final report rohini

7/30/2019 Final Report Rohini

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A

PROJECT REPORT

ON

E-FILLING INCOME TAX RETURN WITH RESPECT TO

INDIVIDUAL ASSESSEE

SUBMITTED TO

UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

ROHINI PRAKASHRAO NAIK

MBA(FINANCE)

BATCH(2012-14)

UNDER THE GUIDANCE OF

PROF.SUPRIYA LAKHANGAONKAR

SINHGAD INSTITUTE OF TECHNOLOGY AND SCIENCE

NARHE,PUNE-41(MAHARASHTRA)


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Declaration

I , the undersigned hereby declare that the project report entitled E-FILLING INCOME TAX

RETURN WITH RESPECT TO INDIVIDUAL ASSESSEE written and submitted by me to

the University of Pune , Pune in partial fulfillment of the requirement for the award of degree of

Master Of Business Administration under the guidance of Prof. Supriya Lakhangaonkar is my

original work and the conclusion drawn therein are based on the material collected by myself.

I further declare that the information presented in this project is true and original to the

best of my knowledge.

PLACE : PUNE RESERCH STUDENT

DATE : ROHINI P.NAIK


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ACKNOWLEDGEMENT

I take this opportunity as privilege to express my deep sense of gratitude to Professor

M. N. Navle , Honorable Founder President , Dr. (Mrs.) S. M. Navle , Secretary, The SinhgadTechnical Education Society, Pune, Dr. S.N.Mali , The Principal Sinhgad Institute OfTechnology And Science, Pune for their continuous encouragement, invaluable guidance and

help for completing the research work. They have been a source of inspiration to me and I am

indebted to them for initiating me in the field of Research.

I am deeply indebted to Prof. Supriya Lakhangaonkar, my research guide, the Sinhgad

Institute Of Management, Pune without his help completion of the project was highly

impossible.

I take this opportunity as privilege to articulate my deep sense of greatfulness to

Mr.Prasanna Jain , The financial Advisor for their timely help and positive encouragement.

I wish to express a special thanks to all teaching and non-teaching staff member, the

Sinhgad Institute Of Technology And Science, Pune for their forever support. Their

encouragement and valuable guidance are gratefully acknowledged. I would like to acknowledgeall my family member, relatives and friends for their help and encouragement.

Place: Rohini Prakashrao Naik

Date:


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INDEX

SR.NO TOPIC PAGE.NO

1 EXECUTIVE SUMMERY 6

2 INTRODUCTION TO E-FILLING INCOME TAX

RETURN

7

3 INTRODUCTION TO STEADFAST ADVISORY 11

4 OBJECTIVES OF PROJECT AND RESEARCH

METHODOLOGY

17

5 SCOPE AND LIMITATIONS 18

6 CONCEPTUAL BACKGROUND 19

7 FINDINGS, CONCUSIONS & RECOMENTATIONS 29


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LIST OF TABLES

TABLE NO. TABLE HEADING PAGE NO.

1. Leading players in e-Tax filing industry 8

2. Analysis of e-filing incometax return players in the market

on the basis of services

9

3. Price Analysis of e-filing Income Tax Return Players in

the market

10

4. The Appropriate form for filling Income Tax Returns 22

5. Due Dates for filling Income Tax Returns 23

6. Rates of Income Tax for A.Y 2013 26

7. Snapshot of Deductions from taxable Income 28


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EXECUTIVE SUMMARY

This report contains all the details of Income tax with Respect to Individual Assessee

Who is having Income from Salaries, Income from house property , Income from Capital gainsand Income from other sources. This means it includes individual who will use ITR-1 and ITR-2

from for filling their income tax return. It also include the whole start to end process of online

Income Tax return filing for ITR-1 and ITR-2 from and the various supporting documents which

required for IT return filling.

This report covers the various deduction which will reduce the overall taxable income of

individual assessee and it also covers the various set off and carry forward of losses to

subsequent year. It include the various tax saving instrument which will reduce tax liability and

will also generate better returns in future.

It covers all the important concept and procedures under income tax act and the various

advantages of online income tax return filling.


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Introduction To E-filling Income Tax Return Industry

Electronic filling, or e-filling first began in India as part of a proposal for internet based

electronic tax administration system for service tax. The central board of Excise and Customs

efforts made the introduction of e-filling of tax return possible for the first time in India in April

2003, but its benefit was available only to a few service tax providers.

In the year 2007, the Income Tax Department started the facility to E-File Income Tax

Return(ITR) online for individual taxpay. Under its agenda of E-governance. Today e-filing of

ITR is among the most popular facilities introduced by the government of India. In the financial

year 2011-2012, more than 16 million returns were filled online i.e 4000% growth in 5 years.

However the adoption of this facility is still too rich its optimum penetration. Once people realize

how secure and easy online tax filling is.

Cutting edge technologies have made solutions more user-friendly in terms of ease-of-use.

Appealing user interface and smooth navigation make the experience easier than ever. Anybodywith a digital Form 16 can attach this document and email it to get the return e-filed

instantaneously. Moreover, there are platforms that provide 1 click e-filing solution to the

employees of large organizations, from within the payroll software. What has been simplified

here to a great degree is the process of information collection. Leading e-filing websites provide

return preparations and filing service that automatically retrieves the relevant data from Form 16,

Form 16A, Form 26AS, bank statements, and brokerage statements. This eliminates the need for

the user to find required details from various sources and fill all the entries manually. Moreover,

users can be free of worries with respect to selecting the appropriate form(ITR1, ITR2, ITR4,

etc).The portal does that on its own.

With e-filing becoming mandatory from AY2013-2014 for individuals with total income above

Rs. 10 lakh and for those having assets abroad, electronic return filing will become the preferred

way of filing for all the taxpayers. If you are able to understand and prepare your tax return

independently, otherwise e-file through e-return intermediary websites, you can manage your

taxes with ease and security!


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Most authorized e-return intermediaries, evaluated for their security and confidentiality, store

only relevant data. They do not store any information related to credit card or payment details.Similarly, session related information is never stored in cookies directly. There are certifications

like the CERT-In(Indian Computer Emergency Response Team, Department of Information

Technology, Government of India). For information security audit for hardware/software and

security complaints. Such certifications attest the fact that service providers audited for them are

free from any vulnerability and malicious code, which could be exploited to compromise and

gain unauthorized access with escalated privileges.

Leading players in e-tax filing Industry

Sr.No E-filing income tax return industry

1 E-taxmentor

2 Taxspanner

3 Taxsmile

4 Taxmunshi

5 Taxyogi

6 myIT return

7 Taxshax

8 Elagaan

9 InvestAscent

10 Incometaxindia (incometaxindiaefiling.gov.in)

Incometaxindia is governments official website for e-tax filing, which is free of cost. All other

players in e-tax filing industry are registered e-return intermediaries for tax filing, who charge

the Processing Fees.


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Analysis of e-filing Income Tax return players in the market on the basis of services.

Sr.No SERVICES InvestAscent etaxmentor taxpanner taxsmile taxmunshi taxyogi skorydov elagaan t

1 Income from houseproperty

2 Income from salary 3 Income from businessand professional x x x 4 Income from capital

gain

5 Income from othersources

x x 6 Prepare Tax Return x x x x x 7 e-Filing of Income

Tax Return

8 online Tax Preparationsoftware

9 NRTS x x x 10 payroll services x x x x x x 11 Tax planning and

advisory x x x

12 corporate services x x x x x13 small and medium

businessx x x x

14 Digital signatures andpancard

x x x


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Price analysis of e-filing Income Tax return players in the market (Price in Rupees)

Particulars Total Price inclusive of service tax

Perfios Skorydo

v

Taxsmile Taxspanner

efile

standard

Taxspanner

efile plus

Taxspanner

efile

Invest

Ascent

Etax

mentor

E-tax

mentor

review

Saving from 16 with

avings bank interest

138 330 276 249 449 749 150 99 299

Single from 16 with

housing loan

165 330 276 249 449 749 200 99 299

One form 16 with capital

gains or any other

adjustments

276 330 276 249 449 749 250 198 299

Two form 16s 303 330 276 249 449 749 200 198 299

Two form 16 withhousing loan

331 330 276 249 449 749 300 198 299

Two form 16s with

capital gains or any other

adjustments

441 330 276 249 449 749 350 198 299

Revised Returns 200

Rectification of returns 500


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Introduction To Steadfast Advisory

Steadfast formed by veteran private bankers with an aim of creating a boutique wealth advisory

firm to provide a professional platform of private wealth management services. There core team

has valuable experience in the areas of wealth advisory, Private Banking, Treasury Management,

Risk Management, Private Equity, Stock Markets and succession planning. The diverse

experience of the core team offers you an unmatched blend of personalized wealth management

opportunities.

Steadfast is also an Employee Care Services company with expertise in Tax Advisory, Tax

Filing and Financial Planning. Steadfast focuses on corporate employee needing in-depth

guidance and advice with respect to their tax planning eventually culminating in proper tax filing

through the e-filing portal- Tax Savvy.

There are four ways through which Clients can file your tax returns through Steadfast

advisory:

1) Self Filing: With companies own web based software, clients can fill in the details as requiredand file their tax returns.

2) Helpdesk Filing: Corporate Helpdesk to assist the employees for filing their returns at theirdoorstep.

3) Email E-Filing: Clients can also mail the form 16 and relax and Steadfast team will take care oftheir filing.

4) E-Upload E-Filing: Clients can also just upload your form 16 in their Steadfast account andSteadfast team will take care of their filing.

Steadfast Offers

Comprehensive online application for self preparation of ITR1 and ITR2. Assistance in preparation of ITR1, ITR2 by the tax professionals through mail and phone. Corporate Helpdesk to assist the clients for filling their returns at their doorstep. Reminder notifications through mail and sms. All queries will be answered over the phone by tax professionals between 9am to 6pm on

working days.

All queries will be answered over the mail by tax professionals within 36 hours of the queryraised.

ITR V will be uploaded in the clients account. Online vault facility to save your tax documents for security or future reference. Service to deposit your ITR V with the CPC(if employer has opted for the drop box facility).


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Post Tax E filing services

Collection of ITR V in case the corporate has opted for drop box facility. Sending the collected ITR V to an Income Tax Department. Facility to track ITR status. Tracking of Refund Status. Revised filing incase the clients has filed the returns incorrect. Rectification of returns in case the client has received any notice from Income Tax department u/s

143(1).

Steadfast assist all his clients in tax saving and advisory. The different ways

Steadfast supports on tax advisory are as follows:

1) Mail Support: You can write a mail to Steadfast Team [email protected] youwill get a reply on all your tax related queries within 36 hours.

2) Call Support: Clients can speak to Tax consultant over the phone between 9am to 6pm.

3) Personal tax and Wealth Advisors: Each client who files his tax return with Steadfast, will beallotted a Personal Tax and Wealth Advisors, who will assist him in customized solutions for his

tax and wealth management.

4) Corporate presentations: Steadfast Tax Team shares their expertise with the employees of thecorporate to empower them with the tax knowledge and ability to save more tax.

5) Corporate help desk: Steadfast provides the helpdesk for the corporate to help employees toincrease their knowledge on tax and ability to save more tax.

6) Financial Planning: Most of the people invest as they want to save tax. Tax cannot be the onlyobjective to invest. Steadfast Private tax and wealth Advisors will advice the clients on how to

invest to meet all their future investments, also making sure that the clients saves the relevant tax

on the same.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Products

Steadfast has been expressly created to offer an enhanced level of service to demanding individuals.

Private Wealth Advisors are backed by the product team to assist them in delivering an unique investing

experience to all our clients. To service Steadfast clients in a flawless way, they have comprehensive

range of the financial products in their bouquet. This helps Private Wealth Advisors to provide anunbiased advice as per investor financial aims.

Attention is given to every fine detail in the crafting of innovative products with a comprehensive range

of the financial planning and wealth management capabilities to deliver an unique investing experience to

investors.

Mutual Fund Exchange Trade Funds Direct Equity Capital Protection Products Life Insurance Corporate Fixed Deposits General Insurance Postal and small Savings Scheme

Group Insurance Margin Trade Funding Real Estate/Art Funds Loan Against Shares/Mutual Funds Customized Structured Products Corporate Financing Portfolio Management Services

Services

Tax Service

Tax Filing Tax Advisory Services

Wealth Management

Financial Planning Succession Planning Non Discretionary Portfolio

NRI Services

Financial Planning Pan Card Services Tax Computation and Filing


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Founder of Steadfast Advisory

Mr. Deepak P. Soni: Founder of Steadfast

Mr. Prasanna Jain: Co-Founder of Steadfast

Office Address

SteadFast Advisory

39A, Ajinkya, Anurekha Society,

Back of Tathawade Garden,

Near Pratigya Hall, Karvenagar,

Pune 411052

Tel No: 9022172237, 9029513131

Email: [email protected]


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Introduction To Project

The responsibilities included in travelling to corporate locations and counseling with the corporate

employees for doing their personal e-filing of income tax returns through company web based tool by

name Money Berry.

The summer internship project involved the training on e-filing of income tax return process, it includes

the start to end process of online income tax return filing for ITR-1 and ITR-2 form and the various

supporting documents which are required for ITR filling. The training was given on the details of income

tax with respect to individual assessee who is having income from Salaries, Income from house property,

Income from capital gains and Income from other sources. This means training includes tax return. The

various deductions which will reduce the overall taxable income of individual assessee and it also covered

the various set off and carry forward of losses to subsequent years. It also included the various tax saving

instrumentswhich will reduce tax liability and as well generate better returns in future. So, Training

covered all the important concepts and procedures under income tax act and the various advantages of

online tax return filing.

Steadfast Advisory has acquired big corporate clients like Hexaware tech.ltd,TTP Technologies

pvt.ltd,IBM India pvt.ltd,R-Systema pvt.ltd,BANK OF India,Bank Of Maharashtra,Bank OfBaroda,Magic Software Enterprises India pvt.ltd,All these corporate Clientins were assigned a helpdeskfrom Steadfast Advisory in there organizations,to collect the form 16 of their employees and assist themin filing their IT return online.To provide them all the information on tax and all other adjustment relatedto it and to solve there all queries related to filing and income tax and to guide them about the whole

process of e-filling from start to end.We also help them about their financial planning and tax savinginstrument and solve set off and carry forword of losses with same head of income or other head ofincome.


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Objectives To understand the income tax criticalities with respect to individual assessee who will be using

ITR-1 and ITR-2 form for filling their income tax return.

To understand the start to end process of online income tax for ITR-1 and ITR-2 form. To understand the different Avenue of investment for reducing tax liability. Awareness about online income tax filing and there benefits. To know Various deductions under section 80C, 80D, and others for reducing tax liability.

Research MethodologyThe research is done by using both Primary and secondary data.

Primary Data:The sources from which information is gathered for the first time is known as primary sources

and information thus gathered is called primary data.

The analysis of client's data who filled their Income Tax returns with SteadFast Advisory which

is Primary in nature. Collecting his\her form 16 for online filing returns.

Secondary data:Secondary data refers to the data which has already been collected by someone else for other

purpose. Secondary data may either be published data or unpublished data.

For collecting the secondary data, I have searched in various websites, books, news journal made

on Income Tax return filing and Tax planning with respect to various rebates and deductions,

which enabled me to complete this project efficiently.


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SCOPE AND LIMITATIONS

This project studies the online filing of tax returns of individual assessee.

This project study includes online income tax return filing process only for individual assessee who will

be using ITR-I AND ITR-II forms and even it does not include the manual pracess for income tax return

filing.

This project study include tax planning only for individuals assessed who will be using ITR-I AND ITR-

II forms.

This project will be help to company get database about clients for there income tax planning and

financial planning for corporate employees.

Create awareness about online filing of income tax returns of individual assessee and income tax return

filing will be increase.


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CONCEPTUAL BACKGROUND

Introduction To Income Tax

Income tax is a tax that governments impose on income generated by all entities within their

jurisdiction. In India, Income Tax Act, 1961 governs the taxation of incomes generated within

India and by incomes generated by Indians overseas.

Income tax is an annual tax on income. The Indian Income Tax Act (Section 4) provides that in

respect of the total income of the previous year of every person, income tax shall be charged for

the corresponding assessment year at the rates laid down by the Finance Act for that assessment

year. Section 14 of the Income tax Act further provides that for the purpose of charge of income

tax and computation of total income all income shall be classified under the following heads of

income:

A. Salaries

B. Income from house propertyC. Profits and gains of business or profession

D. Capital gains

E. Income from other sources.

The total income from all above heads of income is calculated in accordance with the provisions f

the Act as they stand on the first day of April of any assessment year.

The Income Tax ACT, 1961 as amended by Finance Act 2010, under Section 139 makes it

obligatory upon any person to file return if the person's total income or the total income of any

other person in respect of which he is assessable under this Act during the previous year exceeded

the maximum amount which is not chargeable to income-tax.

Introduction To E-filing of IT Return

Traditionally filing of Income Tax Return is seen as a complicated and tiresome task, and

therefore, most people keep putting it off till the last possible moment. People had to travel miles

and wait in long queues outside the Tax Department to file their Income Tax returns. But a few

years ago, the Income Tax Department introduced a convenient way to file these returns online.

The process of electronically filling your Income Tax Returns through the internet is know E-

filing return. It offers convenient of time and place to Tax payers and is available around the

clock to Tax payers located in any place in the world. The initiatives taken by the Government insimplifying the rules and the filing process, the task has become less daunting. With increasing

prosperity and higher income levels, larger number of people have become eligible for filling

income tax returns. E-filing of income tax returns has made process user friendly.

The central board of Excise and customs efforts made the introduction of e-filing of tax returns

possible for the first time in India in April 2003, but its benefits was available only a few service

tax providers.


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Considering the comforts for tax payers across the country and also technology lending a helping

hand, both the Central and State governments decided to extend e-filing of tax returns to the other

types of taxes including Income Tax, Excise and VAT.

Under the income tax law, this facility was introduced by the Central Board of Direct

Taxes(CBDT). For the first time during assessment year 2006-07, wherein corporate assessee had

to mandatorily e-file their Income Tax returns.The process of electronically filing Income Tax returns through the Internet is known as e-filing.

It is mandatory for the companies and firms requiring section 44AB audit to submit the Income

Tax returns electronically for year 2007-08 as well as 2008-09. Any company and firm requiring

section 44AB audit return without an e-filing receipt will not be accepted.

E-filing process:

The Process of electronically filing your income tax returns through the internet is known as e-

filing return. It offers convenient of time and place to tax payers and is available round the clock

to tax payers located in any place in the world.

Section 139(1) of the Income tax act 1961 provides that every person whose total income during

the previous year exceeded the maximum amount not chargeable to tax shall furnish a return of

income. The return of Income can be submitted in following manner.

1. A paper form.

2. E-filing

3. A bar-coded paper return.

Where the return is furnished in paper format, acknowledge slip attached with the return should

be dully filled in. A return in new forms are not required to be filed in duplicate.

A returns can be e-filed through the internet. E-filing of the returns is mandatory for companies

and firm requiring Statutory audit U/S 44AB. From A.Y. 2011-13, it is now also mandatory for

all business entities (including individuals/HUF) liable to tax audit to e-file their income ofreturn. E-filing becoming mandatory from A.Y.2012-13 for individuals with total taxable income

above Rs.12Lakhs.

E filing can be done with or without digital signature:

a. If the returns are filed using digital signature, then no further action is required from the tax

payers.

b. If the returns are filed without using digital signature, then the tax payers have to file ITR-V

with the department within 120days of e filing.

c. The tax payers can e file the returns through an e- intermediary also who will e file an assist

him in filing of ITR-V within 120days.

Where the return of income is furnished using bar-coded return, then the tax payers need to print

two copies of form ITR-V. Both copies should be verified and submitted. The receiving official

shall return one copy after affixing the stamp and seal. The finance act, 2005 has provided that

w.e.f. 01-04-2006 every person shall file a return of income on or before the relevant due date

even if his total income exceeds the maximum amount not chargeable to tax.


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Advantages of e-filing income tax return

you can e-file your return fron home or through a tax professional using an authorized softwarepackage

you can e-file your return any time of the day or night well process your return more quickly,so youll receive your refund quicker no personnel Interface quick processing of refunds

Three types of e-filing returns

Option 1

Use digital signature in which case no paper return is required to be submitted.

Option 2

File without digital signature in which case ITR-V form is to submitted to CPC Bangalore within 120

days of e-filing.This is a single page receipt cum verification form.

Option 3

File through an e-filing intermediary who would do e-filing and also assiat the assessee file the ITR-V

form.


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Selecting the appropriate form for filling Income Tax returns

Form No It is for

ITR 1 For individuals having income from salary/pension/family pension) & interest

ITR 2 For Individuals having income from dividend profits from mutual funds andshares,rental income etc.

ITR 3 For dividuals having who are partners in a partnership firm.

ITR 4 For individuals having income from a proprietary business and profession


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ITR 5 For Association of persons (AOP) or Body of Individuals (BOI

ITR 6 For companies other than companies claiming exemption under section 11

ITR 7 For persons including companies required to furnish return under section 139(4A) orsection 139(4B) or section 139(4C) or section 139(4D)

ITR-7 will not be available for e-filing

ITR-8 is discontinued for e-filing from AY2010-11 on ward

Due dates for filing income tax returns

I The assessee is acompany 31 october ot the assessment

yer

II The assessee is a person:-

a) In a case where theaccounts of the assessee

are to be audited or

In case of a workingpartner of firm whose

accounts necessary to

be audited under the

income Tax Act or anyother low

31 october of the assessment

year

b) If the income return is to be

filed under the one-by-six

criteria

31 october of the assessment

year

c) Any other assessee 31 july of the Assessment

year

Steps for e filing IT Return

Login to the official website for income tax e filing Read the instructions given on the website Select and download the appropriate Income Tax form Download return preparation software for selected return form Fill your return of line and generate XML file Register and create a user ID\password. Login and click on relevant form on left panel and select "Submit Return"


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Browse to select XML file and click on "Upload Button" On successful upload, acknowledge details will be displayed. Click on "Print" to generate

acknowledgement\ITR-V.

In case the return is digitally signed, on generation of acknowledgement the return filingprocess gets completed. Assessee may take a print of acknowledgement for his record.

In case the return is not digitally signed, on successful uploading of e return, the ITR-Vform would be generated which needs to be printed by the tax payers. This is an

acknowledgement cum verification form. The Tax payers has to fill up the verification

part and verify the same. A dully verified ITR-V form should be submitted with the local

income tax office within 15 days of filing electronically. This completes the written filing

process for non digitally signed return.

Supporting Documents:

Supporting documents require to calculate the tax liability and for preparing the IT

Returns:

Form NO. 16 received from the employer: Form 16 is the annual salary statement issued byyour employer and provides details about the income earned and tax deducted during the year.

Form NO. 16A received from all the payers who have got their tax deducted: This form needs to

be collected from the parties who have deducted the tax while making payment to you during theyear. This includes banks and companies (with whom you have kept fixed deposits and so on).

Form NO. 26AS: The Income Tax Department through the National securities depository

limited (NSDL) sends tax payers a document called the 'Annual tax Statement' or Form 26AS.This statement gives information about tax deducted and collected at source by entities such as

employers and banks for your permanent account number (PAN) in a certain year. It also lists

information about advanced tax\self assessment tax\regular assessment tax deposited by you in

the Bank.

Summary of account: It is important to have a summary of all bank accounts that you operated inthe last fiscal year.

It is important to have receipts and details of property owned during the last fiscal year.Details of sale and purchase with respect to investments sold during the year.

Details of any other tax payments made during the year.

It is mandatory to quote the PAN while filing the return.Important

IMPORTANT CONCEPTS & PROCEDURES UNDER THE INCOME TAX ACT

Assessee (Section 2(7)): An assessee is a person by whom any tax or any other sum of money ispayable under the Act.

Assessment Year (Section 2(9)): Assessment year means the period of 12 months starting from1st April of every year and ending on 31st March of the next year.


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Previous year (Section 3): Income earned in a year is taxable in the next year. The year in whichincome is earned is known as the previous year and the next year in which income is taxable is

known as the assessment year.

Receipt Vs. accrual of income: Income is said to have been received by a person when paymenthas been actually received whereas income is said to have accrued to a person if there arises inthe person a fixed and unconditional right to receive such income.

Belated Return: Section 139(4) provides that a return which has not been furnished by the duedate may still be furnished as a belated return before the expiry of one year from the end of theassessment year or before the completion of assessment, whichever is earlier. However, on any

return of income that has not been filed by the end of the relevant assessment year, penalty ofRs.5000/- u/s 271F shall be levied.

Revised Return: If a person having filed his return within the due date, discovers any omission orwrong statement therein, he may file a revised return before the expiry of one year from the endof the assessment year or completion of assessment whichever is earlier.

Processing u/s 143(1): The Finance Act 2008 has reintroduced provisions in respect of correctingarithmetical mistakes or internal inconsistencies at the stage of processing of returns. It has, thus

been provided that, during the stage of processing, the total income shall be computed after

making adjustments in respect of any arithmetical error in the return or any incorrect claimapparent from information in the return and if on such computation, any tax or interest or refund

is found due on adjustment of TDS or advance tax or self assessment tax, then an intimationspecifying the amount payable shall be prepared/generated or issued to the assessee. If any refund

is found due, it is to be sent along with an intimation to such effect. If no demand or no refundarises, the acknowledgement of the return is deemed to be an intimation. Such intimation is to besent within one year from the end of the financial year in which the return is filed.

Assessment u/s 143(3): If the Assessing Officer, on the basis of the return filed by the assessee,considers that it is necessary to ensure that the assessee has not understated his income, he shall

serve on the assessee a notice u/s 143(2) and, after obtaining such information as he may require,complete the assessment ( commonly referred as scrutiny assessment) u/s 143(3).

Rectification of mistake u/s 154: If any order passed by an income tax authority suffers from amistake apparent from record, the assessee may make an application for rectifying the same

before the expiry of four years from the end of the financial year in which the above order was

passed. The Finance Act 2001 has provided that where an application for rectification under thisSection is made by the assessee on or after 1.6.2001, the sameshall have to be acted upon by the income tax authority within a period of six months from the

end of the month in which the application is received.

Interest on refunds u/s 244A: If the refund due to the assessee is more than 10% of the taxpayable by him, he shall be entitled to receive simple interest thereon at rate of 0.5% per month(substituted in place of 0.67% per month w.e.f. 8.9.2003) or part thereof, from 1st April of theassessment year to the date on which the refund is granted.

Tax Return Preparers Scheme:- For enabling specified classes of tax payers in preparing andfurnishing income tax returns, the Board has notified the Tax Return Preparer Scheme underwhich specially trained and authorized Tax Return Preparers will provide assistance to tax payersin this regard. Details of the Scheme may be viewed at http://www.incometaxindia.gov.in/.
http://www.incometaxindia.gov.in/http://www.incometaxindia.gov.in/


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Who is a person as defined under the Income Tax Act

person includes:

(i) an individual,

(ii) a Hindu undivided family,

(iii) a company,(iv) a firm,

(v) an association of persons or a body of individuals, whether incorporated or not,

(vi) a local authority, and

(vii) every artificial juridical person, not falling within any of the preceding sub-clauses

Tax evasion is the illegal evasion oftaxesby individuals, corporations and trusts. Tax evasion oftenentails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reducetheir tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains thanthe amounts actually earned, or overstating deductions. Tax evasion is an activity commonly associated

with the informal economy. One measure of the extent of tax evasion (the "tax gap") is the amount ofunreported income, which is the difference between the amount of income that should be reported to thetax authorities and the actual amount reported.Tax Avoidance:Tax avoidance may be considered to be the dodging of one's duties to society, or alternatively the right of

every citizen to structure one's affairs in a manner allowed by law. Tax avoidance is the legal usage ofthe tax regime to one's own advantage, to reduce the amount of tax that is payable by means that arewithin the law. Tax sheltering is very similar, and tax havens are jurisdictions which facilitate reducedtaxes. The term tax mitigation is sometimes used; its original use was by tax advisers as an alternative to

the pejorative term tax avoidance.

Rates of Income Tax for A. Y. 2013-14

Normal rates of tax:

(1) Where the total income does not exceed

Rs.2,00,000

Nil

(2) Where the total income exceeds Rs. 2,00,000

but does not exceed Rs. 5,00,000

10% of the amount by which the total income

exceeds Rs.2,00,000/-.

(3) Where the total income exceeds Rs. 5,00,000

but does not exceed Rs. 10,00,000

Rs. 30,000 plus 20% of the amount by which the

total income exceeds Rs. 5,00,000.

(4) Where the total income

exceeds Rs. 10,00,000



In the case of every individual, being a woman resident in India, and below the age of sixty

years at any time during the financial year:

(1)Where the total income does not exceedRs.1,90,000

Nil

(2)Where the total income exceeds Rs. 1,90,000 but

does not exceed Rs. 5,00,000


exceeds Rs. 1,90,000.
http://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Trust_(property)http://en.wikipedia.org/wiki/Informal_economyhttp://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Tax_shelterhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_shelterhttp://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Informal_economyhttp://en.wikipedia.org/wiki/Trust_(property)http://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Tax


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(4)Where the total income exceeds Rs. 8,00,000 Rs. 91,000 plus 30% of the amount by which the


In the case of every individual, being a resident in India, who is of the age of sixty years or

more but less than eighty years at any time during the financial year:

(1)Where the total income does not exceed

Rs.2,50,000

Nil




exceeds Rs. 2,50,000.





(4)Where the total income exceeds Rs. 8,00,000 Rs. 85,000 plus 30% of the amount by which the


Further, No surcharge on income tax is now leviable in case of individual/HUF. However,Education cess and higher cess is leviable @ 2% and 1% respectively on tax.


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SNAPSHOT OF DEDUCTIONS FROM TAXABLE INCOME

Section Particulars Amount

80D Mediclaim 15000 + 20000

80DD Exemption on Handicapped 50000 to 75000

24(1)(vi) Housing loan interest 30000 to 15000080DDB Specified disease 40000 to 60000

80U Permanent disability 50000 to 100000

80E Educational Loan interest No upper limit

10(13A) HRA As per particulars

80G Donations 10% of Basics

80C & 80CCC Investment in Pension,Housing Loan Principal Repayment,PPF limit Rupees 70,000 per annum,

Life Insurance premium directly paid by the employee,ULIP 1971-United linked Insurance Plan from UTI,

NSC-National Savings Certificate(to be purchasedduring the year),

Deposit in national savings scheme (NSS),Equity linked Savings scheme (ELSS),Mutual funds notified under sections 10(23D),

term deposit with a scheduled bank in a notified schemefor term not less than 5 years,

Tuition fees paid (Only full time education fees paid toany Indian University, College, School. Fees exclude

payment towards donation).

1,00,000

80CCF Infrastructure bonds 20,000


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FINDINGS

For filings of income tax return I found that lots of Assessee is satisfied with the online filing oftax returns because fast process and tax liability and tax refund is done.

Forms are sending to Bangalore for filing the income tax Return whenever there is more workload in pune,which increases the processing time for delivering the services.

Form filing Income Tax Return we got database clients(individuals assessee) And there form16.So,According to the financial position of assessee company financial Advisors give

suggessions about various instruments for investments.


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CONCLUSION

This summer internship project report covers all the details of income tax with respect to individuals

assessee who will be using ITR-1 and ITR-2 form for filing there income tax return.It includes the whole

start to end process of online income tax return filing for ITR-I and ITR-2 form.

Online income tax return filing industry in india is only 6 yers old,but it is growing at very rapid pace.E-

filing income tax return become the preferred choice,as it is very user-friendly in nature and it offers

various advantages over manual filing.still adoption of this facility has to reach its optimum penetration

once people realize how secure and easy online tax filing is.


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RECOMMENDATION

Recommendations to steadfast advisory

For

E-filing Income Tax Return Project in Pune branch

As of now forms are send to Bangalore for filing the Income Tax Return whenever there is more

work load in pune, which increasing the delivering the services.which will increase the efficiency

of services provided to clients and will also have certain benefits given below.

1. It will reduce the cost of sending the clients forms,from pune to Bangalore for filing.2. It will reduce the processing time to generate ITR-V (Acknowledgement of income tax filing

from income tax department)

If clients have forgot to give some data or he wants to give some data latter ,in such cases it

becomes deficult to co-ordinate,as the form are send to Bangalore for filing the Income TaxReturn.