New Delhi Institution of Management

WINTER TRAINING REPORT ON

“Taxation in India”

For
Kotak Life Insurance

By
Sukalp Parihar
A-31

In Partial Fulfillment for the award of the degree

Post Graduate Diploma In Management
2016-2018

1
 WINTER TRAINING REPORT ON

“Taxation in India”

For
Kotak Life Insurance

Under the supervision

of
Mr.Subodh Sharma

Submitted By- Submitted to-

Sukalp Parihar Ms.Sayanti Bannerjee
Roll Number A-31

2
 ACKNOWLEDGEMENT

I would like to gratefully acknowledge my thanks to all the people who took

active part in accomplishment of the project.

I would like to acknowledge my sincere thanks to my industry mentor

Mr. subodh sharma for his guidance, support, and valuable suggestions through the
course of my internship at Kotak Life Insurance.

I also sincerely thank my faculty mentor Ms.Sayanti Bannerjee (NDIM,OKHLA)

for giving me an inspiration and encouragement during the fulfillment of the

project.

3
 DECLARATION

I Sukalp Parihar student of New Delhi Institution of Management March 2016-

18 declare that every part of the Project Report Taxation is a Selling Tool for Life
Insurance submitted by me is original.

I was in regular contact with my faculty guide and contacted few times for
discussing the project.

Date of project submission:______________

<<Signature of the Student>>

Faculty Mentor’s Comments:

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

<<Sayanti Bannerjee>>

4
 Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................6

INTRODUCTION.......................................................................................................................................7

VISION AND MISSION..........................................................................................................................8

WHY KOTAK LIFE INSURANCE...............................................................................................9

INCOME TAX..........................................................................................................................12

LEARNING FROM WINTER INTERNSHIP................................................................................33

RECOMMENDATIONS.........................................................................................40

BIBLIOGRAPHY...........................................................................................................41

5
 EXECUTIVE SUMMARY
The objective of the project was to do Market Research and customer satisfaction
for Kotak Life Insurance for that we have to understand the customer needs,
Income, response and emotions so that they can contribute their time for becoming
life advisors for the company.The objective of this study was to analyze consumer
satisfaction in gurugram(Gurgaon) with respect to the performance, sales efforts
and sales service.

It was essential to know the feedback of customer in order to observe that how a
person wants to invest his money for tax saving purpose and insurance purpose so
that the company could come up with a plan to fully satisfy the customer.

The site visits and comparing made possible to measure the satisfaction of
consumer by identifying the attributes which gave consumer varying degrees of
satisfaction. Questionnaire based on company format some attributes like
requirement of customer and sales services offered by company were identified as
critical factors for providing satisfaction to consumers.

6
 INTRODUCTION

Kotak Life Insurance (Kotak Mahindra Old Mutual Life Insurance Ltd.) is one of
the leading life insurance companies in India. It is a joint venture between Kotak
Mahindra Bank Ltd. and Old Mutual plc, South Africa, one of the biggest life
insurance companies in the world. We are committed to using our expertise in
securing your future and ensuring that your investments keep giving you lucrative
returns

About Kotak Mahindra Old Mutual Life Insurance Ltd

Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between
Kotak Mahindra Bank Ltd., its affiliates, and Old Mutual.

About Kotak Mahindra Group

Kotak Mahindra is one of India's leading banking and financial services

organizations, offering a wide range of financial services that encompass every
sphere of life. From commercial banking, to stock broking, mutual funds, life
insurance and investment banking, the Group caters to the diverse financial needs
of individuals and the corporate sector.

Old Mutual

Old Mutual is an international long-term savings, protection and investment group.

Originating in South Africa in 1845, the Group provides life assurance, asset
management, banking and general insurance in Europe, the Americas, Africa and
Asia. Old Mutual is listed on the London Stock Exchange and the JSE, among
others.

7
 VISION AND MISSION

 An uncommon bond. Strengthened by a common vision:

Apart from common beliefs, values and objectives we believe in the vision
of a better tomorrow. It is this deep veneer of faith that has brought us
together and fortified our bond.
 The global Indian financial services brand:
Our customers will enjoy the benefits of dealing with a global Indian brand
that best understands their needs and delivers customised pragmatic
solutions across multiple platforms. We will be a world-class Indian
financial services group. Our technology and best practices will be
benchmarked along international lines while our understanding of customers
will be uniquely Indian. We will be more than a repository of our customers'
savings. We, the group, will be a single window to every financial service in
a customer's universe.
 The most preferred employer in financial services:
A culture of empowerment coupled with a spirit of enterprise, attracts bright
minds with an entrepreneurial streak to join us and stay with us. Working
with a home-grown, professionally-managed company, which has
partnerships with international leaders, gives our people a perspective that is
universal as well as unique.
 The most trusted financial services company:
We will create an ethos of trust across all our constituents. Adhering to high
standards of compliance and corporate governance will be an integral part of
building trust.
 Value creation:
Value creation rather than size alone will be our business driver.

8
 WHY KOTAK LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing
insurance companies in India, trusted by over 4 million policyholders nationwide.
The company is differentiated because of its proven ability to deliver outstanding
value to its customers through high customer empathy and understanding, lifetime
of exceptional service and suite of products that best leverage the combined
prowess of Protection and Long term Savings - the two key elements that
determine any winning life insurance product. The company also has among the
best claim ratios in the industry, a solemn testimony to its business practices. 

Our Strengths

 Financial Acumen - Holds a stable and diversified portfolio and has

received some of the highest ratings in financial strength from industry’s
independent rating agencies.
 Disciplined fund management - Years of experience in asset
management, and a strong track record in managing funds - backed by
the acclaimed expert ise of Old Mutual plc

 Innovativeness - Innovator in providing pragmatic and need based life

insurance solutions, with consistent emphasis on leveraging the
combined prowess of protection and long term savings to the customer’s
best advantage.

 Unrelenting Customer Focus - A highly committed sales force, with

customer satisfaction as the key driving force

 Transparency in Services - Daily declaration of fund performances,

regular performance benchmarking, well regulated asset management,
and monthly newsletter on market updates

9
 Kotak Mahindra Product Portfolio
 Kotak Life insurance Term Plans:
These Life Insurance Plans provide a purest cover plan that helps you with a
high level of protection at nominal cost.

 Kotak Preferred e-term Plan

 Kotak Ssaral Suraksha

 Kotak Preferred Term Plan

 Kotak Term Plan

 Kotak Life Insurance ULIP Plans:

These are ULIP Plans with low charges alongwith convenient premium
payment options that provide you with a great combination of funds and
help you build substantial wealth for yourself.

 Kotak Assured Income Plan

 Kotak Platinum

 Kotak Single Invest Advantage

 Kotak Ace Investment Plan

 Kotak Wealth Insurance

 Kotak Invest Maxima

 Kotak Life Insurance Pension Plans:

Kotak Life Plan ensure financial independence for you and your family even as
you enjoy a peaceful retired life of your dreams with their pension plans.

 Kotak e-lifetime Income Plan

 Kotak Lifetime Income Plan

10
  Kotak Life Insurance Child Plans:
Child Plans help you accumulate good amount of money and provide
defined benefits, at specific milestones in your child’s life to support his/her
education.

 Kotak Headstart Child Assure

 Kotak Life Insurance Investment Plans:

Kotak Policies are an avenue for long term regular investents to accumulate a lump
sum on maturity.

 Kotak Assured Savings Plan

 Kotak Premier Endowment Plan

 Kotak Classic Endowment Plan

 Kotak Assured Income Accelerator

 Kotak Gramin Bima Yojana

11
INCOME
TAX
“Tax levied directly on
personal income”

12
What is Tax?
Tax is a charge or burden which is laid upon persons or property for support to the
Government .It can be located in two heads as shown in chart below:

TAX

DIRECT TAX INDIRECT TAX

Direct Tax-

 Charged directly on person’s income,wealth etc

 Burden cannot be shifted
 It will not effect in the prices of the goods and services.
 High income tax rates leads to tax evasion.
Indirect Tax-

 Charged on goods and services

 Burden can be shifted
 It will increase/decrease the cost of production
 High tax leads to smuggling.
Income Tax-
It is the tax levied by the Government of India on the income of every
person. The provisions governing Income Tax laws are given in the Income
Tax Act 1961.

13
 Income Tax Calculator for FY 2016-17 (AY 2017-18)

General Public Senior Very Senior Citizens

(Below 60 Years of Age) Citizens (More than 80 Years of Age)

Income Tax Slab Tax Income Tax Slab Tax Income Tax Slab Tax
Up to Rs. 2.5 Lakhs Nil Up to Rs. 3 Lakhs Nil Up to Rs. 5 Lakhs Nil

Rs. 5 – 10 Lakhs
Rs. 2.5 – 5 Lakhs Rs. 3 – 5 Lakhs Rs.
10% 10% Above Rs. 10 20%
Rs. 5 – 10 Lakhs 5 – 10 Lakhs
Lakhs
Above Rs. 10 Lakhs 20% Above Rs. 10 20% 30%
Lakhs
 Education cess of 3%

 Surcharge of 15% on Rs 1 crore plus income earners

 Tax credit of Rs 5,000 for income up to Rs 5 lakhs u/s 87A

For the purposes of chargeability of income-tax and computation of total income,

The Income Tax Act, 1961 classifies the earning under the following heads of
income:

 Salaries
 Income from house property
 Capital gains
 Profits and gains of business or profession
 Income from other sources

14
Concepts used in Tax Planning
Tax Evasion

Tax Evasion means not paying taxes as per the provisions of the law or minimizing
tax by illegitimate and hence illegal means. Tax Evasion can be achieved by
concealment of income or inflation of expenses or falsification of accounts or by
conscious deliberate violation of law.

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

Income from Salary

All income received as salary under Employer-Employee relationship is taxed
under this head. Employers must withhold tax compulsorily, if income exceeds
minimum 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 if supported by

bills.
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. Professional taxes: Most states tax employment on a per-professional basis,

usually a slabbed amount based on gross income. Such taxes paid are
deductible from income tax.

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

15
 1. Actual HRA received

2. 50%/40%(metro/non-metro) of basic 'salary'

3. Rent paid minus 10% of 'salary'. Basic Salary for this purpose is
basic+DA forming part+commission on sale on fixed rate.

Income from salary is net of all the above deductions.

Income from House property

Income from House property is computed by taking what is called Annual Value.
The annual value (in the case of a let out property) is the maximum of the
following:

 Rent received
 Municipal Valuation

 Fair Rent (as determined by the I-T department)

If a house is not let out and not self-occupied, annual value is assumed to have
accrued to the owner. Annual value in case of a self occupied house is to be taken
as NIL. (However if there is more than one self occupied house then the annual
value of the other house/s is taxable.) From this, deduct Municipal Tax paid and
you get the Net Annual Value. From this Net Annual Value, deduct:

 30% of Net value as repair cost (This is a mandatory deduction)

 Interest paid or payable on a housing loan against this house

In the case of a self occupied house interest paid or payable is subject to a

maximum limit of Rs, 1, 50,000 (if loan is taken on or after 1 April 1999 and
construction is completed within 3 years) and Rs.30, 000 (if the loan is taken
before 1 April 1999). For all non self-occupied homes, all interest is deductible,
with no upper limits.The balance is added to taxable income.

Income from Business or Profession

16
  carry forward of losses

An example... An architect works out of home and co-ordinates work for his
clients. All the following expenses would be deductible from his professional fees.

 he uses a computer,
 he travels to sites in his car,

 he has a peon to help him collect payments

 He has a maid who comes in daily

 Entertainment expenses incurred...

The computation of income under the head "Profits and Gains of Business or
Profession" depends on the particulars and information available.
If regular books of accounts are not maintained, then the computation would be as
under: -
Income (including Deemed Incomes) chargeable as income under this head xxx
Less: Expenses deductible (net of disallowances) under this head xxx Profits and
Gains of Business or Profession

Computation of WDV of the block:-

WDV at the beginning of year : XXXX
Add:-Actual cost incurred on assets (Acquired during the year): XXXX
Less:-Money Payable during the year (Which is sold) : XXXX
Depreciation  at the prescribed % : XXXX
Closing WDV :XXXX     

Depreciation is provided for whole year except when, Asset is Acquired and put to
use during the year for less than 180 days during the year in this case the
depreciation is limited to 50% of total depreciation, but if same asset acquired
during earlier years but put to use this year and usage period less than 180 days
during current year then depreciation for whole year. When all the assets of block
are sold, in such a case no depreciation is allowed and short term capital/gain or
loss would be attracted as per provisions of section 50 discussed in capital gains.
17
PART OF BLOCK SOLD BUT MONEY PAYABLE EXCEEDS WDV:- In such
a case no depreciation is allowed and also short term capital gain provision as per
section 50 is attracted.

ADDITIONAL DEPRECIATION : –
Additional depreciation is only to manufacturing concerns. Additional depreciation
on certain assets: 20% or 10% (for <180days). Only factory machinery and
equipments .

Assets on which additional depreciation is not allowed:-

 Not second hand machinery

 Not on ships, aircrafts and road transport vehicles
 Not allowed on equipments installed in office
In case an enterprise is engaged in electricity business it has option to charge
depreciation on SLM basis but such an option is available once only and can’t be
changed

Income from Capital Gains

Transfer of capital assets results in capital gains. A Capital asset is defined under
section 2(14) of the I.T. Act, 1961 as property of any kind held by an assesse such
as real estate, equity shares, bonds, jewellery, paintings, art etc. 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 tax purposes, there are two types of capital assets: Long term and short term.
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 assets gives rise to long term capital gains. There are different scheme of
taxation of long term capital gains. These are:

1. As per Section 10(38) of Income Tax Act, 1961 long term capital gains on
shares or securities or mutual funds on which Securities Transaction Tax
18
 (STT) has been deducted and paid, no tax is payable. STT has been applied
on all stock market transactions since October 2004 but does not apply to
off-market transactions and company buybacks; therefore, the higher capital
gains taxes will apply to such transactions where STT is not paid.
2. In case of other shares and securities, person has an option to either index
costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed
gains. The indexation rates are released by the I-T department each year.

3. In case of all other long term capital gains, indexation benefit is available
and tax rate is 20%.

All capital gains that are not long term are short term capital gains, which are taxed
as such:

 Under section 111A, for shares or mutual funds where STT is paid, tax
rate is 10% From Asst Yr 2005-06 as per Finance Act 2004. For Asst Yr
2009-10 the tax rate is 15%.
 In all other cases, it is part of gross total income and normal tax rate is
applicable.

For companies abroad, the tax liability is 20% of such gains suitably indexed
(since STT is not paid).

Income from Other Sources

This is a residual head; under this head income which does not meet criteria to go
to other heads is taxed. There are also some specific incomes which are to be taxed
under this head.

1. Income by way of Dividends

2. Income from horse races

3. Income from winning bull races

4. Any amount received from key man insurance policy as donation.

5. Income from shares (dividend other than Indian company)

19
 DEDUCTION UNDER CHAPTER VI-A

Section Nature of deduction Who can claim

80C & Aggregate amount under Sec 80C, 80 CCC, 80 CCD is Individual
80CCC Rs. 1.5 Lakhs for Investment in PPF, National Saving
Certificate five year fixed deposit scheme, ULIPS or
payment of Children tuition fee etc
80CCD Contribution to pension scheme notified by Central Individual
Government up to 10% of salary (subject to certain
conditions and limits)
Contribution made by employer shall also be allowed
as deduction under section 80CCD(2) while
computing total income of the employee. However,
amount of deduction could not exceed 10% of salary
of the employee
80CCF Amount up to Rs. 20,000, paid or deposited, during Individual/HUF
the previous years relevant to assessment year 2011-
12 or 2012-13, as subscription to notified long-term
infrastructure bonds
80CCG 50 per cent of amount invested by specified resident Specified
individuals in notified equity savings resident
scheme16(subject to certain conditions and limits) individuals
(maximum deduction : Rs. 25,000) (new retail
investors)
80D Amount paid (in any mode other than cash) by an Individual/HUF
individual or HUF to LIC or other insurer to effect or
keep in force an insurance on the health of specified
person. An individual can also make payment to the
Central Government health scheme and/or on
account of preventive health check-up (subject to
limit)
■ specified person means:
20
 - In case of Individual - self, spouse, dependent
children or parents
■ Deduction for preventive health check-up shall
not exceed in aggregate Rs. 5,000.
■ Payment on account of preventive health check-
up may be made in cash.
80DD Deduction of Rs. 75,000 (Rs. 1,25,000 in case of Resident
severe disability) to a resident individual/HUF Individual/HUF
where (a) any expenditure has been incurred for the
medical treatment (including nursing), training and
rehabilitation of a dependant, being a person with
disability [as defined under Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995] (w.e.f. assessment year
2005-06 including autism, cerebral palsy and
multiple disability as referred to in National Trust for
Welfare of
Persons with Autism, Cerebral Palsy, Mental
Retardation & Multiple Disabilities Act, 1999), or (b)
any amount is paid or deposited under an approved
scheme framed in this behalf by the LIC or any other
insurer or the Administrator or the specified
company for the maintenance of a dependent, being
a person with disability (subject to certain
conditions)
80DDB Expenses actually paid for medical treatment of Resident
specified diseases and ailments subject to certain Individual/HUF
conditions18
80E Amount paid out of income chargeable to tax by way Individual
of payment of interest on loan taken from financial
institution/approved charitable institution for
pursuing higher education19 (subject to certain
conditions) (maximum period : 8 years)
80EE Interest payable on loan taken by an individual from Individual
any financial institution for the purpose of
acquisition of a residential house property subject to
21
 certain condition. (Maximum deduction 50,000)
80G Donations to certain approved funds, trusts, All assessees
charitable institutions/donations for renovation or
repairs of notified temples, etc. [amount of deduction
is 50 per cent of net qualifying amount]. 100 per cent
of qualifying donations to National Defence Fund,
Prime Minister's National Relief Fund, Prime
Minister's
Armenia Earthquake Relief Fund, Africa (Public
Contributions -
India) Fund, National Children's Fund (from 1-4-
2014), Government or approved association for
promoting family planning, universities and
approved educational institutions of national
eminence, National Foundation for Communal
Harmony, Chief Minister's Earthquake Relief Fund
(Maharashtra), Zila
Saksharta Samitis, National or State Blood
Transfusion Council, Fund set up by State
Government to provide medical relief to the poor,
Army Central Welfare Fund, Indian Naval Benevolent
Fund and Air Force Central Welfare Fund, Andhra
Pradesh Chief Minister's Cyclone Relief Fund,
National Illness Assistance Fund, Chief Minister's
Relief Fund or the Lt. Governor's Relief Fund in
respect of any State or Union Territory, National

Sports fund, National Cultural Fund, Fund for

Technology Development and
Application, Indian Olympic Association, etc.20, fund
set up by State Government of Gujarat exclusively for
providing relief to victims of earthquake in Gujarat,
National Trust for Welfare of Persons with Autism,
Cerebral palsy, Mental retardation and Multiple
Disabilities, and sums paid between 26-1-2001 and
30-9-2001 to any eligible trust, institution or fund for
providing relief to Gujarat earthquake victims21, the
22
 Swachh Bharat Kosh and the Clean Ganga Fund (from
assessment year 2015-16) and National Fund for
Control of Drug Abuse (from assessment year 2016-
17)
[subject to certain conditions and limits]22
80GG Rent paid in excess of 10% of total income for Individuals not
furnished/unfurnished resi-dential accommodation receiving any
(subject to maximum of Rs. 5,000 p.m. or 25% of total house rent
income, whichever is less) (subject to certain allowance
conditions)
80GGA Certain donations for scientific, social or statistical All assessees
research or rural development programme or for not having any
carrying out an eligible project or scheme or National income
Urban Poverty Eradication Fund (subject to certain chargeable
conditions) under the head
'Profits and
gains of
business or
profession'
80GGB Sum contributed to any political party/electoral Indian
trust24 company
80GGC Sum contributed to any political party/electoral All assessees,
trust24 other than local
authority and
artificial
juridical person
wholly or
partly funded
by Government
For certain incomes
80-IA Profits and gains from industrial undertakings All assessees
engaged in infrastructure facility, telecommunication
services, industrial park, development of Special
Economic Zone, power undertakings, etc. (subject to
certain conditions and limits)25

23
 No deduction under this section shall be available to
an enterprise which starts the development or
operation and maintenance of the infrastructure
facility on or after the 1st day of April, 2017.
80-IAB Profits and gains derived by undertaking/enterprise Assessee being
from business of developing a Special Economic Zone Developer of
notified on or after 1-4-2005 (subject to certain SEZ
conditions and limits)

No deduction under this section shall be available to

an assessee, being a developer, where the
development of Special Economic Zone begins on or
after the 1st day of April, 2017.
80-IAC Profit and gains derived by an eligible start-up from Company and
specified business on or after 1-4-2017(subject to LLP
certain conditions)
80-IB Profits and gains from industrial undertakings, cold All assessees
storage plant, hotel, scientific research & No deduction
development, mineral oil concern, housing projects, shall be
cold chain facility, multiplex theatres, convention available to an
enterprise
centres, ships, etc. (subject to certain conditions and
which
limits) commence the
business
activity on or
after 1-42017.
80-IC Profits and gains derived by an undertaking or an All assessees
enterprise in special category States (Himachal
Pradesh, Uttaranchal, Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram,
Nagaland and
Tripura) (subject to certain limits, time limits and
conditions),
(a) which has begun or begins to manufacture or
produce any article or thing, not being any article or

24
 thing specified in the Thirteenth Schedule, or which
manufactures or produces any article or thing, not
being any article or thing specified in the Thirteenth
Schedule and undertakes substantial expansion
during the specified period.
(b) which has begun or begins to manufacture or
produce any article or thing specified in the
Fourteenth Schedule or commences any operation
specified in that Schedule, or which manufactures or
produces any article or thing, specified in the
Fourteenth Schedule or commences any operation
specified in that Schedule and undertakes substantial
expansion during the specified period
80-ID Profits and gains from business of hotels and All assessees
convention centres in specified areas (subject to
certain conditions).
80-IE Deduction in respect of certain undertakings in North All assessees
Eastern States.
80JJA Entire income from business of collecting and All assessees
processing or treating of bio-degradable waste for
generating power, or producing bio-fertilizers, bio-
pesticides or other biological agents or for producing
bio-gas, making pellets or briquettes for fuel or
organic manure (for 5 consecutive assessment years)
80JJAA Deduction of 30% of additional employee cost in Assessee to
respect of employment of new employees. whom section
Additional employee cost means total emoluments 44AB applies
paid or payable to additional employees employed
during the previous year.
Deduction shall be allowed for first three Assessment
Years including the Assessment Year relevant to
previous year in which such employment is provided.
80LA Certain incomes of Scheduled banks/banks Scheduled
incorporated outside Banks/banks
25
 India having Offshore Banking Units in a Special incorporated
Economic Zone/Units of International Financial outside
Services Centre (subject to certain conditions and India/Units of
International
limits)
Financial
Services
Centre
80P Specified incomes [subject to varying limits specified Co-operative
in subsection (2)] societies
80QQB Royalty income of author of certain specified Resident
category of books (up to Rs. 3,00,000) (subject to Individual -
certain conditions) Author
80RRB Royalty on patents up to Rs. 3,00,000 in the case of a Resident
resident individual who is a patentee and is in receipt individuals
of income by way of royalty in respect of a patent
registered on or after 1-4-2003 (subject to certain
conditions).
80TTA Interest on deposits in savings bank accounts (up to Individuals/HU
Rs. 10,000 per year) Fs
80U Deduction of Rs. 75,000 to a resident individual who, Resident
at any time during the previous year, is certified by individuals
the medical authority to be a person with disability
[as defined under Persons with
Disabilities (Equal Opportunities, Protection of
Rights and Full Participation) Act, 1995] [w.e.f.
assessment year 2005-06 including autism, cerebral
palsy, and multiple disabilities as defined under
National Trust for Welfare of Persons with Autism,
Cerebral Palsy, Mental Retardation & Multiple
Disabilities Act, 1999] [in the case of a person with
severe disability, allowable deduction is Rs. 1,25,000]
(subject to certain conditions).

26
27
 Due Dates under IT Act

S.No. Particulars Form Due date

Applicable
TDS Monthly ITNS – 281 7th of each month
succeeding the month of
1. Remittance deduction except for March
month
March month due date is 30th
April

2. TDS Quarterly 24Q – salaries Quarter ended June -

Returns 26Q – Others 15thJuly, Quarter ended
27Q - Other Sept. - 15th October,
than salary Quarter ended Dec - 15th
to NORs January,
Quarter ended Mar - 15th
May

3. Returns for 26QAA Quarter ended June - 31st

non- deduction July
of Tax Quarter ended Sept - 31st
October
Quarter ended Dec - 31st
January
Quarter ended Mar - 30th
June

4. Tax Collected at 27EQ - Quarter ended June - 15th

Source Quarterly July
Quarter ended Sept - 15th
October
Quarter ended Dec - 15th

28
 January
Quarter ended Mar - 15th
May

5. Annual Respective 31st August

Information Return
Return (AIR) Forms

Returns of
6. Incomes

- Companies ITR-6 30th September

other than
those claiming
exemption
under Sec 11

Non corporate ITR 3,4 or 5 30th September

Business
assessee who
need their
accounts
audited

- Working ITR3 30th September

partner of a firm
whose accounts
need to be
Audited

- Any other non ITR 3,4 or 5 31st July

corporate
assessee

29
 - Non Corporate ITR 1 or 2 31st July
Assessee having
no
Business
Income
-Charitable ITR7 30th September.
trusts of section
25 companies
claiming
exemption U/s
11

7. Advance tax - ITNS – 280

For June 15th - 15%
Corporate September 15th - 45%
Assesee December 15th - 75%
- 1st March 15th - 100%
Installment
- 2nd
Installment
- 3rd
Installment
- 4th
Installment

8. Advance tax – ITNS – 280

For
Non Corporate
Assesee
30% of advance tax
On or before
15th 60% of advance tax
September

On or before 100% of advance tax

15th
30
 December

On or before
15th
March

Due Dates

Nature Form and Time limit

In Form 35, within 30 or 45 days from the
Appeal to Commissioner date of receipt of the order to be appealed
of Income-tax (Appeals) against.
Appeal to Income-tax In Form 36, within 60 days from the date
Appelate Tribunal of receipt of order to be appealed against.
Filing of Memorandum of In Form 36A, within 30 days from the
Cross Objections date of receipt of the notice.
Appeal to High Court Within 120 days of receipt of the order
Distribution Tax under Within 14 days from the date of
section 115-O declaration of dividend.
Annual Information Before August 31 after the end of the year
returns
Within 7 days from the end of the month
Form 15H and Form 15-I in which it is received.

31
 LEARNING FROM WINTER
INTERNSHIP
My Internship at Kotak Life was a great learning experience. Being the first time
having worked with an Organization as big as Kotak life, my experience has been
enriching. I have learnt a lot during my internship and I am sure that this
experience will benefit me in my career.

My learning from this Winter Internship are as below:

 Understanding my skill set:

Having worked with Kotak Life, I am now in a better position to evaluate
my skill set. I can now understand to a great extent my capabilities. Working
practically on multiple issues also made me understand how I can utilize my
knowledge and skill.

 Professional Conduct and Office manners:

This was the first opportunity to understand office decorum and
professionalism. I was very observant at office how people in a professional
set up interacted with each other. I have learned how to behave in office,
how to interact within the team, how to interact with seniors. These
observations will help me in presenting myself in a professional manner
whenever I join a work place.

 Practical Knowledge about tax deductions:

Before my training I had some academic idea about tax deductions under
Income Tax. However, at Kotak Life, I was given the opportunity to
calculate tax liability of employees. Further, I was also given the opportunity
to advise them to invest for saving taxes.

 Knowledge about the products of Kotak Life:

I got to know about products of K-Life especially the products which are
frequently sold like Kotak Assured Saving Plan etc. I got to know about the
time duration of a plan, that premium can be paid on monthly, quarterly and
yearly basis.

 Verification, Submission and approval of Investment documents :

32
 I got to know the procedure for verification of proof of investments
submitted for claiming deductions under Income Tax. I also understood the
procedure for approving tax deductions on the Company’s portal.

 Addressing Customer queries:

In case of rejection of investment proofs for deduction under Income Tax,
customers used to visit us and put forward their questions regarding the said
rejection. I used to answer and resolve such queries.

For instance, there was an employee who had invested around Rs. 1,70,000
in investments in Kotak Assured Saving Plan which falls under 80C of
Income Tax Act. According to the law at the relevant time, maximum
deduction of Rs. 1,50,000 was permissible. In such a case, I had approved
only Rs. 1,50,000. The employee visited us and questioned on rejection of
deduction of Rs. 20,000/- . We made him understand that the maximum
permissible deduction under Section 80C is Rs. 1,50,000 only. The
employee was satisfied.

 Follow up Calls
I also called the customers to ask for feedback on how their banking
experience was going on with the bank and if they were facing any problems
related to their investments with kotak life insurance.

 Products of kotak life insurance

Product Name Market Share(%) in Kotak
Kotak Assured Saving Plan 40
Kotak Ace Investment 10
Term Plan 5
ULIP 8
Others 37

33
40
35 Kotak Assured
Saving Plan
30
Kotak Ace
25 Investment
20 Term Plan
15
10 ULIP
5
others
0
Market Share(%) in Kotak

34
 SWOT Analysis of Kotak Life Insurance

Parent Company Kotak Mahindra Bank & Old Mutual plc.

Category NBFC

Sector Insurance and finance

Tagline/ Slogan ‘zindagi se ek kadam aage’

USP Expertise in local market with global exposure

STP

Segment Personal and Group Insurance

Target Group Urban and Rural Investors

Positioning Complete Insurance and financial solutions

SWOT Analysis

1. State of art Actuarial I.T Infrastructure

2. Has network across 300 towns
3.  Innovative Product range with transparent practices
4. The company covers over 3 million customers and is one of the fastest growing insurance
Strengths companies in India

1.  Lack of presence in various parts of country

Weaknesses 2. Limited Advertising and low brand visibility as compared to leading competitors

1. Growing potential in the semi-urban and rural market

Opportunities 2. Better investment awareness amongst the younger generation

1.  Fluctuating economic scenarios 

Threats 2.  Entry of new NBFCs in the sector increasing competition

35
 

COMPETITORS OF KOTAK LIFE INSURANCE AND THEIR

MARKET SHARE

Name of Company Market Share

LIC 70.4%
SBI 5.1%
ICICI 4.88%
HDFC 4.08%
Bajaj Allianz 2.08%
Max Life 2.08%
Birla Sun Life 1.60%
Reliance Life 1.12%
Others 8.06%

36
LIC SBI

ICICI HDFC

Bajaj Allianz Max Life

Birla Sun Life Reliance Life

Others

37
 RESEARCH METHODOLOGY

RESEARCH OBJECTIVE:

Objective: People prefer government investment over private

investment for tax saving
Null Hypothesis : People do not prefer government investment
over private investment for tax saving
Alternate Hypothesis: People prefer government investment
over private investment for tax saving
Sample Size: 220
Data Collection: Primary Data (through tax proof collection)
Technique: Bar Graph Analysis

38
 Age Wise Analysis

Preference Highly preferred No Not Highly

of preferred difference preferred not
government preferred
securities
over
private
age
20-30 10 5 17 25 18

30-40 20 25 25 20 10

40and 20 10 10 3 2
above

25

20

15
20-30
10 30-40
40and above
5

0
Highly no highly not
preferred difference preferred

39
 Income Wise Analysis

Preference of Highly preferred No Not Highly

government preferred difference preferred not
preferred
securities over
private

income
Income 37 22 15 7 9
<50000per
month
Income 13 18 52 30 17
>50000 per
month

40
60
50

40
30 income <50000
per month
20 income
>50000per month
10
0
highly no highly not
preferred difference preferred

41
 CONCLUSION
AND
RECOMMENDATION

42
 CONCLUSION
After conducting market research for Kotak Life Insurance we
came to know different needs of consumers, their valuable
suggestions, responses to the different questions. With this
information we can conclude that there is good market
awareness about Kotak Life Insurance Company in the market.
Customer satisfaction level of most respondents is higher for
Kotak Life Insurance, which is provided by survey. Higher
satisfaction level of Kotak Life Insurance was monthly because
Kotak provides good tax benefit for the consumers.
Despite people preferring government secutities ,Kotak Assured
saving plan is the best-sold plan in market by Kotak Mahindra
Life Insurance.
This conveys that the customers are switching to private
investment over government.

RECOMMENDATIONS
 Kotak life must provide detailed catalogue for easy understanding of the
product.

 The company must try to sell the product which is best suited to the
customer rather than what they want to sell.

43
 Kotak life should introduce more assured saving plans as they attract
the customers the most.

44
 BIBLIOGRAPHY
 The information has been sourced from different books, journals,
management websites

 Accessing database help us lot. Some are listed below:

 www.google.com

 www.kotaklifeinsurance.com

 www.wikipedia.org

45