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Summer Training


Course MBA
Roll No.- 05396403913

Maharaja Agrasen Institute of Technology

Affiliated to Guru Gobind Singh Indraprastha University




Submitted By:
Name of student: MOAZ AHMAD MALIK
Roll no. - 05396403913
Batch: 2011-2013

Under the guidance of,

Mr. Anish Kumar
Senior Manager
Industry Guide














































This is to certify that the project work TAXATION (E-filing) and FINANCIAL
INSTRUMENTS made by Moaz Ahmad Malik is an authentic work carried out by her under
guidance and supervision of MR ANISH KUMAR.
The project report submitted has been found satisfactory for the partial fulfillment of the degree
of MBA

Internal Supervisor



It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach. It
would have been difficult to achieve the results in such a short span of time without their help.
I deem it my duty to record my gratitude towards the External project supervisor Mr.Anish
Kumar and Internal project supervisor Mr.Yogita Manhas who devoted his precious time to
interact, guide and gave me the right approach to accomplish the task and also helped me to
enhance my knowledge and understanding of the project.

Name of Student- Moaz Ahmad Malik

Roll. No- 05396403913
Course- MBA

I hereby declare that the following documented project report titled TAXATION (E-filing) and
FINANCIAL INSTRUMENTS is an original and authentic work done by me for the partial
fulfillment of MBA program at SPA Capital
I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original
to the best of my knowledge & I have not submitted it earlier elsewhere.

Name of Student- Moaz Ahmad Malik

Roll. No- 05396403913
Course- MBA

Taxation refers to the act of a taxing authority actually levying tax. Taxation as a term applies to all types
of taxes, from income to gift to estate taxes. It is usually referred to as an act; any revenue collected is
usually called "taxes."

Taxation can also refer to taxes as an abstract concept, an actual dollar amount of tax that has been levied
or the material funds that have been received as taxes. Although all of these definitions are technically
correct, the one listed above is the most common. Taxation is one of the primary powers of government
over the people.

Income Tax Planning in India with respect to individual assesse

Income Tax Act, 1961 governs the taxation of income generated within India and of income generated by
Indians overseas. Income Tax Act, 1961 is the guiding baseline for all the content in this report and the
tax saving tips provided herein are a result of analysis of options available in current market. Every
individual should know that tax planning in order to avail all the incentives provided by the Government
of India under different statures is legal.
This project covers the basics of the Income Tax Act, 1961 as amended by the Finance Act, 2012 and
broadly presents the nuances of prudent tax planning and tax saving options provided under these laws.
Any other hideous means to avoid or evade tax is a cognizable offence under the Indian constitution and
all the citizens should refrain from such acts.

What is E-Filing?
The process of electronically filing Income tax returns through the internet is known as e-filing.
It is mandatory for companies and Firms requiring statutory audit u/s 44AB to submit the Income tax
returns electronically for AY 2007-08 onwards.
E-filing is possible with or without digital signature.

Analyzing the Various Financial Instruments:

Capital Market: The market where investment instruments like bonds, equities and
mortgages are traded is known as the capital market.

The primal role of this market is to make investment from investors who have surplus
funds to the ones who are running a deficit

Capital Market Instrument: The capital market generally consists of the

following long term period i.e., more than one year period, financial instruments; In the
equity segment Equity shares, preference shares, convertible preference shares, nonconvertible preference shares etc and in the debt segment debentures, zero coupon
bonds, deep discount bonds etc.

1. Nature of the company

Spa is dealing with finance sector .spa is one of leading companies in India
SPA is being managed by its promoters along with a young and dynamic team of over 1000+
professionals with rich experience, in their respective fields. The Group has established itself as
one of Indias leading financial advisory house, offering various financial solutions to its
Institutional, corporate and individual clients.

SPA Group was promoted by a team of finance professionals in 1995 with an objective to
provide value added financial services. Initially, the Group focused as a niche financial solutions
provider in corporate finance and wealth management to Indian companies and high net worth
individuals. In January 2000, the Group expanded its operations and the range of services.
Today, SPA provides services for securities broking, merchant banking, wealth management,
financial advisory, corporate finance, risk management and insurance broking.
SPA is being managed by its promoters along with a young and dynamic team of over 1000+
professionals with rich experience, in their respective fields. The Group has established itself as
one of Indias leading financial advisory house, offering various financial solutions to its
Institutional, corporate and individual clients.
Customer centric approach of SPAs dedicated professional team has helped carve a niche for
itself in financial services arena and won confidence of its clients. Clients of SPA are from a
wide spectrum and comprise of Banks and other financial institutions, Mutual funds, Insurance
companies, foreign institutional investors, public sector undertakings and government
departments, private corporate, trusts and individuals.

Company is operating in finance sector. There are following areas under the company or in
which the company deals/work.
1. SPA Capital Services Limited
2. SPA Merchant Bankers Limited
3. SPA Securities Limited
4. SPA Insurance Broking Services Limited
5. Financial management system
Vision, a compelling view of a future yet to be, creates meaning and purpose which catapults
both individuals and organizations to high levels of achievement. We create meaning in our lives
by pursuing our future visions, and we refine our visions based on the meaning we are
discovering through our experience.

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

Trading investment strategies.

State of art technology and personalized

Clear understanding of applicable law

A mission statement is a statement of the purpose of a company and organization. The mission
statement should guide the actions of the organization, spell out its overall goal, provide a path,
and guide decision-making. It provides "the framework or context within which the company's
strategies are formulated.

To create long term value by empowering individual investors through

superior financial services supported by culture based on highest level of
teamwork, efficiency and integrity

4. Organizational structure

Mr.Rohit (Vice President Janak

Puri Branch)

Mr.Anish (Senior manager

NOIDA Branch)

Miss Yogita Manhas ( Branch Coodinator Janak Puri Branch )


Members with whom I interact with their level in company

Mr. Anish is our leader in his leadership I had completed my summer training. He is a financial
advisor and a good leader he guides us very well throughout our training period.
I interact with other employees of the company as follows;-













2.1 Objectives of the Study:

Nothing concrete can be achieved without an optimal combination of inspire and perspiration.
No work can be accomplished without taking the guidance. It is only the critiques intellectual
that help transform a product into a quality product.

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

to work with them on this project of such importance. SPA is a leading financial advisor
The main objective of my project is about Taxation and Financial Instruments. This project
contains a detail study of Income tax, that how we calculate our income tax and how we fill the
ITR, and also brief knowledge about financial Instruments. I am enjoying my job. It will be a
milestone for me to work with SPA group. Here I am getting a great industry exposure and I am
learning about the function and role of a Financial Advisor company

2.2 Research Methodology:

Research is a careful critical inquiry in seeking facts and diligent investigation in order to
ascertain something. For formulating a significant research problem, the researcher should try to
acquire as much knowledge, of the area in which research is to be done, as possible. The research
must be fully aware of the environment to which the difficulty pertains.

It refers to the method adopted to collect the relevant data and other information, which forms
the basis of the research writing. So, for the effective writing of this report, the data must be
quality oriented.
2.2.1 Research Design:
Research design or model indicates a plan of action to be carried out in connection with a
proposed research work.
Descriptive research design has been used for conducting the study as to know the clients
acceptance to the SPAs services.

2.2.2 Data Collection:

Data is collected through surveys by questioning people in person and by telephone about their
purchase preferences and likings.
SAMPLE ENUMERATION is the method adopted for data collection. It saves time & reduces
the cost of survey. Sampling enumeration sometimes is the only possible method just as in cost
of infinite universe, e.g. tossing of coin infinite times.

2.2.3 Research Design Population:
Population for the purpose of this study consists of all the corporate employees who have filed
their ITR through SPA Capital.
Elements: Corporate employees

Delhi and NCR areas.

The frame is the source from which the data has been collected. E.g. companys database,
telephone directory etc.The frame for the purpose of my study is the SPAs database. Sample size:
A sample is a part of a population or a subset from a set of units taken with the object of
investigating the properties of parent population or set.
As it is very difficult to get the feedback of each and every client of SPA because of time and
resource constraint, a sample size of 50clients is taken.
An optimum sample size in a survey is which represent the population very well and reliable and
flexible. The sample should be small enough to avoid unnecessary expenses and large enough to
avoid intolerable sampling error.
Sampling unit:
The sampling unit of my study is the corporate employees. Sampling Technique:
Sampling is simply the process of learning about the population on the basis of a sample drawn
from it. Thus in the sampling technique instead of every unit of the universe only a part of the
universe is studied and the conclusions are drawn on that basis for the entire universe.
Convenience Sampling and the Judgment Sampling method are used to select the sample as to
ensure that the sample should represent the whole population and at the same time to save the
2.2.4 Method of data collection:
The data has been collected using following instruments:

Secondary Data - Secondary data, on the other hand, is basically primary data
collected by someone else. Researchers reuse and repurpose information as secondary
data because it is easier and less expensive to collect. However, it is seldom as useful
and accurate as primary data.

Primary data

- Primary data is information collected by the researcher directly

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

Tailored to his specific needs, primary research provides the researcher with the most
accurate and up-to-date data.

2.2.5 Limitation

The research suffers from the following limitations:

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

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

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

4. The primary data used in the study may also suffer from some defects like human
biasness, inconsistency or ambiguity in the answers, wrong interpretation of the
questions by respondents, measurement error, and data analysis error
5. As the secondary sources are used. These may be biased.

Chapter 3

SWOT analysis



More than 15 years of experience in the finance industry

Nationwide coverage of the finance sector.

The Group has established itself as one of Indias leading financial advisory
house, offering various financial solutions to its Institutional, corporate and
individual clients.

Large no of clients

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

Corporate reputation in market after winning lot of awards



Fewer shares in merchant banking

Low discounts to business clients
Poor perception of company product
Lack of managements other employee talent



Keeping in mind what you have listed as your company strength. SWOT Analysis can
now influence the opportunities of the company. This can be seemed as a target to
achieve an exploit in the future.

Good financial position creating a good reputation for future bank loan &

Broadband technology has been installed in the area useful internet users.

Increase spending power in local and national company.

Skill work force i.e. they can be trained & move into other area of business

Competitors going bank corrupt(takeover opportunities)



The final part of the analysis can also be seen as the most feared the threat. It has
to be done & therefore taking into account what you have listed as a weakness. The threat will
now also seem to clear-

Large and increase competition.

Possible re-allocation cause due to poor-location currently held.

Raising cost of wages (basis wage e.g.).

Existing product becoming unpopular.

Chapter 4
Finding and analysis
Income Tax Return
Obligation of filling Tax Return
It is a legal obligation for every individual to file a return of income, whose taxable income during the
year has exceeded the exemption limit.
Documents Required:

Form No.16 (received from the employer).

Form No.16 A (received from all the payers who have deducted tax).
Summary of all bank accounts operated during the year.
Details of property owned during the year.
Sale & purchase bill/documents/contract note in respect of investments/assets sold during the
Details of tax payments made during the year. This is required only if you have made advance tax
payment during the year.
Individuals who is carrying out
business/profession under a
proprietary concern.


Individuals who are partner in a

partnership firm and does not carry
out any other separate



Meant For Individuals who have

income from salary, interest income
(taxable/exempt), family pension and
income from agricultural activities.

Individuals not having any income
on account of carrying out
business/profession or on account of
being a partner in a partnership firm.

Introduction to Income Tax and Income from Salary

Previous Year: Income Year ( 2013-2014)

Assessment Year: Tax Year ( 2014-2015)

ASSESSMENT YEAR: it is defined as a year in which the income of the previous year is
to be assessed and this is known as the tax year also.
PREVIOUS YEAR: It means income year which immediately proceeds the assessment
Income Tax Act of 1961
The major tax enactment in India is the Income Tax Act of 1961 passed by the Parliament, which
imposes a tax on income of individuals and corporations. This Act imposes a tax on income
under the following five heads

Income from Salaries,

Income from House and property,

Income from Business and Profession,

Income in the form of Capital gains, and

Income from Other Sources

However, this Act is about to be repealed and be replaced with a new Act which consolidates the
law relating to Income Tax and Wealth Tax, the new proposed legislation is called the
Direct Taxes Code (to become the Direct Taxes Code, Act 2010). Act was referred to
Parliamentary standing committee which has submitted its recommendations. Act is expected to
be implemented with changes from the Financial Year 2013-14.

Income Tax Return:

After making all possible investments to save tax, its time for Income Tax Return filling, which
all about giving details of the income you have earned in that financial year.

Income tax return is a term which is often used when we talk about income tax. It is a
way by which we pay this tax. When total annual income of a person, including all

sources, is more than maximum exemption limit ( at present it is Rs 180000/- and 190000
for female ) then that person is liable for income tax return.

According to Income Tax Act 1961, every person, who is an assesses and whose total
income exceeds the maximum exemption limit, shall be chargeable to the income tax at
the rate or rates prescribed in the finance act.

The Benefits of Filling Income Tax return :

Standard Income Proof: ITR is Considered Customary income proof not only
in India but also globally. if you are looking for higher education or employment
abroad, ITR is largely accepted income proof.

Speed your loan application process: Apart from a good Credit history, the fact
that you are filling your ITR regularly gives you speedier access to credit.

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

is not only a pre requisite for filling ITR but is also now mandatory for all
financial transactions- from opening a bank account, or purchasing mutual fund to
real estate for investment.

Claim your Tax Refund: Filling ITR is not always about paying Tax, It can be
used as a means to reduce your tax liability. e.g Salaried employees for whom
TDS has been cut during the financial year can claim refund if the tax outgo has
been more than the actual tax payable.


The new and revised income tax slabs and rates applicable for the financial year (FY) 2013-14
and Assessment year (AY) 2014-15 are mentioned below:

Rate of Income Tax:

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


0 to 2,00,000

No Tax/exempt

2,00,001 to 5,00,000


5,00,001 to 10,00,000


Above 10,00,000


India Income tax slabs AY: 2014-2015 for Senior citizens (Aged 60 years but
less than 80 years)
Income tax slab (in Rs.)


0 to 2,50,000

No Tax/ exempt

2,50,001 to 5,00,000


5,00,001 to 10,00,000


Above 10,00,000


India Income tax slabs AY: 2014-2015for very senior citizens (Aged 80 and
Income tax slab (in Rs.)


0 to 5,00,000

No Tax/exempt

5,00,001 to 10,00,000


Above 10,00,000


Surcharge: The surcharge on Income Tax for Individuals for total income exceeding Rs.10 lacs
stands removed.
Education Cess: 3% of the Income-tax.


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

A marginal relief under section 89(1) provides that if an individual receives any portion
of his salary in arrears or in advance, or receives profit in lieu of salary, he can claim
relief in respect of such salary received.

Agricultural income is exempt from income tax.

Mode of Collection of tax:

Taxes are collected by three means:

Voluntary payment by persons into various designated Banks. For example

Advance tax and Self Assessment Tax


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


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

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

Advance tax is paying a part of your yearly taxes in advance. Advance tax should be paid in the
year in which the income is received. Advance tax is applicable when an individual has sources
of income other than his/her salary.
For instance, if one is earning through

Capital gain

Interest on individual


House property


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

Schedule of Advance Tax

On or before 15th September

Not less than 30% of advance tax

On or before 15th December

Not less than 60% of advance tax as reduced by

amount paid earlier.

On or before 15th march

Full advance tax as reduced by the amount or amount

if any, paid in earlier installments.

If the assesses does not pays the advance tax as described above, an interest of 1% is charged per
month for 3 months for the deferment of advance tax instalments. If the total amount of advance
tax is not paid on or before 15 March, an interest of 1% is charged per month.


TDS 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


The total income of a person is divided into five heads, viz., taxable.
1. Income from salary.

2. Income from house property.

3. Income from business or profession.
4. Income from capital gains.
5. Income from other sources.

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

Kind or as a facility (perquisite) is considered as salary.
All income received as salary under employer-employee relationship is taxed under this head.
Employers must withhold tax compulsorily, if income exceeds maximum exemption limit, as
Tax Deducted at Source (TDS), and provide their employees with a FORM 16 which shows the
tax deductions and net paid income. In addition, the form 16 will contain any other deductions
provided from salary such as:

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

bills. (company pay fringe benefit /facility tax on this amount)
2. Conveyance allowance: up to Rs.800 per month (Rs. 9,600 per year) Is tax free if
provided as conveyance allowance. No bills are required for this amount.
3. House rent allowance the least of the following is available as deduction.
a. Actual HRA received
b. 50% or 40% (metro/ non-metro) of Basic salary
c. Rent paid minus 10% of Basic salary. Basic salary for this purpose is
basic pay + DA forming part + commission on sale on fixed rate.

2) House property Income :- Unlike the other heads of income, income from house
property is a notional income based on a concept called annual value. This is the value a
property is expected to fetch if it is let out. it may be more than actual rent being received
if let out. If it is not let out the expected market or fare rent will be considered as annual
value for the purpose of taxation. Property includes the building and the land
surrounding it.

3) Income from capital gain :- Surplus from capital assets from transfer of it.Eg
archaeological collection, drawings, paintings, sculptures, any other work of art. Thus,
now any surplus received from sale of these articles would be liable to tax under the head
capital gain.
but does not include some items like any stock-in-trade for businesses and personal effects.
Transfer has been defined under section 2(47) to include sale, exchange, relinquishment of asset,
extinguishment of rights in an asset, etc. certain transactions are not regarded as Transfer under
section 47.
For the tax purpose,
There are two types of capital assets:
Long term Capital Assets: Long term asset are held by a person for three years except in case
of shares or mutual funds which becomes long term just after one year of holding. Sale of such
long term as sets gives rise to long term capital gains.
Short term Capital Asset: Any Capital gain arising out of asset transferred or sold before 12
months or 36 months depending on the asset, qualifies for STC.

4) Income from Business or Profession :- Any type of income received from business.

5.) Income from other Sources :Dividend, commission, lotteries, crossword puzzles, races including horse races, bull races, card
games, any sort or from gambling or betting, or from any Key man insurance policy.


Deduction With under Section 80C:

Maximum Exemption Limit - R.s 100000/- in the following Investments:


Life Insurance Premiums.

Contributions to Employees Provident Fund
Public Provident Fund
NSC (National Savings Certificates)

5. Unit Linked Insurance Plan (ULIP)

6. Repayment of Housing Loan (Principal)
7. Equity Linked Savings Scheme (ELSS) of Mutual Funds
8. Tuition Fees including admission fees or college fees paid for full-time education of any
two children of the tax payer.
9. Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC
10. 5-Year fixed deposits with banks and Post Office Savings Schemes.
11. Senior Citizens Savings Scheme (SCSS).
12. Voluntary provident fund.
13. Stamp Duty and Registration Charges for a home.



Quick Description and Deduction

Maximum Limit


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

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

Maximum Up to Rs.
15000 or

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

his family(spouse & dependent children) for policies taken

(b) For Senior Citizens


20000 in case of
senior citizen

Maintenance including Medical Treatment of a Handicapped

Rs. 50000/-

Dependent who are Severely disable

irrespective of the


Expenditure incurred in respect of Medical treatment for the self

or dependent in specified diseases.

R.s 50000 to 70000/-


Interest on Education loan taken for pursuing

higher education

Entire amount or
Maximum deduction
for interest paid for a
of 8 years


Donations of certain funds and charitable Institutions

Maximum deduction
allowed can be 50%
or 100% of the
donation Subject to
stated limits as
provided under this


Rent paid in respect of property occupied for

residential use

Maximum deduction
allowed is least of
the following:
1) Rs.2000 per

2.) 25% of total
3.)excess of rent paid
over 10% of total

Contribution made to any political parties or

electoral trust.

Amount donated to
Political parties is
full exempt


Person suffering from Specific physical disability

Maximum Deduction
allowed up to R.s


Investment in long term infrastructure Bonds

Maximum deduction
allowed 20000

Section 10A

HRA Allowance

1.) Actual HRA

2.) Rent paid10%of basic
3.) 50%or 40%
basic salary
.(depend on
metropolitan city).
Whichever is less.

Section 24

Interest on house loan

Maximum deduction
150000 (self


Capital Market are of two types:
a) Primary Market
b) Secondary Market

The primary market is an intermittent and discrete market where the initially listed shares are
traded first time, changing hands from the listed company to the investors. It refers to the process
through which the companies, the issuers of stocks, acquire capital by offering their stocks to
investors who supply the capital. In other words primary market is that part of the capital
markets that deals with the issuance of new securities. Companies, governments or public sector
institutions can obtain funding through the sale of a new stock or bond issue. This is typically
done through a syndicate of securities dealers. The process of selling new issues to investors is
called underwriting. In the case of a new stock issue, this sale is called an initial public offering
(IPO). Dealers earn a commission that is built into the price of the security offering, though it
can be found in the prospectus

The secondary market is an on-going market, which is equipped and organized with a place,
facilities and other resources required for trading securities after their initial offering. It refers to
a specific place where securities transaction among many and unspecified persons is carried out
through intermediation of the securities firms, i.e., a licensed broker, and the exchanges, a
specialized trading organization, in accordance with the rules and regulations established by the
Types of Investment Avenues

When a person has more money than he requires for current consumption, he would be potential
investor. The investor who is having extra cash could invest it in assets like stocks or gold or real
estate or could simply deposit it in his bank account. All these broader sense mean investment.
Investment can be defined as a process of, sacrificing something for the prospect of gaining
something later
So, the definition implies that we have four dimensions to an investment- time, todays sacrifice
& prospective gain.
Various investment alternatives are: Fixed Deposit
Recurring Bank Deposit
Life Insurance
Mutual fund
Equity Share

Fixed Deposits
1. The term fixed in fixed deposit denotes the period of maturity or tenor. Fixed
deposits, therefore, pre-suppose a certain length of time for which the depositor
decides to keep the money with the bank & the rate of interest payable to the
depositor is decided by this tenor. According to a relatively new provision amount
saved in fixed deposits of term at least five years is eligible for income tax
deduction under section 80C of Indian Income Tax Act.

Recurring Bank Deposits

Under a Recurring Bank Deposit, we invest a specific amount in a bank on a monthly basis for a
fixed rate of return. The deposit has a fixed tenure, at the end of which you get your principal
sum as well as the interest earned during that period. A Recurring Bank Deposit, by definition, is
supposed to appreciate in value over time. However, the rate at which it appreciate is predetermined y the rate of interest specified. It accumulates money at a fixed rate, compounded
quarterly or as the bank may specify, & your investment appreciate regularly during the tenure of
the account. Since capital appreciate in any investment option depends on the safety of that
option, & banks being among the safest avenues, the increase in investment is modest.

Employees Provident Fund (EPF)

1. EPF is a compulsory saving made by the employee & employer to ensure
financial security after the retirement. EPF was first established on 1 Oct 1951
under the EPF ordinance 1951 which was subsequently known as the EPF Act
1951. The EPF Act 1951 has since then been replaced by the EPF Act 1991 in
June. Under this Act, the employer & employee are required to contribute to EPF
based on the rate of contribution set by the EPF Act. Expatriates, foreign workers
& domestic servants & their employers are not required to contribute to EPF, but
they can voluntarily do so. This condition will be invested to accumulate interest
or dividend. By the time a member retire, therefore he has a considerable amount
of savings, with compounded dividend, which he can withdraw to provide for his
financial needs.
2. Any contributions to Provident Fund, Voluntary provident Fund (VPF) or savings
made in Public Provident Fund (PPF Account) are eligible for income tax
deduction under section 80C of Indian Income Tax Act.

Life Insurance

A life insurance policy is a contract between an individual (termed as insured) & an insurance
company (insurer) to pay the insured, or his nominated heirs, a specified sum of money on the
happening of an event. The event could be the expiry of the
Insurance policy or the insured before the expiry of the policy as per the terms of the policy.
There are main variants of a life insurance policy:
Whole Life Assurance Plans: These are low-cost insurance plan where the sum assured is
payable on the death of the insured.
Endowment Assurance Plans: Under these plans, the sum assured is pay-able on the
maturity of the policy or in case of death of the insured individual before maturity of the
Term Assurance Plans: Under these plans, the sum assured is payable only on the death of
the insured individual before expiry of the policy.
Pension Plans: These plans provide for either immediate or deferred pension for life. The
pension payments are made till the death of the annuitant unless has provision of
guaranteed period.

Any Life Insurance premiums (for one or more insurance policies) paid by the individual
for himself/herself, his/her spouse or children are eligible under income tax deduction
under section 80C of Indian Income Tax Act.

Mutual Funds
Mutual funds are investment companies that use the funds from investor from investor to invest
in other companies or investment alternative. They have advantage of professional management,
diversification, convenience & special services. Mutual funds come in various types, allowing
you to choose those funds with objectives, which most closely match your personal investment
objectives. Mutual fund schemes may be classified on the basis of its structure & its investment

ELSS Equity Linked Saving Schemes: Any investment made in certain Mutual Funds called
equity linked saving schemes qualifies for section 80C deduction. It is to be noted that not all
mutual fund investments are eligible for this deduction

A Bond is a loan given by the buyer to the issue of the instrument. Companies, financial
institutions, or even the government can issue bonds. Over & above the scheduled interest
payments as & when applicable, the holder of a bond is entitled to receive the par value of the
instrument at the specified maturity date. Bonds may be secured or unsecured.
Bonds can be broadly classified into:

Tax-Saving Bonds

Regular Income Bonds


1.) E-Filing (Electronic file).

2. Manually or Physical Filing.
E-filing of Income Tax returns: The process of electronically filing income tax returns through
the internet is known as e-filing.

It is mandatory for companies and firms requiring statutory audit u/s 44AB to submit the
income tax returns electronically from AY 2009-10.

Any company/firm requiring statutory audit u/s 44AB return submitted without a e-filing
receipt will not be accepted.

E-filing is possible with or without digital signature.


There are three ways to file returns electronically.

Option 1 : Use digital signature, in this case no further action required.

Option 2: File without digital signature, in which case ITR-V form is to be filled with


department. This is a single page receipt cum verification Form.

Option 3: File through an E-return intermediary Who would do e-filing and also assist the
assesses file the ITR-V form.

Documents required in e-filing:

Form no. 16 (for tax deducted by employers)

Account statements of bank accounts

Property details.

Sale and purchase of investments/ assets

Details of tax payments made

PAN card number.

Birth date.

TAN number

Bank account no.

Bank details MICR code, type of a/c.

Email id.

Address details.

Important Date for filing ITR:

31st march For Tax Deposit.
31st July for Filing Income Tax return.

Steps Process For Filing Income tax return:

Whether you go for E-filing Process or Manually filing income tax return. This link assists you
in completing and submitting Your ITR.
1) Go to the website

2) Click the link e- 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. ITR-1 is
for those who derive their income from salary, pension or interest while ITR-2 is for
income from capital gains, house property and other sources.

Those who wish to submit their tax returns manually may download the PDF forms external
website that opens in a new window form here. These forms need to be printed, filled by hand
and signed before submitting to your local income tax office.
4) Use of return Preparation 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. This software is an excel file that requires one to type in
personal details as well as financial information from TDS certificates, bank statements,
deductions made and interest statements.
5.) Generating an XML file After filling the details, check once for accuracy. After you are
satisfied, click the generate button to create your tax return in XML format. Save this
XML file on your computer.
6.) Register The next step requires you to register at the income tax website external
website that opens in a new window. You registered Permanent Account Number (PAN
card) has to be entered as your username.
7.) Login after registering, enter your user id and password to login. Click on the relevant
form on the left panel and select submit return.
8.) Upload XML browse to select the XML file, which you had generated and saved in
step 3. Click on the upload button to upload the file.
9.) Acknowledgement after the file is successfully uploaded, acknowledgement details or
the ITR-V form will be displayed. Take a printout of this acknowledgement for your
Digital signature if your income tax return was digitally signed, then no further paperwork or
Visit to the income tax office is needed but if it was not digitally signed, in this case the ITR-V
form should be filled and send to Income Tax office, Bangalore.
You need to Print and fill up the verification part of the acknowledgement cum Verification form
(ITR-V). This has to be signed and submitted to the local income tax office within 60 days to
complete the e-filing process.

Additional assistance In case you require any more help in filing the paper copy of the return,
please contact the public relations officer at your local income tax office. One may also phone
the Aayakar Sampark Kendra (ASK) call centre at 124-2438000 or email at


ITR-1: For Individual having income from Salary/pension/Family Pension and interest.
ITR 2: To be used by individuals and HUFs having income from any source except business or
profession. It is more comprehensive and seeks more detailed information by way of different
schedules for salary, income from house property, capital gains and income from other sources.
As regards the schedule for income from house property, it allows the taxpayer to fill in the
details of up to two house properties. If there are more than two house properties, the details of
remaining properties are to be attached on a separate sheet with the form.
ITR-3: For individuals/HUFs being partners in firms and not carrying out business or profession
under any proprietorship.
ITR-4: For individuals &HUFs having income from a proprietary business or profession.
ITR-5: For Firms, AOPs and BOIs
ITR-6: For companies other than companies claiming exemption under section 11.
ITR-7: For person including companies required to furnish return under section 139(4A) or
139(4B) or 139(4C) or 139(4D).
ITR-8: Return for fringe Benefits.


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

Fast Processing: The acknowledgment of ITR submission is fast and the refunds are
processed faster by the ITD for E-Filed ITRs.

More Accurate: E-Filing software with built-in validations and electronic connectivity
to ITD are seamless and help minimize errors. Paper based filing with self calculations
can be prone to error. Also, when any paper based form is transferred to electronic
system, there is always a possibility of human error in data entry.

No Time , place constraint: You can file anytime, anywhere. E-Filing is available 24
hours a day, seven days a week, so taxpayers may always file at their own convenience.

More Secure than Paper based filing: E-filing is safer than paper based filing. With
paper based filing your confidential identity information is lying in files and can be
passed from person to person in the CAs office or in ITDs office.

You can easily access and use your data for future returns: Most of the paid E-filing
software applications store your data in a secure manner and allow you to access it
whenever you are ready to file subsequent returns.

It is good for the environment: E-Filing is environment friendly. You just need to print
no or at most one page instead of multiple copies of multiple pages that is required in
case of paper based filing.

E-filing doesnt have many disadvantages but some time technological problems occur at the
time of filing ITR online.

Lack of control is another issue that certain individuals have with e-filing. Using an
electronic technology that you may not thoroughly understand can be daunting and the
idea of a paper-based tax return over which you have more control is more comfortable.

Other than small provider fee, however, there arent many reason the average taxpayer
wouldnt want to consider giving e-filing a try.


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.


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.


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 cant be download by internet.


Physical filing is lengthy process.

Physical filing takes more time.

Refund from physical filing come after 3 month.

Physical filings are not filled by some companies when the annual salary of user is not
more than 5 Lac.

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

SPA capital services ltd. Files approximately more than 18000 ITRs of its Prospective
Clients all over India.

The Work Process in Delhi-NCR is as follows:

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

Janakpuri (Head Office)



And the respective works are assign by these Way:

Noida and Gurgaons employees With the help of Trainee Students

Distributes Questionnaires form to their Clients (Different companies), now these trainee
students Collect completely duly filled questionnaires forms and Form 16 of every Client
and if any query arise from the client side, with the help of their mentor they solve it.

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

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

Roll of janakpuris employees:

1. Janakuris employees file ITRs electronically.

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

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

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

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

Note: People from outside Delhi send theirs form 16 and filled questionnaires via e- mail
with the help of using Company link to get filled theirs ITRs and Janakpuris employees
do it.

Graphical Representation of ITRS filing in SPA Capital Services Limited.

% of Physical filing and E-filing

E-filing (80%)
Physical filing (20%)

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


Percenatge of different ITRs filing

ITR 1 (85%)
ITR 2 (10%)
ITR 4 (5%)

Common mistakes people make while filing tax returns

The most common notion among salaried employees is that since tax has already been
deducted from their salary, there is no need to file their income tax returns. This is not at
all true or legal. Even though tax has been deducted and there is no further liability to pay
tax, an employee has to compulsorily file his / her income tax return. Form No. 16
received from employer is not their income tax return.

Employees do not include the interest that they receive on their savings bank account.
The entire interest earned on your savings bank account is taxable.

Omission of income received by a minor child. A minor child is not required to file a
separate return of income. However, this income has to be included in the hands of either
of the parents, although it might be a small amount of bank interest.

Chapter 5
Finding and interpretation
1. What will u prefer at the time of ITR filling?


depends on



physical filling

In this survey has taken from some group if people and they answer about the question that how
much they like to fill their ITR. Mostly people like to fill their ITR by online process. Then some
25% people like to fill physical filling .some of people dont bother about the way they prefer
any present way to fill the ITR.

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



never think about this

highly satisfied




In this some people who are using the SPA capital services or have used the spa capital services
in past .mostly(21%) people are highly satisfied with the services provided by the SPA
capital.(32%) people never think about the satisfaction about services they are using .but some
people are not satisfied with their services.42% are satisfied but not highly.

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








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

Regarding the effectiveness of selling strategy income tax return of SPA following
analysis could be done. The overall the selling strategy is effective but still there are
some problems which can be solved thorough better performance and taking some
corrective measures.

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

extended to other levels effectively.

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

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

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

indicator that people are now moving towards the financial services.

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

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

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

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

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

Most of them depend upon the circumstances or their financial needs. So SPA should
work more to build long-term relations by introducing them with more customized

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

depend upon the latters requirement. The word-of-mouth marketing can help the
company for sustainable growth. The existing clients should be so much influenced
that they can help in bringing new clients.

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

satisfy its existing clients as well as the future clients. Many clients need that some
more services should be added like Investment Banking, Portfolio Management etc.
so that they can have one stop solution for all their financial needs.

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

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

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

and customers satisfaction.

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

Chapter 6
Conclusion, suggestion and limitation


From the study it can be concluded thatSPA Capital is a growing organization which has through its corporate clients, grown at a
considerable pace, which is quite appreciable.

One of the selling strategies adopted by SPA is assisting the corporate employees in their
ITR filing. This has, for sure proven to be a successful strategy in building long-term
relationship with their clients and thus grows in this competitive era.
As Income Tax Return filing is a mandatory procedure for every citizen of India who is
earning money from any source, most of the people approach to such type of companies
who file their ITR at a nominal rate and thus saving their time, so this is a great
opportunity for SPA and to boost its business level.
There are some deficiencies in the working of SPA yet this can be removed by working
on them and by proper handling of queries of clients.
SPA is an emerging organization which helps the people to fulfill their almost every
financial need at one stop.

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

etc. and generating a good amount of business.

Every study has its own advantages and disadvantages. No study is perfect as there is always a
room for improvement.
In this study though every effort has made to bring it into perfection and no stone is left
unturned, there are still certain limitations, which need to be highlighted without which the study
can become biased.
Such limitations are:
The data has been generated from the secondary source thus any error in the information
would have got replicated in the report.
Time constraint was another limitation. As no efficient research can be done in this short
period of time.

Also the information available was insufficient which has also been reflected in the
report. The resources were also not much available.
The biasness of the sample units may also cause the wrong results.

Some of the information about the research sample is collected through their past record
available with the company
The results drawn from the sample has been applied to the population which may give
incomplete response.


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

If you want to file your ITR by yourself then you should go for physical filing
SPA capital is taking care of all your personal information.
SPA capital is very dedicated towards their clients
SPA capital is a company that you can trust.
SPA capital make sure that all entries of ITR filing send to Bombay


Tax Deduction and collection at source by SR Kharbanda
Master guide to Income Tax Act by Taxmanns
Taxation of salaried employed by Girish Ahuja and Ravi Gupta
Taxation of capital Gains by Tarun Chaturvedi
Capital Market in India by Rajesh Chkarbati