sip project jayesh

8/10/2019 Sip Project Jayesh

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2012

Summer TrainingProjectTAXATION ( E-FILING) and

FINANCIAL INSTRUMENTS

2012

Submitted by MOAZ AHMAD MALIKCourse MBARoll No.- 05396403913


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Maharaja Agrasen Institute of Technology

Affiliated to Guru Gobind Singh Indraprastha University

SUMMER TRAINING PROJECT REPORT

ON

TAXATION (E-FILING) and FINANCIAL INSTRUMENTS

Submitted By:

Name of student: MOAZ AHMAD MALIK

Roll no. - 05396403913

Batch: 2011-2013

Under the guidance of,

Mr. Anish KumarSenior Manager

Industry Guide


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CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work TAXATION (E-filing) and FINANCIAL

INSTRUMENTS made by Moaz Ahmad Malik is an authentic work carried out by her under

guidance and supervision of MR ANISH KUMAR.

The project report submitted has been found satisfactory for the partial fulfillment of the degreeof MBA

Internal Supervisor

Signature


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ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors whograciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and friendly approach. It

would have been difficult to achieve the results in such a short span of time without their help.

I deem it my duty to record my gratitude towards the External project supervisor Mr.Anish

Kumarand Internal project supervisor Mr.Yogita Manhaswho devoted his precious time to

interact, guide and gave me the right approach to accomplish the task and also helped me toenhance my knowledge and understanding of the project.

Name of Student- Moaz Ahmad Malik

Roll. No- 05396403913

Course- MBA


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DECLARATION

I hereby declare that the following documented project report titled TAXATION (E-filing) andFINANCIAL INSTRUMENTS is an original and authentic work done by me for the partialfulfillment ofMBAprogram at SPA Capital

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original

to the best of my knowledge & I have not submitted it earlier elsewhere.

Name of Student- Moaz Ahmad Malik

Roll. No- 05396403913

Course- MBA


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INTRODU TION

Taxation

Taxation refers to the act of a taxing authority actually levying tax. Taxation as a term applies to all types

of taxes, from income to gift to estate taxes. It is usually referred to as an act; any revenue collected is

usually called "taxes."

Taxation can also refer to taxes as an abstract concept, an actual dollar amount of tax that has been levied

or the material funds that have been received as taxes. Although all of these definitions are technicallycorrect, the one listed above is the most common. Taxation is one of the primary powers of government

over the people.

Income Tax Planning in India with respect to individual assesse

Income Tax Act, 1961 governs the taxation of income generated within India and of income generated by

Indians overseas. Income Tax Act, 1961 is the guiding baseline for all the content in this report and the

tax saving tips provided herein are a result of analysis of options available in current market. Every

individual should know that tax planning in order to avail all the incentives provided by the Government

of India under different statures is legal.

This project covers the basics of the Income Tax Act, 1961 as amended by the Finance Act, 2012 and

broadly presents the nuances of prudent tax planning and tax saving options provided under these laws.

Any other hideous means to avoid or evade tax is a cognizable offence under the Indian constitution and

all the citizens should refrain from such acts.

What is E-Filing?

The process of electronically filing Income tax returns through the internet is known as e-filing.

It is mandatory for companies and Firms requiring statutory audit u/s 44AB to submit the Income tax

returns electronically for AY 2007-08 onwards.

E-filing is possible with or without digital signature.


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Analyzing the Various Financial Instruments:

Capital Market:The market where investment instruments like bonds, equities and

mortgages are traded is known as the capital market.

The primal role of this market is to make investment from investors who have surplus

funds to the ones who are running a deficit

Capital Market Instrument:The capital market generally consists of the

following long term period i.e., more than one year period, financial instruments; In the

equity segment Equity shares, preference shares, convertible preference shares, non-

convertible preference shares etc and in the debt segment debentures, zero coupon

bonds, deep discount bonds etc.


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1. Nature of the company

Spa is dealing with finance sector .spa is one of leading companies in India

SPAis being managed by its promoters along with a young and dynamic team of over 1000+

professionals with rich experience, in their respective fields. The Group has established itself as

one of Indias leading financial advisory house, offering various financial solutions to its

Institutional, corporate and individual clients.

2. INTRODUCTION

SPA Group was promoted by a team of finance professionals in 1995 with an objective to

provide value added financial services. Initially, the Group focused as a niche financial solutions

provider in corporate finance and wealth management to Indian companies and high net worth

individuals. In January 2000, the Group expanded its operations and the range of services.

Today, SPA provides services for securities broking, merchant banking, wealth management,

financial advisory, corporate finance, risk management and insurance broking.

SPA is being managed by its promoters along with a young and dynamic team of over 1000+

professionals with rich experience, in their respective fields. The Group has established itself as

one of Indias leading financial advisory house, offering various financial solutions to its

Institutional, corporate and individual clients.

Customer centric approach of SPAs dedicated professional team has helped carve a niche for

itself in financial services arena and won confidence of its clients. Clients of SPA are from a

wide spectrum and comprise of Banks and other financial institutions, Mutual funds, Insurance

companies, foreign institutional investors, public sector undertakings and government

departments, private corporate, trusts and individuals.


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Company is operating in finance sector. There are following areas under the company or in

which the company deals/work.

1. SPA Capital Services Limited

2. SPA Merchant Bankers Limited

3. SPA Securities Limited

4. SPA Insurance Broking Services Limited

5. Financial management system

3. COMPANYs VISIONAND MISSION

VISION

Vision, a compelling view of a future yet to be, creates meaning and purpose which catapults

both individuals and organizations to high levels of achievement. We create meaning in our lives

by pursuing our future visions, and we refine our visions based on the meaning we are

discovering through our experience.

To provide best value for money to investors through innovative products.

Trading investment strategies.

State of art technology and personalized

Clear understanding of applicable law


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MISSION

A mission statementis a statement of the purpose of a company and organization. The mission

statement should guide the actions of the organization, spell out its overall goal, provide a path,

and guide decision-making. It provides "the framework or context within which the company's

strategies are formulated.

To create long term value by empowering individual investors through

superior financial services supported by culture based on highest level of

teamwork, efficiency and integrity

4. Organizational structure

Mr.Rohit (Vice President JanakPuri Branch)

Mr.Anish (Senior managerNOIDA Branch)

Miss Yogita Manhas ( Branch Co-odinator Janak Puri Branch )

Trainee


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CHAPTER-2

OBJECTIVE AND RESEARCH METHODOLOGY

2.1 Objectives of the Study:

Nothing concrete can be achieved without an optimal combination of inspire and perspiration.

No work can be accomplished without taking the guidance. It is only the critiques intellectual

that help transform a product into a quality product.

I wish to place on record my gratitude to SPA GROUPfor providing me an opportunity

to work with them on this project of such importance. SPA is a leading financial advisor

company.

The main objective of my project is about Taxation and Financial Instruments. This project

contains a detail study of Income tax, that how we calculate our income tax and how we fill the

ITR, and also brief knowledge about financial Instruments. I am enjoying my job. It will be a

milestone for me to work with SPA group. Here I am getting a great industry exposure and I am

learning aboutthe function and role of a Financial Advisor company

2.2 Research Methodology:

Research is a careful critical inquiry in seeking facts and diligent investigation in order to

ascertain something. For formulating a significant research problem, the researcher should try to

acquire as much knowledge, of the area in which research is to be done, as possible. The research

must be fully aware of the environment to which the difficulty pertains.


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It refers to the method adopted to collect the relevant data and other information, which forms

the basis of the research writing. So, for the effective writing of this report, the data must be

quality oriented.

2.2.1 Research Design:

Research design or model indicates a plan of action to be carried out in connection with a

proposed research work.

Descriptive research design has been used for conducting the study as to know the clients

acceptance to the SPAs services.

2.2.2 Data Collection:

Data is collected through surveys by questioning people in person and by telephone about their

purchase preferences and likings.

SAMPLE ENUMERATION is the method adopted for data collection. It saves time & reduces

the cost of survey. Sampling enumeration sometimes is the only possible method just as in cost

of infinite universe, e.g. tossing of coin infinite times.

2.2.3 Research Design

2.2.3.1 Population:

Population for the purpose of this study consists of all the corporate employees who have filed

their ITR through SPA Capital.

Elements: Corporate employees

Extent: Delhi and NCR areas.

Frame:


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Primary data - Primary data is information collected by the researcher directly

through instruments such as surveys, interviews, focus groups or observation.

Tailored to his specific needs, primary research provides the researcher with the most

accurate and up-to-date data.

2.2.5 Limitation

The research suffers from the following limitations:

1. The findings of the sample may not be the accurate representation of the population.

2. It is a time consuming method it required lot of time to collect data about spa from

corporate clients.

3. The study may suffer with the Nom-response error i.e. the responses were not given

by some sampling units.

4. The primary data used in the study may also suffer from some defects like human

biasness, inconsistency or ambiguity in the answers, wrong interpretation of the

questions by respondents, measurement error, and data analysis error

5. As the secondary sources are used. These may be biased.


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Chapter 3

SWOT analysis

3.1

STRENGTH OF THE COMPANY

More than 15 years of experience in the finance industry

Nationwide coverage of the finance sector.

The Group has established itself as one of Indias leading financial advisory

house, offering various financial solutions to its Institutional, corporate and

individual clients.

Large no of clients

Association with SPA can enable clients to avail a variety of financial services

from a single source

Corporate reputation in market after winning lot of awards


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Chapter 4

Finding and analysis

Income Tax Return

Obligation of filling Tax Return

It is a legal obligation for every individual to file a return of income, whose taxable income during the

year has exceeded the exemption limit.

Documents Required:

Form No.16 (received from the employer).

Form No.16 A (received from all the payers who have deducted tax).

Summary of all bank accounts operated during the year.

Details of property owned during the year.

Sale & purchase bill/documents/contract note in respect of investments/assets sold during the

year.

Details of tax payments made during the year. This is required only if you have made advance tax

payment during the year.

ITR FORMS:

ITR

ITR1

ITR2

ITR3

ITR4

Meant For Individuals who have

income from salary, interest income

(taxable/exempt), family pension and

income from agricultural activities.

Individuals who are partner in a

partnership firm and does not carry

out any other separate

business rofession.

Individuals not having any incom

on account of carrying out

business/profession or on accoun

being a partner in a partnership f

Individuals who is carrying out

business/profession under a

proprietary concern.


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I ntroduction to I ncome Tax and Income from Salary

Previous Year: Income Year ( 2013-2014)

Assessment Year: Tax Year ( 2014-2015)

ASSESSMENT YEAR: it is defined as a year in which the income of the previous year is

to be assessed and this is known as the tax year also.

PREVIOUS YEAR: It means income year which immediately proceeds the assessment

year.

Income Tax Act of 1961

The major tax enactment in India is theIncome Tax Actof 1961 passed by the Parliament, which

imposes a tax onincome of individuals and corporations. This Act imposes a tax on income

under the following five heads

Income from Salaries,

Income from House and property,

Income from Business and Profession,

Income in the form of Capital gains, and

Income from Other Sources

However, this Act is about to be repealed and be replaced with a new Act which consolidates the

law relating to Income Tax and Wealth Tax, the new proposed legislation is called the

Direct Taxes Code(to become the Direct Taxes Code, Act 2010). Act was referred to

Parliamentary standing committee which has submitted its recommendations. Act is expected to

be implemented with changes from the Financial Year 2013-14.

Income Tax Return:

After making all possible investments to save tax, its time for Income Tax Return filling, which

all about giving details of the income you have earned in that financial year.

Income tax return is a term which is often used when we talk about income tax. It is a

way by which we pay this tax. When total annual income of a person, including all
http://en.wikipedia.org/wiki/Income_Tax_in_Indiahttp://en.wikipedia.org/wiki/Income_Tax_in_India


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sources, is more than maximum exemption limit ( at present it is Rs 180000/- and 190000

for female ) then that person is liable for income tax return.

According to Income Tax Act 1961, every person, who is an assesses and whose total

income exceeds the maximum exemption limit, shall be chargeable to the income tax at

the rate or rates prescribed in the finance act.

The Benefits of Filling Income Tax return :

Standard Income Proof: ITR is Considered Customary income proof not only

in India but also globally. if you are looking for higher education or employment

abroad, ITR is largely accepted income proof.

Speed your loan application process:Apart from a good Credit history, the fact

that you are filling your ITR regularly gives you speedier access to credit.

Power of PAN: Permanent Account Number or PAN issued by the IT authority

is not only a pre requisite for filling ITR but is also now mandatory for all

financial transactions- from opening a bank account, or purchasing mutual fund to

real estate for investment.

Claim your Tax Refund: Filling ITR is not always about paying Tax, It can be

used as a means to reduce your tax liability. e.g Salaried employees for whomTDS has been cut during the financial year can claim refund if the tax outgo has

been more than the actual tax payable.

PERSONAL TAX RATES:

The new and revised income tax slabs and rates applicable for the financial year (FY) 2013-14

and Assessment year (AY) 2014-15 are mentioned below:


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Rate of Income Tax:

India Income tax slabs AY: 2014-2015 for Others & Men (FY 2013-14)

taxpayers

Income tax slab (in Rs.) Tax

0 to 2,00,000 No Tax/exempt

2,00,001 to 5,00,000 10%

5,00,001 to 10,00,000 20%

Above 10,00,000 30%

India Income tax slabs AY: 2014-2015 for Senior citizens (Aged 60 years but

less than 80 years)


0 to 2,50,000 No Tax/ exempt

2,50,001 to 5,00,000 10%

5,00,001 to 10,00,000 20%

Above 10,00,000 30%

India Income tax slabs AY: 2014-2015for very senior citizens (Aged 80 and

above)


0 to 5,00,000 No Tax/exempt

5,00,001 to 10,00,000 20%

Above 10,00,000 30%


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Surcharge:The surcharge on Income Tax for Individuals for total income exceeding Rs.10 lacs

stands removed.

Education Cess:3% of the Income-tax.

Note:

Education Cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there

is any.

A marginal relief under section 89(1) provides that if an individual receives any portion

of his salary in arrears or in advance, or receives profit in lieu of salary, he can claim

relief in respect of such salary received.

Agricultural income is exempt from income tax.

Mode of Collection of tax:

Taxes are collected by three means:

1. Voluntary payment by persons into various designated Banks. For example

Advance tax and Self Assessment Tax

2. Taxes deducted at sources (TDS)on your behalf from the payments receivable

by you.

3. Taxes collected at sources (TCS) on your behalf at the time of spending.

It is the constitutional obligation of every person earning income to compute his income and pay

Tax correctly.

ADVANCE TAX

Advance tax is paying a part of your yearly taxes in advance. Advance tax should be paid in the

year in which the income is received. Advance tax is applicable when an individual has sources

of income other than his/her salary.

For instance, if one is earning through

Capital gain


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Interest on individual

Lottery

House property

Business

The advance tax is required to be paid in three installments.

Schedule of Advance Tax

A On or before 15th

September Not less than 30% of advance tax

B On or before 15th

December Not less than 60% of advance tax as reduced by

amount paid earlier.

C On or before 15thmarch Full advance tax as reduced by the amount or amount

if any, paid in earlier installments.

If the assesses does not pays the advance tax as described above, an interest of 1% is charged per

month for 3 months for the deferment of advance tax instalments. If the total amount of advance

tax is not paid on or before 15 March, an interest of 1% is charged per month.

TDS (TAX DEDUCTION AT SOURCE):

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are

deducted by a person at the time of making/crediting certain specific nature of payments to the

other person and deducted amount is remitted to the govt. account. it is similar to pay as you

earn scheme. It includes salary, interest, commission and contract fees, rent, professional fees,

etc. This type of deduction is popularly known as TDS. Such tax is subject to certain limits and

certain conditions

TAXABLE HEAD OF INCOME TAX

The total income of a person is divided into five heads, viz., taxable.

1. Income from salary.


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2. Income from house property.

3. Income from business or profession.

4. Income from capital gains.

5.

Income from other sources.

1) Income from Salary:- Whatever is received by an employee from an employer in cash,

Kind or as a facility (perquisite) is considered as salary.

All income received as salary under employer-employee relationship is taxed under this head.

Employers must withhold tax compulsorily, if income exceeds maximum exemption limit, as

Tax Deducted at Source (TDS), and provide their employees with a FORM 16 which shows the

tax deductions and net paid income. In addition, the form 16 will contain any other deductionsprovided from salary such as:

1. Medical reimbursement:up to Rs. 15,000 per year is tax free it supported by

bills. (company pay fringe benefit /facility tax on this amount)

2. Conveyance allowance: up to Rs.800 per month (Rs. 9,600 per year) Is tax free if

provided as conveyance allowance. No bills are required for this amount.

3. House rent allowance the least of the following is available as deduction.

a. Actual HRA received

b. 50% or 40% (metro/ non-metro) of Basic salary

c. Rent paid minus 10% of Basic salary. Basic salary for this purpose is

basic pay + DA forming part + commission on sale on fixed rate.

2) House property Income :- Unlike the other heads of income, income from house

property is a notional income based on a concept called annual value. This is the value aproperty is expected to fetch if it is let out. it may be more than actual rent being received

if let out. If it is not let out the expected market or fare rent will be considered as annual

value for the purpose of taxation. Property includes the building and the land

surrounding it.


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1. Life Insurance Premiums.

2. Contributions to Employees Provident Fund

3. Public Provident Fund

4. NSC (National Savings Certificates)

5. Unit Linked Insurance Plan (ULIP)

6. Repayment of Housing Loan (Principal)

7. Equity Linked Savings Scheme (ELSS) of Mutual Funds

8. Tuition Fees including admission fees or college fees paid for full-time education of any

two children of the tax payer.

9. Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC10. 5-Year fixed deposits with banks and Post Office Savings Schemes.

11. Senior Citizens Savings Scheme (SCSS).

12. Voluntary provident fund.

13. Stamp Duty and Registration Charges for a home.

BEYOND SECTION 80C:

Section Quick Description and Deduction Maximum Limit


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80D

a) Medical Insurance Premium paid by an individual/HUF by

any mode of payment other than cash to effect or keep in

force

an insurance on the health of the assesses(self) or

his family(spouse & dependent children) for policies taken

(b) For Senior Citizens

Maximum Up to R

15000 or

20000 in case of

senior citizen

80DD Maintenance including Medical Treatment of a Handicapped

Dependent who are Severely disable

Rs. 50000/-

irrespective of the

amount.

80DDB Expenditure incurred in respect of Medical treatment for the self

or dependent in specified diseases.

R.s 50000 to 70000

80E Interest on Education loan taken for pursuing

higher education

Entire amount or

Maximum deductio

for interest paid for

maximum

of 8 years

80G Donations of certain funds and charitable Institutions Maximum deductio

allowed can be 50%

or 100% of the

donation Subject to

stated limits as

provided under this

section.

80GG Rent paid in respect of property occupied for

residential use

Maximum deductio

allowed is least of

the following:

1) Rs.2000 per


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month;

2.) 25% of total

income

3.)excess of rent pa

over 10% of total

income

80GGC Contribution made to any political parties or

electoral trust.

Amount donated to

Political parties is

full exempt

80U Person suffering from Specific physical disability Maximum Deductio

allowed up to R.s

100000/-

80CCF Investment in long term infrastructure Bonds Maximum deductio

allowed 20000

Section 10A HRA Allowance 1.)

Actual HRA

received

2.)

Rent paid-10%of basic

salary.

3.) 50%or 40%

basic salary

.(depend on

metropolitan city).

Whichever is less.

Section 24 Interest on house loan Maximum deductio

150000 (self

occupied).


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FINANCIAL INSTRUMENTS : CAPITAL MARKET

Capital Market are of two types:

a) Primary Market

b) Secondary Market

PRIMARY MARKET

The primary market is an intermittent and discrete market where the initially listed shares aretraded first time, changing hands from the listed company to the investors. It refers to the process

through which the companies, the issuers of stocks, acquire capital by offering their stocks to

investors who supply the capital. In other words primary market is that part of the capital

markets that deals with the issuance of new securities. Companies, governments or public sector

institutions can obtain funding through the sale of a new stock or bond issue. This is typically

done through a syndicate of securities dealers. The process of selling new issues to investors is

called underwriting. In the case of a new stock issue, this sale is called an initial public offering

(IPO). Dealers earn a commission that is built into the price of the security offering, though it

can be found in the prospectus

SECONDARY MARKET

The secondary market is an on-going market, which is equipped and organized with a place,

facilities and other resources required for trading securities after their initial offering. It refers to

a specific place where securities transaction among many and unspecified persons is carried out

through intermediation of the securities firms, i.e., a licensed broker, and the exchanges, a

specialized trading organization, in accordance with the rules and regulations established by the

exchanges

Types of Investment Avenues


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When a person has more money than he requires for current consumption, he would be potential

investor. The investor who is having extra cash could invest it in assets like stocks or gold or real

estate or could simply deposit it in his bank account. All these broader sense mean investment.

Investment can be defined as a process of, sacrificing something for the prospect of gaining

something later

So, the definition implies that we have four dimensions to an investment- time, todays sacrifice

& prospective gain.

Various investment alternatives are:-

Fixed Deposit

Recurring Bank Deposit

EPF

PPF

Life Insurance

Mutual fund

Equity Share

Debenture/Bonds

Fixed Deposits

1. The term fixed in fixed deposit denotes the period of maturity or tenor. Fixed

deposits, therefore, pre-suppose a certain length of time for which the depositor

decides to keep the money with the bank & the rate of interest payable to thedepositor is decided by this tenor. According to a relatively new provision amount

saved in fixed deposits of term at least five years is eligible for income tax

deduction under section 80C of Indian Income Tax Act.

Recurring Bank Deposits


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Under a Recurring Bank Deposit, we invest a specific amount in a bank on a monthly basis for a

fixed rate of return. The deposit has a fixed tenure, at the end of which you get your principal

sum as well as the interest earned during that period. A Recurring Bank Deposit, by definition, is

supposed to appreciate in value over time. However, the rate at which it appreciate is pre-

determined y the rate of interest specified. It accumulates money at a fixed rate, compounded

quarterly or as the bank may specify, & your investment appreciate regularly during the tenure of

the account. Since capital appreciate in any investment option depends on the safety of that

option, & banks being among the safest avenues, the increase in investment is modest.

Employees Provident Fund (EPF)

1. EPF is a compulsory saving made by the employee & employer to ensure

financial security after the retirement. EPF was first established on 1 Oct 1951under the EPF ordinance 1951 which was subsequently known as the EPF Act

1951. The EPF Act 1951 has since then been replaced by the EPF Act 1991 in

June. Under this Act, the employer & employee are required to contribute to EPF

based on the rate of contribution set by the EPF Act. Expatriates, foreign workers

& domestic servants & their employers are not required to contribute to EPF, but

they can voluntarily do so. This condition will be invested to accumulate interest

or dividend. By the time a member retire, therefore he has a considerable amount

of savings, with compounded dividend, which he can withdraw to provide for his

financial needs.

2.

Any contributions to Provident Fund, Voluntary provident Fund (VPF) or savings

made in Public Provident Fund (PPF Account) are eligible for income tax

deduction under section 80C of Indian Income Tax Act.

Life Insurance


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A life insurance policy is a contract between an individual (termed as insured) & an insurance

company (insurer) to pay the insured, or his nominated heirs, a specified sum of money on the

happening of an event. The event could be the expiry of the

Insurance policy or the insured before the expiry of the policy as per the terms of the policy.

There are main variants of a life insurance policy:

Whole Life Assurance Plans: These are low-cost insurance plan where the sum assured is

payable on the death of the insured.

Endowment Assurance Plans: Under these plans, the sum assured is pay-able on the

maturity of the policy or in case of death of the insured individual before maturity of the

policy.

Term Assurance Plans: Under these plans, the sum assured is payable only on the death of

the insured individual before expiry of the policy.

Pension Plans: These plans provide for either immediate or deferred pension for life. The

pension payments are made till the death of the annuitant unless has provision of

guaranteed period.

Any Life Insurance premiums (for one or more insurance policies) paid by the individual

for himself/herself, his/her spouse or children are eligible under income tax deduction

under section 80C of Indian Income Tax Act.

Mutual Funds

Mutual funds are investment companies that use the funds from investor from investor to invest

in other companies or investment alternative. They have advantage of professional management,

diversification, convenience & special services. Mutual funds come in various types, allowing

you to choose those funds with objectives, which most closely match your personal investment

objectives. Mutual fund schemes may be classified on the basis of its structure & its investment

objective.


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ELSS Equity Linked Saving Schemes: Any investment made in certain Mutual Funds called

equity linked saving schemes qualifies for section 80C deduction. It is to be noted that not all

mutual fund investments are eligible for this deduction

Debentures/Bonds

A Bond is a loan given by the buyer to the issue of the instrument. Companies, financial

institutions, or even the government can issue bonds. Over & above the scheduled interest

payments as & when applicable, the holder of a bond is entitled to receive the par value of the

instrument at the specified maturity date. Bonds may be secured or unsecured.

Bonds can be broadly classified into:

Tax-Saving Bonds

Regular Income Bonds

TYPES OF INCOME TAX RETURN FILING:

1.) E-Filing (Electronic file).

2. Manually or Physical Filing.

E-filing of Income Tax returns: The process of electronically filing income tax returns through

the internet is known as e-filing.

It is mandatory for companies and firms requiring statutory audit u/s 44AB to submit the

income tax returns electronically from AY 2009-10.

Any company/firm requiring statutory audit u/s 44AB return submitted without a e-filing

receipt will not be accepted.

E-filing is possible with or without digital signature.

TYPES OF E-FILING:


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Documents required in e-filing:

Form no. 16 (for tax deducted by employers)

Account statements of bank accounts

Property details.

Sale and purchase of investments/ assets

Details of tax payments made

PAN card number.

Birth date.

TAN number

Bank account no.

Bank detailsMICR code, type of a/c.

Email id.

Address details.

Important Date for filing ITR:

31stmarch For Tax Deposit.

31stJuly for Filing Income Tax return.

PROCESS OF E-FILING:


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Steps Process For Filing Income tax return:

Whether you go for E-filing Process or Manually filing income tax return. This link assists you

in completing and submitting Your ITR.

1) Go to the website http://www.incometaxindia.gov.in/

2) Click the link e- file income tax return at the top left corner of the home page

3) Select the correct formthere are two income tax forms for salaried individuals. ITR-1 is

for those who derive their income from salary, pension or interest while ITR-2 is for

income from capital gains, house property and other sources.


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Those who wish to submit their tax returns manually may download the PDF formsexternal

website that opens in a new window form here. These forms need to be printed, filled by hand

and signed before submitting to your local income tax office.

4)

Use of return Preparation SoftwareThose citizens who wish to avail the e-filing system

need to download the return preparation software-external website that opens in a new

window for each ITR form. This software is an excel file that requires one to type in

personal details as well as financial information from TDS certificates, bank statements,

deductions made and interest statements.

5.) Generating an XML fileAfter filling the details, check once for accuracy. After you are

satisfied, click the generate button to create your tax return in XML format. Save this

XML file on your computer.

6.) RegisterThe next step requires you to register at the income tax websiteexternal

website that opens in a new window. You registered Permanent Account Number (PAN

card) has to be entered as your username.

7.) Loginafter registering, enter your user id and password to login. Click on the relevant

form on the left panel and select submit return.

8.)

Upload XMLbrowse to select the XML file, which you had generated and saved in

step 3. Click on the upload button to upload the file.

9.) Acknowledgementafter the file is successfully uploaded, acknowledgement details or

the ITR-V form will be displayed. Take a printout of this acknowledgement for your

records.

Digital signatureif your income tax return was digitally signed, then no further paperwork or

Visit to the income tax office is needed but if it was not digitally signed, in this case the ITR-V

form should be filled and send to Income Tax office, Bangalore.

You need to Print and fill up the verification part of the acknowledgement cum Verification form

(ITR-V). This has to be signed and submitted to the local income tax office within 60 days to

complete the e-filing process.


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Additional assistanceIn case you require any more help in filing the paper copy of the return,

please contact thepublic relations officerat your local income tax office. One may also phone

the Aayakar Sampark Kendra (ASK) call centre at 124-2438000 or email at

[email protected]

WHO CAN USE WHICH ITR FORM:

ITR-1: For Individual having income from Salary/pension/Family Pension and interest.

ITR 2: To be used by individuals and HUFs having income from any source except business or

profession. It is more comprehensive and seeks more detailed information by way of different

schedules for salary, income from house property, capital gains and income from other sources.

As regards the schedule for income from house property, it allows the taxpayer to fill in the

details of up to two house properties. If there are more than two house properties, the details of

remaining properties are to be attached on a separate sheet with the form.

ITR-3: For individuals/HUFs being partners in firms and not carrying out business or profession

under any proprietorship.

ITR-4: For individuals &HUFs having income from a proprietary business or profession.

ITR-5: For Firms, AOPs and BOIs

ITR-6: For companies other than companies claiming exemption under section 11.

ITR-7: For person including companies required to furnish return under section 139(4A) or

139(4B) or 139(4C) or 139(4D).

ITR-8:Return for fringe Benefits.


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ADVANTAGE OF E-FILING.

E-filing is easy, fast, and the most reliable and secure method.

Fast Processing: The acknowledgment of ITR submission is fast and the refunds are

processed faster by the ITD for E-Filed ITRs.

More Accurate: E-Filing software with built-in validations and electronic connectivity

to ITD are seamless and help minimize errors. Paper based filing with self calculations

can be prone to error. Also, when any paper based form is transferred to electronic

system, there is always a possibility of human error in data entry.

No Time , place constraint:You can file anytime, anywhere. E-Filing is available 24

hours a day, seven days a week, so taxpayers may always file at their own convenience. More Secure than Paper based filing:E-filing is safer than paper based filing. With

paper based filing your confidential identity information is lying in files and can be

passed from person to person in the CAs office or in ITDs office.

You can easily access and use your data for future returns:Most of the paid E-filing

software applications store your data in a secure manner and allow you to access it

whenever you are ready to file subsequent returns.

It is good for the environment: E-Filing is environment friendly. You just need to print

no or at most one page instead of multiple copies of multiple pages that is required in

case of paper based filing.

DISADVANTAGE OF E-FILING:

E-filing doesnt have many disadvantages but some time technological problems occur at the

time of filing ITR online.

Lack of control is another issue that certain individuals have with e-filing. Using an

electronic technology that you may not thoroughly understand can be daunting and the

idea of a paper-based tax return over which you have more control is more comfortable.

Other than small provider fee, however, there arent many reason the average taxpayer

wouldnt want to consider giving e-filing a try.


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How SPA Capital Services Limited Files ITRs Of its Prospective Clients:

SPA capital services ltd. Files approximately more than 18000 ITRs of its Prospective

Clients all over India.

The Work Process in Delhi-NCR is as follows:

The Employees who are engage in this process are Divided at three locations

Janakpuri (Head Office)

Noida

Gurgaon

And the respective works are assign by these Way:

Noida and Gurgaons employees With the help of Trainee Students

Distributes Questionnaires form to their Clients (Different companies), now these trainee

students Collect completely duly filled questionnaires forms and Form 16 of every Client

and if any query arise from the client side, with the help of their mentor they solve it.

If the Income of employees are less than 5 lakh, they filled ITRs Physically/Manually.

Income more than 5 lakh, they send it to Janakpuri location for e-filing.

Roll of janakpuris employees:

1. Janakuris employees file ITRs electronically.

2. With the help of Computax software, generates XML file of respective ITRs.

3. Upload these xml files online on income tax department websites.

4 .After successful upload, a Token number along with Acknowledgement generate.

5. These Token number and Acknowledge are keeps for future benefits.


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Note: People from outside Delhi send theirs form 16 and filled questionnaires via e- mail

with the help of using Company link to get filled theirs ITRs and Janakpuris employees

do it.

Graphical Representation of ITRS filing in SPA Capital Services Limited.

Graphical representation of Percentage of different ITRS filing at SPA Capital Services

Limited.

% of Physical filing and E-filing

E-filing (80%)

Physical filing (20%)

Percenatge of different ITRs filing

ITR 1 (85%)

ITR 2 (10%)

ITR 4 (5%)


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Common mistakes people make while filing tax returns

The most common notion among salaried employees is that since tax has already been

deducted from their salary, there is no need to file their income tax returns. This is not at

all true or legal. Even though tax has been deducted and there is no further liability to pay

tax, an employee has to compulsorily file his / her income tax return. Form No. 16received from employer is not their income tax return.

Employees do not include the interest that they receive on their savings bank account.

The entire interest earned on your savings bank account is taxable.

Omission of income received by a minor child. A minor child is not required to file a

separate return of income. However, this income has to be included in the hands of either

of the parents, although it might be a small amount of bank interest.


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Chapter 5

Finding and interpretation

1. What will u prefer at the time of ITR filling?

I nterpretation

In this survey has taken from some group if people and they answer about the question that how

much they like to fill their ITR. Mostly people like to fill their ITR by online process. Then some

25% people like to fill physical filling .some of people dont bother about the way they prefer

any present way to fill the ITR.

e-filling39%

physical filling25%

any16%

depends ontime20%

Sales


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2. Are u satisfied by the services of SPA capital?

Interpretation

In this some people who are using the SPA capital services or have used the spa capital services

in past .mostly(21%) people are highly satisfied with the services provided by the SPA

capital.(32%) people never think about the satisfaction about services they are using .but some

people are not satisfied with their services.42% are satisfied but not highly.

42%

5%32%

21%

Salesyes no never think about this highly satisfied


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3.Have you ever file your ITR from SPA capital?

Interpretation

SPA capital files ITR only for some time period of year. (77 %) of the people saysthat they are not using SPA capital services to file ITR. (11%) people say that they

are using SPA capital services to file ITR.

77%

11%

11%

1%

Sales

no yes sometime mostly


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FINDINGS

Regarding the effectiveness of selling strategy income tax return of SPA following

analysis could be done. The overall the selling strategy is effective but still there are

some problems which can be solved thorough better performance and taking some

corrective measures.

Most of the clients are from the income group of Rs 3-5 Lakh which can be

extended to other levels effectively.

Many few people are there who are using the commodities broking services,

merchant banking and financial planning etc. which shows a very poor result.

About 70% clients are new i.e. they have joined SPA last year. This is a good

indicator that people are now moving towards the financial services.

The services that SPA offers to its clients are well suited to their needs. Only 55

people are there who say that the services do not fulfill their requirements.

The satisfaction level of SPAs clients is high which a good indicator is. This

would help it to create further long term relationships with its clients.

But still a very less number of clients are there who would continue with SPA.

Most of them depend upon the circumstances or their financial needs. So SPA should

work more to build long-term relations by introducing them with more customized

services.

Similarly, 90% clients are of the opinion that their recommendation to others will

depend upon the latters requirement. The word-of-mouth marketing can help the

company for sustainable growth. The existing clients should be so much influenced

that they can help in bringing new clients.


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The most important thing is that the company should diversify its services to

satisfy its existing clients as well as the future clients. Many clients need that some

more services should be added like Investment Banking, Portfolio Management etc.

so that they can have one stop solution for all their financial needs.

And also the awareness level among people about SPA is very low. The company

should do effective promotional activities. It can use advertisement Medias (print and

electronic).

SPA lacks in customized services which has a direct impact on services offered

and customers satisfaction.

Clients need more commitment from the employees side and timely services.


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Chapter 6

Conclusion, suggestion and limitation

Conclusion:

From the study it can be concluded that-

SPA Capital is a growing organization which has through its corporate clients, grown at aconsiderable pace, which is quite appreciable.

One of the selling strategies adopted by SPA is assisting the corporate employees in their

ITR filing. This has, for sure proven to be a successful strategy in building long-term

relationship with their clients and thus grows in this competitive era.

As Income Tax Return filing is a mandatory procedure for every citizen of India who is

earning money from any source, most of the people approach to such type of companies

who file their ITR at a nominal rate and thus saving their time, so this is a great

opportunity for SPA and to boost its business level.

There are some deficiencies in the working of SPA yet this can be removed by working

on them and by proper handling of queries of clients.

SPA is an emerging organization which helps the people to fulfill their almost every

financial need at one stop.


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It is serving to various corporate employees such as Wipro, TCS, Aricept Technologies

etc. and generating a good amount of business.

Limitations:

Every study has its own advantages and disadvantages. No study is perfect as there is always a

room for improvement.

In this study though every effort has made to bring it into perfection and no stone is left

unturned, there are still certain limitations, which need to be highlighted without which the study

can become biased.

Such limitations are:

The data has been generated from the secondary source thus any error in the information

would have got replicated in the report.

Time constraint was another limitation. As no efficient research can be done in this short

period of time.

Also the information available was insufficient which has also been reflected in the

report. The resources were also not much available.

The biasness of the sample units may also cause the wrong results.

Some of the information about the research sample is collected through their past record

available with the company

The results drawn from the sample has been applied to the population which may give

incomplete response.


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Suggestion

If u are working person then you should go for e-filing

If you want to file your ITR by yourself then you should go for physical filing

SPA capital is taking care of all your personal information.

SPA capital is very dedicated towards their clients

SPA capital is a company that you can trust.

SPA capital make sure that all entries of ITR filing send to Bombay

headquarter


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BIBLIOGRAPHY

BOOKS:

Tax Deduction and collection at source by SR Kharbanda

Master guide to Income Tax Act by Taxmanns

Taxation of salaried employed by Girish Ahuja and Ravi Gupta

Taxation of capital Gains by Tarun Chaturvedi

Capital Market in India by Rajesh Chkarbati

WEBSITES:

www.spacapital.com

www.moneycontrol.com

www.valueresearchonline.com

www.incometaxindia.gov.in

www.investopedia.com

www.capitalmarket.com