A PROJECT REPORT ON

INCOME TAX PLANNING IN INDIA WITH RESPECT TO

INDIVIDUALS
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
FOR PARTIAL FULFILLMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION-FINANCE
(2015-2017)
BY
RUSHI RAJESH GOKANI
UNDER THE GUIDANCE OF
PROF. SUPRIYA DESAI

A STUDY CONDUCTED FOR

IFIANS CORPORATE SERVICES PVT LTD
AT

INDIRA GLOBAL BUSINESS SCHOOL

PARANTWADI, PUNE 410506

ACKNOWLEDGEMENT
The success of the project depends on the contribution of many people, especially those who
took time to share their thoughtful criticisms and suggestions. My sincere thanks to my project
guide Mr PRAVIN NAGPAL Director IFIANS CORPORATE SERVICE PVT LTD who gave
me valuable inputs from the start of my project and who was constantly motivating and
appreciating my performance and given me an opportunity to undertake this project in his
esteemed organization.
I take this opportunity to express my profound and deep regards to my guide Professor
Supriya Desai, for her exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance given by him time to time
shall carry me a long way in this journey of life in which I am about the embark. I would also
like to thanks Mr. Virendra Tatake, Dean Academics, IGBS.
This project would not have been possible without the regular reading of tax columns from the
various income tax books, option of consultants, magazines and business related newspapers;
hence I am thankful to all the authors who contributed such informative articles which helped
me accomplish my this assignment.
At this moment I also thank almighty God for the blessing showed upon me, and also my
friends for their valuable suggestions
I would also like to thank my parents back home for supporting me both financially and
morally. This project is truly dedicated to them.

RUSHI RAJESH GOKANI

DECLARATION
I hereby declare that this report is being submitted in fulfillment of the course curriculum of
MBA at Indira Global Business School.
The information and data given in the report is authentic and I further declare that this project
report has not been submitted to any other university or institute for the award of any degree
or diploma.
The summer internship gave me an opportunity to study, understand and have practical
exposure on different aspects. This report is the result of the authentic work carried out by me,
under the guidance of Prof. Supriya Desai (Project Guide, Indira Global Business School,
Pune) during the period from 13th June, 2016 till 13th August, 2016.
Date:
Place:
Rushi Rajesh Gokani

Finance
Indira Global Business
School,
Pune

Executive Summary
The aim of my summer internship project was to learn how to tax is calculated on individuals
income and procedures for filing income tax return. Basically, individuals are subject to
income tax. Income tax is direct tax levied on the income earned by individuals, corporations
or on other forms of business entities. The Indian constitution has empowered only the central
government is governed by the central board of direct taxes (CBDT). The CBDT is a part of
Department of Revenue in the ministry of Finance. It has been charged with all the matters
relating to various direct taxes in India. It provides essential inputs for policy and planning of
direct taxes in India and is also responsible for administration of direct tax laws through the
Income Tax Department. For all the matters relating to Income tax, the income tax act, 1961 is
the umbrella act which empowers the central board of Direct Taxes to formulate rules (the
income tax rules, 1962) for implementing the provisions of the act. The income tax act
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 the assessment year. In other words, the income earned in a year is taxable in the next
year. The financial year in which the income is earned is known as the previous year. The
financial year following a previous year is known as the assessment year. The assessment year
is the year in which the salary earned in the previous year is taxable. Any financial year begins
from 1st of April and ends on 31st of March of the subsequent year.
Research Methodology used in this project is primary and secondary data source, and also
sampling method is used to study the population. I have taken five cases for my project to
depict how the tax on income of individuals is calculated under the heads: salary, house
property and income from other sources. This helped me to plan their taxes, and also reduce
their tax liability. By this project I am able to guide people and also help them to minimize
their tax liability with help of proper planning tool. 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 the current market. Every individual should know that tax

planning in order to avail all the incentives provided by the government of India under

Sr. No.

Particulars

Page No.

Introduction

Industry overview

Company Profile

Literature overview

12

Objective And Scope

16

Theoretical Background

18

Research Methodology

37

40

Data Analysis
And
Interpretation
Findings

10

Recommendation

53

11

Conclusion

56

12

Bibliography

58

different statutes is legal.

INDEX

51