A

PROJECT REPORT

ON

Singhad school of business management (SKNSSBM)

AT

M.M and Associate

SUBMITTED BY

Dhanashri Shubhash Kavikar

(STREAM- FINANCE)

UNDER THE GUIDANCE Of

Prof. Yatin Bokil.

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION (MBA)

THROUGH

S.K.N SINHGAD SCHOOL OF BUSINESS MANAGEMENT,

AMBEGAON (BK), PUNE

(2021 – 2023)
 DECLARATION
I, the undersigned, hereby declare that the project report entitled “E- Filling of
Income Tax And Procedure For Individual” written and submitted by me to the
Savitribai Phule Pune University, Pune in partial fulfillment of the requirement for
the award of degree of MBA under the guidance of “prof. Yatin Bokil” is my
original work except the topics on organizational profile and the conclusion drawn
therein are based on the material collected by myself.

Place : Pune. Dhanashri Shubhash Kavikar

Date : STUDENT NAME

 GUIDE’S CERTIFICATE
This is to certify that the Project Report entitled “E- Filling of Income Tax And
Procedure for Individual” which is being submitted herewith for the award of the
degree of Master of Business Administration of University of Pune, is the result
of the original research work completed by Dhanashri Shubhash Kavikar under
my supervision and guidance.

To the best of my knowledge and belief the work embodied in this Project Report
has not formed earlier the basis for the award of any degree or similar title of this
or any other University or examining body.

Place : Pune. Prof. Yatin Bokil

Date : GUIDE NAME

 ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my
guide Prof. Yatin Bokil for his/her exemplary guidance, monitoring and constant
encouragement throughout the course of this project. The blessing, help and
guidance given by HIS/her time to time shall carry me a long way in the journey of
life on which I am about to embark.

I also take this opportunity to express a deep sense of gratitude to MANGER /

REPORTING AUTHORITY IN ORGANIZATION for his/her cordial support, valuable
information and guidance which helped me in completing this project through
various stages.

I wish to express a special thanks to all teaching and non-teaching staff members
of S.K.N Singhad School of Business Management, Pune their continuous support.
I would like to acknowledge all my family members, relatives and friends for their
help and encouragement.

Place : SKN Singhad School of Business Management,Pune. Dhanashri Kavikar

Date : STUDENT NAME

 Table Of Content
Sr. No. Content Page No.
Executive Summary 1
1. Introduction 2
1.1 Types of E- Filling 4
1.2 Documents required for 5
E- Filling
1.3 Process of E- Filling 6
1.4 Need for Study 8
1.5 Objective of the study 9
1.6 Scope of Study 10
1.7 Limitation of the study 10
1.8 Return Of income 11
1.9 Rates of income tax 13
1.10 Tax deduction at 15
source
1.11 Advance tax 15
1.12 Taxable head of 16
income tax
1.13 Income exempt from 19
tax
1.14 Tax benefits, 20
deduction, rebates
2. COMPANY PROFILE 22
2.1 Business focus 23
2.2 Business and culture 23
2.3 Business In India 23
2.4 Service channel of M.M 24
and Associate.
2.5 Name and address of 24
the company
5
3. Literature Review 26
4. Research Methodology 27
4.1 Research design 29
4.2 Sampling design 30
4.3 Methods of data 31
collection
5. DATA ANALYSIS AND 32
INTERPRETATION
6. FINDING, SUGGESTION 39
AND CONCLUSION
6.1 Finding 40
6.2 Suggestion 41
6.3 Limitation 42
6.4 Conclusion 42
7. LEARNING AND 43
CONTRIBUTION TO
ORGANIZATION
8. REFERENCE 47

6
7
 EXECUTIVE SUMMARY OF THE PROJECT

In India there is constant rise in employment rate as the number of people earning in a
country goes up simultaneously there is rise the rise in the tax payers and tax collected.

Surprisingly in financial year 2021-2022 number of tax payers are at just 3.03 Cr. This
number has since gone up and there was a need created to advise and help these
individuals pay their tax. This was an opportunity ceased by the taxation firms as the
business grew. One such company is M.M and Associate.

M.M and Associate is the largest income tax filling company with over 125 return filed
worldwide annually. With presence in only India. M.M and associates was established in
the year by Mukund Mogal and seen growth over the year, with the continuous rise in
consumer base. The success of this growth along with favourable condition is also
credited to their business development strategies.

As Initial year in India M.M. Associates used various business development strategies to
expand its customer base as part of its company trying to attract maximum customer
base form business sector by offering them services for free of cost form it’s website.
Company also provided free individual OA (online assisted) tax filling services for salary
employee for two if firm is agreed. Over the last four tax M.M and associates not only as
the one of the fastest growing company but also largest tax filling services providing
company in short span of time.

As a Finance student I was given a great opportunity to intern at a company of such

become, part of a corporate environment of high standard and also to learn and
enhance my knowledge about taxation which has since grown immensely.

This project Report shares my learning and working profile at M.M and Associate.

I am learned from M.M and Associate types of taxes, slabs of tax, profit and loss account
and balance sheet of business.

8
 CHAPTER 1

INTRODUCTION

9
 INTRODUCTION

In India the tax system is so complex from the beginning. The Income Tax Department of
the Ministry of Finance Government of India is constantly striving and committed to
provide simple and easy procedure to tax payers in the country. The income tax
department had introduced E-filing of Income tax returns to make the filling process
easier for taxpayers which will result into reduction of time and paper work. Due to
advance technology and use of internet in financial and fiscal affairs globally, the had
raised to the E- filling of ITR in India also. From the year the E- filling has become
mandatory for major chunk of tax payers in India.

E- filling is the process of filling your tax document through internet with help of
software or by registering yourself to the income tax website. With advancement of
technology and use of internet in financial and fiscal affairs globally has necessitated the
E- filling of Income tax in India also considering its benefit and urgency the e-filing has
become mandatory for major chunk of tax payers in India.

E- file is a system for submitting tax documents to the US Internal Revenue Service
through the internet or direct connection, usually without the need to submit any paper
documents. Tax preparation software with e- filling capabilities includes stand- alone
programs or websites

In India E-filing of income tax was introduced in September 2004 initially on a voluntary
usage for all categories of income tax assesses. But from July,2006 , it was made
mandatory for all corporate firms to e- file their income tax return. Taking this process
further, from assessment year 2007 and 2008, e- filling of income tax return was made
mandatory for all companies and from 2013 Individuals having more than 10 lakh
income are mandatory for filling income tax online. In 2013-2014, 2.96 Cr. Income tax
return has been filed though the E- filling facility. While in 2017 – 2018 the number
increased.

10
1.1

11
1.2 TYPES OF E-FILING
 Option 1 : e- file without Digital Signature Certificate
 Option 2 : e- file the Income Tax Return (ITR-V) through an e- return
Intermediary ( ERI) with or without Digital Signature Certificate ( DSC).
 Option 3 : Use Digital Signature Certificate ( DSC) / EVC to e- file

Types of E- filling

e-file without e-file through e-. e-file using

Using Digital Return Digital Signature
Signature Intermediary

Without DSC with DSC

Generate ITR-V. Generate and print

Acknowledgements form.
Further action is required.

Send to CPC, Bangalore

12
1.2 DOCUMENTS REQUIRED FOR E- FILLING

 Account statement of Bank Account

 Property Details
 Sale and purchase of Investment
 Details of tax payment made
 Aadhar and PAN number
 Birth date
 TAN number
 Bank A/c no
 Bank details: MICR code type of a/c
 Form 16
 26AS
 Home loan statement
 IT Login Details
 Capital Gain Tax
 Details of savings Bank Account

13
1.3Process Of E-filing

 STEP 1. Register yourself

To e-file your income tax return, you will have register on the Income Tax
Department’s online tax filing site (incometaxindiaefiling.gov.in). You have to
provide your permanent account number (PAN), name and date of birth and
choose a password. Your PAN will be your user ID.

 STEP 2. Choose how you want to e-File

There are two ways of e-filing your income tax return. One is to go to the
download section and select the requisite form, save it on your desktop and fill
fill all the details offline and then upload it back on the site. Or you can choose
to fill form online by selecting the quick e-file option.

 STEP 3. Select the requisite form

ITR-1: For individuals earning a salary, pension, or income from property or

sources other than lottery

ITR-2: For those earning capital gains. ITR2A for those owing more than one
house but no capital gain

 STEP 4. Keep the documents ready

Keep your PAN, Form 16. Interest statements,TDS certificates, detaitof

investments, insurance and home loans handy. Download Form 26AS, which
summaries tax paid against your PAN. You can then validate your tax with
Form 26AS to check your tax

If you earn more than Rs50 lakh, from

14 this year you will have to fill an
 additional column-“AL” or assets and liabilities. You will have to disclose the
value of your assets and liabilities.

 STEP 5. Fill form and upload

If you choose to fill the form offline, after you have downloaded the form and
filled all the details, click on ‘generate XML'. Then go to the website again and
click on the 'upload XML' button. You will have to first log in to upload the XML
file saved on desktop and click on submit.

 STEP 5. Verify ITR V

On submitting your ITR form, an acknowledgement number is generated. In

case the return is submitted using digital signature, you just have to preserve
this number. If the return is submitted without a digital signature, an ITR-V is
sent to your registered email ID.

The tax filling process is incomplete and ITR is invalid unless your ITR V
verified. You can electronically verify or mail the signed ITR V processing
center in Bengaluru within 120 days of filling the return.

15
NEED FOR STUDY

The importance of income- tax increased considerably in the present days because it
has become a major source of revenue to be utilized for the social and economic
development of the country. It is one of the effective instrument of reducing unequal
distribution of wealth between the rich and the poor. It is also one of the means to
solve the acute problem of unemployment. The above objective can be achieved by
introducing a progressive system of taxation. Income-tax is a direct tax and immense
impact on the tax structure. On the hardships on them. Such hardships has to be
reduced by rationalizing the tax structure. On the whole this type of taxation is
inevitable to our country. Understand the meaning of tax.

 Recognise the type of tax

 Comprehend the reason for levy of taxes
 Know the component of income tax law
 Grasp the concept of income
 Understand the procedure for computation of total income for the purpose of
the levy of income tax
 Know that there is a requirement of paying advance tax and deduction of tax
at source
 Appreciate what a ' Return of income' means

16
1.4OBJECTIVE OF THE STUDY

The primary purpyof taxation is to raise revenue to meet huge public expenditure. Most
governmental activities must be financed by taxation. But it is not the only goal. In other
words, taxation policy has some non- revenue objectives

Taxation, imposition of compulsory levies on individuals or entities by governments.

Taxes are levied in almost every country of the world , primarily tobrise revenue for
government expenditures, although they serve other purpose as well….In modern
economies taxes are the most important source of governmental revenue

The present study has the following main objective:

 To study the significance of income-tax

 To assess the professional perception

 Awareness towards e-filing of income tax return

 To analyse the level of satisfaction among tax professional towords e- filling of

income tax returns

 To know the awareness of the law and rules of E-filing of INCOME TAX among tax
professional

 To make suggestion based on finding drawn from the study

 To know the merits and demerits of E- filling of INCOME TAX implementation on

tax professional.

17
1.6 SCOPE OF STUDY

The study covers that law and rules of INCOME TAX and their impact on tan
professional the provision has been studied based on their existence in the INCOME
TAX as an 1st April 2005 and rules their due to the time constraint the study to the tax
professional city.

Taxation is considered as a complex matter affecting financial planning of each

individual income tax assesses. The scope of the present study is limited to the tax
planning measures adopted by the salaried income tax assesses of the state.

1.7LIMITATION OF THE STUDY

The Study is subjected to the following limitation

 It is based only on 50 respondents.

 The data collected by the respondents has come mainly of the memory of
respondents and answers to the various questions covered in questionnaire
 The study is restricted to only tax professionals and cover only city.
 Time was the one of the constraint
 The study only impact of only E-filing on tax professionals.

18
 1.8 RETURN ON INCOME

It is mandatory for every taxpayers to communicate the details of his income to the
Income-tax department. These details are to be furnished in the prescribed form
known as return on income. In this part, you can gain knowledge about the various
provisions relating to return on income. The provisions relating to filling of return of
income depend upon the status of the taxpayer.

1. In the case of companies:

Every person, being a company, has to file its return of income compulsory,
irrespective of its income being profit or loss. In other words, it is mandatory for every
company to file the return of income irrespective of its income or loss.

2. In the case of partnership firm:

Every person, being a partnership firm ( including Limited Liability Partnership), has
to file its return of income compulsory, irrespective of its income being profit or loss. In
other words, it is mandatory for every partnership firm to file the return of income
irrespective of it is income or loss.

3. In case of political parties:

The chief Executive Officer of every political party has to file the return of Income of
the party if the total income of the party without giving effect to the provisions of
section 13A exceeds the maximum amount not chargeable to income-tax.

4. In the case of certain University, collage or other institutions:

Every University, collage or other institutions referred to in clause(ii) and clause (iii)
of section 35(1) , which is not required to furnish of income or loss under anybother
provision of the Act, shall furnish the return on income every year, irrespective of
Income or loss.

5. In the case of Business Trust:

Every business trust, wich is not required19to furnish return on income or loss under
any other provision of the Act, shall furnish the return on income every year.
Irrespective of income or loss.

6. In the case of charitable or religious trusts:

Every person in receipt of income derived from property held under charitable or
religious trust/ legal obligations or in receipt of income being voluntary
contributions referred to in section 2(24) (ii),has to file return of income if it’s
total income without giving effect to the provisions of sections 11 and 12 exceeds
the maximum amount not chargeable to income-tax.

7. In the case of persons holding assets located outside India:

A person, being a resident in India ( other than not ordinarily resident), who is not
required to furnish a return under any of the above ' and who at any time during
the previous year:

Beneficial owner” in respect of an asset means an individual who has provided,

directly or indirectly, consideration for the asset for the immediate or future
benefit, direct or indirect, of himself or any other person

Beneficiary” in respect of an asset means an individual who derives benefit from

the asset during the previous year and the consideration for such asset has been
provided by any person other than such beneficiary

20
 1.9 RATES OF INCOME TAX

The following table shows the rates of income tax as applicable to different
assesses for the assessment year 2020-2021

 For men below 60 years of Age

Income Tax Slab Income Tax Rate

Income between Rs 5% of income exceeding

2,50,000- Rs500,000 Rs2.50,000

Income between 20% of Income exceeding

Rs500,000- Rs10,00,000 Rs5,00,000

Income above Rs10,00,000 30% of Income exceeding

Rs10,00,00

 Income tax Slab Rate for Senior citizens

(Age 60 years or more but less than 80
years)

Income tax Slab Income Tax Rate

Income up to Rs3,00,00 Nil

Income between 5% of Income exceeding

Rs3,00,001 - Rs500,000 Rs3,00,000

Income between 20% of Income exceeding

Rs500,001- Rs10,00,000 Rs5,00,000

21
  Income Tax Senior citizens ( 80 years old
and More)

Income Tax Slabs Tax Rate Health and Education

Cess

Income up to No Tax
Rs5,00,000

Income From 20% 4% Of Income Tax

Rs5,00,000-10,00,000

Income From than 30% 4% of Income Tax

Rs10,00,000

 For Women below 60 Years

Income Tax Slabs Tax Rate

Income up to Rs2,50,000* No Tax

Income from Rs2,50,000-Rs 5%

5,00,000

Income from Rs5,00,000- 20%

10,00,000

Income more than 30%

Rs10,00,000

22
23
 1.9TAX DEDUCTION AT SOURCE ( TDS)

The concept of TDS was introduced with an aim to collect tax from the very source of
income. As per this concept, a person who is liable to make Payment of specified nature
to any other person shall deduct tax at source and remit the same into the account of
the Central Government. The deducted from whose income tax has been deducted at
source would be entitled to get credit of the amount so deducted on the basis of From
26AS or TDS certificate issued by the doductor.

A deductor is required to issue a TDS certificate called form 16 for salaried employees
and form 16A for salaried employees and 16A for non-salaried employees within a
specified time.[6]

Deductor has to issue TDS certificates within two months of the next financial year

1.11 ADVANCE TAX

As the name suggests, it refres to paying a part of your yearly taxes in advance. Advance
tax is the income tax payable if your tax liability exceed Rs 10000 in a financial year.
Advance tax should be paid in the year in which the income is received. Hence, it is also
known as the 'pays-as-you-earn' scheme.

Advance tax is applicable when an individual has sources of income other than his/her
salary. For instance, if one is earning through capital gains, interest on investments,
lottery, house property or business, the concept becomes relevant.

Any rebate due fetches you an interest of 0.5 % every month, or 6% annually, as in the
case of an income tax refund. However, if you don’t pay the advance tax on time, you’ll
be charged 1% every month, or ,12% a year.

Advance tax or self- assessment taxes have to be paid 15th of September, December and
March, in instalments of 30% , 30% and 40%, respectively, for non-coporates.
Corporates need to pay it on the 15th of June, September, December and March.

24
1.12 TAXABLE HEAD OF INCOME TAX

5 Heads of income for Computation of Income Tax. The total income under all these 5
Heads of income is then added and disclosed in the Income Tax Return. The tax on the
total taxable income ( after allowing deduction) is then calculated as the Income Tax
Slabs Rates of the taxpayers.
 Income firm salaries
 Income from house property
 Income from business or profession
 Income from capital gain.

 Income from salaries

This clause essentially assimilates any remuneration, which is received by an

individual on terms of services provided by him based on a contract of employment.
This amount qualifies to be considered for income tax only if there is an employee
relationship between the payers and the payee respectively. Salary also should include
the basic wages or salary, advance salary, pension, commission, gratuity, perquisites as
well as annual bonus

 Income from House Property

According to the Income Tax Act, 1961, sections 22 to 27 is dedicated to the

provisions for the income tax computation of the total standard income of a person
from the house property or land that he or she owns. An interesting aspect is that the
charge is derived out of the property or land and not on the amount of rent received.
However, if the property is utilized for letting out the normal course of business, then
the income from the rent will be considered.

 Income from Business or Profession

The income tax computation of the total25income will be attributed from the income
earned from the profits of business or profession. The difference between the expenses
and revenue earned will be chargeable. Here is a list of the income chargeable under the
head.

 Income from Capital Gains

Capital gain is a rise in the value of a capital asset ( individual or real estate) that
gives it a higher worth than the purchase price. The gain is not realized until the asset is
sold. A capital gain may be short-term ( one year or less) or long term (more than one
year) and must be claimed on income taxes.

While capital gains are generally associated with stocks and funds due to their inherent
price volatility, a capital gain can occur on any security that is sold for s price higher than
the purchase price that was paid for it. Realized capital and losses occur when an asset
is sold, which triggers a taxable event. Unrealized gains and losses, sometimes referred
to as paper gains and losses, reflect an increase or decrease in an investment 's value
but have not yet trigged a taxable event.

Capital assets are two types: Short and long-term Capital asset.

Short- term capital asset: This is an asset that is held for not more than 36 months
immediately preceding the date of its transfer. This period of 36 months is substituted
to 12 months in case of certain assets like equity or preference shares held in a
company, any other security listed on a recognised stock exchange of India, unitsbof
specific equity mutual funds and zero coupon bonds.

26