Professional Documents
Culture Documents
PROJECT
SUBMITTED BY
VYANKATESH GOTALKAR
DECLARATION
I, Venu hereby declares that this project titled FINANCE:
“Income Tax Return Filing” is based on study conducted
by me under the guidance of Dr. Naaz Gorowara this
project has been submitted earlier for the award of any other
degree/ diploma to any other institute or university.
Venu
ACKNOWLEDGEMENTS
Venu
PREFACE
CONTENTS
S.No. PARTICULARS
PAGE No.
1. CHAPTER 1
Introduction to the topic
2. CHAPTER 2
Industry Profile
3. CHAPTER 3
Company Profile
Research Methodology
Data collection technique
4. CHAPTER 4
Data analysis and interpretation
5. CHAPTER 5
Findings of the study
Conclusion of the study
6. Bibliography
7. Annexure
CHAPTER 1
ORGANIZATION PROFILE
CORWHITE SOLUTIONS PVT LTD.
COMPANY PROFILE
SPECIALITIES:
Contact Info
Phone No: 01244201791
Email: info@corwhite.com
Website: https://www.corwhite.com
Address: Spaze iTech Park, Unit - 23A, 23B & 24,
Ground Floor, Tower
B2, Sohna – Gurgaon Rd, Sector 49,
Gurugram, Haryana
122108
DESCRIPTION
VISION
Their Core values define who they really want to be. These
are to be always upheld and embedded into the DNA of the
organization.
They will demonstrate dignity and respect for people in all
our interactions.
People at all levels must be vested with the power and
confidence to take decisions concerning their area of work.
MISSION
Customer Centricity: Acute sensitivity to the needs
and experiences of the customer shall guide all that we
do.
Excellence: They will strive to achieve and surpass
world class standards in all that we do.
Innovation: They will use the power of technology
and imagination to deliver solutions to the customer’s
needs.
Agility: They will operate in our markets with the
ability to change direction and position with liveliness
and speed.
Innovation: We will always prioritize innovation
management over routine culture to high up the
efficiency and effectiveness.
OTHER INFORMATION
SERVICES
10
11
INTRODUCTION
Income Tax Return is the form in which an assesses files information about
his Income and tax thereon to Income Tax Department. Various forms are
ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a
belated return, you are not allowed to carry forward certain losses.
The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates
citizens to file returns with the Income Tax Department at the end of every
financial year. These returns should be filed before the specified due date.
Every Income Tax Return Form is applicable to a certain section of the
Assesses. Only those Forms which are filed by the eligible Assesses are
processed by the Income Tax Department of India. It is therefore imperative
to know which particular form is appropriate in each case. Income Tax
Return Forms vary depending on the criteria of the source of income of the
Assessee and the category of the Assessee.
12
Taxes in India are of two types, Direct Tax and Indirect Tax.
Direct Tax, like income tax, wealth tax, etc. are those whose burden
falls directly on the taxpayer.
The burden of indirect taxes, like service tax, VAT, etc. can be passed
on to a third party.
Income Tax is all income other than agricultural income levied and collected
by the central government and shared with the states.
According to Income Tax Act 1961, every person, who is an assessee 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.
Such income tax shall be paid on the total income of the previous year in the
relevant assessment year.
13
Residence Rules
II. for 60 days during the year and 365 days during the preceding four
years. Individuals fulfilling neither of these conditions are
nonresidents. (The rules are slightly more liberal for Indian citizens
residing abroad or leaving India for employment abroad.)
A resident who was not present in India for 730 days during the preceding
seven years or who was nonresident in nine out of ten preceding yeas I
treated as not ordinarily resident. In effect, a newcomer to India remains not
ordinarily resident.
Non-resident Indians are not required to file a tax return if their income
consists of only interest and dividends, provided taxes due on such income
are deducted at source.
14
Also check Taxable Heads of Income for the definition of salary, wages,
pension, allowance, etc.
15
PART I: Income Tax Slab for Individual Tax Payers & HUF (Less than 60
Years Old) (Both Men & Women)
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
16
PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but
Less than 80 Years Old)(Both Men & Women)
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
PART III: Income Tax Slab for Senior Citizens (80 Years Old Or More)
(Both Men & Women)
17
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
This example explains how to apply tax slabs to calculate income tax for
FY 2016-17 (AY 2017-18).
Rohit has a total taxable income of Rs 8,00,000. This income has been
calculated by including income from all sources such as salary, rental
income, and interest income. Deductions under section 80 have also been
reduced. Rohit wants to know his tax dues for FY 2016-17 (AY 2017-18).
18
Tax Rs 85,000
Income tax rate reduced to 29% (plus applicable surcharge and education
cess) for domestic companies whose total turnover/gross receipts does not
exceed Rs 5 crores.
In case you formed a manufacturing company, income tax rate of 25% for
domestic companies, if set-up and registered after 1 March 2016 and does
not claim any tax incentives.
In other cases, the tax rates remain unchanged at 30% (plus applicable
surcharge and education cess).
19
Surcharge 0 7% 0 7% 12%
Education 3% 3% 3% 3% 3%
cess
In case of senior citizen, if he/she estimates that the tax on the income is nil,
Form No.15H duly filled and signed is to be submitted in duplicate to the
bank. So, no TDS will be deducted. If the total income is less than the
20
Advance Tax
Advance Tax is paid by the income earner during the previous year. The
computing of the liability of advance tax is done by estimating the 'total
income' for the year, calculating the surcharge and taking into consideration
the rebate that will be available. The advance tax is required to be paid in
three installments.
If the assessee 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
installment. If the total amount of advance tax is not paid on or before 15
March, an interest of 1% is charged for one month.
Further, if the total advance tax paid is less than 90% of the advance tax
payable, the interest at 1% per month is charged for the shortfall in the
advance tax paid for the period commencing from 1 April of the assessment
year and ending on the date of payment or assessment, whichever is earlier.
21
The total income of a person is divided into five heads, viz., taxable.
• Salary Income:-
In certain cases, an employee can claim both HRA (house rent
allowances) as well as interest on housing loan.
• Business income :-
Any type of income received from business
22
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
23
Municipal Tax paid and you get the Net Annual Value. From this Net Annual
Value, deduct :
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
part of the society maintenance bills
entertainment expenses incurred..
books and magazines for his professional practice.
The income referred to in section 28, i.e, the incomes chargeable as "Income
from Business or Profession" shall be computed in accordance with the
provisions contained in sections 30 to 43D.
The computation of income under the head "Profits and Gains of Business or
Profession" depends on the particulars and information available.
24
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 (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:
25
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).
This is a residual head, under this head income which does not meet criteria
to go to other heads is taxed. Also there are also some specific incomes
which are to be taxed under this head.
Sections 10,10A, 10AA, 10B, 10BA, and 13A deal with income which does
not form part of an assessee's total income. While section 10 provides a list
of income absolutely exempt from tax, sections 10A, 10AA, 10B, 10BA,
and 13A deal with specific exemptions available to newly established
industrial undertakings in free trade zones, and political parties. These
exemptions are provided from social, political, Constitutional
considerations, for avoiding double taxation, on the basis of casual and non-
recurring nature ,on the basis of non-residents and non-citizens status, on the
basis of Certain specific securities, bonds, certificates, funds and the like, on
the basis of Education, science, research, achievements, rewards, sports,
charity, on the basis of certain types of bodies, funds and institutions,
26
Dividends
Dividend income (as referred u/s 115-O of the I.Tax Act) paid by Companies
and Mutual Funds are exempt from tax. A 15% dividend distribution tax and
surcharge of 3% is paid by companies before distribution. Equity mutual
funds (with more than 65% of assets invested in equities) do not pay a
dividend distribution tax, though other funds do. Liquid and Money Market
funds pay 25% dividend distribution tax.01123
The Indian Income tax act specifically exempts certain income from tax:
27
DEDUCTIONS
Section 80 Deduction Table
28
Rs 25,000
29
severe disability
Anywhere-Anytime Filing
30
No long queues
No Personnel Interface
Quick Processing
Accurate data in return
Paid taxes, made your tax saving investments... now get geared up for filing
income tax returns as the month of July is on the horizon and the time has
come when one is supposed to file IT returns.
In the year 2007 the Income Tax Department of India took many initiatives
such as training TRPS, launching saral forms in a new avatar and so on for
making tax filing convenient and handy for the citizens.
The e-filing process is really easy and takes a very little time and all you
have to do is fill up your tax return form online provided and the other
required information about income, expenditure and savings. Filing tax
returns online is the easiest and the simplest method and all one needs is to
log on and follow the simple instructions.
For e- filing process one needs to have a software application that generates
the income tax form, which is available at the Income Tax Department
website.
Benefits of e-Filing:
31
Other than this, online tax returns are processed much faster than paper
returns and the tax is worked out automatically as the payee completes the
form. With this the payee also gets the acknowledgement slip immediately.
Also online filing is a safe and secure mode.
TYPES OF E-FILING
There are three ways to file returns electronically.
32
33
• Property details
• Birth date
• TAN number
• Bank A/c no
34
35
2) Click the link eFile 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 from
here. These forms need to be printed, filled by hand and signed before
submitting to your local income tax office.
36
1 Income from
▪ ▪ ▪
Salary/Pension
2 Income from Other
Sources (only Interest
▪ ▪ ▪
income or Family
Pension)
3 Income/Loss from
▪ ▪
Other Sources
4 Income/Loss from
▪ ▪
House Property
5 Capital Gains/Loss on
sale of ▪ ▪
investments/property
6 Partner in a partnership
▪
Firm
7 Income from
Proprietary
Business/Profession
37
3 Capital
Gains/Loss on
sale of ▪ ▪ ▪
investments/prop
erty
4 Income/Loss
from Business ▪ ▪ ▪
5 Fringe Benefit
Tax ▪ ▪ ▪ ▪
ITR-1
This Form can be used by an individual whose total income during the
previous year i.e., financial year 2008-09 includes income chargeable to
income-tax under the head “salaries” or income in the nature of family
pension as defined in the Explanation to clause (iia) of section 57 but does
38
not include any other income except income by way of interest chargeable to
income-tax under the head “income from other sources”. There should not
be any exempt income other than agriculture income and interest income. It
may please be noted that a person who is entitled to use this form shall not
use Form ITR-2. Further, a person in whose income the income of other
person like his/ her spouse, minor child, etc. is to be clubbed is also not
entitled to use this form.
ITR-2
ITR-3
39
ITR-5
This Form can be used a person being a firm, AOP, BOI, artificial juridical
person referred to in section 2(31)(vii), cooperative society and local
authority. However, a person who is required to file the return of income
under section 139(4)(a) or 139(4)(a) or 139(4)(b) or 139(4)(c) or 139(4)(d)
shall not use this form.
ITR-6
ITR-7
This Form can be used by persons including companies who are required to
furnish return under section 139(4A) or under section 139(4B) or under
section 139(4C) or under section 139(4D).
ITR-8
This Form is applicable in case of a person who is not required to furnish the
return of income but is required to furnish the return of fringe benefits
5) Generating an XML file - After keying in the details, check once for
accuracy. After you are satisfied, click the 'Generate' button to create your
40
tax return in XML format. This format helps in sharing of structured data
across different information systems. 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. Your 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.
41
10) Digital Signature - If your income tax return was digitally signed, then
no further paperwork or visit to the income tax office is needed. Here is
some information about how to get a digital signature - External website that
opens in a new window.
42
1. Rule 12(3)(iii) of the Income-tax Rules, 1962 provides that any assessee
can file a return of income electronically without the use of a digital
signature. In such cases only an acknowledgement needs to be filed with the
Department physically by the assessee.
2. Once a return of income is filed electronically on successful transmission
of the data, Form ITR-V duly filled shall be generated by the Income-tax
Department’s server to the assessee. This ITR-V will also contain the
acknowledgement number of electronic transmission and the date of the
transmission as an evidence of filing for the benefit of the assessee. Please
down load a copy of such duly filled Form and verify under your signature
in the space provided. In case the return was prepared by a Tax Return
Preparer (TRP), the particulars of TRP be also filled and this verification
form be countersigned by the TRP.
3. This acknowledgement in Form ITR-V duly signed by the assessee needs
to be filed physically (in duplicate) with the concerned Assessing Officer.
One copy of this acknowledgement would be returned back to the assessee
for his record.
4. The codes for the form number and the status of the assessee shall be
generated electronically by the Department’s server.
11) Verification - If your return is not digitally signed, then 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 15 days to complete the e-filing process.
12) 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 ask@incometaxindia.gov.in.
43
CONCLUSION:
Under the umbrella of my project, we the participants of this project were
glad to understand the design and pattern of income tax e-filing online. My
experience with the various customers of the various companies was totally
different and gave us an edge adding to my knowledge.
BIBLIOGRAPHY:
Websites:
44
www.incometaxindiaefiling.gov.in
www.valueplus.njfundz.com
www.legalserviceindia.com
www.finance.indiamart.com
https://en.wikipedia.org/wiki/Income_tax_return_(India)
Reference books:
1. BASIC PRINCIPLES OF INCOME TAX LAWS
2. HOW TO SAVE YOUR TAX
3. BASIC INCOME TAX TIPS
45