CAREER CONVENT GIRLS DEGREE COLLEGE, VIKAS NAGAR

LUCKNOW
INTERNSHIP REPORT
ON

ACCOUNTING & FINANCE

A report submitted in partial fulfillment of the requirements for the Award
of Degree of

BACHELOR OF COMMERCE (NEP)

Under the guidance of

CA SAURABH SINGH

SINGH SAURABH & COMPANY

Duration: 21.10.2023 to 20.11.2023

Submitted to- Submitted by-

CAREER CONVENT GIRLS DEGREE

COLLEGE, Lucknow ALIYA JAHAN
B.COM(NEP) V Sem, 3rd Year
ROLL NO: 2110152010006
 INDEX

SI. NO. CONTENTS PAGE

NO.
1 Letter of Authorization 3
2 Internship Offer Letter 4
3 Certificate of Internship 5
4 Declaration 6
5 Acknowledgement 7
6 Company Profile 8-11
7 Introduction of ITR - Income Tax Return 12-35
8 ITR E-Filing Procedures 36-53
9 MSME 54-59
10 Objectives of Internship 60
11 Learning Experience 61-62
12 Conclusion 63-64

2
 DECLARATION

I, ALIYA JAHAN, proudly confirm that I created the internship

report on Account & Finance, drawing inspiration from my time
at Singh Saurabh & Company and under the watchful guidance
of CA SAURABH SINGH.

This attests to the fact that I personally wrapped up the tasks

related to the internship presentation titled "Accounts &
Finance" throughout the academic year 2023-2024.

Moreover, I affirm that this internship report follows some of the

university guidelines, playing a role in meeting the requirements
for the highly sought-after Bachelor of Commerce degree.

ALIYA JAHAN
B.Com 5th Semester
Roll No.: 2110152010006
Place: Lucknow

6
 ACKNOWLEDGEMENT

The successful completion of the internship was made possible

by the invaluable support and guidance of numerous individuals.
I extend my heartfelt thanks to CA Saurabh Singh for granting
me the opportunity to intern at Singh Saurabh & Company.

I am grateful to the dedicated employees of Singh Saurabh &

Company, Lucknow, for their unwavering support and guidance,
which played a crucial role in bringing my internship to
fruition.

A special acknowledgment goes to my departmental mentor,

whose constructive suggestions and encouragement greatly
aided me, particularly in crafting this report.

Lastly, I extend my appreciation to my parents and a dearfriend

for their continual support throughout the journey of this
internship report.

- Aliya jahan
B.Com 5th Semester
Roll No. 2110152010006

7
 Company Profile

SiNGh SAurAbh & CompANy

(Chartered Accountants)

FFirm Summary
Firm’s Name – Singh
n Saurabh & Company
Firm’s Registration No. – 023239C
Office Address – E103, Celebrity Greens, Sushant Golf
City Lucknow-226030
Email ID – singhsaurabhco@gmail.com
Proprietorship – Proprietorship

Name Qualification Membership No. Firm’s Registration

No.
CA,
Saurabh Singh B.Com (University of 538605 023239C
Lucknow)
 SiNGh SAurAbh & CompANy
(Introduction)

Singh Saurabh & Company established in year 2017, has been

providing a wide array of Accounting, Auditing, Taxation, Assurance
and Business advisory services to various enterprises. The firm
maintains a high degree of professional ethics and integrity and strives
for total client satisfaction at all times. We believe in thephilosophy and
approach of the Management to render Professional Services of the
highest standards to various clients. Our in-depthAccounting, Audit,
Tax and Financial knowledge and expertise has enabled us to deliver
quality professional services to our clients effectively and efficiently.
All of our Clients benefit from our exceptional services with
competitive pricing. We view every Client relationship like a
partnership and truly believe that our success is a result of our client’s
success.

Our professional staff will ensure that our clients benefit from
personalized, quality service that is beyond comparison.

Our Vision
To enable our client to realize and reach their potential by optimal
leverage of resources and constantly strive to better them.

9
Our Mission
▪ To establish Trust, Comfort and Convenience as a one stop
Business solutions provider.
▪ To provide simple, effective and progressive solutions for
business.
▪ To be a partner that enables and ensures business growth.

Our Help
To establish Trust, Comfort and Convenience as a one stop business
solutions provider.
Our Supports
To provide simple, effective and progressive solutions for business.

10
11
 ITR - INCOME TAX RETURN

INTRODUCTION:
Income tax is a levy imposed on individuals or entities (taxpayers)
based on the income or profits they earn, commonly referred to as
taxable income. The tax is generally calculated by multiplying a tax rate
with the taxable income. Tax rates may vary depending on the
taxpayer's characteristics and the type of income. For individuals, the
tax rate may increase as taxable income rises, known as graduated or
progressive tax rates. Companies are usually subject to a flat corporate
tax rate. Individual income is often taxed progressively, where the tax
rate on each additional unit of income increases. Most jurisdictions
exempt local charitable organizations from tax, and income from
investments may be taxed at lower rates. Various credits may be
allowed to reduce tax, and some jurisdictions impose either income tax
or an alternative tax on a different income measure.

Taxable income for residents generally includes total income minus

income-producing expenses and deductions. Only the net gain from
property sales, including goods held for sale, is usually considered as
income. Corporate shareholders' income includes profits distributed
by the corporation. Deductions typically cover all income-producing
or business expenses, including a recovery allowance for business asset
costs. Some jurisdictions allow notional deductions for individuals and
may permit the deduction of certain personal expenses. Most
jurisdictions either do not tax income earned outside their borders or
provide a credit for taxes paid to other jurisdictions on such income.
Nonresidents are typically taxed only on specific types of income from
sources within the jurisdiction, with limited exceptions.

12
In many cases, taxpayers must self-assess their taxes and withhold tax
from certain income payments. Advance tax payments may be required,
and failure to timely pay owed taxes can result in significant penalties,
including potential jail time for individuals.

BACKGROUND:
Taxing income is a modern idea that assumes certain conditions: a
money-based economy, accurate accounts, a shared understanding of
income-related terms, and an organized society with reliable records.
Throughout much of history, these conditions were absent, and taxes
were imposed based on different factors. Taxes on wealth, socialstatus,
and ownership of key resources like land and slaves wereprevalent.
Ancient practices like tithing or offering first fruits can be seen as early
versions of income tax, but they lacked precision and were not based
on the concept of net increase.

Taxes in India are of two types, Direct Tax and Indirect Tax -
Direct taxes, such as income tax and wealth tax, place the burden
directly on the taxpayer. In contrast, indirect taxes like service tax and
VAT can be passed on to a third party. Income Tax, covering all income
except agricultural income, is imposed and collected by the central
government and shared with the states.

As per the Income Tax Act of 1961, any person classified as an assessee
with a total income exceeding the maximum exemption limit is liable
to pay income tax. The applicable rate or rates are specifiedin the
finance act. This income tax is to be paid on the total income of the
previous year in the relevant assessment year.
The total income of an individual is determined based on their
residential status in India.

13
 INCOME TAX RETURN
"Income Tax Return" is a term we often use when talking aboutincome
tax. It's how we pay this tax. If a person's total annual income from all
sources is more than the maximum limit (currently Rs. 1,50,000/-), they
have to pay income tax.
According to the Income Tax Act of 1961, anyone with a total income
surpassing the maximum exemption limit is required to pay income tax
at the rates specified in the finance act.

Residence Rules:
An individual is considered a resident for the year if they are present
in India:
I. for 182 days during the year or
II. for 60 days during the year and 365 days during the preceding four
years. Those who don't meet these conditions are non-residents. (Rules
are a bit more flexible for Indian citizens living abroad or leaving India
for work abroad).

A resident who was not in India for 730 days during the past seven
years or who was non-resident in nine out of the previous ten years is
treated as not ordinarily resident. In simple terms, a newcomer to India
remains not ordinarily resident. For tax purposes, an individual can be
resident, nonresident, or not ordinarily resident.
Non-Residents and Non-Resident Indians (NRIs) are taxeddifferently.
Residents are taxed on worldwide income, while non- residents are
taxed only on income received in India or arising in India. A person not
ordinarily resident is taxed like a nonresident but may also be liable for
tax on income from a business controlled or a profession set up in India,
even if it accrues abroad. Capital gains on
14
the transfer of assets acquired in foreign exchange may not be taxable
in certain cases.

NRIs aren't required to file a tax return if their income is only from
interest and dividends, provided the due taxes are deducted at the
source. Even after becoming residents, NRIs can use specialprovisions
by following 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 Taxable Taxable
resident
Resident but not Taxable Not Taxable
ordinary resident
Non-Resident Taxable Not Taxable

Know how of Income Tax:

• Income tax is imposed on the 'total income' of the taxpayer.

• The income of the 'previous year' is subject to taxation in the
'assessment year.'
• Income is categorized and calculated under five sections known
as 'heads of income.'
• The fundamental concept of income tax follows the principle
'pay as you earn.'
• It is necessary to pay taxes in advance and meet the specified
percentages by the due dates.
• Delay in paying advance tax incurs interest charges.

The income tax basic scheme is explained in brief as:

15
 • Income tax is imposed on the 'total income' of the assessable
entity, computed according to the provisions of the Act.
• Income related to the 'previous year' is taxed in the subsequent
'assessment year.'
• Tax rates are determined annually by the Finance Act. However,
the obligation to pay tax follows the principle of 'pay as you earn.'
• Refer to the Taxable Heads of Income for the definitions of salary,
wages, pension, allowance, etc.
'Pay as you Earn' means that individuals cannot wait until March 31 to
pay their taxes; the Income Tax Act requires payment as income is
earned.

16
 HEAD OF INCOME TAX

The total income of an individual is categorized into five heads for

taxation purposes:
a. Income from Salary: In some cases, employees can claim
both House Rent Allowance (HRA) and interest on housing
loans.
b. Income from House Property: If the interest paid for a
property given on rent is less than the taxable rent (after
standard deduction of 30%), the resulting loss can be set off
against income from other heads, including salary.
c. Income from Capital Gains: Surplus from derivative
contracts is non-speculation. Certain items such as
archaeological collections, drawings, paintings, sculptures,
and other works of art are now liable to tax under the head of
capital gains if sold.
d. Income from Business or Profession: Encompasses any
income received from a business.
e. Income from Other Sources: Includes income from dividend,
commission, lotteries, crossword puzzles, races (including
horse races), card games, or any form of gambling or betting.

1. Income from Salary:

If your primary income comes from a salary, this category applies to
you. It includes all compensation received as employee remuneration
under an employee-employer relationship. Components like basic
wages, pension, perquisites, gratuity, commission, annual bonus, and
salary paid in advance contribute to the gross income. You can claim
tax deductions for certain allowances such as HRA, Conveyance
Allowance, LTA, and Medical Allowance.

17
 i. HRA (House Rent Allowance): Exemptions can be claimed
under certain conditions, based on the lowest of HRA received,
a percentage of basic salary, or actual rent paid minus 10% of
annual salary.
ii. Conveyance Allowance: Employers compensate for travel costs,
with a maximum tax exemption of ₹1,600 per month or
₹19,200 per year.
iii. LTA (Leave Travel Allowance): Subject to conditions, tax
benefits can be claimed for personal travel expenses up to 2
leisure trips in a block of 4 calendar years.
iv. Medical Allowance: Tax exemption of up to ₹15,000 can be
claimed under Section 17(2) of the Income Tax Act.

2. Income from House Property:

This category includes income from renting out a property. Tax is
calculated on assumptions, considering notional rent for self-occupied
properties. Deductions include standard deduction, home loan interest
payment, and municipal tax. 10% TDS is applicable on rent above a
specified limit. Conditions for taxation under this head include
ownership, usage for residency, and property types like buildings,
lands, or bungalows.

3. Income from Capital Gains:

Profit from the sale of capital assets held as investments falls under
capital gains. Assets include stocks, bonds, mutual funds, gold, and real
estate. Long-term gains tax (20%) applies for investments heldfor 3
years or more, while short-term gains tax (15%) applies for holdings
less than 3 years. Exemptions under Sections 54, 54B, 54EC, 54F, 54D,
54ED, 54GA, or 54G should be checked.

18
4. Income from Profits and Gains of Business/Profession:
This head covers income from businesses or self-employment. Net
profit is calculated by deducting expenses from total revenue. It
includes bonuses, salary, and partnership profits. Rules for taxation
include controlling the business, legitimacy, active engagement, and
inclusion of other professions or businesses.

5. Income from Other Sources:

Earnings not fitting into the above categories fall under this head.
Examples include lottery, gambling, gift card games, bank deposits,
and rewards from sports. Section 56(2) of the IT Act covers these
incomes.

19
 SLAB IN INDIA

Income Tax Slab Rates AY 2023-24 for Individuals (Below

60 Years), NRIs and HUFs
(New Tax Regime) (Old Tax Regime)
Net Taxable Income Income Tax Slab Rates Income Tax Slab
FY 2022-23 Rates FY 2022-23
Up to Rs 2.5 lakh Exempt Exempt
Rs 2,50,001 to Rs 5 lakh 5% 5%
Rs 5,00,001 to Rs 7.5 lakh 10% 20%
Rs 7,50,001 to Rs 10 lakh 15%
Rs 10,00,001 to Rs 12.5 lakh 20%
Rs 12,50,001 to Rs 15 lakh 25% 30%
Over Rs 15 lakh 30%

(Old Tax Regime) (New Tax Regime)

Net Taxable Income Income Tax Slab Income Tax Slab
Rates FY 2022-23 Rates FY 2022-23
Up to Rs 2.5 lakh Nil Nil
Rs 2,50,001 to Rs 3 lakh 5%
Rs 3,00,001 to Rs 5 lakh 5%
Rs 5,00,001 to Rs 7.5 lakh 20% 10%
Rs 7,50,001 to Rs 10 lakh 15%
Rs 10,00,001 to Rs 12.5 lakh 20%
Rs 12,50,001 to Rs 15 lakh 30% 25%
Over Rs. 15 lakh 30%

20
 Income Tax Slabs FY 2022-23 (AY 2023- 24) for Senior-
Citizen Taxpayer
In India, Senior Citizen tax payers are individuals above 60 years of age but below
80 years of age. These tax payers enjoy a higher basic exemption limit of Rs. 3
lakh as compared to individuals aged below 60 years under the old tax regime.
However, this benefit of higher exemption is not available for senior citizen tax
payers opting for the new tax regime. The below table summarizes the Income
Tax slab rates in AY 2023-24 (FY 2022-23) for senior citizens in India:

Income Tax Slabs in AY 2023-24 (FY 2022- 23) for Super

Senior-Citizens
Under current tax rules, super senior citizen tax payers are individuals
who are aged 80 years or more. Under the old tax regime, super senior
citizens have a higher basic exemption limit of Rs. 5 lakh as per income
tax slab rates for the financial year 2022-23. This benefit is however
not applicable under the new tax regime even though the slab rates for
AY 2023-24 are lower as compared to the old taxregime. The below
table summarizes the income tax slab and rates applicable to super
senior citizens in FY 2022-23:
(Old Tax Regime) (New Tax Regime)
Net Taxable Income Income Tax Slab Income Tax Slab
Rates-FY 2022- 23 Rates-FY 2022- 23
Up to Rs 2.5 lakh Nil Nil
Rs 2,50,001 to Rs 5 lakh 5%
Rs 5,00,001 to Rs 7.5 lakh 20% 10%
Rs 7,50,001 to Rs 10 lakh 15%
Rs 10,00,001 to Rs 12.5 lakh 20%
Rs 12,50,001 to Rs 15 lakh 30% 25%
Over Rs. 15 lakh 30%

Beyond the income tax liability computed using the Income Tax slab
rates for FY 2022-23, you also have to pay a 4% health and education
cess as part of your overall tax outgo for the fiscal.

21
 New Income Tax Slab Rates Announced in Budget 2023
The Union Budget 2023 announced a change to number of income tax
slabs applicable to the new tax regime for FY 2023-24 i.e. AY 2024-
25 along with an increase in the tax exemption limit to Rs. 3 lakh. These
changes are however not applicable to the old tax regime for FY 2023-
24. Subsequent to these changes, the comparison of old tax regime (tax
payer aged less than 60 years) vs. new tax regime slab rates for FY
2023-24 (AY 2024-25) looks like this:
(New Tax Regime) (Old Tax Regime)
Net Annual Taxable Income Slab Rates-FY 2023- Slab Rates-FY 2023-
24 24
Up to Rs 2.5 lakh Exempt Exempt
Over Rs. 2.5 lakh to Rs. 3 lakh
Over Rs. 3 lakh to Rs. 5 lakh 5%
Over Rs. 5 lakh to Rs. 6 lakh 5%
Over Rs. 6 lakh to Rs. 9 lakh 10% 20%
Over Rs. 9 lakh to Rs. 10 lakh
Over Rs. 10 lakh to Rs. 12 lakh 15%
Over Rs. 12 lakh to Rs. 15 lakh 20% 30%
Above Rs. 15 lakh 30%

As you can see, subsequent to the Budget 2023 announcement of tax

slab rates for AY 2024-25, the number of slabs available under the new
tax regime has decreased to 5 from the current 6 in AY 2023-24.
Additionally, Budget 2023 has also increased the income tax rebate
limit for individuals opting for the new tax regime to Rs. 7 lakh for FY
2023- 24 from the current FY 2022-23 rebate limit of Rs. 5 lakh.
However, none of the above changes are applicable if you opt for the
old tax regime in FY 2023-24 i.e. AY 2024-25.

22
 DEDUCTION

Income Tax Deductions List - Deductions on Section 80C, 80CCC,

80CCD & 80D - FY 2022-23 (AY 2023-24) :-
Income tax department with a view to encourage savings and
investments amongst the taxpayers have provided various deductions
from the taxable income under chapter VI A deductions. 80C being the
most famous, there are other deductions which are beneficial for the
taxpayers to reduce their tax liability. Let us understand these
deductions in detail:
▪ Section 80 Deduction List
• Section 80C – Deductions on Investments
Section 80C is one of the most popular and favourite sections amongst
taxpayers as it allows them to reduce taxable income by making tax-
saving investments or incurring eligible expenses. It allows a maximum
deduction of Rs 1.5 lakh every year from the taxpayer's total income.
The benefit of this deduction can be availedby Individuals and HUFs.
Companies, partnership firms, and LLPs cannot avail the benefit of this
deduction. Section 80C includes subsections, 80CCC, 80CCD (1),
80CCD (1b) and 80CCD (2).

It is important to note that overall limit including the subsections

for claiming deduction is Rs 1.5 lakh except an additional
deduction of Rs 50,000 allowed u/s 80CCD(1b)

Section 80C and its subsections:

23
Sections Eligible investments for tax deductions
Payments made towards life insurance premiums,
80C Equity Linked Saving Schemes, payments made
towards the principal sum of a home loan, SSY,
NSC, SCSS, and so on.
80CCC Payment made towards pension plans, and mutual
funds.
Payments paid to government-sponsored plans
80CCD (1) such as the National Pension System, the Atal
Pension Yojana, and others.
80CCD (1B) Investments of up to Rs.50,000 in NPS.
80CCD (2) Employer’s contribution towards NPS (up to 10%,
comprising basic salary and dearness allowance, if
any)

Investment Average Lock-in period for Risk factor

options
ELSS funds 12% – 15% 3 years High
NPS Scheme 8% – 10% Till 60 years of age High
ULIP 8% – 10% 5 years Medium
Tax saving FD Up to 5 years Low
8.40%
PPF 7.90% 15 years Low
Senior-Citizen 8.60% 5 years (can be extended Low
Savings Scheme for other 3 years)
National Savings 7.9% 5 years Low
Certificate
Sukanya 8.5% Till girl child reaches 21 Low
Samriddhi Yojana years of age (partial
withdrawal allowedwhen
she reached 18
years)

24
Here are some investment options that are allowed as deduction u/s
80C. They not only help you with saving taxes but also help you grow
your money. A quick comparison of the options is tabulated below:
Section 80C Deductions List
DEDUCTIONS-

Section 80CCC (Insert for AY 2023-24):

Any individual contributing to an annuity plan of the Life Insurance

Corporation of India or any other insurer can claim a deduction of the
amount paid or Rs. 10,000, whichever is lower. Withdrawals or pension
received under specified circumstances, such as surrendering the
annuity plan, will be taxed as the income of the individual or nominee
in the year of withdrawal or receipt of pension. The proposed limit of
investment is increased from Rs. 10,000 to Rs.1,00,000, subject to
the overall cap of Rs. 1,00,000 under section 80CCE.

Section 80CCD:

Deduction for contributions to a pension scheme of the Central

Government is available to individuals employed under the central
government pension scheme. However, the deduction is limited to 10%
of the employee's salary. The deduction is available for contributions
made by the Central Government or 10% of the employee's salary,
whichever is less. Taxation occurs when the individual or nominee
receives amounts due to closure or opting outof the pension scheme
or as a pension from the annuity plan. The

25
aggregate deduction under Sections 80C, 80CCC, and 80CCD cannot
exceed Rs 1 lakh.
Section 80D (Insert for AY 2023-24):

An additional deduction of Rs 15,000 under Section 80D is allowed for

individuals paying medical insurance premiums for their parent or
parents. Premiums paid for medical insurance covering the assessee,
spouse, dependent parents, or dependent children are deductible up to
Rs 10,000. An enhanced deduction of Rs 15,000 is available for
premiums paid for medical insurance for senior citizens. Under section
80D, the deduction has been increased to Rs 15,000 and for senior
citizens, it is now Rs 20,000.

Section 80DD:

Deduction is available to an individual incurring expenditure for the

medical treatment, training, and rehabilitation of a disabled dependent.
A deduction of Rs 50,000 is available, which increases to Rs 1,00,000
in case of severe disability. The deduction is also available to Hindu
Undivided Families (HUF).

Section 80DDB:

An individual spending any amount for the medical treatment of

specified diseases affecting oneself or dependents is eligible for a
deduction of the amount spent or Rs 40,000, whichever is less. For
dependent senior citizens, an enhanced deduction of Rs 60,000 is
available.

26
Section 80E (Insert for AY 2023-24):

Deduction under section 80E is allowed for interest on loans taken for
higher education. The deduction now covers all fields of study,
including vocational studies, pursued after completion of schooling.

Section 80U:

Deduction for a person with a disability is available. An individual

suffering from a permanent disability or mental retardation as specified
in certain acts is allowed a deduction of Rs 50,000, increased to Rs.
75,000 in case of severe disability.

Donations Section 80G:

For the Assessment Year 2023-24, donations to electoral trusts are

allowed as a 100 percent deduction in the computation of the donor's
income.

Section 80GG:

27
A non-salaried or salaried person not receiving House Rent Allowance
can claim a deduction for rent paid for residential accommodation. The
deduction is the least of rent paid in excess of 10% of total income, 25%
of total income, or Rs 2,000 per month.

Section 80GGA:

An individual not engaged in any business or profession can claim a

deduction for amounts donated to institutions engaged in scientific
research, rural development, etc.

Section 80GGC:

Deduction in respect of contributions given by any person to political

parties. An individual is allowed a deduction for any amount
contributed to a political party.

Now, your duty as a taxpayer doesn’t just end with paying your taxes
on time. In fact, there are other requirements that you would have to
comply with as well. One such requirement is the filing of Income
Tax Returns (ITRs).
Failing to comply with income tax return filing despite paying all of
your taxes on time can still lead to unnecessary troubles with the
Income Tax Department, which can include exorbitant fines.
What are Income Tax Returns (ITRs)?
Coming to the concept of an Income Tax Return, it is essentially a
statement containing all of the different incomes that you’ve earned

28
during a financial year and the amount of tax that you’ve paid during
the said year.
The Income Tax Return is supposed to be filed by you with the
Income Tax Department each year within the due date, which is
usually the 31st of July of every year.
Who Should File an Income Tax Return?
Contrary to popular opinion, IT Return filing need not be done by
everyone. It is only mandatory if you satisfy the conditions laid out
under the Income Tax Act, 1961. Let’s take a quick look at
individuals for whom tax return filing is mandatory.

• If you’re an individual whose gross annual income exceeds Rs.

2.5 lakhs in a year, you should file your ITR.
• In the case of senior citizens (above 60 years of age) and super
senior citizens (above 80 years of age), income tax return filing
is mandatory if the gross annual income exceeds Rs. 3 lakhs and
Rs. 5 lakhs in a year.
• Partnership firms and companies should also file an Income Tax
Return each year, whether they make profits or losses.
• If you’re an individual who is a resident of India, but has assets
outside India, you must file your income tax return.
• If you’re an individual who derives income from properties held
under charitable trusts, research associations, political parties,
news agencies, and educational institutions, among others,
income tax filing is mandatory.
• If you’re an individual who is an authorised signatory for a
foreign account, you need to file the relevant ITR.
• If you’re an individual who has paid excess taxes and wishes to
obtain an income tax refund, ITR filing is a must.
• If you wish to carry forward losses of a particular year onto the
next year, you need to file your income tax return on time.
What are the Different Types of Income Tax Returns?
29
The Income Tax Department has notified several different types of
Income Tax Returns. And the type of return that you’re required to
file is dependent on factors such as the kind of incomes that you
generate and whether or not you’re an individual. Here’s a quick look
at the various types of ITRs that can be filed.
ITR Applicable For Types of Income Governed by the
Form ITR

ITR 1 Resident Individuals Income arising out of salary or pension,

one house property, and other sources
not exceeding Rs. 50 lakhs
ITR 2 All individuals Income arising out of salary or pension,
more than one house property, capital
gains, foreign income, and other
sources exceeding Rs. 50 lakhs
ITR 3 All individuals All of the incomes under ITR 2 plus
income from business or profession,
income from being a partner in a firm,
and presumptive income exceeding Rs.
50 lakhs
ITR 4 Resident and Ordinarily Presumptive income from salary or
Resident (ROR) individuals pension, one house property, and other
Resident but Not Ordinarily sources not exceeding Rs. 50 lakhs
Resident (RNOR)
individuals
ITR 5 Partnership firms, LLPs, All incomes
AOPs, and BOIs
ITR 6 Companies All incomes
ITR 7 Individuals and companies All of the incomes arising out of the
falling under – specified sections of the Income TaxAct.
• Section 139 (4A)
• Section 139 (4B)
• Section 139 (4C)
• Section 139 (4D)

How to File Income Tax Returns?

30
Knowing how to file your ITR is extremely important since it
eliminates the need to seek assistance from others. The process is quite
simple and can be completed within a short period of time, provided
you have all of the pertinent information with you. Checkout a brief
overview of the process down below.

• Visit the following link -

https://eportal.incometax.gov.in/iec/foservices/#/login
• Register yourself on the income tax portal.
• Once you’re registered, log into your account using your user
credentials.
• Hover over the ‘e-File’ option on the webpage and then the
‘Income Tax Returns’ option.
• Click on the ‘File Income Tax Return’ option.
• Select the assessment year for which you wish to file your return
and the mode of filing - online or offline. Filing an ITR online is
the easiest and fastest way to complete.
• If you’ve selected the online method, click on ‘Continue’ to
proceed.
• Click on the ‘Start New Filing’ option.
• Select your status - Individual, HUF, or Others and click on
‘Continue’.
• Choose the ITR form that’s applicable to you and proceed.
• You will be asked a few questions, which you will have to answer.
• Once you’ve answered all of them, you will be taken to the ITR
form applicable to you, where you can fill in all of the details of
your income and taxes paid.
• After filling all of the information, submit the ITR form and
proceed towards verification of the return.
• You can verify your returns through multiple different methods
- through Aadhaar OTP, through an EVC, or by sending across a

31
 signed physical copy of your ITR to the Income Tax
Department.
• Once you’ve verified your ITR, your Income Tax Return filing
would now be complete.

TYPES OF ITR

Normal Return/Voluntary Return

▪ Assessees who file ITRs before the due dates
applicable as per section 139(1)
▪ Belated Return – Sec.139(4)
• Who could not file ITR before the normal due
dates, allowed to file with penalty under section
234F
o Revised Return – Sec.139(5)
▪ Only when normal return is filed before the due date,
the revised return may be filed before the notified
due date.
o Defective Return – Sec.139(9)
▪ When notice is issued by the Assessing Officer, the
time limit within 15 days from the date of such
notice or intimation.
Return of Loss
o The ITR should be filed before the due dates notified
under sec.139(1) for various assessees
o Allowed to carry forward the losses. Read with section 80

ITR Forms –

32
ITR 1

• ITR 1 (SAHAJ)
• Income from Other sources
• Salary
• Pension
• Income from House Property only one house
• Agriculture Income less than Rs. 5000
• Total Income is less than Rs. 50 lakh
ITR 1 – not applicable

• Has assets outside India

• Has authority to sign the Bank Account located outside India
• Has income from any other source outside India
• If the assesse is a Director in a Company
• Has any unlisted equity shares at any time during the year
• If TDS is made from the Income of any other person which is to
be clubbed in the hands of the assesse.(Sec.60, 61 and 64)
• If the assesse claims double taxation relief (Sec.90 and 91)
• Owns more than One House Property (including joint property)
ITR 2

• Applicable to Individual or HUF

• The Total Income does include Income under the head
• Business or Profession.
• If the total income is more than Rs.50 lakhs
• If the assesse has more than 2 house property
• Has income from Capital Gains
• Income from Foreign Source
• HUFs
• Agriculaltural income is more than Rs.5000
ITR 3

33
 • Applicable to Individual or HUF
• Income from House Property (Multiple)
• Income from Capital Gains (Short Term and Long Term)
• Income from Business or Profession carried under
a Proprietorship Firm (where the Individual/ HUF is the
proprietor)
• Income from Other Sources (Including Winning from Lottery,
bets on Race Horses and other legal means of gambling)
• Income from Foreign Asset
ITR 4 - Sugam
• Individual or Resident
o (Not for an Individual who is either Director in a company
or has invested in Unlisted Equity Shares)
• HUF
• Firm (Not being LLP
• Derives income from Profession
• Being a Resident having Total Income upto Rs.50 lakhs and
having income from Business and Profession which is computed
under sections 44AD, 44ADA or 44AE - Presumptive Income
ITR 5

• This form can be used a person being a firm, LLPs, AOP, BOI,
• Artificial juridical person referred to in section 2(31)(vii),
• estate of deceased,
• estate of insolvent,
• business trust and investment fund,
• cooperative society and local authority.
• However, a person who is required to file ITR-7- the return of
income under section 139(4A) or 139(4B) or 139(4C) or
139(4D) shall not use this form.
• ITR-5 should not be used by
o Individual, HUF, Company and
34
 Person filing Form ITR-7
ITR 6
For Companies other than companies claiming exemption under
section 11.

Who Can File ITR 7

• Under Section 139 (4A)- if they earn from a charitable /religious
trust
o Income Tax filing under Section 139(4A) is for any person
who receives income from property used solely or partially
for charitable or religious purposes. For file Income Tax
return by using ITR 7, one must be held under a legal
obligation or as a trust.
• Under Section 139 (4B)- if they earn from a political party
o Section 139(4B) specifically applies to political parties.
While political parties get an exemption from taxation u/s
Section 13A, this exemption applies only at the time of
filing an annual return using ITR 7. Section 13A also
prescribes a basic exemption limit for political parties, thus
ITR Form 7 needs to be filed only if the political party
breaches this exemption limit.

35
 ITR E-FILING PROCEDURES

E-filing of Tax Returns:

• The process of electronically filing Income tax returns through the
internet is known as e-Filing.
• It is mandatory for Companies and Firms requiring statutory audit u/s
44AB to submit the Income tax returns electronically for AY 2009-10.
– Any Company/Firm requiring statutory audit u/s 44AB return
submitted without a e-Filing receipt will not be accepted.
• E-Filing is possible with or without digital signature.

The Income Tax Department is keen to encourage e-filing of IT

returns by all taxpayers in view of the following benefits to taxpayers.
o Anywhere-Anytime Filing
o No long queues
o No Personnel Interface
o Quick Processing
o Accurate data in return

Paid taxes, made your tax saving investments... now get geared up for
filing income tax returns as the month of July is on the horizon and the
time has come when one is supposed to file IT returns.
In the year 2007 the Income Tax Department of India took many
initiatives such as training TRPS, launching saral forms in a new avatar
and so on for making tax filing convenient and handy for the citizens.

36
In this e-age when ICT is successfully intervening in so many fields
and providing services from online banking to online news, online
mutual fund investments to online buying and selling, the Income Tax
Department of India launched the Electronic Filing of income tax
returns.
Yes, using the e-filing process one can file in tax returns just within a
few clicks at any time of the day and that too without any hassles. Using
this technology all you have to fill the form and submit it, online or
offline.
MORE ABOUT THE E-FILING PROCESS WORK
The e-filing process is really easy and takes a very little time and all
you have to do is fill up your tax return form online provided and the
other required information about income, expenditure and savings.
Filing tax returns online is the easiest and the simplest method and all
one needs is to log on and follow the simple instructions.
For e- filing process one needs to have a software application that
generates the income tax form, which is available at the Income Tax
Department website.

TYPES OF E-FILING
There are three ways to file returns electronically.
• Option 1: Use digital signature, in which case no further action is
required.
• Option 2: File without digital signature, in which case ITR-V form is
to be filed with the department. This is a single page receipt cum
verification form.
• Option 3: File through an e-return intermediary who would do E-
Filing and also assist the Assessee file the ITR-V Form.
Documents required for e-filing
37
• Form No. 16 (for Tax deducted by employers)
• Form No. 16A
• Account statements of bank accounts
• Property details
• Sale and purchase of investments / assets
• Details of tax payments made
• PAN card photo copy
• Birth date
• TAN number
• Bank A/c no
• Bank details – MICR code, Type of A/c.

Process of E-Filing:
39
42
 BENEFITS OF E-FILING

1) Benefits of Electronic Filing:

• Convenience: Filing taxes online allows you to do it from
anywhere and at any time, day or night.
• Speedy Processing: Online tax returns are processed faster
than paper returns, and the system automatically calculates
the tax as you fill in the form.
• Immediate Acknowledgement: Upon completion, you
receive an acknowledgement slip instantly.
• Security: Online filing is a secure and safe mode of tax
submission.

2) Excess TDS Claim:

• Understanding Tax Deduction: Tax can be deducted from
your income sources like salary or Fixed Deposit, even if your
total income is not taxable.
• Reclaiming TDS: Filing an Income Tax Return allows you
to reclaim excess tax deducted at the source.

3) VISA Application:
• Enhanced Visa Approval Chances: Submitting Income Tax
Return documents with a visa application can reduce the
chances of rejection or flagging as problematic.
• Civic Responsibility Illustration: The tax return showcases
civic responsibility, and many countries now require ITR for
visa applications.

50
4) Establishing Losses:
• Carrying Over Losses: Filing a return, even if it is NIL, is
necessary to carry over losses from the previous year.
• Capital Loss Offsetting: ITR filing is required to offset
capital losses from the stock market.

5) Reliable Proof of Address:

• Address Verification: Income Tax Return serves as valid proof
of address, accepted even for obtaining documents like Aadhaar
Card.

6) Authentic Evidence of Your Earnings:

• Proof for Self-Employed Individuals: For self-employed or
independent contractors, ITR serves as genuine income
verification.

7) For Purchasing High Coverage Insurance:

• Income Verification for Insurance: ITR serves as evidence
of income for purchasing high coverage life insurance policies.

8) A Crucial Document for Loan Application:

• Loan Approval Requirement: Banks often request ITR for
the previous three years to assess your financial ability to repay
loans or credit card debt.

51
 9) Scholarship Advantages:
• Source of Income Documentation: ITR is accepted as a
source of income documentation for claiming scholarships
from institutes or universities.

10) Funding for Startup Ventures:

• Evaluation of Financial Stability: Investors in startups may
require ITR details to evaluate the financial stability and
profitability of the business.

11) Benefits for Independent Contractors & Professionals:

• Proof of Tax Filing: For self-employed individuals or
independent contractors, ITR is crucial as it serves as proof of
income tax filing, aiding in financial transactions and funding
applications.

Effects of Failing to File An ITR:

1. Issuance of Notice:
• If a person is subject to Income Tax, they will receive a notice
for failing to file their Income Tax Return.
2. Submission of Detailed Explanation:
• Individuals unable to submit returns for valid reasons can
provide a detailed letter along with necessary supporting
documentation. They may seek relief from penalties.
3. Penalties for Late Filing:
• The Income Tax Department imposes fines for filing ITR after
the deadline. The penalty is ₹10,000 if the income exceeds ₹5
lakhs and ₹1,000 if it is less.

52
 4. Detainment in Serious Cases:
• In severe situations like tax evasion, individuals may face
detention.
5. Exemptions for Some Individuals:
• Certain individuals are exempt from mandatory filing. As per
the Union Budget 2021 announcement, seniors aged 75 or
older can receive full exemption from filing ITR.

It is evident that there are consequences for avoiding the annual ITR
filing process. Timely tax payment and return submission are essential
to avoid penalties and legal actions. The benefits of compliance far
outweigh the repercussions. This blog serves as public interest
information and is intended solely for educational purposes.

53
 MSME

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 there under. It examines the factors affecting promotion and
54
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.

55
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:

1) Visit the MSME Udyam registration web portal.

2) 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”.
3) Submit your Aadhaar Number and name.
4) Then tick the consent button and click on the ‘Validate &
Generate OTP’ button.
5) On the next page, submit details of your PAN and organization
type. If you don’t have PAN, select the ‘No’ option.
6) Fill in the rest of the fields on the form.
7) Enter the OTP received on your phone number and verification
code to submit the form.
8) 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:

56
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”.
57
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.

58
MSME CERTIFICATE

59
 ObjEctivEs of INTERNSHIP

The internship at Singh Saurabh & Co. aims to provide a practical and
immersive learning experience in the realm of accounting and finance.
The key objectives are:
1. Hands-On Experience:
• To offer practical exposure in accounting, finance, and
taxation, complementing theoretical knowledge acquired in
coursework.
2. Application of Theoretical Concepts:
• To enable the application of theoretical concepts from
coursework to real-world scenarios, fostering the acquisition
of practical skills.
3. Skill and Knowledge Enhancement:
• To facilitate the development and enhancement of technical,
analytical, and communication skills crucial for future careers
in the finance sector.
4. Building Professional Networks:
• To create opportunities for establishing connections with
industry professionals, providing insights into the practices of
the accounting and finance domain.
5. Preparation for Market Demand:
• To prepare interns for a successful career as financepersonnel
by ensuring a comprehensive understanding of accounting,
auditing, and taxation practices aligning with market demands.

By achieving these objectives, the internship seeks to equip participants

with a well-rounded skill set, practical insights, and a network of
professional contacts, setting the stage for a prosperous career in the
field of finance.

60
 LEArNING ExpEriENcE

The Singh Saurabh & Co. internship has provided me with valuable
learning experiences, focusing on practical training in accounting and
finance. Some key takeaways include:
1. Real-World Exposure:
• Engaging in actual accounting and finance tasks, including
auditing, tax preparation, and financial analysis, has provided
me with a firsthand understanding of real-world applications.
2. Technical Skill Development:
• The internship has played a pivotal role in enhancing my
technical skills, particularly in financial reporting, tax
compliance, and the utilization of accounting systems.
3. Professional Growth Opportunities:
• Exposure to diverse and challenging tasks has expanded my
knowledge base, contributing to my overall professional
growth within the dynamic field of accounting and finance.
4. Mentorship:
• Working alongside experienced professionals has offered me
valuable mentorship, allowing me to receive guidance and
constructive feedback to refine my skills.
5. Networking:
• Building connections with industry professionals has
broadened my perspective on various career paths within the
accounting and finance sector, creating opportunities for future
collaborations.
6. Confidence Building:
• Tackling real-world tasks during the internship has
significantly boosted my confidence, instilling a sense of pride
in my abilities and contributions.

61
 7. Practical Business Understanding:
• The internship has provided insights into the workings of an
organization, including its environment, strategies for goal
achievement, and the practical application of accounting in the
business context.

Overall, this internship has equipped me with practical skills,

knowledge, and a deeper understanding of how accounting principles
are applied in a real-world organizational setting.

62
 CoNclusioN

The journey through the Singh Saurabh & Co. internship, centered on
income tax, has been an enriching exploration into the intricacies of the
taxation landscape. As I reflect on this transformative experience,
several key aspects come to light:

1. Internship Insights:
• The internship provided a structured overview of the program,
immersing me in a realm of tasks and responsibilities
intricately tied to income tax.
2. Learnings Enriched:
• From navigating tax laws to understanding compliance
intricacies, the internship gifted me with profound insights into
tax planning and consultancy services.
3. Reflecting on Impact:
• This internship journey has not only contributed to my
professional arsenal but has significantly impacted mypersonal
and career growth within the realm of income tax.
4. Guidance Appreciated:
• Heartfelt appreciation goes to the mentors and supervisors who
provided unwavering guidance, making the labyrinth of
income tax regulations more navigable.
5. Skills Acknowledged:
• The internship has equipped me with skills and knowledge that
extend beyond the confines of the program, promising
practical applications in future endeavors.

It's crucial to acknowledge that this conclusion encapsulates a personal

journey and may vary based on individual experiences,
63
internship specifics, and the nature of the report. Beyond the scope of
income tax, the internship offered glimpses into the broader tax
domain, unraveling the nuances of GST, MSME registration, andTDS
filing.

In summary, this internship has been a remarkable and rewarding

experience. Networking opportunities abound, and I look forward to
leveraging these connections for future prospects. A paramount lesson
learned is the art of time management and self-motivation, proving
invaluable in navigating the dynamic landscape of real-world scenarios.
The echoes of this internship experience resonate as a promising
prelude to future successes.

64