SUMMER INTERNSHIP REPORT

ON
Company’s Accounting and Finance Aspects in Present Scenario

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF DEGREE OF

BACHELOR OF COMMERCE UNDER THE GUIDANCE OF

CA SAURABH SINGH

(SINGH SAURABH & COMPANY)

Under Guidance of: Submitted By:

Dr. Sanjay Kumar Singh Neha Singh

B.Com (NEP) Vth Semester

2110402010580
 DECLARATION

I Neha Singh , hereby declare that the internship report on “Account &
Finance” with reference to “Singh Saurabh & Company” prepared by me
under the guidance of Mr. K.K Shukla.

This is to certify that this summer internship presentation entitled Accounts

& Finance is the work that has been prepared by me during the year 2023-
2024.

I also declare that this internship report is towards the partial fulfillment
of the university regulations for the award of the degree of “Bachelor of
Commerce ".

Signature: Neha
Place: Lucknow
Date:
 ACKNOWLEDGEMENT

The successful completion of the internship would not have been possible
without the guidance and support of many people. I express my sincere
gratitude to Mr. Saurabh Singh for allowing me to do my internship at
Singh Saurabh & Company.

I thank the employees, of Singh Saurabh & Company, Lucknow for their
support and guidance in helping me the completion of the internship.

I express my sincere gratitude to the mentor of my department,

Dr. Sanjay Kumar Singh whose encouraging suggestions and

encouragement helped me in coordinating my presentation, especially in
writing this report.
At last, I would like to express my gratitude to my parents and my friend
for their continuous support during this summer internship report.

Neha Singh

B.Com (NEP) Vth Semester

Index
Company Profile
 SINGH SAURABH & CO.
Introduction
Established in 2017, Singh Saurabh & Co is dedicated to providing a comprehensive range of Accounting,
Auditing, Taxation, Assurance, and Business advisory services to various enterprises. With a commitment to
maintaining the highest degree of professional ethics and integrity, we consistently strive for total client
satisfaction. Guided by the philosophy and approach of our management, we aim to deliver Professional
Services of the highest standards to our diverse clientele.

Our extensive knowledge and expertise in Accounting, Audit, Tax, and Finance empower us to efficiently
provide quality professional services to our clients. Clients benefit from our exceptional services,
complemented by competitive pricing. We view every client relationship as a partnership, firmly believing that
our success is intricately linked with our clients' success.

Our professional staff is dedicated to ensuring that our clients receive personalized, high-quality services that
are beyond comparison.

Vision:
Our vision is to enable our clients to realize and reach their potential through optimal resource leverage and a
constant commitment to improvement.

Mission:
 Establish Trust, Comfort, and Convenience as a one-stop business solutions provider.

 Provide simple, effective, and progressive solutions for businesses.

 Be a partner that facilitates and ensures business growth.

Help and Support:

Our commitment is to establish Trust, Comfort, and Convenience as a comprehensive business solutions
provider. We provide simple, effective, and progressive solutions for businesses, offering unwavering help and
support in their journey towards growth and success.
 Objectives of the Study

The primary objective of my internship at Jaiswal Yash & Associates is to acquire practical experience and
training in the dynamic fields of accounting and finance. This opportunity enables me to apply the theoretical
concepts learned in my coursework to real-world scenarios, fostering practical skills essential for a successful
career in the finance sector. My overarching goal is to emerge well-prepared for a thriving career as a Finance
Professional, armed with a comprehensive understanding of accounting, auditing, and taxation practices.

The specific objectives of my internship encompass the following key areas:

1. Provide Practical Experience: Gain hands-on experience in accounting, finance, and

taxation, complementing theoretical knowledge.

2. Apply Theoretical Concepts: Apply coursework concepts and theories to real-world

situations, fostering practical skills development.

3. Enhance Skills and Knowledge: Develop and refine technical, analytical, and
communication skills crucial for a future career in finance.

4. Develop Professional Networks: Establish valuable connections with industry

professionals to gain insights into the accounting and finance sector.

5. Prepare for Market Demand: Align internship experiences with market demands to
ensure preparedness for a successful career in finance.

Role & Responsibilities:

Throughout the internship, I diligently worked to improve my skills under the guidance of CA Saurabh Singh.
Starting with a training session on GST and Tally software, I gained insights into practical applications.
Responsibilities included MSME Registration, GST Registration & Filing, ITR Filing, Tally-based Bookkeeping,
Excel Sheet data preparation, and theoretical learning of various taxation types. Additionally, I used MS Office,
Tally Software, MyGSTCafé, and CompuTax, enhancing my proficiency in accounting and finance practices.

These experiences have been instrumental in enhancing my skills and providing valuable practical knowledge,
contributing significantly to my growth in the accounting and finance domain.
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the
Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment
opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural
& backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national
income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes
enormously to the socio-economic development of the country.

Micro, Small, and Medium Enterprises (MSME) are a vital part of the Indian economy, contributing significantly
to the country's GDP and employment generation. MSMEs play a crucial role in the country's economic growth
and development, and their success is crucial for the overall growth of the economy.

The Government of India has implemented various schemes and initiatives to support and encourage the
growth of MSMEs in the country. One such initiative is the MSME registration process, which is a mandatory
requirement for any MSME looking to operate legally in India.

The National Board for Micro, Small and Medium Enterprises (NBMSME) was established by the Government
under the Micro, Small and Medium Enterprises Development Act, 2006 and Rules made thereunder. It
examines the factors affecting promotion and development of MSME, reviews existing policies and
programmes and make recommendations to the Government in formulating the policies and programmes for
the growth of MSME.
How to register on MSME

MSME online registration process for businesses

You can register your MSME on the Udyog Aadhaar Memorandum (UAM) portal. Here’s how to apply for
MSME Udyam registration online:

Visit the MSME Udyam registration web portal.

For new or unregistered businesses, click on the first link – “For new entrepreneurs who are not registered yet
as MSME or those with EM-II”.

Submit your Aadhaar Number and name.

Then tick the consent button and click on the ‘Validate & Generate OTP’ button.

On the next page, submit details of your PAN and organization type. If you don’t have PAN, select the ‘No’
option.

Fill in the rest of the fields on the form.

Enter the OTP received on your phone number and verification code to submit the form.

On successful registration, a “Thank You” message will appear with your registration number.

It may take 2-3 days to get approval for your MSME’s registration. On approval, you will receive a registration
certificate via email.

MSME registration fees and documents

The MSME registration process does not require extensive documentation. All you need is your Aadhaar
number. Details related to your PAN- and GST- linked investments and turnover will be automatically sourced
from government databases. You also do not need to pay any fees to get your MSME registered through the
Udyam portal.

How to download the MSME registration certificate

Once your MSME is successfully registered, you will receive a permanent registration number and an e-
certificate. The MSME registration certificate requires no renewals as it has lifetime validity unless you get it
cancelled. It features a dynamic QR code linked to the Udyam portal, where you can access details regarding
your enterprise.

Check your inbox and spam folder to see if you have received the certificate. But if at any point you need to
download the certificate, follow these steps:

1. Go to the Udyam Registration portal.

2. Go to the “Print/Verify” drop-down button on the top menu bar.
3. Click on “Print Udyam Certificate”. This will take you to a login page if you aren’t
already logged in.
4. Here, enter your Udyam registration and registered mobile numbers.
5. Choose the preferred option in the third field and press “Validate & Generate OTP”.
6. Enter the OPT you received in the next field and press “Validate OTP and Login”.
7. You will see your Udyam Certificate on the next page. Download or print it from
here.
 INTRODUCTION
An income tax is a tax imposed on individuals or entities (taxpayers) inrespect of the income or
profits earned by them (commonly called taxable income). Income tax generally is computed as
the product of a tax rate times the taxable income. Taxation rates may vary by type or
characteristics of the taxpayer and the type of income.
The tax rate may increase as taxable income increases (referred to as graduated or progressive
tax rates). The tax imposed on companies is usually known as corporate tax and is commonly
levied at a flat rate. Individual income is often taxed at progressive rates where the tax rate
applied to each additional unit of income increases (e.g., the first RS@10,000 of income taxed
at0%, the next Rs@10,000 taxed at 1%, etc.). Most jurisdictions exempt local charitable
organizations from tax. Income from investments may be taxed at different (generally lower)
rates than other types of income. Credits ofvarious sorts may be allowed that reduce tax. Some
jurisdictions impose the higher of an income tax or a tax on an alternative base or measure of
income.
Taxable income of taxpayers resident in the jurisdiction is generally total income less income
producing expenses and other deductions. Generally, only net gain from the sale of property,
including goods held for sale, is included in income. The income of a corporation's shareholders
usually includes distributions of profits from the corporation. Deductions typically include all
income-producing or business expenses including an allowance for recovery of costs of
business assets. Many jurisdictions allow notional deductions for individuals and may allow
deduction of some personal expenses. Most jurisdictions either do not tax income earned
outside the jurisdiction or allow a credit for taxes paid to other jurisdictions on such income.
Nonresidents are taxed only on certain types of income from sources within the jurisdictions,
with few exceptions.
Most jurisdictions require self-assessment of the tax and require payers of some types of
income to withhold tax from those payments. Advance
payments of tax by taxpayers may be required. Taxpayers not timely paying tax owed are
generally subject to significant penalties, which may include jail- time for individuals. Taxable
income of taxpayers resident in the jurisdiction is generally total income less income producing
expenses and other deductions. Generally, only net gain from the sale of property, including
goods held for sale, is included in income. The income of acorporation's shareholders usually
includes distributions of profits from the corporation. Deductions typically include all income-
producing or business expenses including an allowance for recovery of costs of business assets.
Many jurisdictions allow notional deductions for individuals and may allow deduction of some
personal expenses. Most jurisdictions either do not tax income earned outside the jurisdiction
or allow a credit for taxes paid to other jurisdictions on such income. Nonresidents are taxed
only on certain types of income from sources within the jurisdictions, with few exceptions.
BACKGROUND

The concept of taxing income is a modern innovation and presupposesseveral things: a money
economy, reasonably accurate accounts, a common understanding of receipts, expenses and
profits, and an orderly society with reliable records.
For most of the history of civilization, these preconditions did not exist, and taxes were based
on other factors. Taxes on wealth, social position, and ownership of the means of production
(typically land and slaves) were all common. Practices such as tithing, or an offering of first
fruits, existed from ancient times, and can be regarded as a precursor of the income tax, but
they lacked precision and certainly were not based on a concept of net increase.
Taxes in India are of two types, Direct Tax and Indirect Tax.
Direct Tax, like income tax, wealth tax, etc. are those whose burden falls directly on the
taxpayer.
The burden of indirect taxes, like service tax, VAT, etc. can be passed on to a third party.Income
Tax is all income other than agricultural income levied and collected by the central government
and shared with the states.
According to Income Tax Act 1961, every person, who is an assessee and whose total income
exceeds the maximum exemption limit, shall be

chargeable to the income tax at the rate or rates prescribed in the finance act. Such income tax
shall be paid on the total income of the previous year in the relevant assessment year.
The total income of an individual is determined on the basis of his residential status in India.

INCOME TAX RETURN

Income Tax Return" is a term which is often used when we talk about income tax. It is a way by
which we pay this tax. When total annual income of a person, including all sources, is more
than maximum unchangeable limitation ( At present it is Rs. 1,50,000/-) then that person is
liable to pay income tax.

According to Income Tax Act 1961, every person, who is an assesse and whose total income
exceeds the maximum exemption limit, shall be chargeable to the income tax at the rate or
rates prescribed in the finance act.

`Residence Rules

An individual is treated as resident in a year if present in India

for 182 days during the year or

for 60 days during the year and 365 days during the preceding four years. Individuals fulfilling
neither of these conditions are `nonresidents. (The rules are slightly more liberal for Indian
citizens residing abroad or leaving India for employment abroad.)

A resident who was not present in India for 730 days during the preceding seven years or who
was nonresident in nine out of ten preceding yeas I treated as not ordinarily resident. In effect,
a newcomer to India remains not ordinarily resident.

For tax purposes, an individual may be resident, nonresident or not ordinarily resident.

Non-Residents and Non-Resident Indians

Residents are on worldwide income. Nonresidents are taxed only on income that is received in
India or arises or is deemed to arise in India. A person not ordinarily resident is taxed like a
nonresident but is also liable to tax on income` accruing abroad if it is from a business
controlled in or a profession set up in` India.

Capital gains on transfer of assets acquired in foreign exchange is not t`axable in certain cases.

Non-resident Indians are not required to file a tax return if their income c`onsists of only
interest and dividends, provided taxes due on such income ar`e deducted at source.

It is possible for non-resident Indians to avail of these special provisions even after becoming
residents by following certain procedures laid down by the Income Tax act.

Taxability of individuals is summarized in the table below

Status Indian Income Foreign Income

Resident and ordinarily resident Taxable Taxable

Resident but not ordinary resident Taxable Not Taxable

Non-Resident Taxable Not Taxable

Know-how of Income Tax

Income tax is levied on the 'total income' of the assessee.

Income of the 'previous year' is taxed in the 'assessment year.'

Income is classified into and computed under five categories called 'heads of income.'

The basic scheme of income tax is the principle 'pay as you earn.'

One must pay his taxes in advance and by the due dates, in the prescribed percentages.

Deferment in the payment of advance tax would result in the payment of interest.

The income tax basic scheme is explained in brief as:

Income tax is levied on the 'total income' of the assessable entity which is computed under the
provisions of the Act.

The income which are pertaining to the 'previous year' is taxed, but in the 'assessment year.'

Income tax is charged at the rates being fixed by the for the year by the annual Finance Act. But
the liability to pay the tax is based on the principle 'pay as you earn.'

Pay as you Earn

A person is not allowed to wait until 31 March to pay his/her taxes. The Income Tax Act has the
provision of 'pay as you earn.' This do not pinch a tax payer at the end of the year making a
lump sum payment.

CHAPTER-2 HEAD OF INCOME TAX

The total income of a person is divided into five heads, viz., taxable.

Income from Salary

Income from House Property

Income from profits and gains of Business or Profession

Income from Capital Gains

Income from Other sources

Salary Income:-

In certain cases, an employee can claim both HRA (house rent allowances) as well as interest on
housing loan.
House property Income :-

if interest paid for property given on rent is less than taxable rent (after standard deduction -
30%). Such loss can be set off against income from other heads including income from salary.

Income from capital gain:-

Surplus from derivative contracts is non- speculation.

Archaeological collection, Drawings, Painting, Sculptures, Any other work of Art. Thus, now any
surplus received from sale of these articles would be liable to tax under the head capital gain.

Business income :-

Any type of income received from business

Income from other sources:-

Dividend, Commission, lotteries, crossword puzzles, races including horse races, card games,
any sort or from gambling or betting

1. Income from Salary

If you are a professional with a salary as your primary source of income, this head is primarily
applicable to you. Under this heading, any compensation paid to you as employee
remuneration, is accounted for. However, remember that income will only be considered under
this head if there is an employee- employer relationship between the payee and the payer of
such salary.
The income under the salary head involves an employee’s basic wages, pension, perquisites,
gratuity, commission, annual bonus and any salary paid in advance, if applicable. Upon adding
the various components under this head, one can get their gross income.

The following are some of the common allowances for which you can claim tax deductions:

HRA

House Rent Allowance (HRA) is generally part of a standard salary package. It is an allowance
that employees receive to pay their house rent. Subject to certain conditions, you can claim
exemptions for HRA under Section 10 (13A) of I-T Act, 1961. The tax exemption you can claim
for HRA will be the lowest among the following:

HRA received from your employer

50% of the basic salary if you live in a metro city or 40% if you live in a non-metro city

Actual rent paid per month minus 10% of your annual salary

Conveyance Allowance

This is an allowance that employers generally pay to compensate for the cost of travel between
your home and workplace. Under Section 10 (14(ii)) of I-T

Act 1961, you can claim a maximum tax exemption of ₹1,600 per month or

₹19,200 per year.

LTA

Leave Travel Allowance or LTA is a part of your compensation which you can use to pay for your
personal travel expenses. It is a cost-to-the-company (CTC) component and is usually offered as
a yearly benefit. However, note that subject to certain conditions and limits, you can claim tax
benefits against LTA for up to 2 leisure trips in a block of 4 calendar years, under Section 10(5).
Medical Allowance

This is an allowance that is paid to employees to help them meet their medical expenses. Under
Section 17 (2) of I-T Act, 1961, you can claim tax exemption of up to ₹15,000 by producing your
supporting medical documents.

Income from House Property

The second of the 5 heads of income includes income from house property. It accounts for all
rental income earned by a taxpayer. Sections 22 to 27 of I-

T Act, 1961 cover this income head in great detail. However, note that if a taxpayer’s house has
not been rented out, then the amount that the person would have received as rent if he/she
had let it out, would be considered as taxable income under this head.

This is a head under which tax is calculated on the basis of assumption. Moreover, tax is levied
both on income earned from house property and commercial property. The different
deductions that come under this head of income are standard deduction, deductions for home
loan interest payment, and deduction for municipal tax.

Here, an assessee will also have to pay 10% TDS on rent if the rent value is more than the
specified limit.

Here are a few conditions that must be fulfilled for the income to be taxable under this head:

The assessee should be the house property owner

House property can include a building, a land appurtenant, or a bungalow

Individuals must not use their property for any other purposes than residency

Income from Capital Gains

If any profit/gain arises from the transfer or sale of a capital asset held as an investment, it is
taxable under capital gains. Income or proceeds from a large number of asset classes, such as
stocks, bonds, mutual funds, gold, and real estate among others, can be considered under this
head. You should also remember that capital gains are generally classified as short- and long-
term gains. Based on the asset class, long-term capital gains tax is applied at a maximum rate of
20% on investments held for 3 years or more, while short- term capital gains tax is applied at a
maximum rate of 15% on investments held for less than 3 years. However, you must check if
the income is eligible for an exemption under Sections 54, 54B, 54EC, 54F, 54D, 54ED, 54GA, or
54G.

Income from Profits and Gains of Business/Profession

Your income will be considered under this head if your earnings come from a business or if you
are self-employed. To calculate your profit or gross income, you will have to deduct your
expenses from the total revenue. Then, tax will be applicable under this income head.

This head will also include incomes, such as bonuses, salary, and profit earned due to a
partnership with a business organisation. However, the following rules apply:

A taxpayer must be controlling the operations of this business or profession

There business or profession declared under this head must be legitimate

The business or profession in question must be carried out by the taxpayer themselves.

The taxpayer must be actively engaged in a particular business or profession for the greater
part of the previous year

If taxpayers operate any other professions or businesses, they must also include it

Income from Other Sources

For the earnings that do not belong to any of the heads of income mentioned above, it will fall
under the 5th category called income from other sources. Some common examples of earnings
that fall under this head include income from lottery, gambling, gift card games, bank deposits,
rewards from other sports, and more. Section 56(2) of the IT Act covers these income
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