A

SUMMER INTERNSHIPPROJECT
REPORT

I ON

Title
TO STUDY OF INCOME TAX SYSTEM IN INDIA

THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

(SPECIALISATION) FINANCIAL MANAGEMENT

SUBMITTED BY

M/s. KUSHARE SNEHAL PARASHRAM

MBA 2ndYEAR(FINANCIALMANAGEMENT)

YEAR 2021-22
SUBMITTED TO
SAVITRIBAI PHULE UNIVERSITY OF PUNE
UNDER THE GUIDANCE OF
DR. Y. M. GOSAVI
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Matoshri Education Society's

Matoshri College of Management & Research Centre, Eklahare, Nashik.

1
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 Matoshn Education society's
l\1atot hti College ofManagemen:t & Research
Centre
Approved by : All India Council forTechnical Education, New Delhi (AICTE),
;:;,;;;;;;-.-
Directorate of Technical. Education, Maharashtra (DTE), Code : MB5122
. .

.·
-· . . . . .
--
--·· .
... :. -.•----·-······-··•-'····'
,Affiliated to : Savitribai Phule Pune University, Pune, Code: 1·121
.Addres NAAC Accredited
Eklahare, Near 0dhagaon, OffAurangabadHighway, AISHE Code
Nashik;-422105, : C- 45886
Dist.Nashik, Maharashtra (lodla)
. s: ··················-· Ph.:(0253)2406681L82 IolLFreeNo: 18002336602 .. ...............
. .............................
E-Mail : mcmrc director@rediffmail.com •W b_sitE3 :V11V11W.111lJ.c1.111c1toshri.edu.in .

I 'Tnis is to certifi.J tfiat :Mr. /:Miss.Sn.Ji 111\ _ 'Pa"f bm J:w..

••=is
-- --- -----
:
a GonaficCe stucCent o.{_:Jvl'B:A PartJJ.fq_rtfie .'A.cacCemic Year 2 0 2 1 / 2022 ------------ -i- i
i
:He/ Sfie fias·utn.ti. rtff; f§n ana f.:9?11JJfe_ted"tfie Summer Internsfip (
I
I·

Project Reyort tit{ect._Tn._ 5-tu..d --a.G Jnco_m.e ]:

5 S-1:fm_ lo_ 10.111
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·· ·· ·- ·ac .:_:_·..:Ji .f>_;'--N.:. £--(tL._'c"."..:....=- '""==--- =-- =----------:..-= =:..- 7

_-:: :..-= to1vards- ··· ··---·--

Partia{fu(fi[fment oftfie .:M'B:A courseuncCer Savitri6ai Pfiu{e Pune ··.-/

11.niversity,

r; \l'
e - 'fl\

(
I

- - -
Dr. Y. M. GOSAVI
'ect (10fi0f
Mf;lt-·shri .CoUege ofManagement
(juideJ &
Research Center, Eklanare,
Nashik

'Date:-
 KPN &-
CO.
Chartered Accountant
Internship Certificate

I This is to certify t h a t M/sSnehal Parashram Kushare, a 2nd year student bf Master

of Business Administration (MBA in Finance) of Matoshri College of

i Management and Research Centre Eklahare, Nashik, has successfully

completed 2 Month internship programme in our 'K P N & Co.' under the
supervision of CA Pratik Rajendra Mutha.

She has worked on a project To Study of Income tax in India

The period of internship lasted from 1 Nov 2021 to 31 Dec 2021. During the period
of his internship programme with us she was found punctual, hardworking and
inquisitive.

For, K P N & CO.

Chartered Accountant,
Avishkar Society, Umberkhed Road,

Pimpalgoan (B.), Tai- Niphad, Dist Nashik - 422209,

 DECLARATION

...t HereRY p _lare That T is f> ject \,\./°-rk On Study Of "TO STUDY
OF INCOMETAXSYSTEM IN INDIA" In Partial Fulflflmerlfof Master Of Business
Admini;trationDeiree-Course orSavitri6ai Pnule University Of Pune Is My -
i- Work And Submitted By M·e Under The Guidance Of 0r. Y. M.Gosavi. ··
own ·
1 Also Declare That The Present Worrk Has Not Been Submitted· By Me
To Any Other University For The Fulfillment Of Any Degree Or
·Diploma.

1, Have Prepared This Report Independently And I Have

G - at hered A l-+ h -Rel ev -aAt -lAf0r s H 0 n - P -ers0Aslly-.1-Hsv ,.
:I Prepared This ProJect For MBA Curriculum 2021-22 :i
:
- - · - ---------'------·---------·---
1----:··

MS. SNEHAL .P. KUSHARE

PLACE:- NASHIK. MBA - 2nd Year

Semester - 3rd

!I.
 Acknowledgement

Every, Work Is A Source Which Requires Support f rom People And Areas
The Project Report On"TO STUDY OF INCOME TAX SYSTEM IN INDIA".
Has
Been Successfully Completed By Me With Fullest Support And
· Encouragement By My With Fullest And Encouragement By My Professors.

1 Wish To Extend My Gratitude Which I Received From My Project

ii" Guide- Dr. V. M. Gosavi .

f I Would Also Thank My Institution And My Faculty Member

l Without Whom This Project Would Have Been A Distant Reality.
l
However, It Would Not Have Been Possible Without The
Kind
Support And Help Of Many Individuals And Organization; I Would
Like To Extend My Sincere Thanks To All Of Them.

I Wou:ld Like To Thank Everyone Who Helped Me In Completing

The Project Directly Or Indirectly.

DATE

PLACE:-
·
NASHIK
MS.SNEHAL. P. KUSHARE

MBA - 2nd Year

Semester - 3rd

3
 i Content Page No
·chapter
.{
1 N o'. --+ - ---- = = - --= - -= = - = - -==:::---'--------t-----:--1
- TITLE PAGE
.,
-
1
-
· - - - · · · - - - - - - -

ACKNOWLEDGEMENT

1 INSTITUTION CERTIFICATE 4

j
l EXECUTIVE 7
I
SUMMARY
l
INTRODUCTION TO 9
INTERNSHIP
- -
- - - - - ·
·'.

1 INTRODUCTION OF 11
PROJECT
1. Objectives of project 1
1 2
·-- _ l.2_------f-----'-□ -tr_o_ductin□ o_Lto_pic. _ _13 _ ,
_, _ _
13. Stopeofstudy 14
'
- 14
1.4
About Income
Limitations Tax
of study 15-30
1.5
PROFILE OF
2· ORGANIZATION
2. 3
1 About the organlsation 1
2. Work of organization 32
23 RESEARCH ANDM 33
ETHODQLOGY
3.1 Method of study 34

3;2 Sampling 35-38

--- -- . - - _-3_3 - ---- -- -- - - - - - - --DataGolleGtion --- -- -------t---- 9 - 4 Q - -- -

,'
4
INCOME TAX STRUCTURE IN INDIA 41-44

. 4
- 5 LITERATURE REVIEW

5.1 Meaning and concept 45

'

5.2 Basic theories of the topic 46

DATA ANALYSIS AND INTERPRETATION

.
6 48-58

7 FINDINGS 59
'

8 SUGGESTIONS 60

9 CONCLUSION 61

10 REFERENCES 62
.. . "

11 QUESTIONNAIRE 63

5
 EXECUTIVE SUMMARY
7

-· fhisis an attempt.. t ok now _how_thetheories canheappJie_d topr_acticaL

-· ... _ ... _ :---sittJation.-As_studentoLM.BAJt-is_a p_atLaf_stud:y.to_und_ergo_so_m_e
pLoject_
at a good instfftute or Organisation. so for this Purpose l got an internship
I opportunity to pursue internship at Pimpalgoan Basw,ant.

I First part of report concentrates on introduction to inter·nship and its

'
importance followed by the Overview of the project and its details.

T The second part of the report concentrated on general overview of

· :! "
r· 1ncome tax various studies conclucted on this topic. and how importantly it
i:2la s a .role in Indian economy . Which is followed by the Income
tax
structure in India.

··------- --- --·Th·e -third-part--expla·i·ns a-bout--the-meth-odologv--of--stu·dv--s·u-ch--as-sa·m·ple-----

-- size, tech iques sed; Variables o f t h e study; l-imitation o f t h e resea ch
I· etc.
The fourth part is the important and core part of the report whi:ch' deals
with analysis of data Collected·, from the survey conducted and
· interpretations w-ere drafted for every issue questioned. The analysis of
data has conducted in three phases, where the first phase is about general
Information and transaction analysis.

The second phase is about Income tax awareness and respective e-Filing
of returns awareness among the traders, Tax ll)ayers-which is·great content
to fulfil the Objective of study.
r I

The third phase is about. various issues faced by the traders/Tax payers
while Filing returns which were segreg·ate into major categories such as
Technical, administrative, Monetary.
 The fourth part is concentrating on detail' procedure of e-filing returns
process under Income Tax and Comparative analysis of registration 8 and
returns filing trends in the last academic year which is Relayed on
secondary data available in several. websites.Hased upon the above
: conducted analysis through primary and secondary data various finding
i
I. and Observations were identified and accordingly suggestions were
drafted which I' 'feel that would help The Tax department and respective

II. officials to- take up some through some actions to overcome

Problem
faced by the Traders/ Tax payers to IT return filling.And income Taxdeatail
!\' study,why Income tax is important in every companies, HUF, and
l
l· Individuals.
 9
• l;NTRODUCTION TQ:
INJERNSHl'P
-

. Internship, is an on-the-job training programme offered t0- students to

, balance the gap. Between class room theories and industry expectations. It
· is an on-field training_ programme, which May last from 2 weeks to 3
months period. During the internship period, the candidate may be paid
or not paid with monetary benefits for the services rendered by him, but
definitely- compensated Wit_b_ work experience and _r- ·c:lJ:-IJf JearningJb_c:1t
--· benefits his career in the long run.

An internship IS a training opportunity wnicn IS proviaea to stuaents, sucn

as graduates or post-graduates, to seek and feel the actual
work

professionals. iriterrishipprogramrnels one e>fthetvpes ofoo-

jobtraining programme, were the student gets a chance to ,experience
the working environment, gets trained to the practical work
exposure, sees
implementation of dass room theories in the work field and identifying ·
the difference; coming with anappropriate opinionto overcome such gaps
which indirectly benefits the tJniversJty or college to know the actual
requirements of industry, and making necessary changes in academics
according to the industry needs so that students benefitWith better
outcome.
 • Reasons for doing internship:
10
• To get real-life experience and exposure towards
corporate workings.
• It's an opportunity to assess our strengths and weaknesess.·
• Helps connect with professional people and opens door to
corporate network.
• Gives an opportunity to prove our self in performance.
 CHAPTER-
1 11

--· - - - - - - - - - - - - -

..Title of the proj t: To study oflncon1e taxsysten1 in India

Duration of the project: Two months

I-
,, :-A rea7Region of the project coniluctecl:Plmpalgaon Baswanf
·-:·········· -i
-. _';.:;.}-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 1 - - ! -
t !

DATA collected:Primary and Secondary Data

ABOUT THE PRQJ::EC1\.

As we all know that Income Tax is a progressive concept in India after it

became a new tax Regime. Even Income Tax plays such an important role
in taxation system and influences the future Economy growth of the
country, when it come to the perfotrrtance and revenues getletatihg from the
Income Tax, the growth is not up to the mark. This is reflected by the
decrease in the returns filing under Income Tax over a period of time. The
proj.ect is about finding· the reasons, problems, responses andGriev:ances
resulting in the taxpayer,. registered under Income tax, to not file the returns
in time; To know And find the ways and overcome this serious: issue, a
survey is conducted to find the reasons for Why such decrease in returns
f i l i n g . The :flncl1ngs-andobservadons were identified along with Necessary
suggestions. This survey is conducted in a:11 about Income tax Returns. The
data of non-filers of returns is Taken from respective office with the
permission of the Commissioner of Commercial Taxes.
 1.1 OBJECTIVES OF PROJECT 12

1. To knowledge about important legal servicein an organisation and

their clients information.

2. To Study All about Income tax Act 1961.

3. To knowledge Income tax filling returns

4. To present the income tax structure in India.

5. To study the difference of old and new Income tax slab

 1.2 INTRODUCTIONQ:f INCOM·E
TAX

·
pro--·J·-e· C·t,····c··o···v·e·rs--th.eh,asic.sof-th·elnc.omeTaxAct, 196.las
rTnance-Aet 2-(H..-9,aAd-lar0aell'y-preseAt-s-tl'le--tax planniAg--and-tax--saving - ..,- -- -
amended by-the
-- 1:
-
iii.
l!
1

· options provided under these laws. The finance act is responsible for
··-·· -, I/
}aying down thetax slabs that appHes to taxpayer.
-
Hl
1. Income from salary i
ili
2.lncome from house property t
ill[
I - 3-.ln-c-o-m--e- -f-rom business/profe- ·······················---.·····-··-········· - -- i;:

J- 4.Capital gain _:
-·- s
5.lncome from other sources these are the-} few· important
-s-i-o-n---- Jll
il --\! .lnc;omeJa><inJodia isJeviedby thEtGPvernrnentpfJndJ9
e l e m e n t o f i nco m e ta x .
·- --- -
--- ·
--- ------ -· - ·-- --- --- -- --- -- -:. " - -- -- - --
If 9r,ta>< ble inc;ome I
--tnr !
1 ,, .
fl ------.---------------·----
of individuals; companies, --··--------
Hindu Undivided Families CO" '
(HUFs),
operativesodeties, firms andtrusts {recognized-as association ofpersons .
and body of individuals.) and any other artificial person. Imposition of tax is l
different for every individual. Income tax imposition. is regulated by the
lndian Income Tax Act, 1961. The Central· Board of Direct Taxes {CBDT) has
the ofregulatingJbeJncome Tax Department in India. It is a division of t he
Department of Revenue under the Ministry of Finance, Government of
1/ndia. Income tax is a tax payable, at the r::ate enacted by the Union
Budget{Finance Act) for every Assessment Year, on the Total Income !

earned in the privious year by every person.·

 1.3SCOPE OF
STUDY
z. The study
L The relates
project to non-
studies the specific and generalized
tax planning for income tax
tax
planning Fminating the need of sample

3. The study may include comparative and analytical study of

more than one tax saving plans and instructions.

4. The new tax rate, insurance plans all subject to FY 2020-21

1.4 LIMITATIONSOF STUDY

1. The project studies the tax planning for individual.

2. The study relates to non- specific and generalized tax

planningeliminating the need of sample.

3. The study may include comparative and analytkal study of

more than one tax saving plans and instructions.

4. The new tax rate, insurance plans all subject to FY 2020-21

5. The Study covers individual income tax and does not hold
good for corporate tax payer

14
........
I Tax Planning
'f - - - · -- - - - - - - - - - - ........ ···-·· - ········-·······-···-············-···-······-····
ii Tax Pl,anning Has Been Described As A Refined Form Of 'Tax
'.r Avoidance' And Implies Arrangement Of A Person's Financial Affairs
f- :' In Such A V'Jay That It Reduces The Tax Liability. This Is Achieved By
f Taking Full Advantage Of All The Tax Exemptions, Deductions,
' ·-con ces-io-.i-s.-,_R_e_b_"a-' le-s,-.-Re-1-ie-h--,M-.A-.olw--a-nc-es _A_n_d--O-th-1e-r-B e-n--e.c-iit_s_ ·········-· 1·--
Graritfd By The Tij><LawsSo th t The 1ncidenceorr x 1s
Repuc:ea.
Exercise In Tax Planning Is Based On The Law. Itself Ang l s T h r fQr
Legal And Permanent.
Example: Mr. A Having Other Income Of Rs. 200,000/- Receives
Income Of Rs. 50,000/- From Mr. B. Mr. A To Save Tax Deposits Rs.
60,000/- In His Ppf Account And Saves The Tax Of Rs. 12,000/- And
Thereby Pays No Tax.On lncomeOfRs. 50,000.

Tax Management
Tax Management . Is . An Expression Which Implies Actual
Implementation Of Tax Planning Ideas. While That Tax Planning Is
Oni'y An idea, A Pian, A Scheme, An Arrangement, Tax iV1anagement
Is The Actual Action, Implementation, The Reality, The Final Result.
Example: Action Of Mr. A Depositing Rs. 60,000 In His Ppf Account
And Saving Tax Of Rs. 12,000/- is Tax Management. Actual Action On
Tax Planniflg Provision Is Tax Management.
 . c oMPUTATION OF TOTAL
- -- 16
INCOME
.

1. Income From. Salary

2. Income From· House Property
3. Capital Gains
4. Profits And Gains Of Business Or Profession
s. Income From Other Sources

: Income From Salaries

Incomes Termed As Salaries:Existence Of 'Master-Servant' Or
· 'Employer-Employee' Relationship Is Absolutely Essential For Taxing
·.•:·.•:
Income Under The Head "Salaries". Where Such Relationship Does
.:.li,,·:.

;;f
1t1 Not Exist Income Is Taxable Under Some Other Head As In The Case

I i Of Partner Of A Firm, Advocates, Chartered Accountants, UC Agents,

n Small Saving Agents, Commission Agents, Etc.. Besides, Only Those
·{ Payments Which Have A Nexus With The Employment Are Taxable
[\}
,I;t Under The Head 'Salaries'.
f
·1 :
.
i
}.
Bonus:
.

Bonus Is Taxable In The Year In Which It Is Received.

Pension:
Pension Received By The Employee Is Taxable Under 'Salary' Benefit
Of Standard Deduction Is Available To Pensioner Also. Pension
Reteived By A Widow After The Death Of Her Husband Falls Under
The Head 'Income From Other Sources.

(CCA):CCA Is Taxable As It Is A Personal Allowance Granted To Meet

Expenses Wholly, Necessarily· And Exclusively Incurred In The
Performance Of Special Duties Unless Such All'owance Is Related To
The Place Of His Posting Or Residence. Certain Allowances Prescribed
 under Rule 2BB, Granted To The Employee Either To Meet His
, personal Expen es At The Place Where The Duties Of His Office Of
17
{mployment Are Performed By Him,Or AtThe Place Where He­
ordin9Ji1Y iq'=s, Or TC? C:<?'!1P'=nsate irl"lFor
Increased Cost Of
...--..·------ L_iv_ingAreAexempt. _ _
Rent Allowance (HRA):HRA Received By An Employee Residing In
His
:own House' Or' in A House For Which No Rent Is Paid By Him Is
Taxable. In Case Of Other Empl'oyees, HRA Is Exempt Up T0 A Certain
l
Umit
,"f

---Entedainm_entallo_wan_c_e_; Enfe_ttainm.ent_AUo.W.ance Is FuIly Taxable,

-- :;
But A Deduction Is Allowed In Certain
Cases.
-1,!]
i

AcademicaHowance: Allowance Granted For Encouraging Academic

J B_e_s.earch And Other .PJQfessionc1_L£. rsuits, Or For The Book_ _for
The
i purpgs ,$hc1JJ g >< f!lJ)t LJ/ JP(JLJ.J. $irnilc1rly f'J v\l pc:1p r_f\ll<:>\
tVarlC-:
Shall Also Beexempt.

Conveyance Allowance: It Is Exempt To The Extent It Is Paid And

Utilized For Meeting Expenditure On Travel For Official Work.

Income From House Property

Incomes Termed As House Property Income:
The Annual Value Of A House Property Is Taxable As Income In The
Hands Of The Owner Of The Property. House Property Consists Of
Any Builrding Or Land, Or Its Part Or Attached Area, Of Which The
Assessee Is The Owner. The Part Or Attached Area May Be In The
Form Of A Courtyard Or Compound Forming Part Of The Building·.
But Such Land Is, To Be Distinguished From An Open Plot Of Land,
Which Is Not Charged Under This Head But Under The Head 'Income
From Other Sources' O-r 'Business Income', As The Case , May
 aesides, House Property Includes Flats, Shops, Office Space, Factory
· sheds, Agricultural Land And Farm Houses. 18
l: self-Occupied Property: Deduction l·s Restricted To A Maximum Of
Rs. 1,50,000 For Property Acquired Or Constrwcted With Funds
furrowed On Or After 1.4.1999 Within 3 Years From The End Of The
. Financial Year I _Which The Funds Are Borrowed. l'n Other Cases, The
Deduction Is Allowable Up To Rs. 30,000.
2: Let Out Property Or Part There Of: All Eligible Interests Are
Allowed.
1i
I., Capital Gains
r Any Profits Or Gains Arising From The Transfer Of Capital
l
Assets
.

1, Effected During The Previous Year Is Chargeable To Income-

Tax
. :f Under The Head "Capital Gains" And Shall Be Deemed To Be
The l Income Of Jhat Previous Vear In Which The Transfer Takes
Place. Taxation Of Capital Gains, Thus, Depends On Two Aspects -
Classification Of Capital Gains: 'Capital
Assets'
Short And Transfer'.
Term Capital Gain:
Gains On Transfer Of Capital Assets Held By The Assessee For Not
More Than 36 Months (12 Months In Case Of A Share Held In A
Company Or Any Other Security Listed In A Recognized Stock
Exchange In India, Or A Unit Of The Uti Or Of A Mutual Fund
Specified U/S 10{23d) ) Immediately Preceding The Date Of Its
Transfer.
Long Term Capital Gain:
The Capital Gains On Transfer Of Capital Assets Held By The
Assessee For More Than 36 Months (12 Months In Case Of Shares
Held In A Company Or Any Other Listed Security Or A Unit Of The
Uti Or Of A Specified Mutual Fund)
 income ,frQm Qysiness.Qr
Profession:
_· -- The i=ollowrnglrfcomessna11Be cfrn:rgeal:He unaerTfYis
--.-proffr-Ana·Ga1n-s-of-Any-8T:rs-i-n-ess--orPrufes-ston·ea-rrted on-By
Heaa·- - - ---- - -----
-- The Assessee At Any Time During. Previous Year. ··
• Any Comp'ensation Or Other Payment Due To Or Received By
Any Person, In Connection With rhe Termination Of A Cont,ract
Of Managing Agency Or For Vesting In .The Government
Management Of Any Property Or
Business.

•_lOn :m
. --1 ii- •. Profits Sale;
POf REPi;: Licence
! ic:sr;: : ;:e::i;
/Exim Scrip, Cash 1 1:
Assistance
Received Or Receivable Against Exports, And Duty Drawback Of

i; :J ;r--- •sso iation

;{

-
r Customs Or Excise Received Or Receivable Against Exports.
The Value Of Any-Benefit Or Perqui-site;·wneth-er --- ----
Convertible
r -
- ···lntoMoneyGrNot Ari·sing-FromBusinesserln Exercise- -
.
r Of/:\ Profession.

Income From Other Sources

This Is The Last And Residual Head Of Charge Of Income. Income Of

Every Kind Which Is Not To Be Excluded From The Total Income
Under The Income Tax Act Shall Be Charge To Tax Under The Head
Income From Other Sources, If It Is Not Chargeable Under Any Of
The Other Four. Heads-Income From Salaries, Income From
House Property, Profits And Gains From Business And
Profession And Capital Gains. In Other Words, It Can Be Said Th-
at The Residuary Head Of 1:ncome Can Be Resorteonly If None Of
The Specific Heads Is
--Ap-plicabTe--To fhe Incom e 1rn--Question··-- And. That It Comes Into
Operation Only If The Preceding, Heads Are Excluded.
 OLD INCOME TAX
SLAB

raxable Income Rate of Income-tax

Upto Rs. 2,50,000 Nil

'Rs. 2,50,000 to Rs. 5,00,000 5%

Rs. 5,00,000to Rs. 10,00,000 20%

:-Above Rs. 10,00,000 30%

J( Assessments year 2020-21 {Individuals)

i
ii 1. 4% Health and education tax
2. Rebate under section 87A 12500
i
;
'! NEW TAX SLAB
'I
r
I-,r Assessment Year 2021-22{Individual)
i
f.

l i

If Rate Of Income Tax

r; Taxab e Income
t
Upto Rs. 2.5 Lakh Nil
--
2.5 Lakh To 5.0 Lakh 5%

10%

7.5 Lakh To 10 Lakh '

15%
I---

10.0 Lakh To 12.5 Lakh 20%

12.5 lakh to 15.0 lakh 25%

------
Above 15.0 lakh 30%

20
 _. WHICH TAX SLAB TO
CHOOSE?

1 NEW TAX SLAB IS

I
'i'
SIMPLER
I
i,

2 NO NEED TO WORRY ABOUT LASl MINUTE TAX

I
PLANNING
3 LESS SAVING SO MORE MONEY IN
HAND

N E G A T I V E ' s - o F - N E w - s r A n - ---------------------- ll-

f
- -·r l·-··1-veu·····ENf:)·--tJP-PAYl·NG-MORE·-fAX. -(-WE·W·l·tt-SEE-·l:.ATER-H·0W--) ·
r

2NO FORCED- INVESTMENTS, WHICH CAN CREATE A

PROBLEM DURING RETIREMENT

3YOUNG GENERATION WILL NOT SAVE, AND SPEND ALL THE

EXTRA MONEY IN HAND

Senior Citi,zen
{Who Is 60 Years Or More At Any Time During The Previous Year) II
i
Net Income Range Rate Of Income Tax

Up To- Rs.3,00,000 Nil

- • Rs.3,00,000tors.5,00,000.
-Rs.5,00,000 To Rs.10,00,000 5%

-A 20%
I.

- bove Rs.10,00,000.

-
30%

21
 .· lfsuper Senior Citizen
.. ir:
liwho Is 80 Years Or More At Any Time During The Previous Year)
Range
!::Net income Rate Of Income-Ta
,.-
Y· X
t?
k Nil
;Up To Rs. 5,00,000
··'

l s··,. 5,00,000 To Rs: 10,00,000

·. 20%

30%
-Above Rs. 10,00,000
I
;

I I
The Cornman Exemption And
1. Undersection 80c
Diduction 1,50,000
2. Under Section 80ccd (lb) 50,000
3. Standard Deduction 50,000
4. Under Section 80d For Health 25,000
Insurance Premium Payment

Total - 2,50,000

Iax Planning For Old And New Tax

Slab
s.xa. 1

l 22
Exa.2
•. gf.QUCTIONS FROM TAXABLE INCOME

• Deduction under section BOC

• Deduction under section 80CCC
• Deduction under section 80D
• Deduction under section 80DD
• Deduction u _der section 80DDB
• Deduction under section 80F
• Deduction under section 80G
• Deduction under section BOGG
• Deduction under section 80GGA
• Deduction under section 80CCE

• Deduction Under Section SOC

This New Section Has Been Introduced From The Financial Year 2020-
21. Under This Section, A Deduction Of Up To Rs. 1,50,000 Is Allowed
From Taxable Income In Respect Of Investments Made In Some .
Specified Schemes. The Specified Schemes Are The Same Which
Were There In Section 88 But \1\/ithout Any Sectoral Caps (Except In
PPF).
soc
This Section Is Applicable From The Assessment Year
2020-
2021.Under This Section 100%Deduction Would Be Available From
Gross Total Income Subject To Maximum Ceiling Given U/S 80CC -- ··
Following Investments Are Included In This Section: ·-
• Contribution Towards Premium On Life Insurance
• Contribution Towards Public Provident Fund.(Max.70,000
A Year)
• Contribution Towards Employee Fund/General
Provident Provident Fund.
• Unit Linked Insurance Plan (UUP).
• NSC VIII Issue
• Interest Accrued In Respect Of NSC VIII Issue
• Equity Linked Savings Schemes (ELSS). i
Ii

/i

24 i
 • Repayment Of Housing Loan (Principal).
• Tuition Fees For Child Edl:.fcation.
• Investment Im Companies Engaged In Infrastructural
FacHities.

ii ------.--rJed
-----------,s uction-tJnder-se-ctiun-soccc--- --
oeduction In Respect Of Contribution To Certain Pension Funds:

I
- --

!)eduction Is Allowed For The Amount Paid. Qr Deposited By The

:"' Assessee During The Previous Y:ear Out Of His Taxable Income To The
I
Annuity Plan (Jeevan Suraksha} Of Life Insurance Corporation Of
:J India Or Annuity Plan Of Other Insurance Companies For8 f iyjng_

----!--.
- : ==I ==-ffens}on-Frcfm=Th-e Fu ntFifeferred rcr111=s =et-i -
ri:10(2iLXAB):_=-
Amount Of Deduction: Maximum Rs. 10,000/-

Deduction Unde'rsictiOn aOri - - --- ------·----·····---·-·---

, ·-- · _Deduc_tiQ_11]n_Res_pec_tjJtM_edJc:aJJnsuran e Premium -

-- - - - -- -------
Deduction Is Allowed For Any Medical Insurance Premium Under An
Approved Scheme Of General Insurance Corporation Of India
Popularly Known As MEDICLAIM) Or Of Any Other Insurance
Co,mpany, Paid By Cheque, Out Of Assessee Taxable Income During
The Previous Year, 1n Resp ctC>fThe Following
In Case Of An Individual - Insurance QnJhe Health Of The
Assessee, Or Wife Or Husband, Or Dependent Parents Or Dependent
Children. In Case Of An HUF- lnsuranceOnThe Health Of Any
Member Of The Family
Amount Of Deduction: Maximum Rs. 10,000, In Case The
Person Insured Is A Senior Citizen (Exceeding 65 Years Of Age) The
Maximum Deduction Allowable Shall Be Rs. 15,000/-.
 • Deduction Under Section SOOD
!}IJ
. S\peduction In Respect Of Maintenance Including Medical Treatment
. 'of Handicapped Dependent:

oeduction Is Allowed In Respect Of - Any Expenditure. lncurrred

By
.· An Assessee, Durii;lg The Previous Year, For The Medical
Treatment Training And Rehabilitation Of One Or More
Dependent Persons With Disability; And Amount Deposited, Under
An Approved Scheme
1 of The Life Insurance Corporation Or Other Insurance Company Or
I
:: · The Unit Trust Of India, For The Benefit Of A Dependent Person With
)':;

Disability.
Amount Of Deduction: The Deduction Allowable ls Rs. 50,000 {Rs.
40,000 For A.Y. 2003-2004) In Aggregate For Any Of Or Both The
Purposes Specified Above, Irrespective Of The Actual Amount Of
Expenditure Incurred. Thus, If The Total Of Expenditure Incurred And .
The Deposit Made In Approved Scheme Is Rs. 45,000, The Deduction
Allowable For A.Y. 2004-2005, Is Rs. 50,000

• Deduction Under Section 80DOB

Deduction In Respect Of Medical Treatment

A Resident Individual Or Hindu Undivided Family Deduction Is

Allowed In Respect Of During A Year For The Medical Treatment Of
Spee::ified Disease Or Ailment For Himself Or A Dependent Or A
Member Of A Hindu Undivided Family.
Amount Of Deduction Amount ActuaMy Paid Or Rs. 40,000 Whichever
Is Less (For A.Y. 2003-2004, A Deduction Of Rs. 40,000 Is Allowable In
Case Of Amount Is Paid In Respect Of The Assessee, Or A Person
Dependent On Him, Who Is A Senior Citizen The Deduction Allowable
Shall Be Rs. 60,000.

26
 • Deduction Under Section SOE
\oeduction In Respect Of Repayment Of Loan Taken For Higher
fducation

-AnJod'ividual Assessee Who Has Ta_ en A Loan FroD}_ rt_y Financia. l

institution Or Arty Approved Charitable Institution For The Purpose
of pursuing His Hi,gher Education I.E. Full Time Studies For Any
i · Graduate Or Post Graduate Course In
·1Engineering
.. Management Or For Post. Graduate Course In Applied
Medi.cine,
I pure Sciences
Sciences
f.
Or l'ncluding Mathematics Ar:ld Statistics.
i,
R

- -J---Am 1.1fll::Qf:: :Pg 1..1. !i:_C)n-:- Al3Y :AB'-1.Qbl-At--P-ai•ci-::l?V:::± ::A .- . JB--l"A-e

Previous Year, Out Of His Taxable Income, By Way Of Repayment Of
-- - eaA-GF-IAter-e-st-'--1'-l'le-r-e0F1,-SblfaJeE-t-l0-A-Maximblm-Gf-:-R-s.-4Q,QQ0'--------II-- -

Donations:-
100 % De.duc:tion Is Allowed lh Respect OfDt)hations To: Natjor,al
Defence Fund, Prime Minister's National- Relief Fun-d, Armenia
Earthquake Relief Fund, Africa Fund, National Foundation Of
Communal Harmon¥, An Approved University Or Educational
Institution Of National Eminence, Chief Minister's Earthquake Relief
Fund Etc.
In All Other Cases Donations Made Qualifies For The 50% Of The
Donated Amount For Dedu.ctions.

, • Deduction Under Section BOGG ·

Deduction In Respect Of Rent Paid: ·

Any Assessee Including An Employee Who Is Not 1.n Receipt Of

H.R.A.
U/S 10{13A)
Amount Of Deduction: Least Of The Following Amounts
Are Allowable:

27
 • Rent Paid Minus 10% Of Assessee Total Income
Rs. 2,000 P.M.
25% Of Total Income

Deduction Under Section 80GGA

a.tions For ScienHfic Research Or Rural
Development:

,Respect Of Institution Or Fund Referred To In Clause € Or {F}

nations Made Up To 31.3.2002 Shall Only Be Deductible.
15 Deduction Is Not Applicable Where The Gross Total Income Of
e Assessee Includes The Income Chargeable
Under The Head ofits And Gains Of Business Or
Profession. In Those Cases, The Is Allowable Under The
Respective Sections Specified

• Deduction Under Section 80CCE

'New Section 80CCE Has Been Inserted From FY2005-06. As Per This
L,ection, The Maximum Amount Of Deduction That An Assessee Can
'!'ftlaim Under Sections BOC, BOCCC And 80CCD Will Be Limited To
Rs
\Joo,ooo.
·!ncometax Filling Return Form

Form No :ITR-1 SAHAJ

For Individuals Being A Resident (Other Than Not Ordinarily
Res·, d ent) Hav.ing Total Income Up To Rs.SO Lakh, Having lncom·e

Fron, Salaries, One House Property, Other Sources {Interest Etc.},

And Agricultural Income Upto Rs.5 Thousand.

FOrn, No : ITR-2

28
 r .
individuals And Hufs Not Having Income F r o m Profits A n d Gains
Business Or Profession. _

_ rrn No : ITR-3
r Individuals And Hufs. Having Income From Profits A nd Gains
Of

-,
usiness Or Profession.
Form No: ITR-4
for
Sugam
Individuals, Hufs And Firms (Other Than LLP} Being A Resident
Having Total Income Up o Rs.SO Lakh And Having Income
From
Business And Profession Which Is Computed Under -Sections
-441\0A-:0r-:44i\E,- - 44AD,
----- --

Form No :JTR V
... WhereThi:!DataOfTheReturn O f l h c o m e l n FormlTR-1 (SAHAJ-), ITR-
. 2, ITR-3, ITR-4(SUGAM); ITR-5, ITR-7 Filed But NOT Verified

ElectronicaUy

Form No : Acknowledgement
Where The Data Of The Return Of Income In Form ITR-1 {SAHAJ), ITR­
'2, ITR-3, ITR-4(SUGAM), ITR-5, ITR-6, ITR-7 Filed And Verified.

HUF Income Tax Filling Return Form

Form N:o, : ITR-2
For Individuals And Hufs Not Having
Income From Profits And Gains
Of Busi171ess Or Profession.

Form No :ltr-3 1
I1
I

?Q
 r,: individuals And Hufs Having Income From Profits And
Gains Of
, siness Or Profession.

rrn No :ltr-4 Sugam

r Individuals, Hufs And Firms {Other Than Lip) Beirlg A
Resident
aving Total Income Up To Rs.SO Lakh And Having Income From
t'1%$u'siness And Profession Which Is Computed Under Sections 44ad,

f ]l4ada Or 44ae.

; forrn No :ltr-V
Where The Data Of The Return Of Income In Form ltr-1{Sahaj),
ltr-

1
I
2, ltr-3, ltr-4{Suga m), ltr-5, ltr-7 Filed But Not Verified
Form No :Acknowledgement
Electronically
.:ff Where The Data Of The Return Of Income In Form ltr-1{Sahaj), ltr-
.'
\ 2, ltr-3, ltr-4(Sugam), ltr-5, ltr-6, ltr-7 Filed And Verified.
t

30
 CHAPTER:- 2
2. PROFILE QFTHEORGAN,SATl,ON

---Name Of The Organisation :-K P N & Co. - - - - - - - - - - - - - - - - - - - - - - - - -

Accounting Firm In Maharashtra

_ Headquarter :-
Na,shik

/
- company Size :- 11-50

Industry :- Legal Services

, Mail !d :- Kp11andco.@_Gmail.C:::om

- ------ ---2.-1--About-"fhe erganisation-:------------ ------- -- - ----- -- ---- ---- --- ----- --- -- -
- - - ---- -­
KPN & eo-
Founder OriginatedFro·m
Partners Who Established The Of
The Initials The
Firm In lastNames e>f,he
The Year 2012. K J

P i

N & Co IsOfA Leading

Institute Chartered
Chartered Accountancy
Accountants Firm{l.cai)
Of India Registered
HavingWith
Its
RegisteredOfficeAt NashikAnd Branches At Pimalgaon (Baswant),
lgatpuri, Ankleshwar And Dhule; We Are The Team Of Young And
Energetic Partners Having Positive Approach To Provide Expert And
Professional Services With Due Care Of Professional" Ethics. We
Believe In ·Steady Approach Towards Offering High Quality
Professional Services To Our Clients And Building Long Term
Mutual Benefit Relationships. We Offer Fast And Reliable Services
In The Fleld Of tncome Tax Consultancy, Auditing, Accounts
Certification, Business Form,ati-on, Consultancy Services,
Accounting Services. We Have Successful Track Record Of
Conducting A Fully Diversified One Stop

l 31
 iution For All Accounting Related Needs Including Compliance
udit And Assurance, Internal Audit, Statutory Audits, Indirect
axation, Management Consultancy, Inventory Accounting, Fixed
.· s et Management And MIS. Among Our Clientele There
Are everal Banking, Construction, Automotive,
Distribution, anufacturing Companies. K P N & CO,
Partnership Firm Is
.,"J committed To ,.· Engagement, Team Continuity And Client

2 2 Work Of Organisation
K p N & CO. Chartered Accountant \/\fork In A Wide Range Of Legal Services
}!, sectors And In A Broad Spectrum Of Roles From Chief Executives To Financial
Controllers. Below Are Examples Of .The Type Of Positions That Chartered
Accountants Occupy.
1. Tax Accounting
2. Accounting Services
3. Budget Analysis
4. Audit
5. Service Tax
6. Tax Deducted At Sources

Our Vision: "To Be A Global Organisation Backed By High Ethical Values And
Standards, Socially Accountable And R sponsible, Contributing To
Sustainabl-e Economic Growth Of Society."
Our Mission "To Provide Timely, Proactive, Innovative And Independent
Assurance, Financial, Auditing And Tax Services To Clients."
Our Beliefs And Ethics: We Believe In Moral Values And Accept That There
11

Is No Shortcut Of Quality To Professional Services. We Never Compromise

With The Professional Code Of Conduct; We Are Abiding By The Professional
Ethics And Would Uke To Restrain Ourselves F·rom Any Conduct That Might
Discredit To The Profession.
 CHA.PTER- 3

project work start' from selection of topic ancl ends with

suggestions and conclusions. Researcher has select choose the
took "KP N and CO". Chartered accountant for this study
researcher uses various way for the preparing project.

Following are the some of the methods mention:

Research Methodology:

Resear_c:b_ JD tbgggJ_g_g'i refers to scientific p r q 9! - !f {QL Jbe

9cgµ.isition of n 9 \ A / l g ,l d gr1 empi[} 1lo s E\/
ti9r1a11cjJ2gic_c1L reasoning. The aim of research methodology is
merely collection
- analysis and= interpretation of facts in the-most systematic--
and objective manner. Thus, the aim of methodology is limited
and subservient.

Research Methodology is the way to systematically solve the

research problem. It may be understood as a .science of
studying how research is done scientificailly. In this we study the
various steps that are adopted by the researcher in studying his
research problem along with the logic behindthern. U is necessary
for the res.earc.her to know not only the research methods but also
the methodology.

All this means that it is necessary f r the researcher to design his

methodology for the problem as the same may differ from problem
to problem.

-1-
,-
-

''Research is the search for knowledge."

Research Methodology is the method used of collecting data

through various sources as well as analysis and interpretation of
data.
It has always been important & essential to adopt certain
predecided method to study any particular system.

In order to collect the required information following methods were

adopted.

Definition:

Clifford Woody, "Research compromises defining and redefining

problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching
conclusions and last carefully testing the conclusions to determine
whether they fit the formulating hypothesis".

Jypes of Research:
A.DESCRIPTIVE RESEARCH: -

It includes surveys and fact-finding enquiries of different kind. The

main purpose of descriptive research is description of the state of
affairs, as it exists at present.

B.ANALYTICAL RESEARCH: -

Analytical research has to use facts or -information already

available and analyze these to make a critical evaluation of the
material.

34
 C.APPLIED RESEARCH: -

,Applied research airr1s at finding solution for an- immediatg prolllem

facing a society or an industrial/business organization. The certain
aim of applied: research is to discover a sohltion for some pressing
--·--pFaGtiGal- r-obl@m.-- ----··--- ··-- -----·--------- ·-- --------------

D.FUNDAMENTALRESEARCH: -
It is mainly concerned with generaHzation and with the formulation
of a theory. Basic research is directed towards finding information
that has abroad base of application and adds to the already
- --- -- -existing-o-rganize-d--b-o-dy-of-sci-entific-knowl-e-dge-.--- - ---

E.QUANTITATIVE RESEARCH: -

... - -it- -is --base-d--on--tt'.le---m@asur@m@At-of---quantit-v--or--

amount-,-lt -is _ ot phenomena. that can be expressed in terms of
_ application
quantity.

3.2Sampling-

Types of Sampling:

frobability Sampling:SimpleRandom Sampling, Stratified Random

Sampling, Multi-Stage Sampling.

• What is each and how is it done?

• How do we decide which to use?

L
35
 • How do we analyze the results differently depending on the
type of sampling?

Non-probability Sampling: Why don't we use non-probability

sampling schemes? Tworeasons:

•We can't use the mathematics of probability to analyze the

results.

• In general, we can't count on a non-probability sampling

scheme to produce representative samples.

In mathematical statistics books (for courses that assume you have

already taken a probability course):

• Described as assumptions about random variables

• Sampling with replacement versus sampling without

replacement

Simple Random Sampling:.

A simple random sample {SRS) of size n is produced by a scheme

which ensures that each subgroup of the population of size n has an

equal probability of being chosen as the sample.

36
-stratifiedDivide
Random Sampling:
the population into "strata". There can be any number

of these. Then choose a simple random sample from each stratum.

Combine those into the overa!II sample. That is a stratified random

sample. (Example: Church A has 600 women and · 400: men·

as members. One· way to get a straf:ified random sample of size 30

is to

take a SRS of 18 women from the 600 women and another SRS of

12 men from the 400 men.)

Multi-Stage Sampling:

• Sometimes the popuiation is too iarge and scattered for it to

be practical.

•
to make a list of the entire population from which to draw
a
$RS. For instance,

when the polling organization

 Research area Nashik
'

Descriptive
Types of Research
Research
:

Stratified Random
Sampling Method
Sampling

Observation/Discus
Primary Data
sions

Secondary Data By Report & Files

Analysis of Data %, Table, chart

38
 ;.3Data Collection

- Primary data

rimary dataare the informatton;·calle-cte-d brth-e res·earch-erforthe ··-· · · - - -

,reparing of project. It is original observation collective by the
r e-5 e a.rcher at the first hand and hence they are reliable. This t Y Q e o f - - - - - -
l f - - ­ ata is the logical starting point of the research in various disciplines.

1 primary data all information

st
about project topic is not collected.
. pecifically,_but i t ! - step of Pt paring the pre>j - !·.
;

1terview: it is verbal method of collecting data from a

ersondestroyed as interview is taken during research process to

. Ju stior1r1aire_:_ Questionnaire is an direct method ofcoHecting

data.
t contains many questions pertaining to field of inquiry, in define
,rder of form like:
he questions should be short and
clear he questions should be simple
he questions should be in order or
sequence vise of project preparation.

>bservation: observation is the basic method of

,btaininginformation about the world around us. All observation are
1ot scientific become scientific if it is plan and recorded
ystematically and as subject to check and control on validity and'
eliability the observe is sharing to greater or less degree the life of
he group researcher is observing.

39
e. Secondary data-
secondary data means that data which is already
avaUable. Which is already using in research process,
as it easily available and it is time consuming.

secondary data should be use by the researcher only if it is

screens under their tests as fol'lows:

7. Authenticity

8. Adequacy

9. Suitability

The main part of project work is depended on primary and

secondary date. K P N & CO studied the all work of legal services
which mention in all Directtaxes of income tax act by government in
India.

Export of goods is a part of excise because while exporting the

product custom duties department by the company and it is
compulsory. There are various formulation decided by govt. to pay
the excise and custom duty on various product. Means excise duty
is paid on product which is registered under central excise as per
their percentage or rate. All rates of excise are decided by central
excise department.

K P N & CO. company of company records all day to day transaction

about any other manufacturing goods in their books of excise in
specified computer software in systematically manner. Each and
every· company has separate software for recording excise
transaction. And sharing all data with the chartered accountants

40
 ......... . - ...
j
,1

41
 4.1 Individual - Income Tax Structure in India individual depends upon
his residential status, which is defined on thebasis of his physical presence
in India as per the Income Tax Act.

Individua
l
I
.;

N
o

...................................... --

l 42
Z Company- Income Tax structure in Tc1x incidence of a
company ipends on the residential status of the company,Le.,
whethertne
,mpany has been incorporated in India or its place of effective
anagement lies in India.

nrlia !
ncorne
4.3 LLP - Income Tax structure in India
Tax incidence of a Limited Liability Partnership (LLP) depends on the
residential status of the LLP,i.e., whether the control and management oits
affairs are situated wholly or partially in India.

Firm/
LLP

44
 CHAPTER No- 5

LITERATURE .REVIEW

_ . Meaning of Jrt ome Tax - --------- ------- --- - ----- - ------------- - - - - ---- ---

1n come Tax is a tax imposed onindividual or entities (taxpayer)

_;p_ecLoJ_theJne.ome_QLIJ
in ro f it e a r n e d-=bc.,..·--=t.:.:.h-=e:. _'m.:_. : J _

t Basic Concept of_lncome Tax · - · - - - , ~ - - ----·--- ·- · - - - - - - - ·-·-··----··---··-··-·---··----···--

lCQm TclXJ leyied on the totai inc.ome of

Act the previous year of
· ery-13e rsoR11-. -To-understand -th@-ba s ic.concept.Jti svery.J
mportant.. kriow the-various-other concepts.

ncept of Income
co.mmon parlance, Income is known as a regular periodic return to
>erson from his activities. However, the Income has broa.der
1ssified in lncomeTax law. The l'ncomeTaxAct, even take
nsideration of income which has not arisen.regularly and
riodically. For instance, winning from lotteries, crossword puzzles,
:ome from winning of shows is also subJect to tax as per income
I(.

xation Poli'cy has been · widely debated issue all over the world.
A
·ge number of studies have been conducted covering different
pects of income tax structure such as personal income tax, capital
ins taxation, agricultural taxation, efficiency of income
tax lm,inistration etc. over the years. In this chapter, the
available
erature was studied to get an insight into the main objectives of
45
 Ie study. The review of literature is confined to India only as income
Ix legal frame work varies from country to country. Moreover,
iports of important committees constituted by Government of
1dia have also been reviewed. A brief review of relevant studies in
1is reg,ard is given below-

1dian Taxation Enquiry Committee(1924)- was appointed by

-overnment of India to'examine the burden of taxation on different
lasses of people, equity of taxation and to suggest alternative
ources of taxation under the chairmanship of Charles Todhunter.
he committee recommended the following measures for
nprovement in taxation of income:
1. Loss sustained in one year should be allowed to carry forward
and set-off in the subsequent year.
11. The income of married couples should be taxed at the rates
applicable to their aggregate income.
11. fn case private companies are formed just for tax avoidance
by
with holding dividends, then such companies should be treated as
firm

·axation Enquiry Commission (TEC) (1953-54)- headed by John

Vlathai was set up to review the tax structure in India. It carried out
3n in-depth study of the central taxes and their administration. It
·ecommended widening and deepening the tax structure both at the
:entre and the State level for the purpose of financing development
)Utlay and reducing large inequalities of income. It
also
·ecommended for providing tax incentives for production
and investment and periodic appraisal of same. Further, the
commission
also recommended the financing of small research sections
in selected research institutions by the government. Kaldor
(1956),was
invited by the government of India in 1955 to review personal and
business tax in the Indian tax system46
with a view to augmenting
 3xa·tion system in India at that time was inefficient and inequitable.
le recommended the introduction of an annual tax on wealth
A Progressive Evaluation of inccrne t axln rn:dla"The m•ain alm 0f
ny_ _ nc:1tiQn Js it i::o_mpl te_ Rrggr_ s nc:l cl<=_,, I_9p_m 111t,
Tel}'< ts 1easured as the main basis for revenue generation for
government.
1ternational Journal of Management Income on "Tax Act of India:
;sues and Expected Re_ orms" It aims on the breaches found in the
Jlebooks in Direct Tax Policy of India. Income Tax Act 1961 is a
stablished, advanced and seasonedtax regime of India.

SSESSMENT VEAR - S. 2(9)

ection 2(9) defines an "Assessment year" as "the period of twelve months

tarting From the first day of April every year." st An assessment year begins
n 1st April Every year and ends on 31 March of the next year. For
··vamAlo 15.cs····;;c5--me·--n-f---,,-o;r /Q_1_'):·r ma-anc -fne
s
A JI-t-'1'--J
-J '-J
1-11 · 111 . , ' f ' - U I - J.._,,
- £ - ..a.. . 1-_ltJ --' ,,1.1- - -'--1 - . ·"" . 1- _,,_._ J - '-' " " 4 . ■

pilr·1·0-rl ·o--f--o···· nio

11.

eginnjng on_·r·srApril, 2011_and ending oh 3l Mafth,2Ql2. ·Inart

\/i:l::ir

t
ss sDJel'!.t y_ c:1n income of t -c3ssessee_dl:Jti11_gthePrevi0l! Y c3E ista_ d

t the rates prescribed by the relevant Finance Act. It is here fore, also
alled as the "Tax Year"

REVIOUS VEAR- S. 2{34) & S. 3

1e:finition:Section 3 defines, "Previous year" as "the financial year

nmediately preceding_ the Assessment year". Income earned in one
nancial year is taxed in the next financialYear. The year in which income
; earned: is called the "previous year" and the year In which it is taxed is
alled the assessment year" Common previous year for all Source of
11

lcome:A person may earn income from more than one sources but
revious year will

47
Always be common for all the sources of income. This will be so even if a
person Maintains records or books of accounts separately for different
sources of income.
Total income of a person from all the sources of income will be t ken
together and Considered in the previous year or the finandal year
immediately preceding the Assessment year.

48
 CHAPTER No- 6
DATA ANALYSIS AND INTERPRETATION·

1. Are-vouregular-tax-payer- -- -
ble no t

krspun · Rnpundm1 Ptr-rtntai;t

n nu ,•,ut

.. -
1I

1alysis- From above chart, it is analysethat 80% respondant is

regtJlar
>< payer and 20% respondant is not regular tax payer.

terpretation- Maximum respond has regular tax payer.

49
 '.. How do you get the information about taxation
le n<>- 2

S r. N o Response- Rnponcknt No ·/·

I Through Ta Com,uhant 17 34%

2 Through Friends &Rdativcs 18 36.2%,

J Through Mc<iia 15 2 9.8%

Total \
50 10001'

Chart n o - 6

Information About Taxation

• 1 Through Tax Conwttant

• 2 Through Frtencb
&Reiatives
• 3 Through Media

,alysis- from above chart, it is analyse that 36.2% respondant for

rough friends and relatives 4% are through tax consultant and 29.8%
rough media get the information for tax payer.

terpretation- maxi,mum respondanthas get the information from

friends
,d retatives that is 36.2% and manimum is through media that is
29.8%.

50
 . Under which heads of i,ncome, Your income become
taxable
leno-3
1

-rNo

44.7%

2 lncti1nc frdnthn11sc: J
property
1
3 Profit & gain ofbusincs. !
- - - - - + - - - - l'llfl - s s l i m ' - - t - - - - 4
- - 1 - - - - - - - - - - 1 - - - - - - - - - - - - - - - - 1 ,

4 21.3%

Capital Gain
s 0

Total 50

t no• 2

Heads Of
Income

?r.:t 't1-1.' f,m,t r:c :HT:::!!:! ho-,ri. Pn,ft:t•& ;tifl o ! Jm.um@fr ro (.Jp-;..t.,,1iG,ia:i-n
at.uv. tv.tunt ptUp-t!tty buHn 1" / uttwr
1otJn.:e1-
l'tclfeHurn

ilysis- from above chart, it is analyse that 44.7% income from salary
I 6.3% income from house property and 27.7% profit & gain of business
}rofession and 21.3-% income from other sources and 0% of capital
gain ondant are heads of income become taxable

erpretation- Maximum respondant has income from sala y.

-- - ------- -------- - -- - - - - - - - - - - - - - - - - - - - - - - - - i--

!
1oes Your Tax Consultant Notify The various provision and submission
le No-4

Sr.No R.nponse Rnpomknt no P rcentage(o/•)

I YES 4'7 9.\.611,o

2 NO 3 fi..i•r;,
'
Total 50 10( .,.,

Chart no4

Tax Consultant Notify The Verious Provision

And Submission

■1
'tE.S
■ 2NO

1lysis- From above chart, it is analyse that 93.6% respondant tax

1sultant is notify the various provision and submission of all tax and
% tax consultant is not notify the various provision and submission
of
tax.
erpretation- Maximum respondant has tax consultant is notify the
ious provision and submission of all tax.

52
 hether Your Tax Consultant Timely Reminders You regarding-tax
igation?
(. Table No- 5

45 89 .4%

2 No 5

so 100%,

Chart no - 5

Tax Consultant Timely Remindes You

. _ .B,.sarding Tax Obligation
-··-·~·--····- ·-- - - - - .

. ...■.I.yes 1

•2No

alysis- Fromab0ve chart, it is analyse that 89.4 % respondant tax

nsultantisreminderthe tax obligation and 10.6% respondant tax
nsultant is not reminders the tax obligation.

terpretation- Maximum respondant tax consultant is remi'nders

the tax
>ligation.

53
 What Is Your lncomeRange?
tble No- 6

Sr. No Rnponk Respondent Ptrttntagt

no (%)

1 Less than Rs 3 lnkhs 20 40.4t!,i)

.,...,
Rs 3 lakhs to Rs·5 1a:khs 27 53.2,,
.More.than 5 fakhs
3 3 6A A

Total 50 IO(Y'/i,

I
Chart no -3
I
,
Income Range
(i()O(m

JO
OCt'l\\

-
3
I
malysis- from above chart, it is analyse that, less than Rs.3 lakhs
40.4% .Rs
, lakhs to 5 lakhs 53.2% and More than 5 lakhs 6.4% these are the income
ange of respondant.

nterpretation- Maximum respondant has income range of Rs.3 lakhs to

ts. 5 lakhs.
54
 lhat i$ your impression about the fees charged by your
tax
,le no-7

4 2

5(F

----C h a r t . 11 0 , , 1 _ · - - - - - - - - - - - - - - - - - - - - - - - - - - 1 - - - - - - - - - l'

. ·1: -•·····,··· ··,,·'-•···--··•·"····----.·····•·•.··..•.··.·. ·.•.•··•·· ·. ·.·.

.
•·.·..............•... .;..,...... •· tmpr sion About The Fees
·-··· ·- ·-- ···-· ·-·· · - - ···.-· · - - .

. Tax
·. ··-- --·· ·--···-··"·"'· ·-· ·-···· ···- --
tt ·.:. ·.. :
·

• aR«asonabl
e
ii!l4·MY r

ialysis- From above.chart, it is analyse thatG.6% re_spondantare higher

d 12;8% lowest and 76.6% reasonable and 4% are anyr other fees
arged by tax

:erpretation- Maximum is 76.6% respondant opinion that

isJees arged by tax is reasonable and minimum is 4% for
any·other.
o you Discuss Government's Annual Budget Provision With Tax
1sultant Before Hand?
,le No- 8

S r. S o Response Rcs.pondent No Percentage(o/e)

J Yes 46 91.S'H,

2 No 4 s.s,4
Total so I (

Discuss Government;s Annual Budget

Provi$ions

1alysis- From above chart, it is analyse that 91.5% respondant is Discuss

,vernment's Annual Budget Provision With Tax Consultant and 8.5%
are t discuss.
terpretation- Maximum respondant discuss Government's Annual
dget provision with tax consultant.

56
 erally when you do prepare for fillingthe
return
110- 9

Sr.No - - _po!' f- Respondent No Percentage(%)

I
-

I·month lNfotc due date 29 57;4%

I
I week bcfqrc due date . l9' 38.3% I
2-3 dnys before due date' 0 lo
I
After due date

TQtal
2
·SO'
4.3%
l00%
I

:'hart no-II

• 1 mmth befor'I: du-I'! dMe • 1 w i; before due

d.)te
• 2·3day, bf.:ioteduedate • Mt.:r died.He

aalysis- From the above chartit is analyse that 57.4% respondant is

epare the filling return in 1 month before due date, 38.3% is 1 week
fore due dater0% 2...3 days before due date and 4.3% isafter due
date.

,terpretation - Maximum respondant for prepare the filling return in 1

1onth before due date.

r:;.-
,
 leasons for filling return
le no-10

Sr. No Response Rtspondent Pcrcntagt'('li,)

o

I· Regular 1>ro\'ision Jo 72J%

- "I
Refund claim 14:9%
3 Carry frmvard 4 SJ%

4 Notice from in(otnc -'l 4.5''h

depanmcnt
Total 50 101:Y'o

Chan no -10

Reasons For Filling

Return

alysis From the above chart, it is analyse that 72.3% respondant is

ing return for regular provision 14.9 are refund claim 8.3% are carry
·ward and 4.5% are notice for income from department.

:erpretation- Maximum respondant are· filling the return for regular

Jvision and minimum for notice from the income department.

58
 :e how many years you are filling return

r- - - - = = = .;;;;;- = - ........-------..-..-.-... -------....---..-.

-------4-
-.-.- -- --
-- - - ----------
== ====== -..-1- 42.6% ---
0.5 years

·-:
..
1 S·lO years 18 36.2%
4 - ; 1 4 - --- J - --- --1 - --------- 1
3--------1 -- ----10;;-1'5- yca - ------------- 1--'].- , _ l -
-
4 More than I5years 3 .. 6.3%

Total 50 lOO'fo

- -

Chart no 16

: ----J _ - -

Years Of Filling
Return
- 4S -···· - - - -· -
40 -
------ -J S - - -

..
--
30
1S

I
20
15
10
s
0

1 3 4
.

ble no-11

alysis- From above chart, it is analyse that 42.6% respondant 0-

Syears filling return, 36.2% are 5,..10 years, 14.9% are 10-15 years
and 6.3% more than 15 years filling return.

:erpretation- Maximum respondant has filling return 0-5 year.

--------------------- - --- -- - - - --------- --------------------------- 59 -- - - - - - - - - - - - - - ---- - - -- - -- - -- ------

 9.FINDINGS
..It is found that Investments have to pay less tax if done and use the
>Id tax slab.

.it is found that lnvestrpents have to pay more tax if you d:oand use
he new tax slab.

L It is found that maximum 80% respondant regular tax payer and 20%
jo not pay tax regularly.

J. It is found that 44.7% maximum respond ant are pay tax from head of
ncome from salary.

i. It is found that 53.2% maximu111 respondant income range is Rs 3 lakh to

s 5 lakhs.

5. If is found that 42.6% respondant filling return in O - 5 year.

7.Maximum are filling the return for regular provision and minimum for
notice from the income department

8 .It is found that 89.4% respondant tax consultant helps to understandir1g

union budget

9.Itis found that 76.6% maximum respondant pay fees of . tax

in reasonable

10.It is found that 57.4%

maximum respondant files the return in.
providing document within a week.

nO
 10. SU,GGESTIONS

1 MaJority--◊f--people--stTould--have---tax---aw-aFeness--ar:id---tbey_
------- -- shouldbe also awareabouttax saving schemes and instruments
.people should invest and save thefrmoney for future benefits.

2. Maxim'um people should discuss uoionbudget with

their tax consultant forfinancial and tax awareness .

irlcome_ _-tax- o t h a t _ ? v e r n m e n n take initiatives for 1

infrastructure and various schemes for girlsarrasenic:,-r--citiz-ens-:---- - ---- ------ -----

1

4. state wise regfstrgtiqns wil.l be a major hurdle for service providers

who-c:>perate-inmultiples-tatesor all India basis.

5. Procedures proposed for registration and returns are complex,

cumbersome and regressive. Provision of classification, valuation
supply etc also go against the principle of ease of doing business. _

6. Multiple registrations of same person in different states should be

done away with. The concept of centralized registration should be
provided for.

7. If the investment is made the o,ld tax slab should be use and if not
invested , then new tax sl1ab should be made.
 11. -CONC .

LUSION

1. From this project work I learn very important things about

Income Tax

2. I understand current tax system in India from this project

3. Analysefrom this project more than people are regular tax

payer.

4. That I learned from this project the tax slab varies according to
the age of the person.

5. Analyse from this project many more people fill the formlTR-4

6. I understand from this project income tax will boost earnings of

both State and Central Government.

62
 12.
REFERENCES
cs
: T. N. Manoharan {2007), Direct Tax Laws (ih edition),
0

Sno.wwhite Publications Pvt Ltd., New Delhi.

• Dr. Vinod K. Singhania (2007), Students Guide to Income

Tax, Taxman Publications, New Delhi

• Income Tax Ready Reckoner .;..;.A.Y. 2007-08,Taxman

---P-ublic:atioris,J".tew_D_elbi. _

I
I

bsites
L www.google.com

2. https://c!eartaxJn

3. https://taxguru.in
 7
13.Questionnaire

1. Are you regular tax payer

a. Yes
2. What is your Income Range

What is the threshold for registration of regular tax-payer?

 a. Rs. 20 Lakhs

What is the highest rate of tax prescribed under Income tax?

 a. 30%

Indian income Tax model has how many rate slab?

a. 4

Whichamong the following is a progressive tax ?

b. Income tax
........Is progressive tax

 a. Income Tax

. Whi.ch one of the following is not a tax saving investment