SIP Report (Title Page Specimen)
SIP Report (Title Page Specimen)
SIP Report (Title Page Specimen)
PROJECT REPORT
ON
AT
SUBMITTED BY
(STREAM- FINANCE)
SUBMITTED TO
THROUGH
(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.
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.
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.
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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.
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.
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CHAPTER 1
INTRODUCTION
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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.
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1.1
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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
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1.2 DOCUMENTS REQUIRED FOR E- FILLING
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1.3Process Of E-filing
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.
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.
ITR-2: For those earning capital gains. ITR2A for those owing more than one
house but no capital gain
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.
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.
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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.
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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
To know the awareness of the law and rules of E-filing of INCOME TAX among tax
professional
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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.
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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.
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.
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.
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.
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.
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.
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.
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:
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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
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Income Tax Senior citizens ( 80 years old
and More)
Income up to No Tax
Rs5,00,000
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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
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.
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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.
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.
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.
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