Vishweshwar Education Society’s

Indira Institute of Business Management

PROJECT REPORT
ON

“A REPORT ON INCOME TAX PLANNING IN INDIA WITH RESPECT TO

INDIVIDUAL ASSESSEE”.

SUBMITTED TO

INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI

MUMBAI

BY

MS. RUTUJA PRAFUL AMBERKAR

Roll No. 2022004

Batch No. 2022-2024

IN PARTIAL FULFILLMENT OF

MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY

OF MUMBAI

OCTOBER, 2023
 DECLARATION
I, Ms. Rutuja Praful Amberkar hereby declare that this project report
is the record of authentic work carried out by me during the period from
19th May 2023 to 19th July 2023 and has not been submitted to any
other University or Institute for the award of any degree / diploma etc.

Signature

Name of the student

Rutuja Praful Amberkar

Date:
CERTIFICATE FROM THE COMPANY/ORGANISATION
 CERTIFICATE

This is to certify that the project entitled ‘A Report on Income Tax

Planning in India with respect to Individual Assessee’ submitted by
Miss. Rutuja Praful Amberkar of Indira Institute of Business
Management in partial fulfillment for the award of Master of
Management Studies of Mumbai University is his/her original work and
does not form any part of the projects undertaken previously.

This project report is the record of authentic work carried out by

her during the period from 19th May 2023 to 19th July 2023.

She has worked under my guidance.

Prof. Febin Varghese Dr. Susen Varghese

(Faculty Guide) (Director-in-charge)

Signature Signature

Place: Navi Mumbai

Date:
 ACKNOWLEDGEMENT

This project is a golden opportunity to me for learning and self-development. I feel very lucky to
have talented and wonderful people who lead me through in the completion of this project.

I express my deepest thanks to the Director-in-Charge of Indira Institute of Business

Management, Dr. Susen Varghese and placement cell head, Prof. Aji John for this wonderful
opportunity which paved my way to associate with KDA & Associates.

My special thanks to my mentor Prof. Febin Varghese for his valuable time and guidance. He
took time from busy schedule and guiding me to carry out my summer internship project.

A humble thanks to all other faculties for helping me whenever I need. I also feel delighted to
express my thanks to library staffs and nonteaching staffs who helped me to complete my project
on time.

I express my sincere gratitude to KDA and Associates for giving me this opportunity. My special
thanks to Mr. Dishant Makwana, Kalyan for his guidance and support. I am thankful to the
entire staff fraternity of KDA and Associates for aiding me to complete the internship
successfully.

My gratitude to my family and friends for motivating and encouraging me throughout the
journey. I express my heartfelt acknowledgment for the guidance and support from them.

Last but not the least, I express my gratitude to God, the Almighty for all the blessings to make
this initiative successful.
 EXECUTIVE SUMMARY
The internship report is based on the two-month internship program that I had successfully
completed from KDA & Associates, which is located at Kalyan. It is the Chartered Accountant’s
Partnership firm. The duration of the internship spanned was from 19th May 2023 to 19th July
2023 as a requirement of University of Mumbai for the completion of the MMS program. Being
completely new to the corporate world setting, every hour at the company gave me significant
exposure and experience which is of immense learning.

The report includes how the work is carried in the KDA & Associates, the services that they
provide of accounting and book keeping, Taxation services, Auditing, Financial Consulting,
Business Advisory and Management consulting etc. The report is the outcome of my association
with KDA & Associates. As an intern at KDA & Associates, I acquired knowledge about the
Direct and Indirect Tax, GST, Finalization of accounts, ITR registration, ITR filing of the clients,
interacting with the clients, Bank Entries in Tally, Analyzing the balance sheet of the clients, Tax
Advisory, etc.

I worked with different people and interacted with many clients. The initial weeks of my
internship program provided me with learnings about the basics of direct and indirect tax. Later
the work was assigned to us and we use to work accordingly.

Throughout my internship, I tried my level best to learn and bridge the gap between theory and
practice. I tried my best to make this report as much as understandable by pouring out my real-
world experience into it.
 TABLE OF CONTENTS
Sr. no. Title Page no.
1 INTRODUCTION 1-15
1.1 Relevance of the Project 2
1.2 Introduction Of the Topic 2
1.3 Objectives of the study 14
1.4 Scope of the study 14
1.5 Rationale Of the Study 15
1.4 Limitations of the Study 15

2 PROFILE OF THE COMPANY 16-20

2.1 History and general information 17
2.2 Company Profile 17
2.3 Competitors 18
2.4 Swot Analysis 19

3 REVIEW OF LITERATURE 21-23

4 PROCESS AND WORKFLOW STUDY AND ANALYSIS 24-27

4.1 Research Methodology 25
4.2 Types of data 25
4.3 Process and workflow details of the organization under study 25

5 FINDINGS 28-29

6 RECOMMENDATIONS 30-31

7 CONCLUSION 32-33

BIBLIOGRAPHY
 CHAPTER–1

INTRODUCTION

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1.1 RELEVANCE OF THE PROJECT
This project can contribute to a deeper understanding of tax planning strategies and their
implications for individual taxpayers. It can shed light on the various options available to
optimize tax liabilities. Research on tax planning can enhance financial literacy among
individuals. It can help them make more informed decisions regarding their finances,
savings, and investments. Also, understanding tax planning within the legal framework is
crucial. Research in this area can help to stay compliant with tax laws while minimizing
their tax burden. This project also provides insights into how individuals can structure their
income, investments, and deductions to achieve greater tax efficiency. This knowledge can
lead to significant savings over time.
Effective tax planning can contribute to wealth accumulation. It can help to explore how
individuals can use tax strategies to build and preserve their wealth. Tax planning research
can also address risk management by helping individuals understand and plan for potential
tax-related risks and uncertainties.
Understanding how tax planning affects individual taxpayers can have broader economic
implications.

1.2 INTRODUCTION OF THE PROJECT

Under the Constitution of India Central Government is empowered to levy tax on the
income. Accordingly, the Central Government has enacted the Income Tax Act, 1961. The
Act provides for the scope and machinery for levy of Income Tax in India. The Act is
supported by Income Tax Rules, 1961 and several other subordinate and regulations.
Besides, circulars and notifications are issued by the Central Board of Direct Taxes (CBDT)
and sometimes by the Ministry of Finance, Government of India dealing with various
aspects of the levy of Income tax. Unless otherwise stated, references to the sections are
with the reference to the sections of the Income Tax Act, 1961.
This report aims at presenting a simple understanding of taxation structure of an individual's
income in India. The tax saving tips provided in the Income Tax Act 1961, are a result of
analysis of options available in current market. Every individual should know that tax
planning in order to avail all the incentives provided by the Government of India.

2
In India, where taxes can be complex, and new tax regimes are introduced yearly, tax
planning is an important aspect of financial planning. Tax planning is a lawful strategy used
by an individual or business to reduce the tax burden with the help of tax rebates, benefits,
and exemptions provided by the government. It also involves the use of tax provisions in an
intellectual manner to minimize tax liability. Tax planning involves using legal strategies to
minimize tax liability and maximize returns. Effective tax planning can help individuals and
businesses save money, increase cash flow, and achieve financial objectives.
This project covers the basics of the Income Tax Act, 1961 as amended by the Finance Act
2019, and broadly presents the tax planning and tax saving options provided under these
laws.

HEADS OF INCOME
As per Section 14 of the Income Tax Act of 1961, an individual can earn income from
several means. The computation of income tax is important and must be calculated
according to a person's income. For a hassle-free income tax computation, the Act classifies
the income into different categories of heads. The provisions and rules are mentioned in the
Income Tax Act. At the end of each financial year, the taxpayer must classify their earnings
under these heads of income for accurate tax calculation. It is not necessary that every
earning individual will have income from all these 5 heads of income. However, classifying
one's income on the basis of these heads of income would make ITR filing easier to
calculate how much income tax will accrue on them.

The different heads of Income are:

 Income from salary
 Income from house property
 Income from profits and gain of business or profession
 Income from capital gains
 Income from other sources.

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A. INCOME FROM SALARY
Salary means the money received by a person, referred to as an “employee” from an
organization, referred to as an “employer” for offering specific services in connection with
employment. If you are a salaried person, the total expense incurred by your employer to
avail your services for a year is called Cost to Company (CTC). CTC includes a basic salary,
allowances, perquisites, a performance-linked-variable component, health insurance,
provident fund, gratuity, etc.

B. INCOME FROM HOUSE PROPERTY

Income from house property in India refers to the income arising out of a house property
either in a rental income form or on its transfer. Any property such as house, office, building,
warehouse is treated as 'house property' under the Income Tax Act.
The following income will be taxable under the head ‘Income from House Property’ of the
Income Tax Act, 1961.
Rental Income on a let-out property
Annual Value of a property which is ‘deemed’ to be let out for income tax purposes (when
you own more than two house property)
The annual Value of a self-occupied property is Nil.

C. INCOME FROM OF BUSINESS OR PROFESSION

As per section 2(13) of the Income Tax Act, a business includes any trade, commerce or
manufacture or any adventure or concern like trade, commerce or manufacture.
The term profession has not been defined under the act. In simple terms, it means any
occupation which requires some degree of skill and learning. For example, a lawyer,
architect, auditor, etc., would be said to carry on a profession and not a business. However,
the tax treatment of both the income from business and profession is the same.

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D. INCOME FROM CAPITAL GAINS
Capital gains represent the increase in the value of an asset. These gains are typically realized
at the time that the asset is sold. Capital gains are generally associated with investments, such
as stocks and funds, due to their inherent price volatility. But they can also be realized on any
security or possession that is sold for a price higher than the original purchase price, such as a
home, furniture, or vehicle.

Capital gains fall into two categories-

Short-term capital gains: Gains realized on assets that you've sold after holding them for one
year or less.

Long-term capital gains: Gains realized on assets that you've sold after holding them for
more than one year.

Short term capital asset

Shares, securities, bonds, units are held by the Assessee for not more than 12 months before
transfer.

Assets on which deprecation has been allowed under the Income Tax Act, whether
depreciable asset held by the Assessee more or less 36 months.

Any other asset which is held by the Assessee for not more than 36 months, e.g., land,
building, precious metals, jewelry.

Long term capital asset

Shares, securities, bonds, units held by the Assessee for more than 12 months.

Other assets like building, gold, plot, land, jewelry etc. held by the Assessee for more than 36
months.

E. INCOME FROM OTHER SOURCES

Income from other sources is the residual head of income. Hence, any income which is not
specifically taxed under any other head of income will be taxed under this head.

5
Further, there are certain incomes which are always taxed under this head. These incomes
are as follows:

 As per section 56(2)(i), dividends are always taxed under this head. However, dividends from
domestic company other than those covered by section 2(22)(e) are chargeable to tax in
accordance with the provisions of section 115BBDA.
 Winnings from lotteries, crossword puzzles, races including horse races, card game and other
game of any sort, gambling or betting of any form whatsoever, are always taxed under this
head.
 Income by way of interest received on compensation or on enhanced compensation shall be
chargeable to tax under the head “Income from other sources”, and such income shall be
deemed to be the income of the year in which it is received, irrespective of the method of
accounting.
 Gifts received by an individual or HUF (which are chargeable to tax) are also taxed under
this head.

In addition to above, following incomes are charged to tax under this head, if not taxed under the
head “Profits and gains of business or profession”.

 Any contribution to a fund for welfare of employees

 Income by way of interest on securities.
 Income from letting out or hiring of plant, machinery or furniture.
 Income from letting out of plant, machinery or furniture along with building; both the lettings
are inseparable.

DEDUCTIONS FROM TAXABLE INCOME

Tax deductions specified under Chapter VIA of the Income Tax Act These deductions will not be
available to a taxpayer opting for the New Tax Regime u/s 115BAC, except for deduction u/s
80CCD (2), 80CCH which will be applicable for New Tax Regime as well.

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Section 80C, 80CCC, 80CCD (1)

Deduction towards payments made to- Combined deduction limit of ₹ 1,50,000

 80C- Life Insurance Premium, Provident Fund, Subscription to certain equity shares,
Tuition Fees, National Savings Certificate, Housing Loan Principal, Other various items
 80CCC- Annuity plan of LIC or another insurer towards Pension Scheme
 80CCD (1) - Pension Scheme of Central Government.

Section 80CCD(1B)

Deduction towards payments made to Pension Scheme of Central Government, excluding

deduction claimed under 80CCD (1)- Deduction limit of ₹ 50,000

Section 80CCD (2)

Deduction towards contribution made by an employer to the Pension Scheme of Central

Government

 If the Employer is a PSU or Others- Deduction limit of 10% of salary

 If the Employer is Central or State Government- Deduction limit of 14% of salary

Section 80D

For Self/Spouse or Dependent Children- Deduction limit of ₹ 50,000

For Parents- Deduction limit of ₹ 50,000

Section 80DD

Deduction towards payments made towards maintenance or medical treatment of a Disabled

Dependent or Paid / Deposited any amount under relevant approved scheme

Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense
incurred.

The deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).

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Section 80DDB

Deduction towards payments made towards medical treatment of Self or Dependent for specified
diseases

Deduction limit of - ₹ 40,000 (₹1,00,000 if Senior Citizen).

Section 80E

Deduction towards interest payments made on loan for higher education of Self or relative.

Section 80EE

Deduction towards interest payments made on loan taken for acquisition of residential house
property where the loan is sanctioned between 1st April 2016 to 31st March 2017

Deduction limit of ₹ 50,000 on the interest paid on loan taken.

Section 80EEA

Deduction available only to individuals towards interest payments made on loan taken for
acquisition of residential house property for the first time where the loan is sanctioned between
1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80E.

Deduction limit of ₹ 1,50,000 on the interest paid on loan taken.

Section 80EEB

Deduction towards interest payments made on loan for purchase of Electric Vehicle where the
loan is sanctioned between 1st April 2019 to 31st March 2023.

Deduction limit of ₹ 1,50,000 on the interest paid on loan taken.

Section 80G

Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.

Section 80GG

Deduction towards rent paid for house & applicable to only those who are self-employed or for
whom HRA is not part of Salary

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Deduction limit of ₹ 60,000.

Section 80GGC

Deduction towards Donations made to Political Party or Electoral Trust.

Section 80TTA

Deduction on interest received on saving bank accounts by Non-Senior Citizens

Deduction limit of ₹ 10,000/-

Section 80TTB

Deduction on interest received on deposits by Resident Senior Citizens

Deduction limit of ₹ 50,000/-

Section 80U

Deductions for a resident individual taxpayer with Disability

Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred.

Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of
expense incurred.

TAX PLANNING

Tax Planning involves planning in order to avail all exemptions, deductions and rebates provided
in Act. The Income Tax law itself provides for various methods for Tax Planning, generally it is
provided under exemptions u/s 10, deductions u/s 80C to 80U and rebates and reliefs. Some of
the provisions are enumerated below:

 Investment in securities provided u/s 10(15). Interest on such securities is fully exempt
from tax.
 Exemptions u/s 10A, 10B, and 10BA
 Residential Status of the person

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For availing benefits, one should resort to bonafide means by complying with the provisions of
law in letter and in spirit. Where a person buys a machinery instead of hiring it, he is availing the
benefit of depreciation. If is his exclusive right either to buy or lease it. In the same manner to
choose the form of organization, capital structure, buy or make products are the Assessee
exclusive right. One may look for various tax incentives in the above said transactions provided
in this Act, for reduction of tax liability. All this transaction involves tax planning.

Objective of Tax Planning:

Tax planning is a pivotal part of financial planning. Through effective tax planning all elements
of the financial plan falls in place in the most efficient manner. This results in channelization of
taxable income to different investment avenues thus relieving the individual of tax liability. The
investment amount post lock-in can be utilized for fulfilling needs and act as the retirement
corpus in most cases. All in all, the objective of tax planning is to reduce tax liability and attain
economic stability.

Why Every Person Needs Tax Planning?

Tax Planning is resorted to maximize the cash inflow and minimize the cash outflow. Since Tax
is kind of cast, the reduction of cost shall increase the profitability. Every prudence person, to
maximize the Return, shall increase the profits by resorting to a tool known as a Tax Planning.

Tax Planning should be done by keeping in mind following factors:

 The Planning should be done before the accrual of income. Any planning done after the
accrual income is known as Application of Income and it may lead to a conclusion of that
there is a fraud.
 Tax Planning should be resorted at the source of income.
 The Choice of an organization, i.e., Taxable Entity. Business may be done through a
Proprietorship concern or Firm or through a Company.
 The choice of location of business, undertaking, or division also play a very important role.
 Residential Status of a person. Therefore, a person should arrange his stay in India such a
way that he is treated as NR in India.

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 Choice to Buy or Lease the Assets. Where the assets are bought, depreciation is allowed and
when asset is leased, lease rental is allowed as deduction.
 Capital Structure decision also plays a major role. Mixture of debt and equity fund should be
balanced, to maximize the return on capital and minimize the tax liability. Interest on debt is
allowed as deduction whereas dividend on equity fund is not allowed as deduction.

TAX PLANNING FOR SALARIED INDIVIDUAL

Some tax planning tips for salary earners:

 Utilize tax deductions: Take advantage of deductions like HRA (House Rent Allowance),
LTA (Leave Travel Allowance), and standard deductions to reduce your taxable income.
 Invest in tax-saving instruments: Consider investing in tax-saving options like Public
Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificate (NSC),
and Equity-Linked Savings Schemes (ELSS).
 Claim medical and health insurance benefits: Utilize tax benefits on medical expenses and
health insurance premiums for yourself, family, and parents under Section 80D.
 Submit tax-saving investment proofs: Ensure timely submission of investment proofs to
your employer to avail tax deductions at the source.
 Plan for house rent and home loans: If you live in a rented house, consider submitting rent
receipts to claim HRA benefits. For home loan borrowers, deductions on both principal and
interest components are available.
 Salary restructuring: Explore options to restructure your salary to include more tax-free
allowances like food coupons, telephone reimbursements, etc.
 Keep track of tax-saving deadlines: Be aware of tax-saving deadlines, such as submitting
investment proofs or making last-minute contributions to tax-saving schemes.
 Consider NPS (National Pension System): Investing in NPS can provide additional tax
benefits under Section 80CCD(1B) over and above the 80C limit.
 Stay informed about tax updates: Be aware of changes in tax laws and policies to make
informed decisions about your tax planning.

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TAX SAVING PLANS FOR BUSINESS AND PROFESSION

 Business Expenses: Ensure that you claim all eligible business expenses as deductions.
Keep accurate records of expenses related to office rent, utilities, salaries, professional
services, travel, and more.
 Depreciation: Take advantage of depreciation benefits on business assets. Consult with an
accountant to determine the depreciation rates and methods applicable to your assets.
 Section 44AD: If you are engaged in certain eligible professions, you can opt for
presumptive taxation under Section 44ADA or Section 44AE. This simplifies tax
calculation and may result in lower tax liability.
 Section 80C: Utilize Section 80C to claim deductions on investments made in specified
instruments like Public Provident Fund (PPF), Equity-Linked Savings Schemes (ELSS),
and more.
 Section 80D: Deduct premiums paid for health insurance policies covering yourself, family
members, and parents under Section 80D.
 Section 80G: If you contribute to eligible charitable organizations, you can claim
deductions under Section 80G.
 Section 80GG: For professionals and business owners who do not receive HRA, you can
claim deductions on rent paid for accommodation under Section 80GG.
 Section 80E: Claim deductions on the interest paid on education loans for higher studies
under Section 80E.
 Section 10A/10AA: If your business is eligible for tax holidays or deductions in certain
areas or industries, make sure to avail of those benefits.

TAX PLANNING FOR CAPITAL GAINS

 An Assessee should plan transfer of his capital assets at such a time that capital gains arise
in the year in which his other recurring incomes are below taxable limits.
 Since long-term capital gains enjoy a concessional treatment, the Assessee should so
arrange the transfers of capital assets that they fall in the category of long-term capital

12
 assets. An Assessee may go for a short-term capital gain, in the year when there is already a
short-term capital loss or loss under any other head that can be set off against such income.
 The Assessee should take the maximum benefit of exemptions available u/s 54, 54B, 54D,
54ED, 54EC, 54F, 54G and 54H.
 Avoid claiming short-term capital loss against long-term capital gains. Instead claim it
against short-term capital gain and if possible, either create some short-term capital gain in
that year or, defer long-term capital gains to next year.

TAX PLANNING FOR INCOME FROM OTHER SOURCES

 Report All Income: Ensure that you report all income earned from other sources, such as
interest on savings accounts, fixed deposits, dividends, rental income, capital gains, etc., in
your tax return.
 Take Advantage of Tax Deductions: Explore tax deductions available for income from
other sources, such as deductions on medical expenses, health insurance premiums (Section
80D), donations to eligible charitable institutions (Section 80G), also 80TTA and 80TTB.
 Capital Gains: If you have earned capital gains from the sale of assets like stocks, real
estate, or other investments, consider using tax-saving tools like reinvesting in capital gain
bonds (Section 54EC) or utilizing the capital gains exemption on the purchase of a
residential property (Section 54).
 Tax-Exempted Investments: Invest in tax-exempted instruments like Public Provident
Fund (PPF), tax-free bonds, and specific mutual funds to generate income that is not
taxable.
 Set Off and Carry Forward Losses: If you have incurred losses from certain investments,
you may be able to set off those losses against gains from other sources, reducing your
overall tax liability. Any remaining losses can be carried forward to future years.
 Renting Property: If you earn rental income, ensure you claim deductions on property
taxes, home loan interest, and other allowable expenses related to the property.
 Gift Tax: Be aware of gift tax implications if you receive significant gifts in cash or kind.
Certain gifts may be taxable under specific circumstances.
 Clubbing of Income: Understand the rules related to the clubbing of income, which may
apply when transferring income to family members to minimize tax liability.

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  Form 15H/15G: If your total income is below the taxable limit, you can submit Form
15H/15G to the banks and financial institutions to avoid TDS (Tax Deducted at Source) on
interest income.
 Tax-Efficient Withdrawals: If you have invested in various financial products, plan your
withdrawals in a tax-efficient manner to optimize your tax liability.

1.3 OBJECTIVES OF THE PROJECT

Primary Objectives: -

1. To bridge the gap between theory and practice in management discipline.

2. To understand about working and management of an organization.

3. To get an overall idea about the corporate world setting.

Secondary Objectives: - [ Role as an Intern at KDA & Associates]

1. To study on work culture at KDA & Associates.

2. To gain exposure to diverse financial scenarios, clients and industries which will help to
enhance your accounting and auditing skills.

3. To build professional network with clients, colleagues which will be helpful for future growth
opportunities.

4. To study the taxation system and understand various tax planning strategies to reduce tax
liability.

1.4 SCOPE OF THE PROJECT

Tax planning for individual taxpayers involves various strategies and considerations to legally
minimize their tax liability while staying compliant with tax laws. The study evaluates and
analyses the tax planning strategies and awareness thereof, saving habits, investment choices,
outflow of liabilities adopted by the individual assesses for the period covered under study. The

14
income in the study encompasses individual income, income/loss from house property and
income from other sources which are interest on bank deposits, dividend income, etc.

The scope of tax planning for an individual Assessee project can be quite broad and may include
the following aspects:

 This study studies Tax Planning for individual Assessee.

 This study relates to manage and optimize the sources of income to reduce the tax burden.
 This study helps to identify the tax efficient investment options that will help in deduction of
the Income Tax.

1.5 RATIONALE OF THE STUDY

The strategies of tax planning can contribute new ideas and approaches to the field,
potentially leading to more efficient tax planning methods. This project can offer practical
guidance to individuals, businesses, and tax professionals. They can provide step-by-step
instructions or recommendations on how to implement tax-saving techniques. This project
can contribute to taxpayer education by explaining complex tax concepts in an accessible
manner. This can empower individuals and businesses to make more informed tax decisions.

1.6 LIMITATIONS OF THE STUDY

 Time was a major constraint for the study, because this internship was only for two months.
 As the CA firm deal with sensitive financial information, and much of their work is
confidential. This limits the depth of information available for study.
 A lack of understanding of the taxation systems.

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 CHAPTER 2

PROFILE OF THE ORGANIZATION

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2.1 HISTORY AND GENERAL INFORMATION

A firm is an organized and structured entity that exists to provide specific goods, services, or
expertise to its clients or customers. It can refer to various types of businesses, organizations, or
professional practices.

An accounting firm or Chartered Accountant firm is a company that provides accounting and
financial services to businesses and individuals. They may offer services such as bookkeeping,
tax preparation, auditing, financial consulting, and other financial and accounting services. CA
firms can vary in size from small local practices to large multinational firms, and they may
specialize in specific industries or areas of expertise. The services provided by CA firms are
crucial for businesses and individuals to maintain financial transparency, adhere to legal
requirements, and make informed financial decisions.

2.2 COMPANY PROFILE

NAME OF THE FIRM- The KDA & Associates

TYPE OF THE ORGANISATION- Partnership Firm

ESTABLISHMENT YEAR - 2018

MANAGING PARTNERS- C.A Dishant Makwana & C.A Ashish Gupta

HEAD OFFICE- Kalyan, West

ORGANISATIONAL HIRARCHY

CHARTERED ACCOUNTANT (C.A)

(Founder/Owner)

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 STAFFS/INTERNS

The firm has a straightforward organizational structure with a clear hierarchy of roles and
responsibilities. At the top, is the owner or founder who is the Chartered Accountant. He was
responsible for the overall management and decision-making also was involved in client elations
and perform high-level accounting tasks. Next in the hierarchy were the staff accountants or
interns who perform much of the accounting work. They were responsible for preparing financial
statements, performing audits work, preparing tax returns, and providing general accounting
services to clients. All the staff here in the organizations work according to a planned procedure.

SERVICES OFFERED

 Accounting and Book keeping: Recording and managing financial transactions and
preparing financial statements.
 Taxation Services: Assisting with tax planning, preparation of tax returns, and providing
advice on tax-related matters.
 Auditing: Conducting financial audits to ensure the accuracy and compliance of financial
records.
 Financial Consulting: Providing financial advice and guidance on matters such as
investment decisions, budgeting, and financial planning.
 Business Advisory: Offering strategic business advice to help clients improve performance
and achieve their goals.
 Company Registration and Compliance: Assisting with the incorporation of companies
and ensuring compliance with legal and regulatory requirements.
 Management Consulting: Advising businesses on organizational and operational
improvements.

2.3 COMPETITORS

 Ankur Sinha and Associates

 S. Panicker & Associates
 Naykodi & Co.
 KKRK & Co.

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2.4 SWOT ANALYSIS

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to

evaluate a company's competitive position and to develop strategic planning. SWOT analysis
assesses internal and external factors, as well as current and future potential.

The Strengths describe what an organization excels at and what separates it from the
competition. Weaknesses stop an organization from performing at its optimum level. They are
areas where the business needs to improve to remain competitive. Opportunities refer to
favorable external factors that could give an organization a competitive advantage. Threats refer
to factors that have the potential to harm an organization.

STRENGTHS

 Highly skilled and knowledgeable professional CA and staffs.

 Diverse client portfolio.
 High quality services and customer satisfaction.
 Effective use of technology.
 Strong reputation in local community

WEAKNESS

 Limited resources.
 Inadequate marketing and advertising efforts.
 Relying heavily on the few clients.
 Income may fluctuate based on the tax season.

OPPORTUNITIES

 Expanding services and entering new market.

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 Offering strategic financial advice in addition to compliance services.
 Partnering with or acquiring smaller firms can expand reach and capabilities.

THREATS

 Changes in tax laws and regulations.

 Economic instability can reduce demand for financial services.
 Cybersecurity threats and risk.
 Clients may demand lower fees, affecting profitability.

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 CHAPTER 3

REVIEW OF LITERATURE

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REVIEW OF LITERATURE

Srivasta (2017) researched and found that there are variety of investment options available in
the market but a best investment option can be something which is beneficial to the individual
Assessee from the point of view of tax saving and wealth creation in future.

Suganya (2015) found and concluded that tax awareness measures are not significant.
Workshop on tax management has to conduct in practical manner such that the expenditure
pattern of money gets reduced.

Dev (2015) carried out a study to explain tax planning measures adopted by different salaried
class are almost uniform. Gender and experience wise Assessee have no significant relationship
with the level of tax awareness.

Pallavi and Anuradha (2017) examined “tax planning and investment pattern of individual
Assessee”. Tax planning involved an efficient application of various provisions and loopholes of
tax laws to reduce the incidence of tax and tax burden of an Assessee. The research paper aimed
at studying the investment pattern and the awareness of various tax planning schemes available
for investment.

Kalgutkar, Preeti (2018) discussed the personal financial aspects of individual Assessee. The
need of the study is to create tax awareness which helps the individual to construct effective tax
planning. Self-assessment system requires individuals to have full understanding of tax rules.
The study reveals that the tax planning is not meant avoiding the payment of income tax; it is
simply efficient allocation of earned income in various tax savings investment to get maximum
benefits by individual Assessee.

Dhongde, Siddhaarth, and Vilas Epper (2020) investigate the various tax saving investment
strategies among salaried individuals. The need of the study was to create awareness among
salaried individuals to reduce tax liability and maximize the use of all available deductions. This

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paper analyses investment products available for tax saving purpose. The aim of research paper
was to understand tax saving investment management strategies among salaried individuals.
Study outcome reveals that the foremost adopted combination of tax saving instruments is
Public Provident Fund, which got the primary rank in this study, followed by LIC, Home Loan,
NPS and other priority is given to Medical Insurance followed by National saving certificates
and Fixed Deposits. The study concludes that tax benefits are given the highest preference of
the salaried individuals for their investment decision.

Vyshak et al. (2021) assessed “tax planning measures among individual taxable assesses: an
exploration of the age effect”. Tax planning allows investors to reduce their tax liability on
investment profits. To take advantage of tax planning, the assessee must be aware of the various
provisions of tax saving plans that are available under the statute.

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 CHAPTER 4

PROCESS AND WORKFLOW STUDY &

ANALYSIS

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4.1 RESEARH METHODOLOGY

Research methodology is a way of explaining how a researcher intends to carry out their
research. It's a logical, systematic plan to resolve a research problem. A methodology details a
researcher's approach to the research to ensure reliable, valid results that address their aims and
objectives. It encompasses what data they're going to collect and where from, as well as how it's
being collected and analyzed.

4.2 TYPES OF DATA

Primary Research:

Primary research is one that involves the gathering of fresh data, i.e., when data about a
particular subject is collected for the first time, then the research is known as primary research.

Secondary Research:

Secondary research is a research method that uses data that was collected by someone else. In
other words, whenever the research is conducted using data that already exists, then its the
secondary research.

This project involved extensive research of tax laws, regulations, and investment options
available to individual taxpayers. Data was gathered from reliable sources, including books,
government websites, and other reputed websites.

4.3 PROCESS AND WORKFLOW OF THE ORGANIZATION

The workflow in a KDA & Associates Chartered Accountant (CA) firm typically involves
several key steps:

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 Client Onboarding

(The process begins by identifying and onboarding clients who require accounting, auditing,
tax, or financial advisory services)

Gathering Financial Information

(Clients provide their financial records, statements, and

relevant documents to the firm’s staff)

Financial Analysis

(The firm's professionals analyze the financial data to assess the client's financial health,
compliance with regulations, and potential areas for improvement)

Accounting and Bookkeeping

(CA firms often offer bookkeeping and accounting services, which involve recording financial
transactions, maintaining ledgers, and preparing financial statements)

Tax Planning and Compliance

(The firm assist clients in minimizing tax liabilities through strategic tax planning. They also
prepare and file tax returns on behalf of their clients, ensuring compliance with tax laws)

Audit and Assurance

(For businesses requiring audit services, the firm conducts a thorough examination of financial
records to provide assurance on the accuracy and fairness of financial statements)

Advisory Services

(CA firms offer financial advisory services such as budgeting, forecasting, investment analysis,
and risk management to help clients make informed financial decisions)

Compliance and Reporting

(CA firms ensure that clients comply with various regulatory requirements, including filing
annual reports, statutory audits, and other regulatory filings)
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 Client Communication

(Regular communication with clients is essential to provide updates, share recommendations,

and address any financial concerns)

Billing and Invoicing

(The firm invoices clients for the services provided, and clients make payments based on the
agreed terms)

Record Keeping

(Proper documentation and record-keeping are crucial for compliance and future reference

Review and Analysis

(Periodic reviews of client portfolios and financial performance help the firm provide proactive
recommendations)

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CHAPTER 5

FINDINGS

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FINDINGS

 I got to develop and hone technical skills in areas such as auditing, accounting, taxation, and
financial analysis.
 This internship provides hands-on experience which allowed me to apply the theoretical
knowledge into the real-world situations
 I also got opportunity to learn from experienced professionals who provided me the guidance
and mentorship throughout the internship.
 I got an experience of insights into the work environment and culture of the firm.
 I got the opportunity to interact with clients which helped me to improve my communication
and client relationship skills.
 Ensure timely and accurate filing of tax returns to avoid penalties and interest.
 Learn about the taxation system and about various tax saving strategies.

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 CHAPTER 5

RECOMMENATIONS

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RECOMMENATIONS

 Invest in marketing efforts to increase the firm's visibility and attract new clients.
 Implement efficient billing to ensure clients are billed accurately and payments are collected
on time.
 Continuously monitor changes in tax laws and regulations to ensure compliance and identify
new opportunities for tax savings.
 Encourage staffs to stay updated with the latest accounting and tax regulations. This will help
to provide the most accurate and up-to-date advice to the clients.

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CHAPTER 5

CONCLUSION

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33
BIBLIOGRAPHY

34
BIBLIOGRAPHY

 https://cleartax.in/g/terms/tax-planning/amp&ved=2ahUKEwjm-
_O74JqBAxXWa2wGHT8KCF0QFnoECC8QAQ&usg=AOvVaw2a_MvgvQhKeOS5PTDL
Rtta
 https://incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx%3Fpath%3D/documents/left
 https://taxguru.in/income-tax/income-tax-salary-
income.html&ved=2ahUKEwii0fjj4JqBAxWsTmwGHRh0Aa0QFnoECCcQAQ&usg=AOv
Vaw0_iZ5FgtmsViieGt_9uyWF

Reference Books
 The Essential Drucker
 Management-Tasks-Responsibilities by Peter-Drucker

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