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A PROJECT REPORT ON

E-FILLING INCOME TAX RETURN WITH RESPECT TO INDIVIDUAL ASSESSEE


SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) SUBMITTED BY

ROHINI PRAKASHRAO NAIK


MBA(FINANCE) BATCH(2012-14)

UNDER THE GUIDANCE OF PROF.SUPRIYA LAKHANGAONKAR SINHGAD INSTITUTE OF TECHNOLOGY AND SCIENCE
NARHE,PUNE-41(MAHARASHTRA)

Declaration

I , the undersigned hereby declare that the project report entitled E-FILLING INCOME TAX RETURN WITH RESPECT TO INDIVIDUAL ASSESSEE written and submitted by me to the University of Pune , Pune in partial fulfillment of the requirement for the award of degree of Master Of Business Administration under the guidance of Prof. Supriya Lakhangaonkar is my original work and the conclusion drawn therein are based on the material collected by myself.

I further declare that the information presented in this project is true and original to the best of my knowledge.

PLACE : PUNE

RESERCH STUDENT

DATE :

ROHINI P.NAIK

ACKNOWLEDGEMENT

I take this opportunity as privilege to express my deep sense of gratitude to Professor M. N. Navle , Honorable Founder President , Dr. (Mrs.) S. M. Navle , Secretary, The Sinhgad Technical Education Society, Pune, Dr. S.N.Mali , The Principal Sinhgad Institute Of Technology And Science, Pune for their continuous encouragement, invaluable guidance and help for completing the research work. They have been a source of inspiration to me and I am indebted to them for initiating me in the field of Research. I am deeply indebted to Prof. Supriya Lakhangaonkar, my research guide, the Sinhgad Institute Of Management, Pune without his help completion of the project was highly impossible. I take this opportunity as privilege to articulate my deep sense of greatfulness to Mr.Prasanna Jain , The financial Advisor for their timely help and positive encouragement. I wish to express a special thanks to all teaching and non-teaching staff member, the Sinhgad Institute Of Technology And Science, Pune for their forever support. Their encouragement and valuable guidance are gratefully acknowledged. I would like to acknowledge all my family member, relatives and friends for their help and encouragement.

Place: Date:

Rohini Prakashrao Naik

INDEX SR.NO 1 2 3 4 5 6 7 TOPIC EXECUTIVE SUMMERY INTRODUCTION TO E-FILLING INCOME TAX RETURN INTRODUCTION TO STEADFAST ADVISORY OBJECTIVES OF PROJECT AND RESEARCH METHODOLOGY SCOPE AND LIMITATIONS CONCEPTUAL BACKGROUND FINDINGS, CONCUSIONS & RECOMENTATIONS PAGE.NO 6 7 11 17 18 19 29

LIST OF TABLES TABLE NO. 1. 2. 3. 4. 5. 6. 7. TABLE HEADING Leading players in e-Tax filing industry PAGE NO. 8

Analysis of e-filing incometax return players in the market 9 on the basis of services Price Analysis of e-filing Income Tax Return Players in the market The Appropriate form for filling Income Tax Returns Due Dates for filling Income Tax Returns Rates of Income Tax for A.Y 2013 Snapshot of Deductions from taxable Income 10 22 23 26 28

EXECUTIVE SUMMARY

This report contains all the details of Income tax with Respect to Individual Assessee Who is having Income from Salaries, Income from house property , Income from Capital gains and Income from other sources. This means it includes individual who will use ITR-1 and ITR-2 from for filling their income tax return. It also include the whole start to end process of online Income Tax return filing for ITR-1 and ITR-2 from and the various supporting documents which required for IT return filling. This report covers the various deduction which will reduce the overall taxable income of individual assessee and it also covers the various set off and carry forward of losses to subsequent year. It include the various tax saving instrument which will reduce tax liability and will also generate better returns in future. It covers all the important concept and procedures under income tax act and the various advantages of online income tax return filling.

Introduction To E-filling Income Tax Return Industry


Electronic filling, or e-filling first began in India as part of a proposal for internet based electronic tax administration system for service tax. The central board of Excise and Customs efforts made the introduction of e-filling of tax return possible for the first time in India in April 2003, but its benefit was available only to a few service tax providers. In the year 2007, the Income Tax Department started the facility to E-File Income Tax Return(ITR) online for individual taxpay. Under its agenda of E-governance. Today e-filing of ITR is among the most popular facilities introduced by the government of India. In the financial year 2011-2012, more than 16 million returns were filled online i.e 4000% growth in 5 years. However the adoption of this facility is still too rich its optimum penetration. Once people realize how secure and easy online tax filling is. Cutting edge technologies have made solutions more user-friendly in terms of ease-of-use. Appealing user interface and smooth navigation make the experience easier than ever. Anybody with a digital Form 16 can attach this document and email it to get the return e-filed instantaneously. Moreover, there are platforms that provide 1 click e-filing solution to the employees of large organizations, from within the payroll software. What has been simplified here to a great degree is the process of information collection. Leading e-filing websites provide return preparations and filing service that automatically retrieves the relevant data from Form 16, Form 16A, Form 26AS, bank statements, and brokerage statements. This eliminates the need for the user to find required details from various sources and fill all the entries manually. Moreover, users can be free of worries with respect to selecting the appropriate form(ITR1, ITR2, ITR4, etc).The portal does that on its own. With e-filing becoming mandatory from AY2013-2014 for individuals with total income above Rs. 10 lakh and for those having assets abroad, electronic return filing will become the preferred way of filing for all the taxpayers. If you are able to understand and prepare your tax return independently, otherwise e-file through e-return intermediary websites, you can manage your taxes with ease and security!

Most authorized e-return intermediaries, evaluated for their security and confidentiality, store only relevant data. They do not store any information related to credit card or payment details. Similarly, session related information is never stored in cookies directly. There are certifications like the CERT-In(Indian Computer Emergency Response Team, Department of Information Technology, Government of India). For information security audit for hardware/software and security complaints. Such certifications attest the fact that service providers audited for them are free from any vulnerability and malicious code, which could be exploited to compromise and gain unauthorized access with escalated privileges.

Leading players in e-tax filing Industry


Sr.No E-filing income tax return industry 1 2 3 4 5 6 7 8 9 10 E-taxmentor Taxspanner Taxsmile Taxmunshi Taxyogi myIT return Taxshax Elagaan InvestAscent Incometaxindia (incometaxindiaefiling.gov.in)

Incometaxindia is governments official website for e-tax filing, which is free of cost. All other players in e-tax filing industry are registered e-return intermediaries for tax filing, who charge the Processing Fees.

Analysis of e-filing Income Tax return players in the market on the basis of services.
Sr.No SERVICES
Income from house property Income from salary Income from business and professional Income from capital gain Income from other sources Prepare Tax Return e-Filing of Income Tax Return online Tax Preparation software NRTS payroll services Tax planning and advisory corporate services small and medium business Digital signatures and pancard

InvestAscent

etaxmentor

taxpanner

taxsmile

taxmunshi

taxyogi

skorydov

elagaan

taxshax

1 2 3 4 5 6 7 8 9 10 11 12 13 14

x x x x

x x x

x x x

x x x x

x x x x x x x

x x x x x x x

x x x x

x x

x x x x x x

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

Particulars
Perfios Skorydo v 330 Taxsmile

Total Price inclusive of service tax Taxspanner efile standard 249 Taxspanner efile plus 449 Taxspanner efile 749 Invest Ascent 150 Etax mentor 99 E-tax mentor CA review 299

Saving from 16 with savings bank interest Single from 16 with housing loan One form 16 with capital gains or any other adjustments Two form 16s Two form 16 with housing loan Two form 16s with capital gains or any other adjustments Revised Returns Rectification of returns

138

276

165 276

330 330

276 276

249 249

449 449

749 749

200 250

99 198

299 299

303 331 441

330 330 330

276 276 276

249 249 249

449 449 449

749 749 749

200 300 350

198 198 198

299 299 299

200 500

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Introduction To Steadfast Advisory


Steadfast formed by veteran private bankers with an aim of creating a boutique wealth advisory firm to provide a professional platform of private wealth management services. There core team has valuable experience in the areas of wealth advisory, Private Banking, Treasury Management, Risk Management, Private Equity, Stock Markets and succession planning. The diverse experience of the core team offers you an unmatched blend of personalized wealth management opportunities. Steadfast is also an Employee Care Services company with expertise in Tax Advisory, Tax Filing and Financial Planning. Steadfast focuses on corporate employee needing in-depth guidance and advice with respect to their tax planning eventually culminating in proper tax filing through the e-filing portal- Tax Savvy. There are four ways through which Clients can file your tax returns through Steadfast advisory:
1) Self Filing: With companies own web based software, clients can fill in the details as required and file their tax returns. 2) Helpdesk Filing: Corporate Helpdesk to assist the employees for filing their returns at their doorstep.

3) Email E-Filing: Clients can also mail the form 16 and relax and Steadfast team will take care of their filing. 4) E-Upload E-Filing: Clients can also just upload your form 16 in their Steadfast account and Steadfast team will take care of their filing.

Steadfast Offers
Comprehensive online application for self preparation of ITR1 and ITR2. Assistance in preparation of ITR1, ITR2 by the tax professionals through mail and phone. Corporate Helpdesk to assist the clients for filling their returns at their doorstep. Reminder notifications through mail and sms. All queries will be answered over the phone by tax professionals between 9am to 6pm on working days. All queries will be answered over the mail by tax professionals within 36 hours of the query raised. ITR V will be uploaded in the clients account. Online vault facility to save your tax documents for security or future reference. Service to deposit your ITR V with the CPC(if employer has opted for the drop box facility).

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Post Tax E filing services


Collection of ITR V in case the corporate has opted for drop box facility. Sending the collected ITR V to an Income Tax Department. Facility to track ITR status. Tracking of Refund Status. Revised filing incase the clients has filed the returns incorrect. Rectification of returns in case the client has received any notice from Income Tax department u/s 143(1).

Steadfast assist all his clients in tax saving and advisory. The different ways Steadfast supports on tax advisory are as follows:
1) Mail Support: You can write a mail to Steadfast Team at steadfast.return@gmail.com and you will get a reply on all your tax related queries within 36 hours. 2) Call Support: Clients can speak to Tax consultant over the phone between 9am to 6pm.

3) Personal tax and Wealth Advisors: Each client who files his tax return with Steadfast, will be allotted a Personal Tax and Wealth Advisors, who will assist him in customized solutions for his tax and wealth management. 4) Corporate presentations: Steadfast Tax Team shares their expertise with the employees of the corporate to empower them with the tax knowledge and ability to save more tax.

5) Corporate help desk: Steadfast provides the helpdesk for the corporate to help employees to increase their knowledge on tax and ability to save more tax. 6) Financial Planning: Most of the people invest as they want to save tax. Tax cannot be the only objective to invest. Steadfast Private tax and wealth Advisors will advice the clients on how to invest to meet all their future investments, also making sure that the clients saves the relevant tax on the same.

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Products
Steadfast has been expressly created to offer an enhanced level of service to demanding individuals. Private Wealth Advisors are backed by the product team to assist them in delivering an unique investing experience to all our clients. To service Steadfast clients in a flawless way, they have comprehensive range of the financial products in their bouquet. This helps Private Wealth Advisors to provide an unbiased advice as per investor financial aims. Attention is given to every fine detail in the crafting of innovative products with a comprehensive range of the financial planning and wealth management capabilities to deliver an unique investing experience to investors. Mutual Fund Direct Equity Life Insurance General Insurance Group Insurance Real Estate/Art Funds Customized Structured Products Portfolio Management Services Exchange Trade Funds Capital Protection Products Corporate Fixed Deposits Postal and small Savings Scheme Margin Trade Funding Loan Against Shares/Mutual Funds Corporate Financing

Services Tax Service Tax Filing Tax Advisory Services

Wealth Management Financial Planning Succession Planning Non Discretionary Portfolio

NRI Services Financial Planning Pan Card Services Tax Computation and Filing

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Founder of Steadfast Advisory


Mr. Deepak P. Soni: Founder of Steadfast Mr. Prasanna Jain: Co-Founder of Steadfast

Office Address SteadFast Advisory


39A, Ajinkya, Anurekha Society, Back of Tathawade Garden, Near Pratigya Hall, Karvenagar, Pune 411052 Tel No: 9022172237, 9029513131 Email: Steadfast.return@gmail.com

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Introduction To Project
The responsibilities included in travelling to corporate locations and counseling with the corporate employees for doing their personal e-filing of income tax returns through company web based tool by name Money Berry. The summer internship project involved the training on e-filing of income tax return process, it includes the start to end process of online income tax return filing for ITR-1 and ITR-2 form and the various supporting documents which are required for ITR filling. The training was given on the details of income tax with respect to individual assessee who is having income from Salaries, Income from house property, Income from capital gains and Income from other sources. This means training includes tax return. The various deductions which will reduce the overall taxable income of individual assessee and it also covered the various set off and carry forward of losses to subsequent years. It also included the various tax saving instrumentswhich will reduce tax liability and as well generate better returns in future. So, Training covered all the important concepts and procedures under income tax act and the various advantages of online tax return filing. Steadfast Advisory has acquired big corporate clients like Hexaware tech.ltd,TTP Technologies pvt.ltd,IBM India pvt.ltd,R-Systema pvt.ltd,BANK OF India,Bank Of Maharashtra,Bank Of Baroda,Magic Software Enterprises India pvt.ltd,All these corporate Clientins were assigned a helpdesk from Steadfast Advisory in there organizations,to collect the form 16 of their employees and assist them in filing their IT return online.To provide them all the information on tax and all other adjustment related to it and to solve there all queries related to filing and income tax and to guide them about the whole process of e-filling from start to end.We also help them about their financial planning and tax saving instrument and solve set off and carry forword of losses with same head of income or other head of income.

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Objectives
To understand the income tax criticalities with respect to individual assessee who will be using ITR-1 and ITR-2 form for filling their income tax return. To understand the start to end process of online income tax for ITR-1 and ITR-2 form. To understand the different Avenue of investment for reducing tax liability. Awareness about online income tax filing and there benefits. To know Various deductions under section 80C, 80D, and others for reducing tax liability.

Research Methodology The research is done by using both Primary and secondary data. Primary Data:
The sources from which information is gathered for the first time is known as primary sources and information thus gathered is called primary data. The analysis of client's data who filled their Income Tax returns with SteadFast Advisory which is Primary in nature. Collecting his\her form 16 for online filing returns.

Secondary data:
Secondary data refers to the data which has already been collected by someone else for other purpose. Secondary data may either be published data or unpublished data. For collecting the secondary data, I have searched in various websites, books, news journal made on Income Tax return filing and Tax planning with respect to various rebates and deductions, which enabled me to complete this project efficiently.

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SCOPE AND LIMITATIONS


This project studies the online filing of tax returns of individual assessee. This project study includes online income tax return filing process only for individual assessee who will be using ITR-I AND ITR-II forms and even it does not include the manual pracess for income tax return filing. This project study include tax planning only for individuals assessed who will be using ITR-I AND ITRII forms. This project will be help to company get database about clients for there income tax planning and financial planning for corporate employees. Create awareness about online filing of income tax returns of individual assessee and income tax return filing will be increase.

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CONCEPTUAL BACKGROUND Introduction To Income Tax


Income tax is a tax that governments impose on income generated by all entities within their jurisdiction. In India, Income Tax Act, 1961 governs the taxation of incomes generated within India and by incomes generated by Indians overseas. Income tax is an annual tax on income. The Indian Income Tax Act (Section 4) provides that in respect of the total income of the previous year of every person, income tax shall be charged for the corresponding assessment year at the rates laid down by the Finance Act for that assessment year. Section 14 of the Income tax Act further provides that for the purpose of charge of income tax and computation of total income all income shall be classified under the following heads of income: A. Salaries B. Income from house property C. Profits and gains of business or profession D. Capital gains E. Income from other sources. The total income from all above heads of income is calculated in accordance with the provisions f the Act as they stand on the first day of April of any assessment year. The Income Tax ACT, 1961 as amended by Finance Act 2010, under Section 139 makes it obligatory upon any person to file return if the person's total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax.

Introduction To E-filing of IT Return


Traditionally filing of Income Tax Return is seen as a complicated and tiresome task, and therefore, most people keep putting it off till the last possible moment. People had to travel miles and wait in long queues outside the Tax Department to file their Income Tax returns. But a few years ago, the Income Tax Department introduced a convenient way to file these returns online. The process of electronically filling your Income Tax Returns through the internet is know Efiling return. It offers convenient of time and place to Tax payers and is available around the clock to Tax payers located in any place in the world. The initiatives taken by the Government in simplifying the rules and the filing process, the task has become less daunting. With increasing prosperity and higher income levels, larger number of people have become eligible for filling income tax returns. E-filing of income tax returns has made process user friendly. The central board of Excise and customs efforts made the introduction of e-filing of tax returns possible for the first time in India in April 2003, but its benefits was available only a few service tax providers.

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Considering the comforts for tax payers across the country and also technology lending a helping hand, both the Central and State governments decided to extend e-filing of tax returns to the other types of taxes including Income Tax, Excise and VAT. Under the income tax law, this facility was introduced by the Central Board of Direct Taxes(CBDT). For the first time during assessment year 2006-07, wherein corporate assessee had to mandatorily e-file their Income Tax returns. The process of electronically filing Income Tax returns through the Internet is known as e-filing. It is mandatory for the companies and firms requiring section 44AB audit to submit the Income Tax returns electronically for year 2007-08 as well as 2008-09. Any company and firm requiring section 44AB audit return without an e-filing receipt will not be accepted.

E-filing process:
The Process of electronically filing your income tax returns through the internet is known as efiling return. It offers convenient of time and place to tax payers and is available round the clock to tax payers located in any place in the world. Section 139(1) of the Income tax act 1961 provides that every person whose total income during the previous year exceeded the maximum amount not chargeable to tax shall furnish a return of income. The return of Income can be submitted in following manner. 1. A paper form. 2. E-filing 3. A bar-coded paper return. Where the return is furnished in paper format, acknowledge slip attached with the return should be dully filled in. A return in new forms are not required to be filed in duplicate. A returns can be e-filed through the internet. E-filing of the returns is mandatory for companies and firm requiring Statutory audit U/S 44AB. From A.Y. 2011-13, it is now also mandatory for all business entities (including individuals/HUF) liable to tax audit to e-file their income of return. E-filing becoming mandatory from A.Y.2012-13 for individuals with total taxable income above Rs.12Lakhs. E filing can be done with or without digital signature: a. If the returns are filed using digital signature, then no further action is required from the tax payers. b. If the returns are filed without using digital signature, then the tax payers have to file ITR-V with the department within 120days of e filing. c. The tax payers can e file the returns through an e- intermediary also who will e file an assist him in filing of ITR-V within 120days. Where the return of income is furnished using bar-coded return, then the tax payers need to print two copies of form ITR-V. Both copies should be verified and submitted. The receiving official shall return one copy after affixing the stamp and seal. The finance act, 2005 has provided that w.e.f. 01-04-2006 every person shall file a return of income on or before the relevant due date even if his total income exceeds the maximum amount not chargeable to tax.

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Advantages of e-filing income tax return


you can e-file your return fron home or through a tax professional using an authorized software package you can e-file your return any time of the day or night well process your return more quickly,so youll receive your refund quicker no personnel Interface

quick processing of refunds

Three types of e-filing returns Option 1


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

Option 2
File without digital signature in which case ITR-V form is to submitted to CPC Bangalore within 120 days of e-filing.This is a single page receipt cum verification form.

Option 3
File through an e-filing intermediary who would do e-filing and also assiat the assessee file the ITR-V form.

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Selecting the appropriate form for filling Income Tax returns


Form No

It is for
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 dividuals having who are partners in a partnership firm. For individuals having income from a proprietary business and profession

ITR 1 ITR 2 ITR 3 ITR 4

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ITR 5 ITR 6 ITR 7

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)

ITR-7 will not be available for e-filing ITR-8 is discontinued for e-filing from AY2010-11 on ward Due dates for filing income tax returns
I The assessee is acompany 31 october ot the assessment yer

II a)

The assessee is a person: In a case where the accounts of the assessee are to be audited or In case of a working partner of firm whose accounts necessary to be audited under the income Tax Act or any other low

31 october of the assessment year

b) If the income return is to be filed under the one-by-six criteria c) Any other assessee

31 october of the assessment year

31 july of the Assessment year

Steps for e filing IT Return


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

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Browse to select XML file and click on "Upload Button" On successful upload, acknowledge details will be displayed. Click on "Print" to generate acknowledgement\ITR-V. In case the return is digitally signed, on generation of acknowledgement the return filing process gets completed. Assessee may take a print of acknowledgement for his record. In case the return is not digitally signed, on successful uploading of e return, the ITR-V form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The Tax payers has to fill up the verification part and verify the same. A dully verified ITR-V form should be submitted with the local income tax office within 15 days of filing electronically. This completes the written filing process for non digitally signed return.

Supporting Documents: Supporting documents require to calculate the tax liability and for preparing the IT Returns: Form NO. 16 received from the employer: Form 16 is the annual salary statement issued by your employer and provides details about the income earned and tax deducted during the year. Form NO. 16A received from all the payers who have got their tax deducted: This form needs to be collected from the parties who have deducted the tax while making payment to you during the year. This includes banks and companies (with whom you have kept fixed deposits and so on). Form NO. 26AS: The Income Tax Department through the National securities depository limited (NSDL) sends tax payers a document called the 'Annual tax Statement' or Form 26AS. This statement gives information about tax deducted and collected at source by entities such as employers and banks for your permanent account number (PAN) in a certain year. It also lists information about advanced tax\self assessment tax\regular assessment tax deposited by you in the Bank. Summary of account: It is important to have a summary of all bank accounts that you operated in the last fiscal year. It is important to have receipts and details of property owned during the last fiscal year. Details of sale and purchase with respect to investments sold during the year. Details of any other tax payments made during the year. It is mandatory to quote the PAN while filing the return. Important

IMPORTANT CONCEPTS & PROCEDURES UNDER THE INCOME TAX ACT

Assessee (Section 2(7)): An assessee is a person by whom any tax or any other sum of money is payable under the Act. Assessment Year (Section 2(9)): Assessment year means the period of 12 months starting from 1st April of every year and ending on 31st March of the next year.

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Previous year (Section 3): Income earned in a year is taxable in the next year. The year in which income is earned is known as the previous year and the next year in which income is taxable is known as the assessment year. Receipt Vs. accrual of income: Income is said to have been received by a person when payment has been actually received whereas income is said to have accrued to a person if there arises in the person a fixed and unconditional right to receive such income. Belated Return: Section 139(4) provides that a return which has not been furnished by the due date may still be furnished as a belated return before the expiry of one year from the end of the assessment year or before the completion of assessment, whichever is earlier. However, on any return of income that has not been filed by the end of the relevant assessment year, penalty of Rs.5000/- u/s 271F shall be levied. Revised Return: If a person having filed his return within the due date, discovers any omission or wrong statement therein, he may file a revised return before the expiry of one year from the end of the assessment year or completion of assessment whichever is earlier. Processing u/s 143(1): The Finance Act 2008 has reintroduced provisions in respect of correcting arithmetical mistakes or internal inconsistencies at the stage of processing of returns. It has, thus been provided that, during the stage of processing, the total income shall be computed after making adjustments in respect of any arithmetical error in the return or any incorrect claim apparent from information in the return and if on such computation, any tax or interest or refund is found due on adjustment of TDS or advance tax or self assessment tax, then an intimation specifying the amount payable shall be prepared/generated or issued to the assessee. If any refund is found due, it is to be sent along with an intimation to such effect. If no demand or no refund arises, the acknowledgement of the return is deemed to be an intimation. Such intimation is to be sent within one year from the end of the financial year in which the return is filed. Assessment u/s 143(3): If the Assessing Officer, on the basis of the return filed by the assessee, considers that it is necessary to ensure that the assessee has not understated his income, he shall serve on the assessee a notice u/s 143(2) and, after obtaining such information as he may require, complete the assessment ( commonly referred as scrutiny assessment) u/s 143(3). Rectification of mistake u/s 154: If any order passed by an income tax authority suffers from a mistake apparent from record, the assessee may make an application for rectifying the same before the expiry of four years from the end of the financial year in which the above order was passed. The Finance Act 2001 has provided that where an application for rectification under this Section is made by the assessee on or after 1.6.2001, the same shall have to be acted upon by the income tax authority within a period of six months from the end of the month in which the application is received. Interest on refunds u/s 244A: If the refund due to the assessee is more than 10% of the tax payable by him, he shall be entitled to receive simple interest thereon at rate of 0.5% per month (substituted in place of 0.67% per month w.e.f. 8.9.2003) or part thereof, from 1st April of the assessment year to the date on which the refund is granted. Tax Return Preparers Scheme:- For enabling specified classes of tax payers in preparing and furnishing income tax returns, the Board has notified the Tax Return Preparer Scheme under which specially trained and authorized Tax Return Preparers will provide assistance to tax payers in this regard. Details of the Scheme may be viewed at http://www.incometaxindia.gov.in/.

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Who is a person as defined under the Income Tax Act person includes: (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificial juridical person, not falling within any of the preceding sub-clauses

Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions. Tax evasion is an activity commonly associated with the informal economy. One measure of the extent of tax evasion (the "tax gap") is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported. Tax Avoidance: Tax avoidance may be considered to be the dodging of one's duties to society, or alternatively the right of every citizen to structure one's affairs in a manner allowed by law. Tax avoidance is the legal usage of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law. Tax sheltering is very similar, and tax havens are jurisdictions which facilitate reduced taxes. The term tax mitigation is sometimes used; its original use was by tax advisers as an alternative to the pejorative term tax avoidance.

Rates of Income Tax for A. Y. 2013-14 Normal rates of tax:


(1) Where the total income does not exceed Rs.2,00,000 (2) Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 (3) Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 (4) Where the total income exceeds Rs. 10,00,000 Nil 10% of the amount by which the total income exceeds Rs.2,00,000/-. Rs. 30,000 plus 20% of the amount by which the total income exceeds Rs. 5,00,000. Rs. 92,000 plus 30% of the amount by which the total income exceeds Rs. 8,00,000.

In the case of every individual, being a woman resident in India, and below the age of sixty years at any time during the financial year:
(1)Where the total income does not exceed Nil Rs.1,90,000 (2)Where the total income exceeds Rs. 1,90,000 but 10% of the amount by which the total income does not exceed Rs. 5,00,000 exceeds Rs. 1,90,000.

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(3)Where the total income exceeds Rs. 5,00,000 but Rs. 31,000 plus 20% of the amount by which the does not exceed Rs. 8,00,000 total income exceeds Rs. 5,00,000. (4)Where the total income exceeds Rs. 8,00,000 Rs. 91,000 plus 30% of the amount by which the total income exceeds Rs. 8,00,000.

In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:
(1)Where the total income does not exceed Rs.2,50,000 (2)Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,50,000 (3)Where the total income exceeds Rs. 5,50,000 but does not exceed Rs. 10,50,000 (4)Where the total income exceeds Rs. 8,00,000 Nil 10% of the amount by which the total income exceeds Rs. 2,50,000. Rs. 25,000 plus 20% of the amount by which the total income exceeds Rs. 5,00,000. Rs. 85,000 plus 30% of the amount by which the total income exceeds Rs. 8,00,000.

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

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SNAPSHOT OF DEDUCTIONS FROM TAXABLE INCOME


Section 80D 80DD 24(1)(vi) 80DDB 80U 80E 10(13A) 80G 80C & 80CCC Particulars Mediclaim Exemption on Handicapped Housing loan interest Specified disease Permanent disability Educational Loan interest HRA Donations Investment in Pension, Housing Loan Principal Repayment, PPF limit Rupees 70,000 per annum, Life Insurance premium directly paid by the employee, ULIP 1971-United linked Insurance Plan from UTI, NSC-National Savings Certificate(to be purchased during the year), Deposit in national savings scheme (NSS), Equity linked Savings scheme (ELSS), Mutual funds notified under sections 10(23D), term deposit with a scheduled bank in a notified scheme for term not less than 5 years, Tuition fees paid (Only full time education fees paid to any Indian University, College, School. Fees exclude payment towards donation). Infrastructure bonds Amount 15000 + 20000 50000 to 75000 30000 to 150000 40000 to 60000 50000 to 100000 No upper limit As per particulars 10% of Basics 1,00,000

80CCF

20,000

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FINDINGS

For filings of income tax return I found that lots of Assessee is satisfied with the online filing of tax returns because fast process and tax liability and tax refund is done. Forms are sending to Bangalore for filing the income tax Return whenever there is more work load in pune,which increases the processing time for delivering the services. Form filing Income Tax Return we got database clients(individuals assessee) And there form 16.So,According to the financial position of assessee company financial Advisors give suggessions about various instruments for investments.

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CONCLUSION
This summer internship project report covers all the details of income tax with respect to individuals assessee who will be using ITR-1 and ITR-2 form for filing there income tax return.It includes the whole start to end process of online income tax return filing for ITR-I and ITR-2 form. Online income tax return filing industry in india is only 6 yers old,but it is growing at very rapid pace.Efiling income tax return become the preferred choice,as it is very user-friendly in nature and it offers various advantages over manual filing.still adoption of this facility has to reach its optimum penetration once people realize how secure and easy online tax filing is.

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RECOMMENDATION
Recommendations to steadfast advisory For E-filing Income Tax Return Project in Pune branch

As of now forms are send to Bangalore for filing the Income Tax Return whenever there is more work load in pune, which increasing the delivering the services.which will increase the efficiency of services provided to clients and will also have certain benefits given below. 1. It will reduce the cost of sending the clients forms,from pune to Bangalore for filing. 2. It will reduce the processing time to generate ITR-V (Acknowledgement of income tax filing from income tax department)

If clients have forgot to give some data or he wants to give some data latter ,in such cases it becomes deficult to co-ordinate,as the form are send to Bangalore for filing the Income Tax Return.

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