SUMMER INTERNSHIP REPORT

On
INCOME TAX RETURN AND E-FILING
AT
PCS & ASSOCIATES
Towards partial fulfilment of Two Years (Full Time)
Master of Business Administration (MBA)
Programme
(Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Lucknow)

Under the Supervision of : Submitted by:

DK SHUKLA KAIYNAT RIZVI
(Assistant Professor) 2200540700039
COMAPANY GUIDE: 3rd SEMESTER
CA ANURAG PANDEY
Batch: 2023-24
Department of Management

BABU BANARASI DAS INSTITUTE OF TECHNOLOGY AND MANAGEMENT

Sector I, Dr Akhilesh Das Nagar, Faizabad Road Lucknow

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 ACKNOWLEDGEMENT

First of all, I would like to pay my heartiest thanks to entire members of the firm especially
CA. ANRAG PANDEY Sir for his helpful hand in the completion of my project.
I am highly indebted to my Faculty guide Dr. D.K SHUKLA Sir for their throughout
guidance and constant supervision as well as for providing necessary information regarding
the project & also for their support in completing the project. I would like to express my
gratitude towards my parents & my college mates for their kind co-operation and
encouragement which help me in completion of this project. However, it would not have been
possible without the kind support and help of many individuals and organizations. I would
like to extend my sincere thanks to all of them who have willingly helped me out with their
abilities.

KAIYNAT RIZVI
MBA 3rd SEMESTER

PREFACE

I had under gone my summer training with PCS & ASSOCIATES.

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IMPORTANCE AND OBJECTIVES OF TRAINING:
 Developing skills
In this ability, to perform work efficiently & effectively is being developed.
 Modifying attitude
Developing good attitude on the part of the training in regard to actual job
requirement that is
management.

Information about the company, its product, services & policies

So, as total above, I had the privilege of receiving my practical training at PCS
& ASSOCIATES.The management of company offered excellent learning
situation & sufficient facilities, to fulfil the objectives of the training.

DECLARATION

I hereby declare that the Internship project entitled “INCOME-TAX RETURN

AND E-FILING PROCESS” WITH PCS & ASSOCIATES” submitted by me as
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a partial fulfilment for the reward of Master’s of Business Administration for
the session 2023-2024 is a original and genuine work carried out by me.

DATE: KAIYNAT RIZVI

PLACE: MBA

TABLE OF COTENT

S.NO TITLE OF CONTENT PAGE. NO

1 Introduction 6-10

2 Company Profile 11

3 Executive Summary 12-14

4 SWOT ANALYSIS 15-17

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 5 OBJECTIVE OF WORK DURING INTERNSHIP 18-20

6 OBJECTIVES OF STUDY 21

7 INCOME TAX ACT 1961 22-30

8 E-FILING OF INCOME TAX RETURNS 31-39

9 GST RETURN FILING 40-41

10 TDS FILING PROCESS 42-58

11 CONCLUSION 59

12 RECOMMENDATION 60

13 BIBLIOGRAPHY 61

INTRODUCTION

Income Tax in India: Guide, IT Returns, E-filing Process 2019

Taxes in India can be categorized as direct and indirect taxes. Direct tax is a tax you
pay on your income directly to the government. Indirect tax is a tax that somebody
else collects on your behalf and pays to the government such as restaurants, theatres
and e-commerce websites recover taxes from you on goods you purchase or a service
you avail. This tax is, in turn, passed down to the government. Direct Taxes are
broadly classified as
1. Income Tax – This is taxes an individual or a Hindu Undivided Family or any
taxpayer other than companies, pay on the income received. The law prescribes the
rate at which such income should be taxed.

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2. Corporate Tax – This is the tax that companies pay on the profits they make from
their businesses. Here again, a specific rate of tax for corporates has been prescribed
by the income tax laws of India.
Indirect taxes take many forms:
service tax on restaurant bills and movie tickets, value-added tax or VAT on goods
such as clothes and electronics. Goods and services tax, which has recently been
introduced, is a unified tax that has replaced all the indirect taxes that business owners
have to deal with.

Income Tax Basics:

Everyone who earns or gets an income in India is subject to income tax. (Yes, be it a
resident or a non-resident of India). Also read our article on Income Tax for NRIs.
Your income could be salary, pension or could be from a savings account that’s quietly
accumulating a 4% interest. Even, winners of ‘Kaun Banega Crorepati’ have to pay
tax on their prize money.

Taxpayers and Income Tax Slabs

Taxpayers in India, for the purpose of income tax include:
 Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP)
and Body of Individuals (BOI)
 Firms
 Companies

Each of these taxpayers is taxed differently under the Indian income tax laws.
While firms and Indian companies have a fixed rate of tax of 30% of profits, the
individual, HUF, AOP and BOI taxpayers are taxed based on the income slab
they fall under. People’s incomes are grouped into blocks called tax brackets or
tax slabs. And each tax slab has a different tax rate. In India, we have four tax
brackets each with an increasing tax rate.

 Income earners of up to 2.5 lakhs

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 Income earners of between 2.5 lakhs and 5 lakhs
 Income earners of between 5 lakhs and 10 lakhs
 Those earning more than Rs10 lakhs

Income Tax Return (ITR)

A tax return is defined as a form or different types of forms filed with a taxing authority which
reports income, expenses, and other pertinent tax information. Tax returns make it simple for
taxpayers to calculate their tax liability, schedule tax payments and request refunds for the
overpayment of taxes. All taxpayers who are filing their income tax returns are required to determine
the type of income tax return (ITR) form they need to fill before actually filing their returns. The form
to be filled is solely dependent on the income that the taxpayer earns or in certain cases if the taxpayer
holds assets in a country other than India or earns any form of income from a country other than India.

Different types of ITR forms

In total, there are almost 9 types of ITR forms available for a tax payer to file his
taxes. However, only the following forms are to be taken into consideration by
individuals when filing returns as per the Central Board of Direct Taxes in India:

 ITR-1
 ITR-2
 ITR-2A
 ITR-3

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 ITR-4
 ITR-4S
The following income tax return forms are applicable only for companies and firms:
 ITR-5
 ITR-6
 ITR-7

ITR-1
Also known as the Sahaj form, this income tax return form is to be filed solely by an
individual taxpayer. Any other assesse liable to pay tax is not eligible to avail of this
form for filing their returns.

ITR-2A
Introduced in the assessment year 2015-16, The ITR-2A form is a new income tax
return form. This form can be used by a Hindu Undivided Family (HUF) or an
individual taxpayer.

ITR-2
The ITR-2 Form is a type of ITR form which is generally used by individuals who have
accrued income through the sale of assets or property. Also, this form is useful for
individuals who earn income from countries outside India. In most cases, individuals
or Hindu Undivided Families (HUF) can avail of this form to file their IT returns.

ITR-3
The ITR-3 Form is useful for an individual taxpayer or a Hindu Undivided Family, who
solely operates as a partner in a firm but who do not conduct any business under the
firm. This is also applicable for individuals who do not earn any income from the
business conducted by the firm.

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ITR-4
This type of ITR form is useful for those individuals who conduct a business or who
earn income through a profession. This form is applicable for all types of businesses,
undertaking or profession, without any limit on the income earned. Taxpayers can
also club any income they receive from windfalls, speculation, salaries, lotteries,
housing properties etc., along with the income earned from their business. An
individual with any profession, right from shopkeepers, doctors or designers to
agents, retailers and contractors, is eligible to file their ITR using this form

ITR-4S
Also known as Sugam form, the ITR-4S form can be used by any individual or Hindu
Undivided Family (HUF) for filing their income tax returns.

ITR-6
Except those companies or organisations that claim tax exemption as per Section 11,
the ITR-6 form is used only by all companies. Organisations that can claim tax
exemptions as per Section 11 are organisations in which the income received is
accumulated from the property used for the purpose of religion or charity. This
particular income tax return form is only available to be filed online.

ITR-7
Those individuals or companies that are required to submit their returns under the
following sections are required to file their income tax returns through ITR-7:
 Section 139(4A) - Under this section, returns can be filed by individuals who
receive income from any property that is held for the purpose of charity or
religion in the form of a trust or legal obligation
 Section 139(4B) - Under this section, returns are to be filed by political parties
provided their total income earned is above the non-taxable limit
 Section 139(4C) - Under this section, returns are to be filed by the following
entities:

 Any institution or association mentioned under Section 10(23A)

 Any association involved with scientific research
 Any institution mentioned in Section 10(23B)
 Any news agency

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  Any fund, medical institution or educational institution

 Section 139(4D) - Under this section, returns are to be filed by entities such as
colleges, universities or any other such institution wherein income returns or
loss are not required to be provided in accordance with other provisions
outlined in this section.

PCS & ASSOCIATES

Harsh Plaza, 4D, Mira Bai Marg, Narhi, Hazratganj,
Lucknow, Uttar Pradesh

PCS & ASSOCIATES Chartered Accountant in Lucknow is one of the leading

businesses in the Accountants. Also known for CA, Income Tax Consultants, GST
registration Consultants, Accountants, Tax Consultants, Accounting Services and
much more.

OVERVIEW

Established in the year 2011 PCS and Associates started accountant in Narahi
Lucknow is a top player in the category of accountant in the Lucknow. This well
known establishment acts as a one-stop destination servicing customers both local and
from the parts of Lucknow. Over the course of its journey the business has established
a firm foothold in its industry. The belief that customers satisfaction is as important as
their product and services, have helped this establishment Garner a vast base of
customers which continues to grow by the day. This business employs individuals that
are dedicated towards their respective roles and put in a lot of effort to achieve the
common vision and larger goals of the company. In the near future, the business aims
to expand its line of product and services and cater to a larger client base. In Lucknow,
the establishment occupies a prominent location in Narahi. It is an effortless task in
commuting to this establishment as there are various Modes of transport readily
available.

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 EXECUTIVE SUMMARY

Working in a CA (Chartered Accountancy) firm as an intern provides valuable insights and practical
experience in the field of accounting and finance. The following executive summary outlines key
aspects of the internship experience:

Introduction:
Interning in a CA firm is a crucial step for individuals pursuing a career in accounting and finance.
This experience offered me hands-on exposure to real-world financial practices, allowing interns to
apply theoretical knowledge in practical scenarios.

Key Responsibilities:
Interns in a CA firm are typically engaged in a range of responsibilities, including but not limited to:

1. Assisting in Audits: Interns often participate in audit engagements, gaining exposure to the audit
process, documentation, and financial statement analysis.

2. Tax Preparation: Involvement in tax-related tasks such as tax return preparation, compliance, and
staying updated on tax regulations is a common aspect of the internship.

3. Financial Analysis: Interns may be tasked with conducting financial analysis, interpreting data,
and providing insights to support decision-making processes.

4. Client Interaction: Depending on the firm's structure, interns may have the opportunity to interact
with clients, improving communication and client management skills.

Learning Opportunities:
The internship provides a platform for continuous learning and professional development, offering
opportunities to:

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1. Apply Classroom Knowledge: Interns get the chance to apply theoretical concepts learned in
academic settings to real-world scenarios, enhancing practical skills.

2. Learn Industry Best Practices: Exposure to the firm's methodologies and best practices in
accounting and auditing contributes to a comprehensive understanding of industry standards.

3. Professional Development: Interns receive mentorship and guidance from experienced

professionals, fostering their professional development and expanding their network within the
industry.

Challenges:
While the internship is a valuable learning experience, it may come with challenges such as:

1. Workload: The accounting profession often involves tight deadlines, and interns may need to
manage multiple tasks simultaneously.

2. Adapting to Software: Familiarity with accounting software and tools is essential, and interns
may face a learning curve in adapting to the firm's systems.

Conclusion:
Interning in a CA firm is a crucial stepping stone in the journey toward becoming a Chartered
Accountant. It provides a holistic understanding of accounting practices, opportunities for skill
development, and exposure to the dynamic and fast-paced nature of the industry. The experience
gained during the internship lays a strong foundation for a successful career in the field of accounting
and finance.

SWOT ANALYSIS

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A SWOT analysis is a strategic planning tool that helps businesses and organizations
identify their Strengths, Weaknesses, Opportunities, and Threats. Applying this
analysis to a Chartered Accountancy (CA) firm can provide insights into its internal
and external factors. Here's an example of a SWOT analysis for a CA firm:

Strengths:

1. Expertise and Knowledge: Chartered Accountants are highly trained professionals

with in-depth knowledge of financial regulations, tax laws, and accounting principles.

2. Trust and Credibility: A reputable CA firm often builds trust with clients due to its
ethical standards, professional integrity, and adherence to accounting standards.

3. Client Base: A well-established firm may have a diverse and extensive client base,
providing stability and potential for referrals.

4. Technological Integration: Effective use of accounting software and technology

can enhance efficiency and improve service delivery.

Weaknesses:

1. Dependency on Key Personnel: If the firm relies heavily on a few key individuals,
it may face challenges if they leave or are unavailable.

2. Limited Service Offerings: A narrow range of services may limit revenue streams
and hinder the firm's ability to meet diverse client needs.

3. Market Competition: The CA industry is competitive, and firms may struggle to

differentiate themselves without a unique value proposition.

4. Regulatory Changes: Frequent changes in tax laws and regulations can pose
challenges, requiring constant updates and adaptation.

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Opportunities:

1. Market Expansion: There may be opportunities to expand services or enter new

markets, either geographically or through diversification.

2. Technological Advancements: Embracing new technologies and staying ahead of

industry trends can provide a competitive edge.

3. Strategic Alliances: Forming alliances with other professional service firms or

businesses can open up new avenues for collaboration and referrals.

4. Consulting Services: Offering advisory and consulting services in addition to

traditional accounting can provide additional revenue streams.

Threats:

1. Economic Downturn: Economic uncertainties and downturns can affect

businesses, leading to decreased demand for financial services.

2. Competition: Increased competition from other CA firms or alternative service

providers can impact market share and pricing.

3. Cybersecurity Risks: With the increasing reliance on technology, CA firms are

exposed to cybersecurity threats that can compromise sensitive client information.

4. Regulatory Compliance: Stricter regulatory requirements and changes in

compliance standards can pose challenges for CA firms to keep up.

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 OBJECTIVE OF WORK DONE DURING INTERNSHIP

The objectives of the work done during an internship at a CA (Chartered

Accountancy) firm are multifaceted, encompassing professional development,
practical experience, and the application of theoretical knowledge. Here are common
objectives for the work conducted during an internship:

1. Hands-On Application of Classroom Knowledge:

- Apply theoretical concepts learned in academic settings to practical situations.
- Gain a deeper understanding of accounting principles, financial regulations, and
auditing standards through real-world scenarios.

2. Practical Exposure to Accounting and Financial Processes:

- Acquire practical experience in conducting audits, preparing financial statements,
and performing tax-related tasks.

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 - Understand the day-to-day operations of a CA firm and its role in the broader
financial ecosystem.

3. Development of Technical Skills:

- Enhance proficiency in using accounting software, financial tools, and industry-
specific technologies.
- Improve skills in data analysis, financial modelling, and spreadsheet management.

4. Exposure to Professional Ethics and Integrity:

- Learn and apply professional ethics and integrity standards in handling sensitive
financial information.
- Understand the importance of confidentiality, objectivity, and independence in the
accounting profession.

5. Client Interaction and Communication Skills:

- Develop effective communication skills, both written and verbal, through
interactions with clients, colleagues, and superiors.
- Gain experience in client relationship management, understanding client needs,
and addressing queries.

6. Project Management and Time Management:

- Learn to manage time efficiently to meet project deadlines and handle multiple
tasks simultaneously.
- Understand project management methodologies used in auditing, consulting, and
other services provided by the CA firm.

7. Networking and Relationship Building:

- Build a professional network within the CA firm and the broader accounting and
finance industry.
- Establish connections with experienced professionals who can provide guidance
and mentorship.

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8. Understanding Regulatory Compliance:
- Gain insights into the regulatory environment governing accounting and finance.
- Stay updated on changes in tax laws, accounting standards, and other regulatory
requirements.

9. Problem-Solving and Critical Thinking:

- Develop problem-solving skills by addressing complex financial issues and
proposing effective solutions.
- Enhance critical thinking abilities through the analysis of financial data and
decision-making processes.

10. Professional Growth and Career Development:

- Assess personal strengths, weaknesses, and areas for improvement to facilitate
professional growth.
- Lay the groundwork for future career opportunities in the accounting and finance
sector.

By achieving these objectives, interns can maximize their learning experience,

contribute effectively to the CA firm, and prepare themselves for a successful career in
the field of accounting and finance.

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 OBJECTIVES OF THE STUDY

 To assess the perception and awareness of tax-payers towards e-filing of income tax
returns.

 To study the satisfaction level of tax-payers towards e-filing of income tax returns.

 To know about the online process of filing ITR or e-filing.

 To know about TDS filing

INCOME TAX ACT 1961:

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 Under the Income Tax Act, companies need to comply with various
provisions related to income tax, including:

1. Income Tax Return (ITR) Filing:

- Companies are required to file their income tax returns annually,
disclosing their income, deductions, and other relevant information.

Filing an Income Tax Return (ITR) is a mandatory requirement for

individuals and entities whose income exceeds the prescribed threshold
set by the tax authorities. The process involves reporting various details
of income, deductions, and taxes paid to the government. Here is a
general overview of the Income Tax Return filing process:

Individual Income Tax Return Filing:

 Determine the Applicable Form:

Choose the correct ITR form based on your sources of income, residential
status, and other relevant factors. Commonly used forms for individuals
include ITR-1 (Sahaj), ITR-2, ITR-3, and so on.

 Gather Necessary Documents:

Collect documents such as Form 16 (issued by the employer), bank
statements, investment proofs, and other supporting documents relevant
to your income, deductions, and tax payments.

 Compute Total Income:

Calculate your total income by aggregating income from all sources,
including salary, business or profession, house property, capital gains, and
other income.

 Claim Deductions and Exemptions:

Deduct eligible expenses and claim exemptions under various sections of
the Income Tax Act, such as Section 80C (for investments), Section 10
(for exemptions), etc.

 Calculate Tax Liability:

Compute your tax liability based on the applicable income tax slabs,
deductions, and exemptions.

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 File Online or Offline:
Individuals can file their ITR online through the official Income Tax e-
filing portal (https://www.incometaxindiaefiling.gov.in/) or by using
authorized intermediaries. Offline filing is also possible, but e-filing is
more common and convenient.

 Generate and Verify ITR-V:

After successfully filing the return, generate the ITR-V
(Acknowledgment) and download it. The ITR-V serves as proof of filing.
Optionally, electronically verify the return using methods like Aadhaar-
based OTP, net banking, or Electronic Verification Code (EVC).

 Send Signed ITR-V (if applicable):

If the return is not electronically verified, sign the ITR-V and send it to
the Centralized Processing Centre (CPC) in Bengaluru within 120 days of
e-filing.

 Processing by Income Tax Department:

The Income Tax Department processes the filed returns and issues
intimation notices if any discrepancies or adjustments are identified.

 Refund or Tax Payment:

If eligible, receive any income tax refund directly to your bank account.
If additional tax is payable, make the payment online or through
designated banks.

Corporate Income Tax Return Filing:

 For companies, the process is somewhat similar, but the applicable forms
and complexities may vary. The general steps include:

 Determine Applicable Form:

- Choose the correct ITR form based on the type of company
(e.g., ITR-6 for companies other than those claiming exemption
under Section 11).

 Prepare Financial Statements:

- Prepare audited financial statements, including the balance
sheet, profit and loss account, and other relevant documents.

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 Compute Total Income:
- Calculate the total income by considering profits and gains from
business or profession, capital gains, and other income sources.

 Claim Deductions and Exemptions:

- Deduct eligible expenses and claim exemptions as per the
provisions of the Income Tax Act.

 File Online:
- File the income tax return online through the Income Tax e-
filing portal.

 Generate and Verify ITR-V:

- Generate the ITR-V and optionally verify the return
electronically using methods like digital signature or EVC.

 Processing and Compliance:

- The Income Tax Department processes the filed returns and
may issue notices for clarification or additional information.

 Refund or Tax Payment:

- Receive any eligible income tax refund directly to the
company's bank account.
- If additional tax is payable, make the payment online or through
designated banks.

It's crucial to stay updated on changes in tax laws, use the correct forms,
and comply with filing deadlines to avoid penalties and legal
consequences. Many taxpayers, both individuals and businesses, seek the
assistance of tax professionals to ensure accurate and timely filing of
Income Tax Returns.

2. Tax Audit (Section 44AB):

- Companies meeting certain turnover thresholds are required to
undergo a tax audit under Section 44AB. The audit report is filed along
with the income tax return.

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 Section 44AB of the Income Tax Act in India pertains to the provisions
related to tax audit. Tax audit is essentially an examination of the
financial statements of an assesses by an independent auditor to ensure
compliance with the provisions of the Income Tax Act.

What is Income Tax Return?

Income tax return is the form in which assesses file information about his/her
income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR
2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not
allowed to carry forward certain losses.

The Income Tax Return 1961, and the Income Tax Rules, 1962, obligates citizens to
file returns with the Income Tax Department at the end of every Financial year. These
returns should be filed before the specified due date. Every Income Tax Return Form
is applicable to a certain section of the Assessees. Only those Forms which are filed
by the eligible Assessees are processed by the Income Tax Department of India. It is
therefore imperative to know which particular form is appropriate in each case.
Income Tax Return Forms vary depending on the criteria of the source of income of
the Assessee and the category of the Assessees.

Filing of income tax returns: obligation by law

Individuals who fulfil any one of the following conditions should by law file their
Income Tax Returns during a financial year:

 People whose gross total income (before any deductions exceeds ₹2.5 lakh
in FY or ₹3 lakh for senior citizens or ₹5 lakh for super senior citizens).
 Companies or firms irrespective of whether you have income or loss during
the financial year.
 Those who want to claim an income tax refund.
 Those who want to carry forward a loss under a head of income.
 Resident individuals who have an asset or financial interest in an entity
located outside of India. (Not applicable to NRIs or RNORs).
 Residents and signing authorities in a foreign account. (Not applicable to
NRIs or RNORs).
 Those who derive income from property held under a trust for charitable or
religious purposes or a political party or a research association, news

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 agency, educational or medical institution, trade union, a not for profit
university or educational institution, a hospital, infrastructure debt fund,
any authority, body or trust.
 Foreign companies taking treaty benefit on a transaction in India.
 NRIs, who have income that exceeds ₹2.5 lakh in FY which is earned or
accrued in India, are required to file an income tax return in India.

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Who must file income tax returns mandatorily?

As per income tax laws, any assessee whose gross total income (GTI) is above the
lowest income tax slab allowable for his/her age has to file ITR mandatorily. The
basic exemption limit is ₹ 2.5 Lakh, ₹ 3 Lakh, and ₹ 5 Lakh, for assessees below 60
years, between 60 and 80 years, and those above 80 years, respectively.

There are certain instances where individuals have to file an income tax return even if
their GTI is below the basic exemption limit. If you also fall under any of the
categories mentioned below, ITR filing is mandatory for you.

 If your electricity bill exceeds ₹ 1 Lakh for a single bill or in totality for the
financial year.

 If you have deposited ₹ 1 crore in your current accounts maintained with a

bank or cooperative bank.

 If you are an ordinarily resident individual with income from foreign countries
AND/OR assets in foreign countries AND/OR have signing authority for any
account outside the country.

 If you have spent ₹ 2 Lakh on yourself/others for travel to a foreign country.

 If your GTI exceeds the basic exemption limit before claiming a deduction on
capital gains incurred under any of the following sections – 54, 54B, 54D,
54EC, 54F, 54G, 54GA, or 54GB.

Reasons to file an income tax return

Here are five reasons you should not miss out on filing income tax returns.

1. It makes loan processing easier.

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Suppose you want to apply for a home loan or any other loan (other than mortgage).
In most cases, a lender will ask for income proof before sanctioning a loan. The
process will include submitting your income tax returns for the last two or three
financial years.

2. It helps you claim any carried forward losses.

If you have incurred losses under the heads “Capital Gains” or “Profits and Gains
from Business or Profession” and want such losses to be carried forward to the next
financial year, you can do so only by filing your income tax return.

3. It allows you to claim TDS refunds.

If your employee deducts tax at source or you have a contractual agreement that
invites TDS, you can claim a deduction for the same by filing your income tax return
for the year within the deadline (July 31 or as declared of the succeeding year). In
such cases, the income tax department calculates your net tax liability after adjusting
the TDS paid. If you are not required to pay tax, you can claim a refund by filing your
ITR. You can track your refund by checking your income tax return status.

4. It contributes to nation-building.

Any amount you pay as tax helps in building your nation. It is one of the major
contributors to the government’s cash inflow. For FY19, the government collected ₹
9.45 Lakh crore as direct taxes. The government can use the amount for building
infrastructure or for other developmental activities.

5. It will help you with visa or credit card applications.

If you are applying for a visa for an international trip or a credit card, the issuer will
demand income proof from you. In most cases, you are required to submit your
income tax returns for the last three years. It will help the other party ascertain if you
are eligible for a visa or a credit card. If you intend to visit countries like the USA,
Canada, or any part of Europe, you must submit your ITRs during the verification
process.

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 E-Filing of Income Tax Returns:
What is E-Filing?
As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose
total income during the previous year exceeds the maximum amount not chargeable to
tax, should file their income tax returns (ITR).The process of electronically filing
income tax returns is known as e-filing. The filing of returns can be done in two ways
– one is the conventional offline route which requires you to visit the office of the
Income Tax Department and doing it manually, and the other is to file the returns on
the internet. E-filing has been gaining a lot of popularity in recent years thanks to
advancements in technology. E-filing is also relatively easier in comparison with
offline filing as it doesn’t involve tedious paperwork and can be done from the
comfort of your home.

Types of e-Filing:
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 Use Digital Signature Certificate (DSC) to e-file. It is mandatory to file IT forms
using Digital Signature Certificate (DSC) by a chartered accountant.
 If you e-file without DSC, ITR V form is generated, which should then be printed,
signed and submitted to CPC, Bangalore by ordinary post or speed post within 120
days from the date of e-filing.
 You can file e-file IT returns through an E-return Intermediary (ERI) with or
without DSC.

Who should e-file income tax returns?

Online filing of tax returns is easy and can be done by most assessees.

 Assessee with a total income of Rs.5 Lakhs and above.

 Individual/HUF resident with assets located outside India.
 An assessee required to furnish a report of audit specified under sections
10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b),
44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.
 Assessee required to give a notice under Section 11(2) (a) to the assessing
officer.
 A firm (which does not come under the provisions of section 44AB), AOP,
BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR
5).  An assessee required to furnish returns U/S 139 (4B) (ITR 7).
 A resident who has signing authority in any account located outside India.

28
  A person who claims relief under sections 90 or 90A or deductions under
section 91.
 All companies.

Benefits of E-Filing

E-filing is preferred to offline filing among a large number of taxpayers in

India. Here are some of the major benefits of filing your income tax returns
electronically:

 Quick Processing: When you file your returns online, they will be
acknowledged promptly by the Income Tax Department. One of the major
benefits of e-filing is that if there are any refunds, they will be processed much
quicker in comparison with returns that are filed on paper.

 Convenient: You can file your returns anytime, anywhere, as long as you have
a mobile device or a laptop and an internet connection. The e-filing facility is
open 24/7, making it a way more convenient option in comparison with manual
filing of returns.

 Accuracy: The software created for the e-filing of returns comes with built-in
electronic connectivity and validations that make it seamless. The software also
reduces errors to a considerable extent. Since filing your returns manually can
leave the door open to human errors, electronic filing of returns can ensure that
there are no manual errors.

29
  Confidentiality: Filing your returns on paper has the potential for your details
to get leaked. Online filing of returns, however, is much safer in comparison
with manual filing as your data will not be accessible by chance or design.

 Easy to Use: The e-filing portal has been designed in a manner such that it is
really easy to file your returns. There are detailed instructions that you can
follow to ensure that the process is completed in a smooth and hassle-free
manner.
 Proof of Receipt: Filing your income tax returns online will mean that the
confirmation will be sent to you promptly through email on your registered
email address. Since the process is automated, there will be no wastage of time
in getting your confirmation.

 Electronic Banking: In case any refunds are due to you, they will be directly
deposited to your bank account. In case you have any tax payments to make,
they too will be directly debited from your bank account. You also have the
choice to file your returns now and pay the taxes later. You can accordingly
choose to instruct your bank account and enjoy the convenience offered by the
facility.

 Accessibility: All the information regarding your past data can be accessed
with relative ease when you file your returns online. The applications ensure
that the data has been stored securely, so that it is easy for individuals to access
it when filing their returns again.

Documents required to file income tax

When filing your income tax online or physically, it is always a good idea to be
prepared. The below mentioned details serve as a checklist to help you get
started with the e-filing of tax returns.
 General details that would be required

30
 Bank account details
 PAN Number
Reporting salary income required
 Rent receipts for claiming HRA
 Form 16
 Pay slips

 Reporting House Property income required

 Address of the house property
 Details of the co-owners along with their share in the mentioned property and
PAN details
 Certificate for home loan interest
 The date when construction was completed, in case an under-construction
property was purchased
 Name and the rental income of the tenant, if the property is rented

 Reporting capital gains required

 There is a requirement of a stock trading statement with purchase details, in
case there are capital gains from selling the shares
 If a house or property is sold, you must sought sale price, purchase price,
details of registration and capital gain details
 Mutual fund statement details, purchase and sale of equity funds, debt funds,
SIPs and ELSS.

 Reporting other income required

 The income from interest is reported. In case of interest accumulated in
savings account, bank account statements are required
 Interest income from tax saving bonds and corporate bonds must be reported
 The income details earned from post office deposit must be reported.
31
 Steps to follow to file IT returns online

Now, filing your income tax has become an extremely easy process. Simply follow
the below steps:
 To begin with, log on to IncomeTaxIndiaeFiling.gov.in and register yourself on
the website. Your Permanent Account Number (PAN) becomes your user ID.

32
 Now, you can view your tax credit statement or Form 26AS. The TDS in your
Form 16 must tally with the figures in Form 26AS. If not, you must correct the
discrepancy.

 Click on the income tax return forms and choose the financial year you want to
file your returns for.

 Then, you need to download the ITR form which is applies to you. If your
exempt income exceeds Rs.5,000, then the appropriate form will be ITR-2.
However, you can complete the process on the portal itself, by using the 'Quick
e-file ITR' link, if the applicable form is ITR 1 or ITR 4S.

 Next step is to open excel utility, which is the downloaded return preparation
software and enter all the details in the form using your Form 16.

 Calculate and get an estimate of the tax payable amount by clicking the
'calculate tax' tab.

 Now, if applicable, pay tax and fill in the challan details.

 Confirm all the information provided in the worksheet by clicking on the
'validate' tab.

 Download this in an XML file and save it on your desktop.

 Then, go to 'upload return' on the portal's panel and upload the saved XML file.

 A pop-up will be appear, requesting to digitally sign the file. In case you have
your digital signature, then, select ‘Yes'. In case you have not got digital
signature, select 'No'.

 ITR Verification (ITR-V), which is the acknowledgment form, will be

generated in a downloadable format.

33
  Generate a printout of the form ITR-V and sign it only in blue ink.

 Send this form to the Income-Tax Department-CPC , Post Bag No. 1 ,

Electronic City Post Office, Bangalore, 560 100, Karnataka, by ordinary or
speed post, within 120 days of filing your returns online.

 E-Filing Tax Returns for 2019 :

E filing income tax returns for the assessment year 2019-20, which is the financial
year 2018- 19 has started. The Income Tax Department will release the new ITR forms
after 31st March and e-filing for them will be allowed on their website.

 Deadline for E-Filing Tax Returns:

The last date for e-filing income tax returns for FY 2018-19 is 31st July 2019. You can
e-file your tax returns any time before then, but it is always better to e-file early to
avoid the rush and heavy website traffic in the last month.

 Penalty for Late Filing Income Tax Return:

Taxpayers who do not file their income tax return on time are subject to penalty and
charged an interest on the late payment of income tax. Also, the penalty for late filing
income tax return on time has been increased recently. The penalty for late filing
income tax return is now as follows:

34
 o Late Filing between 1st August and 31st December - Rs.5000
o Late Filing After 31st December - Rs.10,000
o Penalty if taxable income is less than Rs.5 lakhs - Rs.1000

The Firm is also specialised in GST return filing:

Filing GST return under the GST regime is crucial as non-compliance and delay will
result in penalties and affect your compliance rating and timely refunds.
A return is a document containing details of income which a taxpayer is required to
file with the tax administrative authorities.
This is used by tax authorities to calculate tax liability. Under GST, a registered dealer
has to file GST returns that include:

 Purchases
 Sales
 Output GST (On sales)
 Input tax credit (GST paid on purchases) To file GST returns, GST compliant sales
and purchase invoices are required.

In the GST regime, any regular business has to file two monthly returns and one
annual return. This amount to 26 returns in a year. The beauty of the system is that one
has to manually enter details of one monthly return – GSTR-1. The other returns
GSTR 3B will get auto-populated by deriving information from GSTR-1 filed by you

35
and your vendors. There are separate returns required to be filed by special cases such
as composition dealers.

Late Fees for not Filing Return on Time:

If GST Returns are not filed within time, you will be liable to pay interest and a late
fee.
Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of
outstanding tax to be paid. The time period will be from the next day of filing to the
date of payment.

Late fees is Rs.100 per day per Act. So it is 100 under CGST & 100 under SGST.
Total will be Rs.200/day. Maximum is Rs.5,000. There is no late fee on IGST.

36
 TDS FILING PROCESS

The process of filing TDS (Tax Deducted at Source) returns in India involves
several steps. TDS returns are required to be filed by entities who deduct tax at
source on various payments made to residents and non-residents. Here's a
general overview of the TDS filing process:

1.Obtain TAN (Tax Deduction and Collection Account Number):

- Before deducting TDS, the deductor (the person or entity responsible for
deducting tax) needs to obtain a TAN from the Income Tax Department. TAN is
a 10-digit alphanumeric number.

2. Deduct TDS and Issue TDS Certificates:

- Deduct TDS at the prescribed rates on payments such as salaries, interest,
rent, professional fees, etc.
- Issue TDS certificates (Form 16 for TDS on salary, Form 16A for TDS on
non-salary payments) to the deductees.

3. Keep Records and Details:

- Maintain accurate records of TDS deducted, details of deductees, and other
relevant information.

4. Prepare TDS Returns:

- Use the prescribed forms for preparing TDS returns. For example:
- Form 24Q for TDS on salaries
- Form 26Q for TDS on non-salary payments to residents
- Form 27Q for TDS on non-salary payments to non-residents
- TDS returns can be prepared using various software and online platforms
provided by the Income Tax Department.

5. Validate TDS Return Data:

- Validate the TDS return data to ensure accuracy and compliance with the
applicable tax laws.

6. File TDS Returns Online:

37
 - TDS returns must be filed online through the TIN-NSDL website or other
authorized service providers. Use the Digital Signature Certificate (DSC) for
authentication.

7. Generate TDS Certificates:

- After successfully filing the TDS returns, generate TDS certificates for each
deductee. These certificates provide details of TDS deducted and deposited.

8. Submit TDS Certificates to Deductees:

- Distribute the TDS certificates to the deductees. Deductees will need these
certificates for filing their income tax returns and claiming credit for the TDS
amount.

9. *Rectification and Correction (if needed):

- In case of any errors or discrepancies, rectify and correct the TDS return by
filing a correction statement.

10. Payment of TDS Liabilities:

- Pay the TDS liabilities within the due dates to avoid interest and penalties.

It's essential to stay updated with the latest amendments and notifications from
the Income Tax Department, as the rules and procedures related to TDS may
change. Additionally, consulting with a tax professional or using authorized
software for TDS compliance can help ensure accurate filing and adherence to
regulatory requirements.

4. Advance Tax Payments:

- Companies are required to make advance tax payments based on their
estimated tax liability during the financial year.

5. Goods and Services Tax (GST) Compliance:

- Companies are required to comply with GST regulations, including filing
GST returns.

It's crucial for companies to adhere to both ROC filing requirements and
income tax compliance to ensure legal and regulatory compliance. Companies
often engage professionals such as chartered accountants to assist with these
filings and ensure accuracy and timeliness. The specific requirements may vary
based on the size, nature, and structure of the company, so it's advisable to refer
to the relevant laws and seek professional advice.

38
39
 FORM 24Q FOR TDS ON SALARIES

Form 24Q is a TDS (Tax Deducted at Source) form used for reporting and
filing TDS returns related to salaries in India. Employers are required to deduct
TDS from the salaries of their employees and file Form 24Q with the Income
Tax Department. This form provides details about the TDS deducted and
deposited by the employer.

Key components of Form 24Q include:

1. Particulars of the Deductor (Employer):

- Details such as the name and address of the employer, TAN (Tax Deduction
and Collection Account Number), and PAN (Permanent Account Number).

2. Quarterly TDS Details:

- Form 24Q is filed quarterly, covering the quarters ending on June 30,
September 30, December 31, and March 31. It includes details for each
employee:
- Employee's PAN
- Employee's name
- Salary details
- Taxable income
- TDS deducted

3. Challan Details:
- Information about the tax payment made, including details of the challan
such as BSR code, challan serial number, and the amount deposited.

4. Annexure I - Salary Details:

- Breakdown of salary components, exemptions, deductions, and the
computation of taxable income for each employee.

Submission of Form 24Q:

1. Frequency:
- Form 24Q is filed quarterly, covering the quarters ending on June 30,
September 30, December 31, and March 31.

2. Due Dates:
- The due dates for filing Form 24Q are as follows:
- April 30 for the quarter ending March 31
- July 31 for the quarter ending June 30

40
 - October 31 for the quarter ending September 30
- January 31 for the quarter ending December 31

3. Mode of Filing:
- Form 24Q must be filed online through the TIN-NSDL website or other
authorized service providers. Employers need to use a Digital Signature
Certificate (DSC) for authentication.

Other Considerations:

- Correction Returns:
- In case of errors or omissions, correction returns can be filed to rectify the
mistakes in the original Form 24Q filing.

- TDS Certificates:
- Employers are required to issue Form 16 to employees, providing details of
the TDS deducted during the financial year.

- Penalties for Non-Compliance:

- Non-compliance with TDS filing requirements can lead to penalties and
legal consequences. It's important to adhere to the due dates and guidelines
specified by the Income Tax Department.

Form 24Q plays a crucial role in the TDS process for salaries, helping ensure
proper documentation and compliance with tax regulations. Employers should
stay informed about any updates or changes to the TDS filing process and
forms issued by the Income Tax Department. Consulting with a tax
professional can also ensure accurate and compliant filing.

41
 SECTIONS UNDER FORM 24 FOR TDS ON SALARIES.

Form 24Q is used for filing TDS (Tax Deducted at Source) returns for TDS on
salaries. It is a statement of deduction of tax at source by an employer where TDS is
deducted from the salary of employees. The sections under Form 24Q correspond to
different provisions of the Income Tax Act, 1961, that govern TDS on salaries. Here
are the key sections under Form 24Q:

1. Section 192: TDS on Salary:

- This section deals with the deduction of TDS from salaries. Employers deduct TDS
from the salaries of employees based on the applicable slab rates.

2. Section 192A: TDS on Premature Withdrawal from EPF:

- If an employee withdraws the Employee Provident Fund (EPF) before completing
five years of continuous service, TDS is applicable under this section.

3. Section 192B: TDS on Payment of Accumulated Balance Due to an Employee

Under a Recognized Provident Fund:
- TDS is deducted when the accumulated balance due to an employee in a
recognized provident fund is paid out.

4. Section 192C: TDS on Payment of Annuity/Pension:

- This section deals with the deduction of TDS on payments made under a life
insurance policy, including annuity or pension payments.

5. Section 194B: TDS on Winnings from Lotteries or Crossword Puzzles:

- In case an employer pays any winnings to an employee from lotteries or crossword
puzzles, TDS is deducted under this section.

6. Section 194BB: TDS on Winnings from Horse Race:

- TDS is applicable on winnings from horse races paid to an employee.

42
7. Section 194N: TDS on Cash Withdrawals:
- If an employee withdraws a significant amount of cash from a bank, TDS may be
applicable under this section.

8. Section 197: Certificate for Deduction at Lower Rate:

- If an employee is eligible for a lower rate of TDS, they can apply to the Assessing
Officer for a certificate under this section.

These sections cover various scenarios related to salary income, withdrawals, and
winnings. Employers are required to deduct TDS from employees' salaries and deposit
the same with the government. Additionally, they need to file quarterly TDS returns
using Form 24Q, providing details of TDS deductions made under these sections.
It's important to note that tax laws may be amended, and rates may change. Therefore,
employers should stay updated with the latest tax regulations or consult with tax
professionals for accurate and current information.

43
FORM 26Q FOR TDS ON NON- SALARY PAYMENTS TO RESIDENTS

Form 26Q is a statement for TDS (Tax Deducted at Source) on non-salary

payments to residents in India. TDS is a mechanism by which the government
ensures that taxes are deducted at the source itself, and it's applicable on
various types of payments.

Form 26Q specifically deals with TDS on payments other than salary. It
includes payments like:

1. Interest
2. Dividends
3. Rent
4. Professional fees
5. Commission
6. Brokerage
7. Contract payments
8. Prize winnings
9. Insurance commission
10. Compensation on acquisition of immovable property

This form is filed by the deductor, i.e., the person or entity responsible for
deducting TDS before making the payment. The deductor could be an
individual, a company, or any other entity that makes payments covered under
TDS.

Here's a brief overview of the process:

1. Deduction of TDS:
- The deductor deducts TDS from the payment made to the payee (resident).

2. Accurate Record Keeping:

- The deductor needs to maintain accurate records of TDS deductions,
including details of deductees.

3. Filing Form 26Q:

- The deductor files Form 26Q with the Income Tax Department. This form
includes details of TDS deductions made during a particular period.

4. Quarterly Filing:

44
 - Form 26Q is generally filed quarterly. The due dates for filing are specified
by the Income Tax Department.

5. Challan 281:
- Along with Form 26Q, the deductor needs to submit Challan 281, which is
the TDS payment challan. It contains details of the TDS deposited.

6. Late Filing Penalties:

- It's crucial to file Form 26Q within the specified due dates to avoid penalties
for late filing.

The form includes details like the PAN (Permanent Account Number) of the
deductor and deductee, TDS deduction amounts, nature of payment, and other
relevant information. It helps in reconciling TDS deducted by the deductor with
the income declared by the deductee.

It's important for both deductors and deductees to comply with TDS
regulations, as non-compliance may lead to penalties. Always refer to the latest
guidelines and updates from the Income Tax Department or consult with a tax
professional for accurate and up-to-date information.

45
 SECTIONS THAT COME UNDER FORM 26Q FOR TDS ON NON
SALARY PAYMENTS

Form 26Q is used for filing TDS (Tax Deducted at Source) returns for non-
salary payments to residents in India. The various sections under Form 26Q
correspond to different types of non-salary payments on which TDS is
applicable. As of my knowledge cutoff in January 2022, the sections under
Form 26Q include:

1. Section 193: TDS on Interest on Securities:

- Applicable when interest is paid on securities.

2. Section 194: TDS on Dividends:

- Applicable when dividends are paid.

3. Section 194A: TDS on Interest other than Interest on Securities:

- Applicable for interest payments other than those on securities.

4. Section 194B: TDS on Winnings from Lotteries and Crossword Puzzles:

- Applicable when winnings from lotteries and crossword puzzles exceed the
specified limit.

5. Section 194BB: TDS on Winnings from Horse Race:

- Applicable when winnings from horse races exceed the specified limit.

6. Section 194C: TDS on Payment to Contractors and Sub-contractors:

- Applicable for payments to contractors and sub-contractors for work
contracts.

7. Section 194D: TDS on Insurance Commission:

- Applicable when an insurance commission is paid.

8. Section 194DA: TDS on Life Insurance Policy:

- Applicable when proceeds from a life insurance policy are paid.

9. Section 194E: TDS on Payments to Non-resident Sportsmen/Sport

Association:
- Applicable when payments are made to non-resident sportsmen or sports
associations.

10. Section 194EE: TDS on Payments in respect of National Savings

Scheme and deposits under Senior Citizens Savings Scheme:

46
 - Applicable for payments made under specific savings schemes.

11. Section 194F: TDS on Payments on account of Repurchase of Units by

Mutual Fund or Unit Trust of India:
- Applicable when mutual funds or Unit Trust of India repurchases units.

12. Section 194G: TDS on Commission on Sale of Lottery Tickets:

- Applicable when commission is paid for the sale of lottery tickets.

13. Section 194H: TDS on Commission or Brokerage:

- Applicable when commission or brokerage is paid.

14. Section 194-I: TDS on Rent:

- Applicable when rent is paid for land, building, furniture, or fittings.

15. Section 194-IA: TDS on Transfer of Certain Immovable Property other

than Agricultural Land:
- Applicable when there is a consideration for the transfer of immovable
property.

16. Section 194-IB: TDS on Rent by Individuals/HUF not liable to audit:

- Applicable when individuals or HUFs not liable to tax audit pay rent.

17. Section 194-IC: TDS on Payment under Specified Agreement:

- Applicable when payment is made under a specified agreement.

18. Section 194J: TDS on Professional or Technical Services:

- Applicable when fees for professional or technical services are paid.

These sections cover a wide range of non-salary payments, and the deductor is
required to file Form 26Q with the details of TDS deductions made under the
relevant sections. It's essential to refer to the latest tax regulations and updates
from the Income Tax Department or consult with a tax professional for the
most accurate and up-to-date information.

47
 FORM 27Q FOR TDS ON NON SALARY PAYMENTS TO NON RESIDENTS

Form 27Q is used for filing TDS (Tax Deducted at Source) returns for non-salary
payments made to non-residents in India. It is specifically designed for deducting tax
on income paid to non-residents, and it covers a range of payments such as interest,
dividends, royalties, fees for technical services, etc. Here are the key points related to
Form 27Q:

1. Applicability:
- Form 27Q is applicable for deducting TDS on payments made to non-residents
including foreign companies, foreign individuals, and foreign entities.

2. Types of Payments Covered:

- Payments covered under Form 27Q include interest, dividend, royalties, fees for
technical services, any other sum chargeable under the provisions of the Income Tax
Act, etc.

3. Rate of TDS:
- The TDS rates for payments to non-residents can vary depending on the nature of
the payment. Different sections of the Income Tax Act prescribe specific rates for
different types of income. For example, interest income may have a different rate
compared to fees for technical services.

4. Time of Deduction:
- TDS is deducted at the time of credit or payment, whichever is earlier.

5.Form 27Q Components:

- Form 27Q typically includes details of deductor (the entity deducting TDS),
deductee (the non-resident receiving the payment), and particulars of the nature of
payments and TDS deducted.

6. Filing TDS Return:

48
 - The deductor is required to file Form 27Q quarterly, providing details of TDS
deductions made during that period.

7. Challan 281 for TDS Payment:

- The TDS amount deducted is deposited using Challan No. ITNS 281.

8. PAN of Deductee:
- PAN (Permanent Account Number) of the deductee is required to be furnished in
Form 27Q.

9. Certificate of TDS Deduction:

- After filing the TDS return, the deductor is required to provide a TDS certificate in
Form 16B to the deductee.

10. Consequences of Non-Compliance:

- Non-compliance with TDS provisions may lead to penalties and interest charges.
Therefore, it's crucial for deductors to adhere to the TDS regulations.

It's important to note that the provisions related to TDS on non-residents can be
complex, and they may undergo changes. Therefore, it's advisable for deductors to
stay updated with the latest amendments to tax laws or consult with a tax professional
for accurate and current information.

49
 FORM 27EQ FOR TCS.

Form 27EQ is used for filing TDS (Tax Deducted at Source) returns for TDS on non-
salary payments, specifically for TDS on transactions related to the collection of tax at
source (TCS). It is applicable for various transactions where the seller collects tax at
source on certain specified goods. Here are the key sections under Form 27EQ:

1. Section 206C(1): TDS on Sale of Alcoholic Liquor for Human Consumption:

- TDS is required to be collected by the seller at the time of sale of alcoholic liquor
for human consumption.

2. Section 206C(1A): TDS on Timber Obtained Under a Forest Lease:

- TDS is applicable when any person responsible for paying any sum to any resident
for obtaining timber under a forest lease.

3. Section 206C(1C): TDS on Sale of Minerals:

- TDS is required to be collected on the sale of minerals, including lignite.

4. Section 206C(1F): TDS on Sale of Scrap:

- TDS is applicable on the sale of scrap.

5. Section 206C(1G): TDS on Sale of Tendu Leaves:

- TDS is required to be collected when tendu leaves are sold.

6. Section 206C(1H): TDS on Sale of Timber Obtained by Any Mode Other Than
a Forest Lease:
- TDS is applicable when timber is obtained by any mode other than a forest lease.

7. Section 206C(1J): TDS on Sale of Parking Lot:

50
 - TDS is required to be collected on the sale of parking lot.

8. Section 206C(1K): TDS on Sale of Toll Plaza:

- TDS is applicable on the sale of toll plaza.

9. Section 206C(1M): TDS on Sale of Coal:

- TDS is required to be collected on the sale of coal.

10. Section 206C(1N): TDS on Sale of Iron Ore:

- TDS is applicable on the sale of iron ore.

11. Section 206C(1G): TDS on Sale of Motor Vehicle:

- TDS is required to be collected on the sale of a motor vehicle.

12. Section 206C(1P): TDS on Sale of Foreign Tour Package:

- TDS is applicable on the sale of a foreign tour package.

13. Section 206C(1Q): TDS on Remittance of Money:

- TDS is required to be collected on the remittance of money for the purpose of
acquiring a specified immovable property.

14. Section 206C(1R): TDS on Sale of Goods:

- TDS is applicable on the sale of goods other than those specified above.

Form 27EQ is filed by the person collecting TDS on these transactions, and it includes
details of TDS collections made under the relevant sections. As tax laws may be
subject to amendments, it's advisable to stay updated with the latest regulations or
consult with tax professionals for accurate and current information.

51
 CONCLUSION
In the present world, new technologies are introduced and improved very fast in all
fields. Now new technology is gifted to tax payers for filing their income tax returns
through online i.e. through e filing. The e-filing is the new effective method of filing
income tax return through online and make e payment tax. It saves time, energy and
cost and also reduces tension. So the tax– payers are requested to use e-filing and e
payment facilities. This study reveals that the existing users are satisfied with the e-
filing facilities but most of the individual tax payers are not aware of the e-filing and
e-payment procedures. Therefore through this research adequate steps to create more
awareness in the minds of tax payers regarding e-filing of income tax are provided.
This study is carried out to determine the tax payer’s perception towards e-filing of
income tax returns. One of the main challenges in e-filing is the risk of security. As
individual tax payers are the most important end users, sufficient understanding of tax
payers acceptance and usage of e-filing system should be made to reduce the risk of

52
user rejection, preventive and predictive measures ought to be taken on a timely basis
to ensure further acceptance among the non-users of e-filing.

RECOMMENDATION

• It is recommended that the income tax department can give information about e-filing through media
and Newspapers because only 4% of respondents know about e filing through Media.
• From the above study it is found that there has been extensive advertisement in national newspaper.
It is suggested that it can extended to local newspapers and also using radio stations and local
channels through local languages.
• It is suggested that the awareness can be increased by organizing awareness programs in
office/workplaces for the tax payers so that they are aware about e filing and file their income tax
returns easily by saving their cost and time.
• The researcher also intends to suggest to the income tax department upgrade its technologies in e-
filing of returns(e-filing website) because many respondents find reasons for their unsuccessful
attempt for e filing their income tax returns like e filing website not responding half way etc.
• Knowledge about convenience of e-filing should be given to those who do not have any motivation
towards e-filing.
• Campaigns on e-filing should be taken up in certain places, so that all are aware of its flexibility.
• Awareness towards correct ITR forms should be given to the tax payers

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 BIBLIOGRAPHY
• https://cleartax-in.cdn.ampproject.org/v/s/cleartax.in/s/income-tax/

• https://www.coverfox.com/personal-finance/tax/income-tax/income-tax-
return/

• https://www.moneylife.in/article/e-filing-survey-80-percentage-use-i-t-
departments-free facility-for-filing-returns/38553.html

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