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AND E--FILING OF RETURNS” UNDER SPA CAPITAL SERVICES LTD.
Submitted By: Jasmeet kaur 01120601710 Batch-2010-2013
Trinity Institute of Professional Studies Affiliated to Guru Gobind Singh Indraprastha University
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 Objective Acknowlegement Company Profile Group companies SPA‟s Services Vision Clients of SPA Group Individual heads of income Basic information about tax Tax Slabs Salary Income from House Property Capital Gain Deduction under chap VI A Tax rebate and relief Permanent Account Number Types of Return Filing SPA Working Conclusion, Limitation, Suggestion
3 4 5 8 12 15 16 17 35 40 44 48 51 55 60 62 64 71 94
The main objective of my project is to find out that e-filing of return is better than the physical filing of return. And through this project I have come to the conclusion that e-filing is better than physical filing is better at some cases. In spite of some advantages of physical filing.
sustained efforts and friendly approach. guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project. It would have been difficult to achieve the results in such a short span of time without their help.JASMEET KAUR Enrollment no. Anish Kumar and Internal project supervisor Mrs. Yogita Manhas who devoted their precious time to interact. 0110601710 4 .ACKNOWLEDGEMENT It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously gave me their time and expertise. I deem it my duty to record my gratitude towards the External project supervisor Mr. Name of Student. They have provided me with the valuable guidance.
In January 2000. Initially. the Group focused as a niche financial solutions provider in corporate finance and wealth management to Indian companies and high net worth individuals. SPA provides services for securities broking.info@spacapital.Income Tax Return (ITR) filing Under SPA GROUP Objectives of the Study To discuss the various types of ITR. private corporate. risk management and insurance broking. ABOUT THE COMPANY SPA Group was promoted by a team of finance professionals in 1995 with an objective to provide value added financial services.110 058 Ph . The Group has established itself as one of India‘s leading financial advisory house. in their respective fields. offering various financial solutions to its Institutional. To analyze the process of filing ITR in India.SPA is being managed by its promoters along with a young and dynamic team of over 1000+ professionals with rich experience. Clients of SPA are from a wide spectrum and comprise of Banks and other financial institutions. financial advisory. foreign institutional investors. Customer centric approach of SPA‘s dedicated professional team has helped carve a niche for itself in financial services arena and won confidence of its clients. Today. corporate and individual clients. public sector undertakings and government departments.011-25517371 / 25515086 Fax . trusts and individuals. Insurance companies.011-25532644 E-mail .com 5 . Head Office: New Delhi 25. Janak Puri New Delhi . Mutual funds. corporate finance. C-Block Community Centre. the Group expanded its operations and the range of services. wealth management. merchant banking.
insurance. Securities Banking and Wealth Management. insurance sector Securities limited Mutual fund Merchant banking Spa Capital Products and services Financial management system MANAGEMENT TEAM The Core management team of SPA consists of persons having a rich experience in Corporate Finance and Advisory. they reflect the group's core ethos and values that are centered on creating value through customer‘s centric approach. Mr. SPA Group's customer-centric approach. having more than 24 years of experience in marketing of financial products and has a vast experience in information technology and administration. Sanjay Joon. Though each of these business entities exists independently. even as we continue to win many awards and accolades for our innovative services and solutions. mutual funds. His forte lies in his abilities of 6 . financial institutions and retail investors. Investment Banking. fixed deposits. backed by strong research and passion to excel has helped us achieve a significant position in the Indian financial services sector. More than 1000 highly skilled professionals are continuously and consistently working towards enhancing the value and wealth of our customers. Our service offerings include merchant banking. high net-worth individuals. government securities and bonds. providing a large range of services to a varied set of customers that include large corporations.COMPANY PROFILE Established in 1995. Risk Management. President MBA. asset management. SPA Group is a long standing and fast growing integrated financial services group. securities broking.
1996 and was associated in lead managing more than 60 public and rights issues for well known Corporate and Financial Institutions. Associate Director (Investment Banking) B. Mr. Mr. Fellow Member of The Institute of Chartered Accountants of India Has close to 20 years of work experience in the field of investment and merchant banking. He was also Head Investment Department dealing in securities for one year. Sanjay Gupta. He has worked for 14 years in PNB till mid 1991 in Managerial positions. Fixed Income Securities. He is with SPA Group since October 2006 and looking after Merchant Banking. corporate advisory & finance. Thereafter he worked as Director . Associate Director He is having 30 years of experience in the field of Banking & Merchant Banking including 16 years of exclusive experience in Investment Banking. Project Fin ancing. Thereafter he was deputed to PNB Capital Services Limited as Senior Vice President and worked as Head Merchant Banking during 1991 . private placement of equity and debt. Principal Officer He has to his credit 42 years of rich experience of working with Oriental Insurance Company Limited and retired as the Regional Manager. mergers & takeovers & distribution of financial products. Vivek Gautam. Structured & Corporate Finance. Chartered Accountant. He heads Mutual Fund Division of the Group since its inception. meeting them and leading an ever team.accurately assessing his customers‘ need. He has wide experience in issue management. He is associated with our Group as the Principal Officer of the Insurance arm.Bajaj Capital Limited and President Merchant Banking for 7 years and also as Head Merchant Banking and Executive Director with Allianz Securities Limited for 1 year. 7 . V K Khattar.Com (H). Mr.
1) SPA CAPITAL SERVICES LTD. The Company is registered with Reserve Bank of India as a Non Banking Finan cial Company. and individuals since 1995. SPA Capital Services Limited is the flagship Company of the Group and is engaged in providing Wealth Management and Financial Advisory services to institutions. The Company is a leading distributor of Mutual Funds in the country and presently has assets over Rs. The Company has successfully positioned itself as a strategic advisor to its customers for wealth management with its customer centric approach and innovative solutions. The Company is registered with Reserve Bank of India as a Non Banking Financial Company. 000 crores under its management. Presently the shares of the Company are listed on the Delhi Stock Exchange. and individuals since 1995. corporates. The Company is a leading distributor of Mutual Funds in the country and presently has assets over 4500 crores under its management. corporates.14 . Presently the shares of the Company are listed on the Delhi Stock Exchange. The Company has successfully positioned itself as a strategic advisor to its customers for wealth management with its customer centric approach and innovative solutions.GROUP COMPANIES SPA Group of companies is the flagship Company of the Group and is engaged in providing Wealth Management and Financial Advisory services to institutions. 8 .
Maharashtra. We have team comprising of multi-disciplinary professionals with a vast financial advisory and investment banking experience. managing capi tal issues (IPO. Since the commencement of merchant banking services. the Indian Securities Market Regulator. Designated Financial Institutions(DFIs). Punjab. Capital raising services through private placement of equity. West Bengal. Jammu & Kashmir. SPA Merchant Bankers Limited offers comprehensive investment banking solutions and highest quality independent financial advice to corporates sector and entrepreneurs. The Company has made notable and considerable progress in a short span in the debt merchant banking activities successful various debt primary issues. which has ranked the Group amongst the top 10 service providers in this segment. we also cater to the entire spectrum of capital market needs through other services such as Corporate and Infrastructure advisory. The Company was able to achieve above ranks on the basis of its performance in just two financial years since it commenced investment & merchant banking activities. We have the Category –I Merchant Banking license from Securities and Exchange Board of India (SEBI). In the private sector. the Company has syndicated funds for various Public Sector Undertakings (PSUs). Our service offering covers private placement of debt instruments and debt syndication for both public and private sector corporates. The Company for its Merchant & Investment Banking activities has found patronage as an Arranger with various central public sector undertakings like HUDCO. Gujarat and Rajasthan. NTC. public sector banks and financial institutions. Karnataka. ITI. Kerela. KRCL. who structure various financial products as per the requirements of the clients. Besides. Haryana. 9 . IISCO SAIL. Banks and several State Level Undertakings (SLUs). Himachal Pradesh. REC. FPO and Right Issues). Buy Back and Delisting. Tamil Nadu. the Com pany has provided its services to various domestic and MNC corporates. Valuations. This is also reflected through the ranking by Prime Database. MECON. Also the Company has had privilege to provide its services to various state level undertakings of Andhra Pradesh.2) SPA MERCHANT BANKERS LTD. Managing Takeovers.
ii. combine our various strengths including in depth knowledge of regulatory environment. iv. We have started providing equity capital market related services in the beginning of 2007 and advise Corporates. vii. Banks and Businesses which are seeking to mobilize capital from Investor. Information technology Telecommunication Infrastructure Power equipments Steel Sugar Textiles We. Our team as Lead Manager/ BRLM has successfully managed/ are managing transactions for client across various industry sectors including: i. v. innovative ideas and ethical standards. distribution capabilities and networking with institution investors of our associate concerns. for execution of a transaction.The achievements corroborate our untiring and sincere efforts towards building and preserving mutually rewarding and sustainable relationships with our clients and giving them our value added services with meaningful performance. We offer following opp ortunities to clients to raise funds through the following: Private Equity Advisory Initial Public Offering (IPOs) Follow on Public Offering (FPOs) Qualified Institutional Placements (QIPs) Right Issues Preferential Allotments and Foreign Currency convertible bonds (FCCBs). understanding of industry and market dynamics. iii. We built our business on strong relationships. vi. 10 .
claim settlement and also meet requirement of clients if they wish to outsource entire gamut of insurances related functions.. the commodities broking arm of the group has recently commenced operations. The Company is a member of Wholesale Debt Market. The Company is empanelled with almost all the life and general insurance companies as a Direct Broker. In its first full year of the operations. Private and Co-operative banks. the Company achieved a turnover of over Rs. Equity broking for institutions was commenced in 2004 end. The company is catering to existing customers of the group by providing research based commodity broking services. The Company is registered with Insurance Regulatory Development Authority as approved Broker. corporate houses. 4) SPA INSURANCE BROKING SERVICES LIMITED SPA Insurance Broking Services Limited is the arm of the SPA Group providing entire range of insurance service in insurance right from meeting insurance need of clients to cover its risk spectrum. The Company is functioning as life and general insurance direct broker and risk assessors. The Company is focused primarily on providing securities broking services to institutional clients and is empanelled as an approved securities broker with all the major Nationalized.3) SPA SECURITIES LTD.1500 crores in calendar year 2005. SPA Securities Limited is a SEBI registered securities broking Company. The Company had a turnover of Rs. Ltd. Asset Management Companies and Provident Fund Trusts. 5) SPA COM TRADE LTD. Insurance Companies. advisory. 25000 crores at NSE-WDM for the financial year ended March 2005. Financial Institutions. The Company is also a registered member of the Over the Counter Exchange of India. 11 . SPA Comtrade Pvt. Capital Market and Futures and Options Segment of the National Stock Exchange of India Limited.
MUTUAL FUND The SPA Group. which include identification of the needs of the clients. on strength of its research based customer centric approach and impeccable servicing. resolution of their queries and post sales service. The company has provided insurance coverage across assets classes of over Rs. The Company is empanelled with all the general insurance companies operating in the Country enabling it to provide best insurance solutions suitable for the clients. The company has covered over 2000 lives in 18 months of business with sum assured of over Rs. 200 billion with impeccable claims and other after sales services. Life Insurance advisory services are process oriented.3. 2. is recognized as one of the leading financial advisory service providers in the country. INSURANCE SPA Insurance Broking Services Ltd is the insurance broking company of the group providing life and general insurance advisory services. In General Insurance we believe in servicing clients after assessment of their need and the risk involved and cover required and offer the best insurance cover available in the market supported by strong after sales services to the clients. EQUITY AND DERIVATIVES Equity Broking The Company is engaged in equity research and broking for its institutional clients.SPA‟S SERVICES 1. offering the best product available. 20 billion and premium collection of over Rs. On strength of its research and impeccable servicing the 12 . 3.5 billion.
We can make a much larger contribution in every area of our life when our personal finances. structuring of the various financial products as per the 13 . Ltd. we are not accountable to any one for our personal financial goals and results. FINANCIAL PLANNING Even though one of the most significant factors in our life is the state of our personal finances. invest regularly Start early Use tax shelter Investment returns should exceed the inflation.Company in its first year of operation in equity broking is empanelled with all the major domestic institutional players and has achieved a turnover of over Rs.600 crores. 5. we rarely spend time on managing them since unlike businesses.. The Fundamental corner stones of successful investing Save regularly. 4. The company is catering to existing customers of the group by providing research based commodity broking services. MERCHANT BANKING SPA Merchant Bankers Limited is engaged in private placement of debt instruments. investments and taxation are properly planned. Commodities Broking SPA Comtrade Pvt. the commodities broking arm of the group has recently commenced operations. 1.
14 . Tamil Nadu. At SPA we have focused on building a strong research team which functions with an exhaustive approach to understand and analyze underlying market dynamics for equities. 6. NTC. Punjab. which has ranked the Group amongst the top 10 service providers in this segment. Designated Financial Institutions(DFIs). the Company has started providing Equity Oriented Merchant Banking services to its customers on strength of its research based structuring capab ilities and strong distribution network. In the private sector. The achievements corroborate our untiring and sincere efforts towards building and preserving mutually rewarding and sustai nable relationships with our clients and giving them our value added services with meaningful performance. Now. the Company is providing services for private placement of equities. The Company was able to achieve above ranks on the basis of its performance in j ust two financial years since it commenced investment & merchant banking activities. The Company for its Merchant & Investment Banking activities has found patronage as an Arranger with various central public sector undertakings like HUDCO. SPECIAL TECHNICAL REPORTS Research. Himachal Pradesh. Haryana. and mutual funds. Maha rashtra. REC. the Company has provided its services to various domestic and MNC corporates. Jammu & Kashmir. KRCL. Also the Company has had privilege to provide its services to various state level undertakings of Andhra Pradesh. Presently. West Bengal. the Company has syndicated funds for various Public Sector Undertakings (PSUs). IISCO SAIL. publi c sector banks and financial institutions. fixed income. undertaken on a continuing basis. Since the commencement of merchant banking services. The Company has made notable and considerable progress in a short span in the debt-oriented merchant banking activities by successful placement of various debt primary issues. Gujarat and Rajasthan. This is also reflected through the ranking by Prime Database. Banks and several State Level Undertakings (SLUs). ITI. Kerela. forms foundation for all services provided by them. MECON. public issues and right issues. Karnatka.requirements of the borrowers along with various other pre -issue and post issue services.
Customer centric work environment .Insight of customers‘ perspectives . The basic work theme at SPA is: . The philosophy at SPA is to provide services to clients after assessment of their profile. competent and honest team of professionals .VISION SPA believes in attaining customer satisfaction.Clear understanding of applicable laws .Dedicated.Consistency and passion to excel .Strong research base . needs and risk-appetite. by providing highest standard of financial services in India. on continuing basis.Technology savvy 15 .
Clients of spa group 16 .
by or on behalf of a former employer or present employer. which come under head of salary: Salary (including advance salary) Wages Fees Commissions Pensions Annuity Perquisite Gratuity 17 .Individual Heads of Income Income from Salary What is Salary? Income under heads of salary is defined as remuneration received by an individual for services rendered by him to undertake a contract whether it is expressed or implied. When arrears of salary is paid in the previous year by or on behalf of a former employer or present employer. What Income Comes Under Head of Salary? Under section 17 of the Income Tax Act. According to Income Tax Act there are following conditions where all such remuneration are chargeable to income tax: When due from the former employer or present employer in the previous year. if not charged to tax in the period to which it relates. whether paid or not When paid or allowed in the previous year. though not due or before it becomes due. 1961 there are following incomes.
18 . Under section 10(10A) there is also a provision of exemption in case of leave encashment depending upon whether he is a government employee or other employees. What is Gratuity? It is salary received by an individual paid by the employee at the time of his retirement or by his legal heir in the case of death of the employee. It is a chargeable income whether he is a government employee or not. Annual Bonus Income From Provident Fund Leave Encashment Allowance Awards What is Leave Encashment? Leave encashment is the salary received by an individual for leave period.
1961 allowance is defined as an amount received by an employee paid by his/ her employer as a rent of his/her house. 1961 these allowance are taxable excluding few conditions where they are entitled of deduction/ exemptions. Under Income Tax Act following types of allowance are defined House Rent Allowance: Under sections 10(13A) of Income Tax Act. There are following amount which are exempt from tax: Actual house rent paid by that individual Rent paid for the accommodation over 10% of the salary 50% of the salary if house is placed at Delhi. Mumbai. Kolkata. Chennai or 40% of the salary in it is placed in any other city 19 . It is a taxable income. Under section 15 of the Income Tax Act. There is no exemption in tax if he is living in his own house or house for which he is not paying rent.What is Allowance? It is the amount received by an individual paid by his/her employer in addition to salary.
7500 Entertainment allowance received during 1954-1955 Other Special Allowances Children Education Allowance Tribal Area Allowance Hostel Expenditure Allowance Remote Area Allowance Compensatory Field Area Allowance Counter Insurgency Allowance Border Area Allowance Hilly Area Allowance 20 . 1961 it is entitled to deduction in tax from is salary.Entertainment Allowance: It is the amount paid by employer for availing entertainment services. Under section 16(ii) of Income Tax Act. But in this case deduction is given to his gross salary which also includes entertainment allowance. Deduction in tax against this allowance can be divided into two parts: In case of Government employee entitled to minimum deduction of Entertainment allowance received 20% of basic salary excluding any other allowance Rs. 5000 In case of other employee entitled to minimum deduction of (a) Entertainment allowance received 20% of basic salary excluding any other allowance Rs.
to effect an assurance on the life of the assessee or to effect a contract for an annuity There are following perquisites which are tax free: Medical facility Medical reimbursement Refreshments Subsidized Lunch/ Dinner provided by employer Facilities For Recreation Telephone Bills Products at concessional rate to employee sold by his/ her employer 21 . Any sum paid by the employer in respect of any obligation which. but for such payment. By any employer to an employee whose income under the head 'Salaries' exceeds Rs. 2. By a company to an employee. other than a recognized provident fund or EPF.What is Perquisite? Under section 17(2) of Income Tax Act. Any sum payable by the employer whether directly or through a fund.24000 excluding the value of non monetary benefits or amenities 4. would have been payable by the assessee 5. who is a director thereof By a company to an employee being a person who has a substantial interest in the company 3. 1961 perquisite is defined as: Amount paid for the rent-free accommodation provided to the assessee by his employer Any concession in the matter of rent respecting any accommodation provided to the assessee by his employer Any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases: 1.
judges of High Court/ Supreme Court Contribution of employers to employee's pension. Insurance premium paid by employer Loans to employees by given by employer Transportation Training House without rent Residence Facility to member of Parliament. annuity schemes and group insurance 22 . judges of High Court/ Supreme Court Conveyance to member of Parliament.
auditorium etc. Similarly. Income from other property such as open land is out of the purview of this section. shops. halls. he would be taxed under the head 'Income from other sources'. cinema halls. Only the income from buildings or part of a building.Income from House Property The annual value of property. the profits of which are chargeable to income tax. If the assessee is not the owner of the building but is a lessee and he sublets the property.' When the property is used by the owner for his business or profession. platforms. 23 . Income from such land will be taxed under the head. when a firm carries on business or profession in a building owned by a partner. godown. storehouse. shall be chargeable to income tax under the head "Income from House Property". Is income from any property covered under this section? No. consisting of any buildings or lands appurtenant thereto of which the assessee is the owner. 'Buildings' Includes The term 'buildings' includes any building (whether occupied or intended for self-occupation). 'income from other sources. the income of which business or profession is chargeable to income tax. stalls. held by the assessee as the owner and the income from land appurtenant to the buildings is covered under this section. the income of that property is not charged in the hands of the owner. unless the firm pays the partner any rent for the same. no income from such property is added to the income of the partner. factory. warehouse. office building. Income arising out of the building or a part of the building is covered under this section. other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him.
"Land appurtenant" Land appurtenant includes land adjoining to or forming a part of the building. established by the Central Govt. or quarry rent. cattle shed. Property income of any registered trade union. Property income of a statutory corporation or an institution or association financed by the Government for promoting the interests of the members either of the Scheduled Castes or Scheduled tribes or both.f. (The Finance Act. B. F.e. Property income of a corporation. Property Income of a local authority. H. constituted for the purpose of dealing with and satisfying the need for housing accommodation or for the purposes of planning development or improvement of cities. ground rent or lease rent. or any State Govt. 24 . C. whether it is appurtenant to the residential building. Such income would be assessable as income from other sources. 1. is taxed as income from other sources. income from house property is completely exempt from any tax liability: A. compound. hotel building. It would depend on the nature of the land. arising out of open spaces. stable. D. 2002. and will include courtyards. is not covered under this section even though it may be received as rent. E. G.2003 shall delete this provision. drying grounds. When is the income from house property wholly exempt from tax? In the following cases. Even rent. theatre etc. arising out of vacant land. w.). club house. Property income of a member of a Scheduled Tribe. garages. factory building. car parking spaces. Income arising from vacant land Any income. for promoting the interests of members of a minority group. Property Income of an authority. Income from any farmhouse forming part of agricultural income. Annual value of any one palace in the occupation of an ex-ruler.4. towns and villages or for both. playgrounds and gymkhana.
J.I. Property income of an institution for the development of Khadi and village Industries. Income from house property held for any charitable purposes. renewed or reconstructed with borrowed capital. renewed or reconstructed with borrowed capital. M.' L. constructed. Property Income. Self-occupied house property of an assessee.000 where the property consists of a house or part of a house. processing or facilitating the marketing of commodities by an authority constituted under any law for the marketing of commodities. N. business or profession is carried on at any other place and he has to reside at that other place in a building which is not his own. repaired. 25 . Property Income of any political party. Where such property has been acquired. the amount of any interest payable on such capital. formed for promoting the interests of the members either of the Scheduled Castes or Scheduled tribes or both. What are the deductions permitted to be made from Income from house property"? S 24 lays down that 'income chargeable under the head 'Income from house property' shall be computed after making the following deductions: 1. repaired. which has not been rented throughout the previous year. constructed. A sum equal to 30% of the annual value. K. derived from the letting of godowns or warehouses for storage. on or after 1st April 2003.000. which the owner occupies for his own residence or which cannot be occupied by him because his employment. Property income of a cooperative society. The amount of deduction shall not exceed Rs 30. 2. the amount of deduction under this clause shall not exceed Rs 1. 50. If the property has been acquired.
managing the whole or substantially the whole of the affairs of an Indian company. B. which was carried on by the assessee at any time during the previous year. Any person. by whatever name called. 26 . Income chargeable to income tax under the head 'Profits and gains of business or profession The following income would be chargeable under the head "Profits and gains of business or profession": The profits and gains of any business or profession. Any compensation or other payment." the following conditions should be satisfied: There should be a business or profession. by whatever name called. due or received by the following:A. at or in connection with the termination of his management or the modification of the terms and conditions relating thereto. The business or profession should have been carried on by the assessee at any time during the previous year. Any person. managing the whole or substantially the whole of the affairs in India of any other company. at or in connection with the termination of his office or the modification of the terms and conditions relating thereto.Income from business or professions Conditions for an income to fall under the head of income from profits and gains of business For charging the income under the head "Profits and Gains of business. The business or profession should be carried on by the assessee.
Any person. and further if he has undertaken to bear the cost of repairs to the premises. As a tenant. a partner of a firm from such firm. received or receivable by any person against exports under any scheme of the Government of India. for or in connection with the vesting in the Government. Any interest. commission or remuneration. 27 .C. salary. rates. under any law for the time being in force. 1955. 1971. excluding expenditure in the nature of capital expenditure. the amount paid on account of such repairs. D. Income. by whatever name called. arising from business or the exercise of a profession. or received by. 1947. bonus. Any duty of customs or excise repaid or repayable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules. Cash assistance (by whatever name called). made under the Imports and Exports (Control) Act. repairs and insurance for premises. which are used for the purpose of business or profession while computing income from 'profits and gains from business or profession' are as follows: Where the premises are occupied by the assessee: 1. due to. whether convertible into money or not. derived by a trade. at or in connection with the termination of any agency or the modification of the terms and conditions relating thereto. by whatever name called. professional or similar association from specific services performed for its members. taxes. Any person. Deductions allowed in computing income from profits and gains of business or profession S 30: The deductions that are allowed while computing income from 'profits and gains from business or profession' in respect of rent. or in any corporation owned or controlled by the Government. of the management of any property or business. holding an agency in India for any part of the activities relating to the business of any other person. the rent paid for such premises. The value of any benefit or perquisite. Profits on sale of a license granted under the Imports (Control) Order.
local rates or municipal taxes. excluding expenditure in the nature of capital expenditure. paid on account of land revenue. The amount of any premium. paid in respect of insurance against risk of damage or destruction of the premises. What deductions shall be allowed in respect of repairs and insurance of machinery. plant and furniture? S 31: The following deductions shall be allowed in respect of repairs and insurance of machinery. Any sums. plant and furniture: The amount paid on account of current repairs thereto. The amount of any premium. 28 . the amount paid by him on account of current repairs to the premises.2. Otherwise than as a tenant. excluding expenditure in the nature of capital expenditure. paid in respect of insurance against damage or destruction thereof.
29 . 1999 notified by the Central Government. issued by the Central Government. held for personal use by the assessee or any member of his family dependent on him. It however does not include the following: 1. which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year. movable property (including wearing apparel and furniture. 3. 1980. consumable stores or raw materials held for the purpose of his business or profession. town committee. notified area committee. as the Central Government may. 6. not being land situated in the following:a. Gold Deposit Bonds issued under the Gold Deposit Scheme. Defense Gold Bonds. 1977. or 7 per cent Gold Bonds. and scope for. specify in this behalf by notification in the Official Gazette.e. municipal corporation.5 per cent Gold Bonds. from the local limits of any municipality or cantonment board referred to in item (a).Income from Capital Gains Capital Assets S 2(14): Capital asset means property of any kind held by an assessee whether or not connected with his business or profession. having regard to the extent of. town area committee. or b. or by any other name) or a cantonment board and. or National. excluding jewellery). 1980. issued by the Central Government. Agricultural land in India. Any stock-in-trade. 4. 1991. urbanization of that area and other relevant considerations. not being more than eight kilometers. i.. 5. 2. In any area which is comprised within the jurisdiction of a municipality (whether known as a municipality. Personal effects. 6. In any area within such distance. Special Bearer Bonds.
1980. Special Bearer Bonds. excluding jewellery). municipal corporation. specify in this behalf by notification in the Official Gazette. from the local limits of any municipality or cantonment board referred to in item (a). 1980. or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year. held for personal use by the assessee or any member of his family dependent on him. issued by the Central Government. 6. issued under the Gold Deposit Scheme. 1999 notified by the Central Government. or o In any area within such distance. or 7 per cent Gold Bonds. town committee. 1977.5 per cent Gold Bonds. which do not fall within the term "capital assets". Defense Gold Bonds. held for the purpose of his business or profession. having regard to the extent of. not being more than eight kilometers. Personal effects. and scope for. and which can give rise to a tax-free surplus Any stock-in-trade. town area committee. as the Central Government may. consumable stores or raw materials. 1991. or National. Gold Deposit Bonds.The assets.e. i. issued by the Central Government. not being land situated in the following: o In any area which is comprised within the jurisdiction of a municipality (whether known as a municipality. notified area committee. Agricultural land in India. urbanization of that area and other relevant considerations. 30 . movable property (including wearing apparel and furniture..
In relation to any other capital asset1. Expenditure incurred wholly and exclusively in connection with such transfer: Expenditure incurred which is necessary to affect such transfer e. 1981 the cost of improvement includes all expenditure of capital nature incurred in 31 . registration etc. 4. 3. Find out the full value of consideration 1. From the resulting sum deduct the exemption provided by section 54. 54F and 54G. Cost of acquisition. 54B. 4. From the resulting sum deduct the exemption provided by section 54B. The balancing amount is the long-term capital gain. 54EC. Indexed Cost of improvement. The balancing amount is the short-term capital gain. Cost of improvement: a. Deduct the following: a. 54ED. Expenses of capital nature for completing or acquiring the title to the property may be included in the cost of acquisition. Where the capital asset became the property of the assessee before April 1. is as follows: Computation of Short-term capital gain Computation of Long-term capital gain 1. Find out the full value of consideration 2. 54D and 54G.g. In relation to goodwill of a business or a right to manufacture. Deduct the following: a. b.The method of computation of short-term and long-term capital gain. stamp duty. produce or process any article or thing. Cost of acquisition of an asset: Value for which it was acquired. 3. b. Expenditure incurred wholly and exclusively in connection with such transfer. Expenditure incurred wholly and exclusively in connection with such transfer b. Cost of improvement 2. Full value of consideration: Whole price without any deduction whatsoever. as applicable from the assessment year 1993-94 onwards. Indexed Cost of acquisition c. 54D. the cost of improvement is taken to be nil. c.
1981. by notification in the Official Gazette. the cost of improvement refers to all expenditure of a capital nature that is incurred in making any additions or alterations to the capital asset by the assessee or the previous owner. The Cost Inflation Index. bears to the Cost Inflation Index for the first year in which the asset was held by the assessee or for the year beginning on the 1st day of April. in relation to a previous year. having regard to 75% of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year. by notification in the Official Gazette. specify in this behalf. in which the asset is transferred. whichever is later. bears to the Cost Inflation Index for the year in which the improvement to the asset takes place. 32 . Cost Inflation Index. which bears to the cost of improvement the same proportion as Cost Inflation Index for the year. 1981 by the owner.making any addition/alteration to the capital asset on or after April 1. having regard to 75% of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year. means such Index as the Central Government may. 2. In any other case. which bears to the cost of acquisition the same proportion as Cost Inflation Index for the year. What is the indexed cost of improvement? S 48 defines indexed cost of improvement as the amount. in relation to a previous year. What is the indexed cost of acquisition? S 48 defines "indexed cost of acquisition" as the amount. in which the asset is transferred. means such Index as the Central Government may.
Any sum.Income from other sources 1. 5. 4. card games and other games of any sort or from gambling or betting of any form or nature whatsoever. if it is not chargeable to income tax under the head "Profits and gains of business or profession." 7. Any sum received under a Key man insurance policy. Where an assessee lets on hire machinery. 1948 (34 of 1948). basically "income from other sources" is the residuary head of income.tax under the head "Profits and gains of business or profession". Any winning from lotteries. Any annuity due or commuted value of any annuity paid under section 280D. crossword puzzles. if the income is not chargeable to income -. and the letting of the buildings is inseparable from the letting of the said machinery. which takes within its ambit any income. including the sum allocated by way of bonus on such policy. 2. received by the assessee from his employees as contributions to any provident fund or Superannuation fund or any fund set up under the provisions of the Employees State Insurance Act.) So. if such income is not chargeable to income-tax under the head "Profits and gains of business or profession". races including horse races. Dividend. or any officer fund for the welfare of such employees. 3. 33 . which does not specifically fall under any other head of income. plant or furniture belonging to the assessee and let on hire. plant or furniture. Income from machinery. plant or furniture belonging to him and also buildings. 6. if such income is not chargeable to income tax under the heads "Profits and gains of business and profession" or under the head "Salaries". the income from such letting. (Key man insurance policy means a life insurance policy taken by a person on the life of another person who is/ was the employee of the 1st mentioned person or who is/was connected in any manner whatsoever with the business of the 1st mentioned person.
and subsections (1) and (2) of Section 32 and subject to the provisions of S 38. whichever is less. 34 . the income from such letting.tax under the head "Profits and gains of business or profession or where an assessee lets on hire machinery. In the case of income from machinery. In the case of income in the nature of family pension. which is chargeable to income tax under the head "Income from other sources" deductions so far. chargeable under the head 'income from other sources. if the income is not chargeable to income -. 1948. paid by way of commission or remuneration to a banker or to any other person for the purpose of realizing such dividend or interest on behalf of the assessee.' shall be computed after making the following deductions: In the case of interest on securities. as may be in accordance with provisions of S 36(1) (va). Any other expenditure (not being capital expenditure) laid out or used wholly and exclusively for the purpose of making or earning such income. clause (3)of Section 30. so far as may. received by the assessee from his employees as contributions to any provident fund or Superannuation fund or any fund set up under the provisions of the Employees'' State Insurance Act. deductions. and the letting of the buildings is inseparable from the letting of the said machinery. In the case of income.Deductions allowed under the head 'Income from other sources‟ The income. plant or furniture. if it is not chargeable to income tax under the head "Profits and gains of business or profession". plant or furniture belonging to the assessee and let on hire. or any other fund for the welfare of such employees. Section 31. be in accordance with the provisions of clause (a). plant or furniture belonging to him and also buildings. any reasonable sum. a deduction of a sum equal to thirty three and one third per cent of such income or fifteen thousand rupees.
income tax shall be charged for the corresponding assessment year at the rates laid down by the Finance Act for that assessment year. Previous Year is the Financial Year ending on 31st March every year. There are two types of Taxes in India – 1) Direct Taxes are those whose burden falls directly on the Tax payers like Income Tax. 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: Salaries Income from house property Profits and gains of business or profession. or other legal entities. An income tax is a tax levied on the financial income of persons.What is Tax?? Tax is imposition financial charge or other levy upon a taxpayer by a state or other the functional equivalent of the state. The total income from all the above heads of income is calculated in accordance with the provisions of the Act as they stand on the first day of April of any assessment year. 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. corporations. VAT etc. Assessment Year is the period of 12 35 . Wealth Tax etc 2) Indirect Taxes are those in which the burden is passed on to a third party like Service Tax. Capital gains Income from other sources.
for Previous Year/Financial year ending 31. The Benefits of Filling Income Tax return: Standard Income Proof: ITR is Considered Customary income proof not only in India but also globally. Income tax return is a term which is often used when we talk about income tax.04. every person. the Assessment Year is 2012-13 (01.201231. shall be chargeable to the income tax at the rate or rates prescribed in the finance act. 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.2013) Income Tax Return: After making all possible investments to save tax. which all about giving details of the income you have earned in that financial year.g. E. if you are looking for higher education or employment abroad. including all sources. who is an assesses and whose total income exceeds the maximum exemption limit. is more than maximum exemption limit (at present it is Rs 180000/. According to Income Tax Act 1961. Speed your loan application process: Apart from a good Credit history. ITR is largely accepted income proof.Months commencing on the 1st day of April immediately after the Previous Year. or purchasing mutual fund to real estate for investment.03. When total annual income of a person. It is a way by which we pay this tax.and 190000 for female) then that person is liable for income tax return. the fact that you are filling your ITR regularly gives you speedier access to credit.03. 36 . it‘s time for Income Tax Return filling.2012.
Income of the ‗previous year‘ is taxed in the ‗assessment year‘. The income which are pertaining to the ‗previous year‘ is taxed. But the liability to pay the tax is based on the principle „pay as you earn. in the prescribed percentages. Know how of Income Tax: Income tax is levied on the ‗total income‘ of assesses. Income tax is charged at the rates being fixed for the year by the annual finance act. It can be used as a means to reduce your tax liability. but in the ‗assessment year. Income is classified into and computed under five categories called ‗heads of income‘ One must pay his taxes an advance and by the due dates.‘ 37 .g Salaried employees for whom TDS has been cut during the financial year can claim refund if the tax outgo has been more than the actual tax payable. Deferment in the payment of advance tax would result in the payment of interest. Claim your Tax Refund: Filling ITR is not always about paying Tax. e.
Returns can be e-filed through the internet.f.04. then the tax payers need to print two copies of Form ITR-V. Returns in new forms are not required to be filed in duplicate. 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. 01. it is now also mandatory for all business entities (including individuals/HUF) liable to tax audit to e-file their return of income. From A. e-filing A bar-coded paper return. 38 .2006 every person shall file a return of income on or before the relevant due date even if his total income without giving effect to the provisions of Chapter VI-A exceeds the maximum amount not chargeable to tax. The return of income can be submitted in the following manner: a paper form. Both copies should be verified and submitted. Where the return is furnished in paper format. The receiving official shall return one copy after affixing the stamp and seal. Where the return of income is furnished by using bar coded paper return. The Finance Act. The tax payer can e-file the returns through an e-intermediary also who will e-file and assist him in filing of ITR-V within 15 days. E-filing of return is mandatory for companies and firms requiring statutory audit u/s 44AB. then the tax payers have to file ITR-V with the department within 15 days of e-filing.e.FILING OF INCOME TAX RETURN Section 139(1) of the Income-tax Act. 2011-12. acknowledgement slip attached with the return should be duly filled in. If the returns are filed without using digital signature. then no further action is required from the tax payers. E-filing can be done with or without digital signatures) If the returns are filed using digital signature. 2005 has provided that w.Y.
any amount paid by way of advance tax on or before 31st March is treated as advance tax paid during the financial year. a belated return may still be furnished before the expiry of one year from the end of the assessment year or completion of assessment. whichever is earlier. If the return of income has not been filed within the due date.10.Due Dates for Payment of Advance Tax & Filing Of Return Liability for payment of advance tax arises where the amount of tax payable by the assessee for the year is Rs.or more. 39 . The due date of filing of return of income in case of salaried employees is 31st of July. 00.000/. The due dates for various installments of advance tax are given Below: Due Date Amount Payable 1) On or before 15th September of the Amount not less than 30% of such previous year 2) On or before 15th December advance tax payable Amount not less than 60% of such advance tax payable 3) On or before 15th March of the Entire balance amount of such advance previous year tax payable Also.
001 to 5.00.00.90.50.00.80.00.000 5.001 to 8.000 Tax No Tax 10% 20% 30% 40 .Rates of Income Tax Income tax slabs 2011-2012 (for Men) in India: Income Tax Slab (in Rs.50.00.80.000 Tax No Tax 10% 20% 30% Income tax slabs 2011-2012 (for Women) in India: Income Tax Slab (in Rs.001 to 5.000 Tax No Tax 10% 20% 30% Income tax slabs 2011-2012 (for Senior Citizens) in India: Income Tax Slab (in Rs.000 1.000 Above 8.000 Above 8.001 to 8.00.001 to 8.000 5.00.00.) 0 to 1.00.000 5.000 1.001 to 5.00.) 0 to 1.00.00.90.000 2.000 Above 8.) 0 to 2.
000 Tax No Tax 20% 30% 41 .00.001 to 8.000 5.000 Above 8.) 0 to 5.00.00.Income tax slabs 2011-2012 (for super Senior Citizens Above 80) in India: Income Tax Slab (in Rs.00.
FORMS TO BE USED The forms to be used for filing the return of income from F.Y. 2011-12 onwards are mentioned below:Form No. ITR 1 ITR 2 ITR 3 ITR 4 ITR 5 ITR 6 ITR 7 Who It Is For For Individuals having Income from Salary/ Pension/ family pension) & Interest For Individuals having Income from dividend profits from mutual funds and shares, rental income etc. For Individuals who are partners in a partnership firm For individuals having income from a proprietary business or profession For Association of Persons (AOP) or Body of Individuals (BOI) For Companies other than companies claiming exemption under section 11 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) Return for Fringe Benefits Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature
ITR 8 ITR V
Acknowledgement Acknowledgement for e-Return and non e-Return
PROCESS FOR TAX ON-LINE:
1. Log on to www.incometaxindia.gov.in 2. On the left hand side of the page select ―Pay taxes online‖ 3. A new page will open up with a list of all the banks through which payment can be made online. Just below this list is a link ―please click here‖. Click on this link. 4. Select Challan No. 280 on the next page. 5. Please fill the Challan that appears. In The two option Box sets on the page, you need to select “(0021) INCOME-TAX (other than companies)” in one set and “(300) SELF ASSESSMENT TAX” in the other. You need to select Assessment Year 2012-2013. 6. Once you click on ―proceed‖ the system will verify your PAN no in the income tax database. 7. Click on Submit to the bank and complete the transaction with the bank.
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.
TCS (TAX COLLECTED AT SOURCE): TCS is the tax collected by the seller from the buyer at the time of debiting of amount payable by buyer or at the time of receipt of amount by way of cash, DD, cheque or any other means whichever is earlier for the sales of prescribed goods under section 206c(1) for business purpose and not for personal use. Tax also collected by person who grants lease or a license in respect of parking lot, toll plaza, mine quarry to another person. THINGS USED IN FILING INCOME TAX SALARY Salary is the remuneration received by or accruing to an individual, periodically, for service rendered as a result of an express or implied contract. The actual receipt of salary in the previous year is not material as far as its taxability is concerned. The existence of employer-employee relationship is the sinequanon for taxing a particular receipt under the head ―salaries.‖ For instance, the salary received by a partner from his partnership firm carrying on a business is not chargeable as ―Salaries‖ but as ―Profits & Gains from Business or Profession‖. Similarly, salary received by a person as MP or MLA is taxable as ―Income from other sources‖, but if a person received salary as Minister of State/Central Government, the same shall be charged to tax under the head ―Salaries‖. Pension received by an assessee from his former employer is taxable as ―Salaries‖ whereas pension received on his death by members of his family (Family Pension) is taxed as ―Income from other sources‖. Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of ―Salaries‖ including therein Wages Annuity or pension
Gratuity Fees.2006-07 onwards. 3) Value of any benefit/amenity granted free or at concessional rate to specified employees etc. 5000/. perquisites or profits in lieu of salary Advance of Salary Amount transferred from unrecognized provident fund to recognized provident fund Contribution of employer to a Recognized Provident Fund in excess of the prescribed limit Leave Encashment Compensation as a result of variation in Service contract etc.04. PERQUISITES ―Perquisite‖ may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages. Contribution made by the Central Government to the account of an employee under a notified pension scheme. 2) Any sum paid by employer in respect of an obligation which was actually payable by the assessee. whichever is less. It is to be noted that no standard deduction is available from salary income w. Entertainment Allowance.or 20% of his salary or actual amount received. 45 . Professional/Employment tax levied by the State Govt.2006 i.e. 01.f.Y.e. Commission. ―Perquisite‖ is defined in the section17 (2) of the Income tax Act as including: 1) Value of rent-free/concessional rent accommodation provided by the employer.Deduction in respect of this is available to a government employee to the extent of Rs. DEDUCTION FROM SALARY INCOME The following deductions from salary income are admissible as per Section 16 of the Income-tax Act. A.
ALLOWANCES Allowance is defined as a fixed quantity of money or other substance given regularly in addition to salary for meeting specific requirements of the employees. No perquisite shall arise in relation to expenses on telephones including a mobile phone incurred on behalf of the employee by the employer.000/-.000/-. or former employer. Perquisites allowed outside India by the Government to a citizen of India for rendering services outside India (Sec. exemption available shall be the least of the following : 46 .15. As a general rule. Exemption in respect of following allowances is allowable to the extent mentioned against each: House Rent Allowance:.20. and 6) The value of any other fringe benefit or amenity as may be prescribed. by the employer. No perquisite shall arise if interest free/concessional loans are made available for medical treatment of specified diseases in Rule 3A or where the loan is petty not exceeding in the aggregate Rs. any sum paid by the employer towards medical reimbursement other than as discussed above is exempt up to Rs.Provided that expenditure on rent is actually incurred.4) The value of any specified security or sweat equity shares allotted or transferred. directly or indirectly. Union Minister or Leader of Opposition in Parliament. 10(7)). to the extent it exceeds one lakh rupees. Rent free official residence provided to a Judge of High Court or Supreme Court or an Official of Parliament. 5) The amount of any contribution to an approved superannuation fund by the exployer in respect of the assessee. 17(2)): Value of medical treatment in any hospital maintained by the Government or any local authority or approved by the Chief Commissioner of Income-tax. free of cost or at concessional rate to the assessee. Besides. all allowances are to be included in the total income unless specifically exempted. PERQUISITES EXEMPT FROM INCOME TAX Some instances of perquisites exempt from tax are given below: Provision of medical facilities (Proviso to Sec.
following allowances are exempt. c) 40% of Salary (50% in case of Mumbai. This is subject to a maximum of the air economy fare or AC 1st Class fare (if journey is performed by mode other than air) by such route. provided no free conveyance is provided. if dearness allowance is provided by the terms of employment. Allowance granted to meet expenditure on purchase/maintenance of uniform for performance of official duty. Leave Travel Allowance: The amount actually incurred on performance of travel on leave to any place in India by the shortest route to that place is exempt. b) Rent paid less 10% of salary. All these exempt allowance are detailed in Rule 2BB of Income tax Rules and are briefly given below: For the purpose of Section 10(14) (I). Allowance granted on tour or journey in connection with transfer to meet the daily charges incurred by the employee. Academic.a) HRA received. Allowance granted to meet expenses incurred on a helper engaged for performance of official duty. Allowance granted to meet conveyance expenses incurred in performance of duty. subject to actual expenses incurred: Allowance granted to meet cost of travel on tour or on transfer. Certain allowances given by the employer to the employee are exempt u/s 10(14). provided that the exemption shall be available only in respect of two journeys performed in a block of 4 calendar years. Kolkata. Delhi) Salary here means Basic + Dearness Allowance. research or training allowance granted in educational or research institutions. Chennai. 47 .
COMPUTATION OF ANNUAL VALUE 1. ANNUAL VALUE is the N.A. Interest paid during the pre construction/acquisition period will be allowed in five successive financial years starting with the financial year in which construction/acquisition is completed. 3. the G. Rules) then the same shall not be included in the actual rent received/receivable while computing the G.A. 2. It may be noted that if the let out property was vacant for whole or any part of the previous year and owing to such vacancy the actual rent received or receivable is less than the sum referred to in clause(a) above. (If however. This deduction is also available in respect of a self 48 .V.) is the highest of (a) Rent received or receivable (b) Fair Market Value.V.A.V. If any portion of the rent is unrealizable.A.A. less the deductions available u/s 24.V. (c) Municipal valuation.V. GROSS ANNUAL VALUE (G. The above is taxed in the hands of the owner of the property. is the standard rent or rent received. (conditions of unrealisability of rent are laid down in Rule 4 of I. whichever is higher). Interest on money borrowed for acquisition/construction/repair/renovation of property is deductible on accrual basis. DEDUCTIONS U/S 24:Are exhaustive and no other deductions are available: A sum equal to 30% of the annual value as computed above. then the amount actually received/receivable shall be taken into account while computing the G. the Rent Control Act is applicable.V.INCOME FROM HOUSE PROPERTY Under the Income Tax Act what is taxed under the head ‗Income from House Property‘ is the inherent capacity of the property to earn income called the Annual Value of the property. Provided that the taxes were paid during the year. NET VALUE (N.) is the GAV less the municipal taxes paid by the owner.A.T.
4.occupied property and can be claimed up to maximum of Rs. being the owner of any property consisting of any buildings or lands appurtenant thereto which may have been let to a tenant.Y. If a let out property is partly self occupied or is self occupied for a part of the year. the annual value is taken as nil.e.in case the property is acquired or constructed with capital borrowed on or after 1.99 and such acquisition or construction is completed before 1. It may be noted that the above 49 .4. SOME NOTABLE POINTS In case of oneself occupied property. then the value in proportion to the portion of self occupied property or period of self occupation. the others are deemed to be let out. as the case may be is to be excluded from the annual value. From assessment year 1999-2000 onwards.2003 and has simply provided that the acquisition/construction of the property must be completed within three years from the end of the financial year in which the capital was borrowed. The Finance Act 2002 has further removed the requirement of acquisition/ construction being completed before 1. 2001 had provided that w.f. receives any arrears of rent not charged to income tax for any previous year. A new section 25B has been inserted with effect from assessment year 2001-2002 which provides that where the assessee.000/-. If more than one property is owned and all are used for self occupation purposes only. an assessee who apart from his salary income has loss under the head ―Income from house property‖. Deduction u/s 24 for interest paid may still be claimed there from. then any one can be opted as self occupied. The Finance Act.000/.50. 2002-03 the amount of deduction available under this clause would be available up to Rs. may furnish the particulars of the same in the prescribed form to his Drawing and Disbursing Officer who shall then take the above loss also into account for the purpose of TDS from salary. The resulting loss may be set off against income under other heads but can not be carried forward.30. Annual value of one house away from workplace which is not let out can be taken as NIL provided that it is the only house owned and it is not let out.2003.1. then such arrears shall be taxed as the income of the previous year in which the same is received after deducting there from a sum equal to 30% of the amount of arrears in respect of repairs/collection charges. A.4.
50 .provision shall apply whether or not the assessee remains the owner of the property in the year of receipt of such arrears.
2. 4. sculptures or any other work of art) held for personal use. the minimum period of holding for long term capital gains to arise is 12 months. consumable stores or raw materials held for the purpose of business or profession. 3. If the period of holding is less than above. paintings.CAPITAL GAINS Profits or gains arising from the transfer of a capital asset during the previous year are taxable as ―Capital Gains‖ under section 45(1) of the Income Tax Act. drawings. from a municipality. Six and half percent Gold Bonds. CAPITAL ASSET As defined in section 2(14) of the Income Tax Act. TYPES OF CAPITAL GAINS When a capital asset is transferred by an assessee after having held it for at least 36 months. Personal effects. The taxability of capital gains is in the year of transfer of the capital asset. Municipal Corporation. notified area committee. it means property of any kind held by the assessee except: 1. Agricultural land. the Capital Gains arising from this transfer are known as Long Term Capital Gains. the capital gains arising there from are known as Short Term Capital Gains. town committee or a cantonment board with population of at least 10. 51 . except land situated within or in area up to 8 kms. In case of shares of a company or units of UTI or units of a Mutual Fund. being moveable property (excluding Jewellery. Stock in trade. National Defence Gold Bonds and Special Bearer Bonds. archaeological collections.000.
the assessee may choose either 7. c) Expenses connected exclusively with the transfer such as brokerage etc. in certain cases. When shares in an amalgamated Indian company had become the property of the assessee in a scheme of amalgamation.COMPUTATION OF CAPITAL GAINS (Sec. Where the capital asset is goodwill of a business. the indexed cost of improvement will be taken. as increased by the cost of improvement till the date of acquisition of the asset by the assessee? 3. inheritance or on partition of Hindu Undivided Family or on distribution of assets. if any such cost was incurred. the cost of acquisition is the cost that a person has incurred to acquire the capital asset. the cost of acquisition is indexed by a factor which is equal to the ratio of the cost inflation index of the year of transfer to the cost inflation index of the year of acquisition of the asset.In case of Long Term Capital Gains. b) Cost of improvement. In case of long term capital assets. The fair market value as on 1. If a capital asset has become the property of the assessee before 1. or dissolution of a firm. Normally. if any or else nil.4. the COA shall be the cost for which the previous owner acquired it. In case of bonus shares.81. tenancy right. 5. When the capital asset becomes a property of an assessee under a gift or will or by succession or 2. the COA shall be the cost of acquisition of shares in the amalgamating company. However. the COA is nil. 52 . for the transfer of a capital asset. The COA of rights shares is the amount which is paid by the subscriber to get them. it is taken as following: 1.81 or the actual cost of acquisition of the asset as the COA. 4. 6.4. stage carriage permits or loom hours the COA is the purchase price paid. the following:- a) Cost of acquisition of the asset(COA):.48) Capital gain is computed by deducting from the full value of consideration. or liquidation of a company.
b) Section 54F: When the asset transferred is a long term capital asset other than a residential house and if out of the consideration.SOME IMPORTANT EXEMPTIONS FROM LONG TERM CAPITAL GAINS a) Section 54: In case the asset transferred is a long term capital asset being a residential house. Otherwise. It may be noted that this exemption is not available. If cost of new asset is greater than the net consideration received. investment in purchase or construction of a residential house is made within the specified time as in sec. Investment in the Capital Gains Account Scheme may be made as in Sec.2000 and out of the consideration. on the date of transfer. It may be noted that the Finance Act 2000 has provided that with effect from assessment year 2001-2002. then exemption from capital gains is available as computed in Section 54F. the above exemption shall not be available if assessee owns more than one residential house. exemption = Capital Gains x Cost of new asset/Net consideration. then exemption on the LTCG is available on the amount of investment in the new asset to the extent of the capital gains. a new residential house is constructed within 3 years.54. c) Section 54EA: If any long term capital asset is transferred before 1. and if out of the capital gains. This amount should subsequently be used for purchase or construction of a new house within 3 years. 2. It may be noted that the amount of capital gains not appropriated towards purchase or construction may be deposited in the Capital Gains Account Scheme of a public sector bank before the due date of filing of Income Tax Return. the assessee owns any house other than the new asset. 54. or purchased 1 year before or 2 years after the date of transfer.4. then exemption from the capital gains will be available as: 1. other than new asset. 53 . the entire capital gain is exempt. if on the date of transfer. investment in specified bonds/debentures/shares is made within 6 months of the date of transfer.
d) Section 54EB: If any long term capital asset is transferred before 1. 2007 has laid an annual ceiling of Rs. It provides that if a long term capital asset. investment in acquiring equity shares forming part of an eligible issue of capital is made within six months from the date of transfer. then exemption would be available as computed in Sec. e) Section 54EC: This section has been introduced from assessment year 2001-2002 onwards.4. f) Section 54ED: This section has been introduced from assessment year 2002-03 onwards.e. 54 . is made within 6 months from the date of transfer. then exemption would be available as computed in Sec.2007. then exemption from capital gains will be available as :- 1. 1. no exemption under this Section shall be available. the entire Capital Gain is exempt. investment in specified assets (any bond issued by National Highway Authority of India or by Rural Electrification Corporation redeemable after 3 years). is transferred and out of the consideration. The Finance Act. 2. 54EB. LOSS UNDER CAPITAL GAINS Cannot be set off against any income under any other head but can be carried forward for 8 assessment years and be set off against capital gains in those assessment years. If cost of new assets is not less than the Capital Gain. 50 lakh on the investment made under this section w.f.4.2000 and investment in specified assets is made within a period of 6 months from the date of transfer. It provides that if any long term capital asset is transferred and out of the consideration. As per the Finance Act 2006 it has been provided that with effect from assessment year 2007-08. being listed securities or units. 54EB.
While the former are to be reduced from the gross total income. 2011. Section 80D Payment of medical insurance premium.Y. Act from the gross total income of the assesses having income from salaries. Subscription made by individual or HUF to the extent of Rs. Deduction is available up to a maximum of Rs.T.000/ for self/family and also up to Rs. 15. 20.for insurance in respect of parent /parents of the assessee.000/. certain deductions there from may be allowed.DEDUCTIONS UNDER CHAPTER VIA The Income Tax Act provides that on determination of the gross total income of an assessee after considering income from all the heads.15.000 to notified long term infrastructure bonds is exempt from A.10. 55 . Deduction is available up to Rs.000/Section 80CCD Deposit made by an employee in his pension account to the extent of 10% of his salary. Section 80CCC Payment of premium for annuity plan of LIC or any other insurer. The chart given below describes the deductions allowable under chapter VIA of the I. the latter do not form part of the income at all. These deductions detailed in chapter VIA of the Income Tax Act must be distinguished from the exemptions provides in Section 10 of the Act.12 onwards. Section 80CCF Subscription to long term infrastructure bonds.
f. W. Section 80DDB Deduction of Rs.000/.000/.40.in respect of (a) Expenditure incurred on medical treatment.shall be available under this section. The various donations specified in Sec.000/. 2007 deduction under this section shall be available not only in respect of loan for pursuing higher education by self but also by spouse or children of the assessee.or the amount actually paid. Further.000 in respect of medical expenditure incurred.000/. by Finance Act. training and rehabilitation of handicapped dependant relative.04. W.e. charitable institutions etc.2004 the deduction under this section has been enhanced to Rs. In case of senior citizens.2004. Section 80G Donation to certain funds. 01.f.e. whichever is less.04. (including nursing ) . 80G 56 .shall be available under this Section. Further. if the dependant is a person with severe disability a deduction of Rs.1.50. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec.000/. board or university. The payment of the interest thereon will be allowed as deduct ion over a period of up to 8 years.60.00. W. a deduction up to Rs. 01.40.04. deduction under this section shall be available to the extent of Rs.f.Section 80DD Deduction of Rs. Section 80E Deduction in respect of payment in the previous year of interest on loan taken from a financial institution or approved charitable institution for higher studies. This provision has been introduced to provide relief to students taking loans for higher studies.e. (b) Payment or deposit to specified scheme for maintenance of dependant handicapped relative .40.01.2010 higher education means any course of study pursued after passing the senior secondary examination or its equivalent from any recognized school.
e. To avail of this deduction.Certificate should be obtained on prescribed format from a notified ‗Medical authority‘ Section 80RRB Deduction in respect of any income by way of royalty in respect of a patent registered on or after 01.2003 under The Patents Act 1970 shall be available as Rs.000/. He should not be in receipt of house rent allowance.000/ . deduction of Rs.Section 80GG Deduction available is the least of Rent paid less 10% of total income Rs.50. W.2000 per month 25% of total income Assessee or his spouse or minor child should not own residential accommodation at the place of employment. Further.04.75.2010 this limit has been raised to Rs. if the individual is a person with severe disability. The assessee who is a patentee must be an individual resident in India. The assessee must be an individual resident in India who receives such income in exercise of his profession. artistic or scientific nature other than text book shall be available to the extent of Rs. 1 lakh. 3 lacs or income received. whichever is less. whichever is less. the assessee must furnish a certificate in the prescribed form along with the return of income.04.f. Section 80U Deduction of Rs. 57 . 01. Section 80QQB Deduction in respect of royalty or copy right income received in consideration for authoring any book of literary. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority along with the Return of income.to an individual who suffers from a physical disability (including blindness) or mental retardation.shall be available u/s 80U.3lacs or the income received.
it may be on life of any member of HUF. The total deduction under this section is limited to Rs.g. NSC VIII issue. this section provides deduction from total income in respect of various investments/Expenditures/ payments in respect of which tax rebate u/s 88 was earlier available. Certain payment made by way of instalment or part payment of loan taken for purchase/ construction of residential house property Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him.Section 80C This section has been introduced by the Finance Act. can be in the name of self/spouse. Dhanrakhsa 1989 — Contribution by employee Recognised Provident Fund Subscription to any notified securities/notified deposits scheme.g. it can be in the name of any member of the family. any child & for HUF. — Contribution made under Employee‟s Provident Fund Scheme Contribution to PPF For individual. The following investments/payments are inter alia eligible for deduction u/s 80C:NATURE OF INVESTMENT REMARKS For individual. policy must be in the name of self Life Insurance Premium or spouse or any child‘s name. For HUF. the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.1 lakh only. 2005. Subscription to any notified savings certificates Contribution to Unit Linked Insurance Plan of LIC Mutual Fund Contribution to notified deposit scheme/Pension fund set up by the National Housing Bank.Broadly speaking. e. 58 . to a — — e.
university or other educational institution situated within India for the purpose of full time education. Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions. 59 .Subscription to units of a Mutual Fund notified u/s 10(23D) Subscription to deposit scheme of a public sector company engaged in providing housing finance.4.2008. 1981 It may be noted that the aggregate amount of deductions under sections 80C. scheduled bank. Subscription to notified bonds issued by This has been included in Section 80C by the Finance Act 2007 and has come into effect from NABARD 1. 2008 the Senior Citizens Savings Scheme and shall come into effect from 1. college.4. — — — Tuition fees paid at the time of Available in respect of any two children admission or otherwise to any school.2009 Time Deposit Rules. 80CCC and 80CCD are subject to an overall ceiling of Rs.4.2009 Rules. Any term deposit for a fixed period of This has been included in Section 80C by the not less than five years with the Finance Act 2006. 2008 in an account under the Post Office and shall come into effect from 1.1 lakh. Payment made into an account under This has been introduced by Finance Act. 2004 Payment made as five year time deposit This has been introduced by Finance Act.
The rate of rebate has been kept at 20% in case the gross total income. shall be available. however. 5 lacs. A. It provides that in case of assessee being a woman resident in India and below 65 years of age.000 is available in respect of subscription to specified infrastructure equity share/debentures. before giving effect to the deductions under chapter VIA. The above requirement has. rebate is a reduction from the tax payable. While the latter reduces the gross total income.Y. 5 lacs.Y. 5. is below Rs. 1 lakh during the previous year and constitutes at least 90% of his gross total income. whichever is less. The Finance Act 2002 introduced some changes in the above which came into effect from A.e.000 or 100% of tax. been deleted by the Finance Act 2002 w. 30.70. The maximum amount of investment qualifying for rebate u/s 88 has been enhanced to Rs. The Income Tax Act further provides for rebate from the tax payable as computed above.5 lacs but lower than Rs. additional rebate on investment up to Rs. 2003-2004.5 lacs while the rate would be 15% if gross total income is higher than Rs. 1.f. if certain investments or payments are made. tax rebate of an amount of Rs. It is on this total income that the tax payable is computed at the rates in force. shall be entitled to rebate @ 30% on the investments/ payments specified in Section 88. no rebate under this chapter would be available. The above 60 . 1. Rebate provided u/s 88 of the Act must be distinguished from deductions provided in Chapter VIA of the Act.000. With effect from assessment year 2001-2002 onwards a new section 88C has been inserted.TAX REBATE & RELIEF The total income of an assessee is determined after deductions from the gross total income are made as discussed in the previous chapter. if the gross total income exceeds Rs. On the other hand. Investment qualifying for rebate u/s 88 must be out of income chargeable to tax in the relevant previous year. 2003-2004. It has also been provided that an individual whose income under the head ‗Salaries‘ is below Rs. however.
Similarly.e.rebate is to be allowed from the amount of Income Tax computed before allowing for tax rebate u/s 88 in respect of various investments expenditures It is important to note that no tax rebate u/s 88 shall be available from A. relief u/s 89(1) can be granted at the time of TDS from employees of all companies.2006. 10E and should be worked out as explained in Rule 21A of the Income Tax Rules. sections 88B and88C providing special rebates to senior citizens and ladies stand omitted w. 1.f. 61 .f.Y.W. 01.6.04. universities or institutions as well as govt.89.e.2006-07 onwards./public sector undertakings. RELIEF UNDER SECTION 89 (1):It is available to an employee when he receives salary in advance or in arrear or when in one financial year. the relief should be claimed by the employee in Form No. co-operative societies. he receives salary of more than 12 months or receives ‗profits in lieu of salary‘.
PERMANENT ACCOUNT NUMBER P.A.50000. he may quote his General Index register Number or GIR No.A. raising of loans and other business activities of taxpayers collected through various sources. Fixed deposits of more than Rs. Transaction in shares exceeding Rs.25000. to facilitate easy retrieval of information and to facilitate matching of information relating to investment.N. assessment. relating to an assessee. PAN was introduced to facilitates linking of various documents. P. for detecting and combating tax evasion and widening of tax base. or Permanent Account Number is a number allotted to a person by the Assessing Officer for the purpose of identification. tax demand. both internal as well as external. Payment to hotels exceeding Rs. Application for allotment of telephone connections. Opening of new bank accounts. TRANSACTIONS IN WHICH QUOTING OF PAN IS MANDATORY Purchase and sale of immovable property.N. of the new series has 10 alphanumeric characters and is issued in the form of laminated card. including payment of taxes. tax arrears etc. Purchase and sale of motor vehicles. 62 .50000. Provided that till such time PAN is allotted to a person.
attached to the motor vehicle a time deposit. all correspondence with any income tax authority. with a banking company a deposit. opening a bank account making an application for installation of a telephone connection (including a cellular telephone connection) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time payment in cash for purchase of bank drafts or pay orders or banker‘s cheques for an amount aggregating fifty thousand rupees or more during any one day Deposit in cash aggregating fifty thousand rupees or more with a bank during any one day Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time 63 . From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.N? It is mandatory to quote PAN on return of income.A. in any account with Post Office Savings Bank a contract of a value exceeding one lakh rupees for sale or purchase of securities. exceeding fifty thousand rupees. exceeding fifty thousand rupees. It is also compulsory to quote PAN in all documents pertaining to the following Financial transactions: sale or purchase of any immovable property valued at five lakh rupees or more sale or purchase of a motor vehicle or vehicle. [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles.WHY IS IT NECESSARY TO HAVE P. inclusive of any detachable side-car having an extra wheel.
Option 1: Use digital signature. Two benefits of filing taxes electronically over mailing in your return are that you will receive a tax refund sooner and your tax data goes directly to IRS computers with a greatly reduced chance of human keying or document scanning errors. E-filing is possible with or without digital signature. Option 2: File without digital signature. This completes the Return filing process for nondigitally signed returns. What is E-Filing? The process of electronically filing Income tax returns through the internet is known as efiling. in which case no further action is required. or sending your income tax return from tax software via the Internet to the IRS or state tax authority. 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 (Electronic file). in which case the duly signed ITR-V form is to be submitted to CPC Bengaluru using Ordinary Post or Speed Post within 120 days of transmitting the data electronically. 64 . Manually or Physical Filing. E-Filing E-File is the term for electronic filing. E-filed returns cost 20 times less to process compared to a paper return.TYPES OF INCOME TAX RETURN FILING: 1. Types of E-Filing There are three ways to file returns electronically. Option 3: File through an e-return intermediary who would do e-Filing and also assist the Assessee file the ITR – V form. which saves tax payers a lot of money. 2.
Types of E-Filing 65 .
in this case no further action required. 66 .Option 1: Use digital signature. the Option 3: File through an E-return intermediary Who would do e-filing and also assist the assesses file the ITR-V form. in which case ITR-V form is to be filled with department. Option 2: File without digital signature. This is a single page receipt cum verification Form.
Sale and purchase of investments/ assets Details of tax payments made PAN card number. Form 26AS will be prepared only with respect to Financial Year 05-06 onwards. Birth date. This statement with respect to a financial year will include details of: a) Tax deducted at source (TDS). 67 . 31st July for Filing Income Tax return. Important Date for filing ITR: 31st march For Tax Deposit. b) Tax collected at source (TCS). 16 (for tax deducted by employers) Account statements of bank accounts Property details. What is Form 26AS? Form 26AS is a consolidated Tax statement issued under Rule 31 AB of Income Tax Rules to PAN holders. deposited in the bank by the taxpayers (PAN holders). Address details. type of a/c. Bank details – MICR code. Email id. TAN number Bank account no. and c) Advance tax/Self assessment tax/Regular assessment tax etc.Documents required in e-filing: Form no.
68 .E – Filing process: This is explained below with the help of a flow chart.
These forms need to be printed.Steps Process For Filing Income tax return: Whether you go for E-filing Process or manually filing income tax return. house property and other sources.incometaxindia. 69 .in/ 2) Click the link e. ITR-1 is for those who derive their income from salary. Those who wish to submit their tax returns manually may download the PDF forms – external website that opens in a new window form here.gov. 1) Go to the website http://www. These links assist you in completing and submitting Your ITR. pension or interest while ITR-2 is for income from capital gains.file income tax return at the top left corner of the home page 3) Select the correct form – there are two income tax forms for salaried individuals.
) Generating an XML file – After filling the details.) Upload XML – browse to select the XML file. Take a printout of this acknowledgement for your records. After you are satisfied. acknowledgement details or the ITR-V form will be displayed. You need to Print and fill up the verification part of the acknowledgement cum Verification form (ITR-V).) Acknowledgement – after the file is successfully uploaded. please contact the public relations officer at your local income tax office. Digital signature – if your income tax return was digitally signed.) Register – The next step requires you to register at the income tax website – external website that opens in a new window.gov. then no further paperwork or Visit to the income tax office is needed but if it was not digitally signed. This software is an excel file that requires one to type in personal details as well as financial information from TDS certificates. Save this XML file on your computer 6. 5. which you had generated and saved in step 3. 7. Bangalore.in 70 . You registered Permanent Account Number (PAN card) has to be entered as your username. Additional assistance – In case you require any more help in filing the paper copy of the return. This has to be signed and submitted to the local income tax office within 60 days to complete the e-filing process. 8. enter your user id and password to login. Click on the ‗upload‘ button to upload the file. Click on the relevant form on the left panel and select ‗submit return‘. One may also phone the Aayakar Sampark Kendra (ASK) call centre at 124-2438000 or email at ask@incometaxindia. check once for accuracy. 9. in this case the ITR-V form should be filled and send to Income Tax office. deductions made and interest statements. click the „generate‘ button to create your tax return in XML format.) Login – after registering. bank statements.filled by hand and signed before submitting to your local income tax office. 4) Use of return Preparation Software – Those 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.
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 assigning by these Way: Noida and Gurgaon‟s employees With the help of Trainee Students Distributes Questionnaires form to their Clients (Different companies). Files approximately more than 18000 ITRs of its Prospective Clients all over India. 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. If the Income of employees is less than 5 lakh.How SPA Capital Services Limited Files ITRs Of its Prospective Clients: SPA capital services ltd. 71 . Income more than 5 lakh. they send it to Janakpuri location for e-filing. with the help of their mentor they solve it. they filled ITRs Manually.
To generate the XML file using the compute Tax or Web based portal with the help of Form-16 and the questionnaire filled by the client Steps to Generate ITR XML file through FORM-16 Step 1: Add New ITR 72 .Role of janakpuri‟s employees: 1.
Step 2: After adding new ITR we receive this page 73 .
Step3: Enter personal information 74 .
Step 4: Filling Information like PAN no. Address etc 75 . .
Deductions etc 76 .Step 5: To fill the Salary.
Step 6: Filling of Employer‘s detail 77 .
Step 7: Adding the details of Form-16 Snapshot-1 Snapshot-2 78 .
Step 8: Adding the Investment 79 .
Step 9: Adding the Expenditures 80 .
Step 10: Filling up the Tax Details 81 .
Step 10: Filling up the Bank Details 82 .
Step 11: Check the tax computation Snapshot-1 Snapshot-2 83 .
Step 12: Verification 84 .
Step 13: Prepartion of XML file in case of E-file And paper return in case of physical filing 85 .
86 . 4. Note: People from outside Delhi send theirs form 16 and filled questionnaires via e. that the return is been filed. a Token number along with Acknowledgement generate. 5. 3. Upload these xml files online on income tax department websites. 6. These Token number and Acknowledge are keeps for future benefits. Then the ITR-V is generated and signed by the client and is sent to Bangalore office of Income Tax Dept.2. Within a month the confirmation mail is received from the Income Tax Dept.mail with the help of using Company link to get filled theirs ITRs and Janakpuri‘s employees do it. After successful upload.
when any paper based form is transferred to electronic system. With paper based filing your confidential identity information is lying in files and can be passed from person to person in the CA‘s office or in ITD‘s office. More Accurate: E-Filing software with built-in validations and electronic connectivity to ITD are seamless and help minimize errors. 87 . It is good for the environment: E-Filing is environment friendly. 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. More Secure than Paper based filing: E-filing is safer than paper based filing. Fast Processing: The acknowledgment of ITR submission is fast and the refunds are processed faster by the ITD for E-Filed ITRs. No Time. so taxpayers may always file at their own convenience. seven days a week. there is always a possibility of human error in data entry. anywhere. place constraint: You can file anytime. Also. fast. Paper based filing with self calculations can be prone to error. E-filing is easy. E-Filing is available 24 hours a day. 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.ADVANTAGE OF E-filing. and the most reliable and secure method.
DISADVANTAGE OF E-filing: 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. The average taxpayer wouldn‘t want to consider giving e-filing a try.
PHYSICAL FILING / MANUAL FILING
Physical Filling Method leaving behind, because of the new trend of e-filling. Physical filling method is very easy but time consuming method of filling the ITR. Facility of physical filling of ITR is also available in SPA capital. In the physical filling advantages are less but disadvantages are more. Physical filing is also called as a Manual filing. For Manual/physical filing, the individual takes a print out of the respective ITR form, from the income tax site, along with the acknowledgment form, and after duly filling it, files it with the respective income tax office. Forms are available free of cost. PROCESS OF PHYSICAL FILE: Prepare the ITR through manually/through software. Take the print out (hardcopy) of the ITR if prepare through software. Take the signature of the respective clients on that ITR. Go to Nearest Income tax office. Submit the duly signed return. Take acknowledgement slip.
PHYSICAL FILING‟S ADVANTAGE: It is reliable on primary data provided by the user. In Physical filing numbers of defects are less. Physical filing are filled in only original form, form can‘t be download by internet.
PHYSICAL FILING‟S DISADVANTAGE: Physical filing is lengthy process. Physical filing takes more time. Refund from physical filing come after 3 month. Physical filing is not filled by some companies when the annual salary of user is not more than 5 Lac.
but if you are using physical method refund comes after 3 months in your bank account . electronically.e-filing is easy and if a person is filing its ITR through the internet then refund easily comes in only 2 month. Last Year record 1.64 Crores people filled theirs ITRs 91 .COMPARISON BETWEEN E-FILING AND PHYSICAL FILING Physical filing and e-filing are only two ways to file the ITRs. Apart from it there are several advantages of e-filing that‘s why Numbers of assesses are using efiling for filing theirs ITRs. and you don‘t want to share your personnel information to other then in this case you should also go for e. So if you don‘t have time and have to file your ITR then you should go for e-filing.filing Otherwise Physical filing process takes long time and personal information can be share by maximum people. Because of the increasing demand of internet mostly people are using e-filing method .
ITR 4 (5%) ITR 2 (10%) ITR 1 (85%) ITR 2 (10%) ITR 1 (85%) ITR 4 (5%) 92 . Physical Filing 20% e-filing 80% 80% 70% 60% 50% 40% 30% 20% 10% 0% Physical Filing e-filing Graphical representation of % of different ITR filing at SPA Capital Services Ltd.Graphical Representation of ITRS filing in SPA Capital Services Limited.
Even though tax has been deducted and there is no further liability to pay tax. A minor child is not required to file a separate return of income. 16 received from employer is not their income tax return. this income has to be included in the hands of either of the parents. Form No. an employee has to compulsorily file his / her income tax return. The entire interest earned on your savings bank account is taxable. This is not at all true or legal.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. although it might be a small amount of bank interest. 93 . However. Omission of income received by a minor child. there is no need to file their income tax returns. Employees do not include the interest that they receive on their savings bank account.
Conclusion: From the study it can be concluded that e-filing of return is any time better than physical filing because It saves time Can be filed 24X7 If there is any refund then the assessee receives the money within 3 months. It is more secure than physical filing Good for environment It is fast than physical filing 94 .
As no efficient research can be done in this short period of time. The biasness of the sample units may also cause the wrong results. Time constraint was another limitation. which need to be highlighted without which the study can become biased.Limitations: Every study has its own advantages and disadvantages. there are still certain limitations. 95 . 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. 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.
Suggestion: SPA Capital is a growing organization which has through its corporate clients. most of the people approach to such type of companies who file their ITR at a nominal rate and thus saving their time. TCS. Aricent Technologies etc. grown at a considerable pace. One of the selling strategies adopted by SPA is assisting the corporate employees in their ITR filing. 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. which is quite appreciable. so this is a great opportunity for SPA and to boost its business level. SPA is an emerging organization which helps the people to fulfil their almost every financial need at one stop. This has. 96 . 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. 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. and generating a good amount of business. It is serving to various corporate employees such as Wipro.