.
 Sitting 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.
 Amount received as advance in case of capital asset.
 Interest received on fixed Deposit, Savings Account.
 Interest on loans.

18
 RATES OF INCOME TAX FOR A. Y. 2018-19

Individuals below the age of 60 years.

TAXABLE INCOME TAX RATE
UptoRs.2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000toRs. 10,00,000 20%
Above Rs. 10,00,000 30%

Individuals being a resident in india, who is of the age of 60 years or more but less then 80
years at any time during the previous year.
TAXABLE INCOME TAX RATE
UptoRs.3,00,000 Nil
Rs. 3,00,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Individual, being a resident in India, whose of the age of 80 years or moreatany time
during the previous year:
TAXABLE INCOME TAX RATE
UptoRs.5,00,000 Nil
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

SURCHARGE: THE amount of income-tax shall be increased by a surcharge at the rate of 10

% of such tax, where total income between 50 lakhs and one crore rupees ( above 1 crore -15%
surcharge.). however, the surcharge shall be subject to marginal relief ( where income between
50 lakhs and one crore rupees, the total amount payable as income-tax and surcharge shall not
exceed total amount payable as income-tax on total income of one crore rupees by more than the
amount of income that exceeds one crore rupees.)

19
EDUCATION CESS:The amount of income-tax and the applicable surcharge, shall be future
increased by education cess calculated at the rate of two percent of such income-tax and
surcharge.
SECONDARY & HIGHER EDUCATION CESS: The amount of income-tax and the
applicable surcharge, shall be further increased by secondary and higher education cess
calculated at the rate of one per cent of such income-tax and surcharge.
REBATE: The rebate is available to a resident individual if his total income does not exceed Rs.
350000. The amount of rebate shall be 100% of income-tax or Rs 2500, whichever is less.

20
SNAPSHOT OF DEDUCTIONS FROM TAXABLE INCOME

Section Particulars Amount

80D Mediclaim 15000 + 20000
80DD Exemption on Handicapped 50000 to 75000
24(1)(vi) Housing loan interest 30000 to 150000
80DDB Specified disease 40000 to 60000
Budget 2015 has
proposed deduction
of Rs. 80,000 for
senior citizen adged
80 year or more from
AY 2016-17.
80U Permanent disability 50000 to 100000
Budget 2015
proposed to amend
section 80U to raise
limit of deduction in
restpect of a person
with disability from
Rs. 50000 to 75000
and for person with
severe disability
from Rs. 100000 to
125000
80E Educational Loan interest No upper limit
10(13A) HRA As per particulars
80C & 80CCC Investment in Pension, 1,00,000
Housing Loan Principal Repayment, The finance act 2015
PPF limit Rupees 70,000 per annum, has enhanced the
Life Insurance premium directly paid by the ceiling of deduction
employee, U/S 80CCC from Rs.

21
 ULIP 1971-United linked Insurance Plan from UTI, 100000 to 150000
NSC-National Savings Certificate(to be purchased with effect from AY
during the year), 2016-17
Deposit in national savings scheme (NSS),
Equity linked Savings scheme (ELSS),
Mutual funds notified under sections 10(23D),
term deposit with a scheduled bank in a notified
scheme for term not less than 5 years,
Tuition fees paid (Only full time education fees
paid to any Indian University, College, School. Fees
exclude payment towards donation).
80CCF Infrastructure bonds 20,000

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

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

22
23
STEPS FOR E FILING INCOME TAX RETURN
Before one start the process, keep the bank statements , Form 16, Pancard , Aadhar card ,
Statement of loan if any, Investment details, any income from other sources , Deduction details ,
Mobile no , email-id , copy of last year’s return in hand.
Next, log on to www.incometaxindiaefiling.gov.in

Step 1: Register ypurself on the website. Your permanent account number will be your user ID.

Step 2:View your tax credit statement- Form 26 AS – For the financial year. The statement will
reflect the taxes deducted by your employer actually deposited with the IT department. The TDS
as per your Form 16 must tally with thw figures in Form 26 AS. If you file the return despite
discrepancies , if any ypu could get a notice from the IT department.

Step 3: Under the ‘Download’ menu , click on the Income Tax Return Forms and choose AY .
Download the Income Tax Return (ITR) Form applicable to you.

Step 4: Open the downloaded Rerurn Preparation Software ( excel utility) and complete the form
by entering all the details, using your Form 16.

Step 5: Ascertain the tax payable by clicking the ‘Calculate tax’ tab. Pay tax (if applicable) and
enter the challan details in the tax return.

Step 6: Confirm all the information in the worksheet by clicking the ‘validate’ tab.

Step 7: Proceed to generate an XML file and save it on your computer.

Step 8: Go to ‘Upload Return’ on the portal’s left panel and upload the relevant form. You will
be asked whether you wish to didgitally sign the file. If you have obtained a DS (digital
signature) , select Yes. Or Choose ‘No’.

24
Step 9: Once the website flashes the message the message about successful e-filing on your
screen , you can consider the process to be complete. The acknowledgement form- ITR –
Verfication (ITR-V) will be generated and you can download it.

Step 10 :Take the printout of the form ITR-V , sign it preferably in blue ink, and send it only by
ordinary or speed post to the Income Tax Department- CPC , Post Bag No-1 Karnataka , within
120 days of filing your return online.

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.

ITR 3 For dividuals 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 wards

25
SUPPORTING DOCUMENTS:

Supporting documents required tocalculate 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.

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 all the Assets , Fixed Deposit , Savings a/c , Loans made.
Details of all the expenses in the year.
Details of any other tax payments made during the year.
It is mandatory to quote the PAN while filing the return.
It is also now a days mandatory to link the aadhar card with the pancard with Income Tax
Departement.

DUE DATE FOR FILING INCOME TAX RETURN

Due date for filing income tax return for an individual assessee is 31stjuly of the assessment year.

26
 OBJECTIVES:

 To know the Income Tax criticalities with respect to individual assesse who will be using ITR-1,
ITR-2& ITR-4 form for filling their income tax return.

 To follow the start to endonline process of Income Tax for ITR-1,ITR-2& ITR-4 form.

 To know Awareness about online Income Tax filing and there benefits.

27
RESEARCH METHODOLOGY
Meaning of research:
Research is an art of scientific investigation research covers the search for
and retrieval of information in common sense ‘search for knowledge’. Research is simply the
process of finding solution to a problem after a completing study and analysis of the situational
factors.

Definition:
According to P.M.Cook, “Research is an honest,exhaustive, intelligent searching for
facts and their meaning for implication with reference to given problem”. It is the process of
arriving at dependable solution to problems through the planned &systematic collection, analysis
& interpretation of data, the best search is that which is reliable verifiable and exhaustive so that
it providing information in which we have confidence.

SOURCES OF DATA COLLECTION:

Data collection is the process of gathering and measuring information on variables of
interest, in an established systematic fashion that enables one to answer stated research
questions, test hypotheses, and evaluate outcomes. The data collection component of
research is common to all fields of study including physical and social sciences,
humanities, business, etc. While methods vary by discipline, the emphasis on ensuring
accurate and honest collection remains the same. The goal for all data collection is to
capture quality evidence that then translates to rich data analysis and allows the building
of a convincing and credible answer to questions that have been posed.

METHOD OF DATA COLLECTION

 Sample survey. A sample survey is a study that obtains data from a subset of a
population, in order to estimate population attributes.
DATA COLLECTION METHODS:
1. Primary method:
 Questionnaires

28
  Observation
 Interview
2. Secondary method:
 http://www.incometaxindia.gov.in
 Income tax related book
Author: Vinod k Singhania&KapilSinghania,

 PROCEDURE: Survey Method.

 RESSEARCH DESIGN: Descriptive Research.
 RESEARCH INSTRUMENT: Structured Questionnaire.
 RESEARCH METHOD Qualitative& Quantitative Research.
 SAMPLING METHOD: Simple Random Sampling.
 UNIVERSAL SIZE 150
 SAMPLE SIZE: 100
 SAMPLE UNIT: Data was gathered from various Tax payers.

DATA ANALYSIS AND DATA INTERPRETATION

Table No 1
GENDER WISE CLASSIFICATION OF THE INDIVIDUAL TAX PAYERS

SEX NO. OF RESPONDENTS PERCENTAGE %

29
 Male 56 56%
Female 44 44%

TOTAL 100 100%

(Source: Questionnaire)

Chart No 1

Gender wise classification

44%
Male
Female
56%

INTERPRETATION

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%).

Table No 2:

REGULAR TAX PAYER

30
 Group Category of No. of respondents Percentage
Respondent

Yes 65 65%

No 35 35%

(Source: Questionnaire)

Chart No 2

Regular Tax Payer

35%

Yes
No

65%

Interpretation:

From the above table it shows that there are only 65 percent people who pay ta x regularly
and the remaining 35 percent people are those who sometimes gets refund or their tax
laibility is nil.

Mode of filing
Chart No 3

31
 Mode Of Filing
others manual
e-filing by 10% 25%
themselves
15%

e-filing through
company
50%

+
INTERPRETATION
From the above chart it has been shown that the e-filing process now a day is very popular
and common for filing the ITR. It is been shown that about 85% of the people do their
filing through e-filing.

Table No 4:
HEADS OF INCOME UNDER WHICH INCOME BECOMES TAXABLE
Particulars No of Respondents

Income from Salary 74

Income from house property 62

32
Income from Profits & Gains from Business & Profession 83

Income from Capital Gain 45

Income from Other Sources 98

(Source: Questionnaire)
Graph No 4

Heads of Income under income becomes

taxable
120
100
98
80
83
60 74
62
40 45
20
0
Income from income from Income from Income from Income from
salary house property Profits and capital gain other sources
gains of
business and
profession

Interpretation:
From the above graph it shows that there are 98 percent of people whoes
Income becomes taxable under Income from sources including the other
heads of income.
It can be said that each and every person get their income from other
sources.
Table No 5:
INCOME RANGE OF THE TAX PAYER

33
Particulars Group No. of respondents Percentage
Category of
Respondent

Less than 20 20%

Rs.3 lakhs

Rs. 3 lakhs 28 28%

Level of to Rs.5 lakhs
Income
More than 52 52%
Rs. 5 lakhs

(Source: Questionnaire)
Chart No 5

Level of Income
20%

Less than Rs. 3 lakhs

Rs. 3 lakhs to Rs. 5 Lakhs
52%
More than Rs. 5 lakhs

28%

Interpretation:

From the diagram it is clear thar that there are 80 percent people have
income more than 3 lakhs it means they pay Income Tax but the remaining
20 percent have their income less than 3 lakhs so their tax liability will be
nil.

Table No 6:
SERVICES PROVIDED BY TAX CONSULTANT

34
 Particulars Group Category of No. of respondents
Respondent

Taxation 100

Book keeping & 38

Accountancy
Services Provided
Cost Accountancy 22
by tax consultant
Audit 62

Consultancy Services 100

(Source: Questionnaire)
Graph No 6

Sevices Provided
120

100
100 100
80

60
62
40
38
20
22
0
Taxation Book keeping Cost Accountancy Audit Consultancy
and accountancy Services

Interpretation:

From the above graph it can be said that the Tax Consultant provides
taxation and consultancy services to all the people and some of the people
receive the other services of Book-keeping& Accountancy, Audit and
Accountancy services.

Table No 7:

NOTIFICATION BY TAX CONSULTANT FOR VARIOUS

35
PROVISIONS AND SUBMISSIONS OF ALL TAXES

Group Category of No. of respondents Percentage

Respondent

Yes 64 64%

No 36 36%

(Source: Questionnaire)

Chart No 7

Timely noti fi cati on by Tax consultant

36%

64%

Yes No

Interpretation:

From the above chart it can be said that there are 64 percent people who
gets timely notification by the tax consultant and the other 36 percent
people don’t receive timely notification for various provision and
submissions of all taxes may be because of some miscommunication.

Table No 8:

36
 INFORMATION ABOUT TAXATION TO VARIOUS INDIVIDUAL

Particulars No of Respondents

Through Tax Consultant 46

Through Friends and Relatives 24

Through Media 30

(Source: Questionnaire)

Graph No 8

Informati on about Taxati on

50
45
46
40
35
30
30
25
20 24
15
10
5
0
Through Tax consultant Through friends and Through Media
Relatives

Interpretation:

The above graph indicates that who got the information about taxation through tax
consultant after that through media and less number of people received information
through friends and relatives. Therefore tax consultant plays a major role in providing the
indformation about taxation to people

Table No 9:
YEARS OF FILING INCOME TAX RETURN BY THE INDIVIDUAL ASSESSE

37
 Particulars No of Respondents

0-5 Years 12

5-10 Years 42

10-15 Years 28

More than 15 Years 18

(Source: Questionnaire)

Graph No 9

Years of filing Return

42

28

18
12

0-5 Years 5-10 Years 10-15 Years More than 15 Years

Interpretation:

The above graph shows that there are more number of individual assesse who are filing
their return since 10 years.
28 percent of individual assesse are filing their return since 15 years.
+And 18 percent of them are filing their return for more than 15 years.
Table No 10:

REASON FOR FILING THE FIRST INCOME TAX RETURN BY INDIVIDUAL

ASSESSE

38
 Particulars Group No. of respondents Percentage
Category of
Respondent

Regular 38 38%
Provision

Refund claim 24 24%

Reason for
Carry forward 14 14%
filing return
of losses

Notice from 24 24%

Income Tax
Department

(Source: Questionnaire)

Chart No 10

39
 Reason for fi ling Return

24%
38%

14%

24%

Regular provision Refund Claim

Carry forward of loss Notice from Income Tax Department

Interpretation:
From the above diagram it is clear that there are 24 percent of people who filed their first
return after they receive notice from the IncomeTax department.
38 percent people filed that first return as regular provision.
14 percent of people filed their reurn for getting set off and carry forward of their losses.
And the remaining filed to get teir refund claim

Table No 11:

PREPARATION FOR FILING OF INCOME TAX RETURN

Particulars No of Respondents

1 month before due date 42

1 week before due date 23

2-3 days before due date 18

After due date 17

(Source: Questionnaire)
Graph No- 11

40
 Preparati on for fi ling Return
45
40 42
35
30
25
20 23
15 18 17
10
5
0
1 month before due 1 week before due 2-3 days before due After due date
date date date

Interpretation:
The above graph indicates that there are more number of people who prepare to file their
return 1 month before due date.
23 percent people prepare to file their return 1 week before due date.
18 percent people prepare to file their reuturn 2-3 days before due date.
And the 17 percent people files their return after due date which intends to pay penalty of
interst of 1% on taxable amount for the number of months.
Table No 12:
FILING OF INCOME TAX RETURN BY THE TAX CONSULTANT AFTER
PROVIDING REQUIRED DOCUMENTS

Group Category of No. of respondents Percentage

Respondent

Before due date 78 78%

After due date 22 22%

(Source: Questionnaire)
Chart No 12

41
 Before due date After due date
22%

78%

Interpretation:
The diagram shows that 18 percent of people files their Income tax return after due date.
And the 82 percent people files that return on time or before due date.

Table No 13:

PENALTIES FACED BY AN INDIVIDUAL ASSESSE

Group Category of No. of respondents Percentage

Respondent

Yes 34 34%

No 66 66%

(Source: Questionnaire)
Chart No 13

42
 Yes
34%

Yes
No No
66%

Interpretation:
From the above table it can be said that there are only 34 percent of people how have
penalties become of late filing of return and others are the ones who have not faced any
penalties as they file their return on time.

Table No 14:

SATISFACTION LEVEL OF AN INDIVIDUAL ASSESSE WITH RESPECT TO E-

FILING PROCESS

Group Category of No. of respondents Percentage

Respondent

Yes 82 82%

No 18 18%

(Source: Questionnaire)
Chart No 14

43
 Sati sfacti on level

18%

Yes
No

82%

Interpretation:
From the above diagram it suggets that there are only 80 percent of the people who are
satisfied with the e-filing process other 20 percent are not satisfied.

44
 FINDINGS
 From the research I observed that the most common mode of filing ITR is e-filing process.

 In electronic filing it has been noticed that most of the errors are due to data errors as filed by the
assesse. This includes non filling of key schedules, wrong details etc resulting in rectification
requests etc which delay closure of processing

 Assesses needs to fill his email address, mobile no correctly to ensure appropriate
communication from the Income Tax Department. The use of the Tax practitioner /CA’s email
address may not be appropriate.

 The assesse should make sure the correct (latest) address, bank account, MICR no. is filled

 The assesse should verify tax credits available in Form 26AS/NSDL websites. Mismatches are
the single largest cause of incorrect tax computation. Non credits may be taken up with the TDS
dedicator and/or the banker as soon as they are noticed.

 It is ensure that the PANCARD and ADHAR CARD of the assesse is compulsory and it should
be linked with the Income Tax Department before e-filing of Income Tax return.

45
 SUGGESTIONS

 Planning schedule must be review and issued 2 days before: -

As there was no effective planning of company to reach the targeted client within the
time.Henceproper planning for time management must be reviewed.

 Software must be Updated from time to time: -

With the ever changing technology it is essential for the company to update the software
technologytime to time for smooth functioning.

 Company should approach the untouched market: -

There are large number of clients which are not filing their income tax through e- filing of ITR,
so company must target such clients who increases the revenue of the company.

LIMITATIONS

 Network problem: -

All the ITR forms are filled up through Internet; some time there was a network problem which
leads into more time consumption in filling the form.

 Errors of data: -

Some time the data given by the client is incomplete or wrong, so it may cause error in the data.

 Time constraints:-

46
As the area is too large, it is very difficult to cover the entire area in limited period of time.
CONCLUSION

This summer internship project report covers all the details of income tax with respect to
individuals assesse who are using ITR-1 ITR-2 and ITR-4 form for filing there income tax
return.It includes the whole start to end process of online income tax return filing for ITR-I ITR-
2 and ITR-4 form.

Online income tax return filing industry in India is only 6 yearsold,but it is growing at very rapid
pace. E-filing income tax return becomes the preferred choice,as it is very user-friendly in nature
and it offers various advantages over manual filing.So company is having better future for this.
Few marketing strategies must be used for that A. G. THOMBRE & CO to attract customers for
e-filing. Still adoption of this facility has to reach its optimum penetration once people realize
how secure and easy online tax filing is.

47
ANNEXURE:

Individual UserRegistration
AnIndividualshould have a valid PAN for registering with the E-Filing application.
Registration Process

Type in the URL of e-Filing application(https://incometaxindiaefiling.gov.in)

Click on the 'Register Yourself'tab and select 'Individual'against the radio button found
under
“Individual/HUF”.

48
Note: Instructions are provided on the right hand side of the screen. However, user can also refer
to HELP menu, should they need help.
The user will be directedto the registration page and the user will fill the following fields for
further validation.
PAN Number –Mandatory, should be valid PAN.
Surname –Mandatory, should be as per the PAN details.
First Name–Not mandatory, should be as per the PAN details.
MiddleName-Not mandatory, should be as per the PAN details.
Date of Birth–Mandatory, should be as per the PAN details.
Email ID-Mandatory, should be valid E-mail ID.
Mobile Number –Mandatory.

Click on the “Continue” button. The registration details page should be displayed.

49
50
A. Password Details
User ID–This will be automatically populated by the system, which is entered in the Basic
Detailsscreen.
Password–Mandatory, should be between 8 –14 characters, alphanumeric and should
contain atleastone special character.
Confirm Password–Mandatory, The user has to enter the same password as entered above.
Primary Secret Question–Mandatory, The user needs to select any one question from
available in the drop down.
Primary Secret Answer–Mandatory.
Secondary Secret Question–Mandatory, The user needs to select any one question from
available in the drop down.
Secondary Secret Answer –Mandatory.

B. Personal Details
These details could be automatically populated by previously enteredbasic details.

C. Contact Details
Landline Number –Not mandatory.

51
Mobile Number –Mandatory.
Alternate Mobile Number -Non mandatory.
Email ID –Mandatory. This field is auto-filled from the previous page.
Alternate Email ID -Non mandatory, should be valid E-mail ID.
Fax Number –Non-mandatory.

D. Present Address
Flat/Door/Building –Mandatory.
Road/Street –Non-mandatory.
Area/Locality –Mandatory.
Town/City/District –Mandatory.
State –Mandatory, user selects from the drop down provided.

52
Pincode –Mandatory.entAddress.Check the check box ‘Tick the box if Permanent Address
is same as Present Add

53
 This is mandatory and the user has to type in the numeric code which appears on the screen

Click on ‘SUBMIT’. If it is success, user will be navigated to the “Registration successful”

screen.

The user receives a confirmation e-mail with an activation link. An SMS is also sent to
notify on the confirmation mail.
In order to activate the account, the user should click on the Activationlink. The user account
isactivated and the database is updated.
PROFORMA FOR FORM NO.16

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 2016-17
number#
If Amended give Previous TDS
Whether Original / Duplicate / Amended
Certificate number

54
 Name of ABC SERVICES (INDIA)
TAN of Deductor PNEC07087D
Deductor PVT.LTD.
Name of
PAN of Deductee BJAPS6826E ASHISH PAKODIA
Deductee
Whether PAN
uploaded was
TDS Unique Transaction Number (UTN) Gross Amount
validated by Income TDS/TCS Amount
as provided by Income Tax Department Paid / Collected
Tax Department?
(Y/N)
QUARTER 1 WWXXEYA Y 4077 4077
QUARTER 2 WWXBDSG Y 5357 5357
QUARTER 3 WWXBPYD Y 0 0
QUARTER 4 LPXXFTGY Y 0 0
Gross amount of TDS / TCS 9434
Total TDS amount where PAN was found valid by Income Tax Department* 9434
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 298163
Value of perquisites u/s 17(2) (as per Form
(b) Rs 0
No.12BB, wherever applicable)
Profits in lieu of salary under section 17(3)(as
(c) Rs 0
per Form No.12BB, wherever applicable)
(d) Total Rs 298160

2 Less: Allowance to the extent exempt u/s 10 Rs 3148

Rs
Rs Rs 3148
3 Balance(1-2) Rs 295015
4 Deductions :
(a) Standard deduction Rs. 0
(b) Entertainment allowance Rs. 0

55
 (c) Tax on employment Rs. 800
Aggregate of 4(a)
5 Rs 800
to (c)
6 Income chargeable under the head 'salaries' (3-5) Rs.294215
7 Add: Any other income reported by the employee Rs
Rs
Rs Rs
8 Gross total income (6+7) Rs294215
9 Deductions under Chapter VIA
Qualifying Deductible
Gross Amount
Amount Amount
(a) 80C Rs22629 Rs22629 Rs22629
(b) 80CCC Rs0 Rs0 Rs0
(c) 80CCD Rs0 Rs0 Rs0
(d) Rs Rs Rs Rs
Aggregate of deductible amount under Chapter
10 Rs22629
VIA
11 Total Income (8-10) Rs271586
12 Tax on total income Rs9159
Education cess @ 3 (on tax computed at
13 275
S.No.12)
Aggregate of tax rebates and relief at 13 above
14 Rs
[I(f) + II(a)+ II(b) + III]
15 Tax payable (12-14) and surcharge thereon Rs9434
16 Less: Tax deducted at source Rs0
17 Tax payable/refundable (15-16) Rs9434

56
QUESTIONNAIRE
57
 GENAERAL INFORMATION:-

 Name of the Assessee (Tax Payer) :

 Occupation:
 Address:
 Qualification:

1. Are you regular tax payer? :

Yes: No:

2. Under which heads of income , your income becomes taxable?

a) Income from Salary

b) Income from house property

c) Profits and gains from business & profession.

d) Capital Gain

e) Income from Other sources

3. What is your income range?

a) Less than Rs. 3 Lakhs

b) Rs. 3 Lakhs to Rs. 5 Lakhs

c) More than Rs. 5 Lakhs

58
 SERVICES

4. Which of the following services does your Tax Consultant provide you?

a) Taxation

b) Book keeping and Accountany

c) Cost Accountany

d) Audit

e) Consultany Services

5. Does your Tax Consultant timely notify you the various provisions and submissions of all
taxes?

Yes: No:

6. How do you get the information about taxation?

a) Through Tax consultant

b) Through friends and relatives

c) Through media

7. Since how many years are you filing Income Tax Return?

59
a) 0-5 Years
 FILING OF RETURNS
b) 5-10 Years

8. Reason for filing the first return

c) 10-15 Years

a) Regular provision
d) More than 15 years

b) Refund claim

c) Carry forward of loss

d) Notice from Income tax department

9. Generally when do you prepare for filing of return?

a) 1 month before due date

b) 1 week before due date

c) 2-3 days before due date

d) After due date

10. After providing required documents , in how much time your tax consultant files the
return?

a) Within 1 day

b) Within a week

60
c) After a week

d) Other ( mention…..)

 OTHER

11. Have you faced any penalties regarding income tax ?

Yes: No:

12. Are you satisfied with the E-Filing process provided by your Tax Consultant?

Yes: No:

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, publication Year : 2012, Tital of book: Direct
Taxes Law And Practice Covering Income Tax.

61
2) Author :Taxman’s, Publication Year: 2012, Tital of Book : Employees How To Save Income
Tax.

62