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SUMMER INTERNSHIP PROJECT REPORT

ON
“INCOME TAX PLANNING WITH RESPECT TO ASSESSEE”

AT

CA MAHESH MALHOTRA

SUBMITTED BY

HRISHIKESH KESHAV BADE

ROLL NO: 201147

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

2020-2022

UNDER THE GUIDANCE OF

DR. BHAGYASHREE KUNTE

AUDYOGIK SHIKSHAN MANDAL

INSTITUTE OF BUSINESS MANAGEMENTAND RESEARCH

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ACKNOWLEDGMENT

I am very much thankful to the Management of M. Y. Malhotra & Co. for allowing me to complete the
project entitled “INCOME TAX PLANNING WITH RESPECT TO ASSESSEE” at M. Y. Malhotra &
Co., TALEGAON DABHADE.

I would like to thank CA MAHESH MALHOTRA and Team for giving me a great opportunity to carry out
the project in this business organization.

I am thankful to Principal of ASM Institute and all the staff members who indirectly gave me their valuable
time and the information whenever needed and all the operators who made it possible by giving their
information and time.

Last but not the least; I would like to thank my Institute Audyogik Shikshan Mandal Institute of Business
Management and Research teaching and non-teaching staff for their support.

Prof. Bhagyashree Kunte, my project guide from ASM IBMR deserves many thanks for the time she has
aside for my supervision and the advice and knowledge I received, without her cooperation, encouragement
and assistant this project would not be possible for me. It was a great learning experience.

HRISHIKESH KESHAV BADE

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DECLARATION

I HRISHIKESH BADE, hereby declare that the Project work entitled “INCOME TAX PLANNING WITH
RESPECT TO ASSESSEE” at CA MAHESH MALHOTRA, is submitted to the requirement for the award
of degree of Master of Business Administration University of Pune is a record of original work undertaken by
me and the conclusion drawn there are based on the material collected by myself under the supervision and
guidance of Dr. Bhagyashree Kunte, ASM IBMR, CHINCHWAD.

I also declare that this work has not been submitted to any other university or institution for award of any
degree or diploma.

Place: ASM IBMR, CHINCHWAD

Date:

HRISHIKESH KESHAV BADE

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INDEX

SR. NO. CONTENT PAGE.NO

ACKNOWLEDGEMENT

DECLARATION

COMPANY CERTIFICATE

1 EXECUTIVE SUMMARY 6

2 OBJECTIVES OF STUDY 7

3 COMPANY PROFILE 8

4 THEORETICAL BACKGROUND 9-29

5 RESEARCH METHODOLOGY 30

DATA ANALYSIS AND

6 INTERPRETATION 31-39

7 FINDINGS 40

8 LIMITATION OF THE PROJECT 41

9 LEARNINGS FROM THE PROJECT 42

10 BIBLIOGRAPHY 43

11 ANNEXURE 44-45

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Executive Summary

My role in the firm was as an intern and the aim of this Project is to evaluate “Income Tax Planning with
Respect to the Assessee”.

I studied the Tax Planning method of 50 respondents through a Questionnaire.

Tax planning has been described as a refined form of Tax Avoidance and implies arrangement of person’s
financial affairs in such a way that it reduces the Tax Liability. This is achieved by taking full advantage of
all the Tax Exemptions, Deductions, Rebates, Reliefs, Allowances and other benefits granted by the tax laws
so that incidence of tax is reduced. Exercise in Tax Planning is based on the law itself and is therefore legal
and permanent.Most of taxpayers are not aware about the “Tax Planning” measures.

So, in this project the detail description is given about different measures for Tax Planning.

With help of the Respondents information, the different examples are taken and comparison is made between:

 If the Assessee is making Tax Planning or If the Assessee is not making Tax Planning.
 If the Assessee is aware of Deductions with respect to his eligible expenditure so as to reduces the Tax
Liability.

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Objectives of the study

The study was conducted with the following objectives:

 To Study and evaluate the effect of the tax planning measures being adopted by the Assessee.
 To ascertain the level of awareness of the Assessee on various tax planning measures available under
the Income Tax Act.

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Company Profile

1. Profile
Name Of the Firm – M. Y. MALHOTRA & Co.
Membership No. - 044913
E-mail ID – camaheshmalhotra@gmail.com

2. Introduction work of Organization -

The organization is a made up of highly motivated team of professionally qualified and Experienced persons
who are committed to add value and optimize the benefits accruing to Respondents.

The firm of CA represents a Specialized Skills that is geared to offer sound Financial Solution and Advice.

The Firm provides services catering to various financial areas:

1. Tax Consultancy
2. Budget Analysis
3. Preparation of Financial Statements
4. Services relating to Management Accounting & Audit.

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CHAPTER 1

Theoretical Background
Income Tax Act, 1961 governs the taxation of incomes generated within India and of incomes generated by
Indian’s overseas. This study aims at presenting a lucid yet simple understanding of taxation structure of an
individual’s income for the assessment year 2021-22.

Income Tax Act, 1961 is guiding baseline for all the contact in this report and tax saving tips provided
herein are a result of analysis of options available in current market.

This project covers the basics of Income Tax Act, 1961 and broadly presents the nuances of prudent tax
planning and tax saving options provided under these laws. Any other hideous means to avoid tax a
cognizable offence under the Indian constitution and all the citizens should refrain from such acts.

Concepts Used in Income Tax

1) Assessee [Sec.2(7)] :- Assessee means the person by whom any tax or any other sum of money is payable.
2) Assessment Year [Sec.2(9)] :- Assessment Year means the period of 12 months commencing on the first
day of April every day. It is therefore, the period from 1 of April to 31 of March
3) Previous Year [Sec.3] :- Income of the previous year is immediately following the Assessment year. In
some countries it is called “Income Year”.
4) Person [Sec.2(31)] :- The definition of a person under the Income Tax Act is very comprehensive and
includes natural as well as artificial or a judicial person. The term person includes the following:
a) An Individual
b) Hindu Undivided Family
c) Company
d) Firm
e) Local Authority

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Concepts Used in Tax planning

1) Total Income :-
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
 Income From Business and Profession
 Income Other Sources

2) Tax Evasion :-
Tax Evasion means not paying taxes as per the provision of the law or minimizing tax by illegitimate and
hence illegal means. Tax Evasion can be concealment of income or inflation of expenses or falsification of
account or by conscious deliberate violation of law.
Tax Evasion is an act executed knowingly willfully, with the intent to deceive so that the tax reported by the
Taxpayer is less than the tax payable under the law.

Example : Mr. A, having rendered service to another person Mr. B. Is entitled to receive a sum of say Rs.
50,000/- from Mr. B. A tells B to pay him Rs.50,000/- in cash and thus does not account for it as his income.
Mr. A has resorted to Tax Evasion.

3) Tax Planning:
Tax planning has been described as a refined form of the Tax Avoidance and implies arrangement of person’s
financial affairs in such a way that it reduces the Tax Liability. This is achieved by taking full advantage of
all the tax exemptions, Deductions, Concessions, Rebates, Reliefs, Allowances and other benefits granted by
the tax laws so that incidence of tax is reduced. Exercise in Tax Planning is based on the law itself and is
therefore legal and permanent.

Example : Mr. A having other income of Rs. 2,00,000/- receives income of Rs. 50,000/- from Mr. B. Mr. A
to save tax deposits Rs. 60,000/- in his PPF account and saves the tax of Rs. 12,000/- and thereby pays no tax
on income of Rs. 50,000.

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4) Tax Management:
Tax Management is an expression which implies actual implementation of tax planning ideas. While that
tax Planning is only an idea, a plan, a scheme, an arrangement, tax management is the actual action,
implementation, the reality, the final result.

Example: Action of Mr. A depositing Rs. 60,000/- in his PPF account and saving tax of Rs. 12,000/- is tax
Management. Actual action on tax planning provision is Tax Management.

To Sum Up all these four Expressions, We may say that :

 Tax Evasion is fraudulent and hence illegal. It violates the spirit and the letter of the law.

 Tax Avoidance, being based on a loophole in the law is legal since it violates only the spirit of the law
but not the letter of the law.

 Tax Planning does not violate the spirit nor the letter of the law since it is entirely based on the Specific
provision of the law itself.

 Tax management is actual implementation of a tax planning provision. The net result of tax reduction
by taking action of fulfilling the conditions of law is tax management.

Interim Budget 2020

 A tax-relief was announced including simplified tax processes. Finance Minister Nirmala Sitharaman
slashed the personal income tax rate for individuals for fiscal year 2020–21. Under the new regime,
taxpayers will pay 10%, 15%, 20% and 25% for incomes between ₹500,000–750,000, ₹750,000–1
million, ₹1–1.25 million and ₹1.25–1.5 million, respectively. However, to avail this scheme, which is
optional, taxpayers will have to forego exemptions.
 A taxpayer charter was proposed as well. An International Bullion Exchange to be set up at the IFSC
in GIFT was also announced. Apart from modifying the definition of an NRI, non-tax paying NRIs
would be taxed in India if not paying taxes elsewhere.
 The dividend distribution tax (DDT) has been removed and the "shareholder-based taxation system"
returns. Some tax exemptions have been introduced for some sovereign funds while a new tax deducted
at source for e-commerce operators.
 The Finance Bill 2020 included "tax incentives" such as additional exemptions, modification of
definitions such as "business trust", widening of the tax base, "revenue mobilization measures",
"penalties for fake invoices", minimizing taxpayer complications etc.

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Interim Budget 2019

 The interim budget before the Lok Sabha elections 2019 appeased the salaried class by announcing
tax Friendly Measures One of the biggest measures was that no income tax will be payable by taxpayers with
net taxable income up to Rs 5 lakh. Further, rebate available under section 87A was hiked to Rs 12,500 from
Rs 2,500. However, even though no tax is payable for income up to Rs 5 lakh, individuals are still required to
file them.

 The amount under standard deduction was also hiked. It was raised by Rs 10,000 to Rs 50,000 from
Rs 40,000.Those who own a second house also had something to cheer about. The interim budget 2019 had
done away with the notional tax on second self-occupied properties. Earlier, they were required to pay tax on
the second house even if it was not let-out.

 Individuals can save tax on long-term capital gains (LTCG) by investing the sale proceeds of one house
into two houses. However, there is a catch. They can do this if the capital gains does not exceed Rs 2 crore
and can be claimed only once in lifetime.
 For small depositors and housewives, the TDS threshold limit was raised to Rs 40,000 from Rs 10,000
on bank and post office deposits. However, do remember that there is no change in the way the incomes from
these sources are taxed.

Interim Budget 2018

 Budget 2018 was a mixed bag for the salaried class. It brought back standard deduction of Rs 40,000
for the salaried and pensioners but it also took away transport allowance of Rs 19,200 and medical
reimbursement of Rs 15,000. The net tax benefit of these measures came up to a total of only Rs 5,800.
In addition to this, the cess levied on income tax payable was hiked to four percent from three per cent.

 LTCG tax on equity shares and equity-oriented mutual funds was also brought back at the rate of 10
per cent without indexation benefit. However, this tax is payable only if the gains exceed Rs1 lakh in a
financial year.

 Budget 2018 had a lot in particular for one lot - senior citizens. The exemption of interest income with
bank and post offices deposits was raised to Rs 50,000 from Rs 10,000. Similar changes were made in the
TDS threshold limit.

 Deduction on health insurance premiums paid for senior citizens and very senior citizens was hiked to
Rs 50,000 from Rs 30,000. The benefit of deduction on medical expenditure incurred if not covered under any
health insurance policy was extended from very senior citizens (age 80 years and above) to senior citizens
(age above 60 years but below 80 years) as well of Rs 50,000.

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Computation of Total Income

Income From Salary

Income from salary is the income or remuneration received by an individual for services he is rendering
or a contract undertaken by him. This clause essentially assimilates the remuneration received by a person for
the services provided by him under the contract of employment.

This amount of remuneration will be considered as income for the purposes of Income Tax Act only if there
is an Employer and employee relationship between the persons who is making the payment and the person
who is receiving the payment.

Meaning Of Salary :
The salary for the purposes of calculation of income from salary includes :
1) Wages
2) Pension
3) Annuity
4) Gratuity
5) Advance Salary Paid
6) Fees, Commission, Perquisites, Profits in lieu
7) Leave Encashment

Calculation Of Income From Salary

Particulars Amount
Basic salary XXX
Add:
1. Fees, Commission and Bonus XXX
2. Allowances XXX
3. Perquisites XXX
4. Retirement Benefits XXX
Gross Salary XXX
Less: Deductions From salary XXX
1. Entertainment Allowance u/s 16 XXX
2. Professional Tax u/s 16 XXX
Net Salary XXX

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Allowances And Tax Liability

All Monetary Payments made by an employer to his employee, other than salary, are termed as allowances. It
is fixed, pre- determined and given regularly in addition to salary in connection with the services rendered by
the employee.

A. Fully Taxable Allowances

The Following allowances by an employee from his employer are in his
his salary income in order to ascertain his tax liability.

1. Dearness Allowance :- The allowance is paid to the employees to cope

with inflation.

2. Entertainment Allowance :- This is an allowance that is provided to the

employees to reimburse the expenses which are incurred on the hospitality

3. Overtime Allowance :- Overtime allowance is the allowance which is paid

to the employees for working above the regular work hours.

4. City Compensatory Allowance :- This allowance is paid to those

employees who move to urban cities.

 Conveyance Allowance Exemption Limit

 This type of allowance is paid to employees for commuting to their work place from home every day.
If a conveyance allowance is less than Rs. 1,600, then it will be considered as non-taxable. The allowance
is exempted up to Rs. 1,600 only, any amount more than that will be taxable as per income tax act.

 House Rent Allowance (HRA) Exemption Limit

House rent allowance is provided to the employees by a company to help them in coping up with their
accommodation expenses. But, if an individual doesn't live in a rented space, this allowance is fully taxable.
Employees can claim deduction on house rent allowance under section 10 (13A), if:
 Actual HRA received by an individual from employer
 If the employee resides in metro cities like Delhi, Mumbai, Chennai or Bangalore, actual rent paid
should be as much as 50% of the basic salary
 40% of basic salary for people living in non-metros
 Excess of rent paid annually over 10% of annual salary

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C. Fully Exempt Allowance

 HRA up to 40% of basic salary (50% in case of employees staying in 4 metros - Delhi, Mumbai,
Chennai and Bangalore) subject to actual rent paid being more than HRA plus 10% of basic
 Conveyance allowance up to Rs. 1,600 per month or Rs. 19,200 per annum
 Payments to government employees posted abroad
 Allowance for UN employees
 Sumptuary allowance paid to judges of Supreme Court and High Courts
 Compensatory allowance paid to judges of Supreme Court and High Courts

Perquisites under Income Tax Act

Perquisites is defined as a benefit which one enjoys or is entitled to on account of one’s job or position in the
dictionary. Hence, perquisites are added to the Head Salaries while filing income tax return. Under section
17(2) of the Income Tax Act, perquisites include:

1. Value of rent free accommodation provided to the assessee by his employer.

2. Value of any concession in the matter of rent in respect of any accommodation provided to the
assessee by his employer.
3. Amount paid by the employer in respect of any obligation for payment, would have been payable
by the assessee.
4. Amount paid to affect an assurance on the life of the assessee or to affect a contract for an annuity
otherwise through a specified or approved fund.
5. Value of employee stock options or sweat equity shares allotted or transferred free of cost or at
concessional rate to the employee.
6. Employer’s contribution to superannuation fund, not exceeding rupees one lakh fifty thousand.

Retirement benefits
Retirement Benefits are given to employees during their period of service or during retirement.
1. Pension :- Pension is given either on a monthly basis or in a lump sum. The tax is treated depending on
the category of the employee.
2. Gratuity :- Gratuity is given as appreciation of past performance is received at the time of retirement and
is exempt to a certain limit.
3. Leave Salaries :- Tax Depends on the category of the employee
may make use of the leave or encash it
4. Provident Fund :- Provident Fund is contributed by both employee and employers on a monthly basis.
At the retirement, employee along with interest. Tax treatment is based on the type of maintained by the
employer.

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Income From House Property

A house property could be your home, an office, a shop, a building or some land attached to the building like
a parking lot. The Income Tax Act does not differentiate between a commercial and residential property.

All types of properties are taxed under the head ‘Income from House Property’ in the income tax return. An
owner for the purpose of income tax is its legal owner, someone who can exercise the rights of the owner in
his own right and not on someone else’s behalf.

When a property is used for the purpose of business or profession or for carrying out freelancing work – it is
taxed under the ‘income from business and profession’ head. Expenses on its repair and maintenance are
allowed as business expenditure.

A. Self-Occupied House Property

A self-occupied house property is used for one’s own residential purposes. This may be occupied by the
taxpayer’s family – parents and/or spouse and children. A vacant house property is considered as self-occupied
for the purpose of Income Tax.

Prior to FY 2019-20, if more than one self-occupied house property is owned by the taxpayer, only one is
considered and treated as a self-occupied property and the remaining are assumed to be let out. The choice of
which property to choose as self-occupied is up to the taxpayer.

For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to
2 houses. Now, a homeowner can claim his 2 properties as self-occupied and remaining house as let out for
Income tax purposes.

B. Let Out House Property

A house property which is rented for the whole or a part of the year is considered a let out house property for
income tax purposes

Even if the House property is situated outside India, it is taxable in India if the owner- Assessee is resident in
India.

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Incomes excluded from House Property Income :

The following incomes are excluded form the charge of income tax under this head:

1. Annual value of house property used for business purposes

2. Income of rent received from vacant Land.
3. Income from house proerty in the immediate vicinity of
agricultural land and used as a store, dwelling house etc.
By the cultivators.

Steps to Calculate Income From House Property

Here is how you compute your income from a house property:

A. Determine Gross Annual Value (GAV) of the property: -The gross annual value of a self-occupied house
is zero. For a let-out property, it is the rent collected for a house on rent.

B. Reduce Property Tax: Property tax, when paid, is allowed as a deduction from GAV of property.

c. Determine Net Annual Value (NAV) : Net Annual Value = Gross Annual Value – Property Tax

D. Reduce 30% of NAV towards standard deduction: 30% on NAV is allowed as a deduction from the NAV
under Section 24 of the Income Tax Act. No other expenses such as painting and repairs can be claimed as
tax relief beyond the 30% cap under this section.

E. Reduce home loan interest: Deduction under Section 24 is also available for interest paid during the year
on housing loan availed.

F. Determine Income from house property: The resulting value is your income from house property. This is
taxed at the slab rate applicable to you.

G. Loss from house property: When you own a self occupied house, since its GAV is Nil, claiming the
deduction on home loan interest will result in a loss from house property. This loss can be adjusted against
income from other heads.

Note: When a property is let out, its gross annual value is the rental value of the property. The rental value
must be higher than or equal to the reasonable rent of the property determined by the municipality.

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Tax Deduction on Home Loans

a. Tax Deduction on Home Loan Interest: Section 24

Homeowners can claim a deduction of up to Rs 2 lakh on their home loan interest, if the owner or his family
resides in the house property. The same treatment applies when the house is vacant.

If you have rented out the property, the entire home loan interest is allowed as a deduction.
However, your deduction on interest is limited to Rs. 30,000 instead of Rs 2 lakhs if both the following
conditions stand satisfied:

a. The loan is taken on or after 1 April 1999

b. The purchase or construction is not completed within 5 years from the end of the FY in which loan was
availed

b. Tax Deduction on Principal Repayment

The deduction to claim principal repayment is available for up to Rs. 1,50,000 within the overall limit of
Section 80C.Check the principal repayment amount with your lender or look at your loan installment details.

Conditions to claim this deduction-

 The home loan must be for purchase or construction of a new house property.

 The property must not be sold in five years from the time you took possession. Doing so will
add back the deduction to your income again in the year you sell.

Stamp duty and registration charges Stamp duty and registration charges and other expenses related directly
to the transfer are also allowed as a deduction under Section 80C, subject to a maximum deduction amount of
Rs 1.5 lakh. Claim these expenses in the same year you make the payment on them.

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Income From Capital Gains

 Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real estate. It results in
capital gain when the selling price of an asset exceeds its purchase price.

 It is the difference between the selling price (higher) and cost price (lower) of the asset. Capital loss
arises when the cost price is higher than the selling price.

 Any profit or gain arising from transfer of capital asset held as investments are chargeable to tax
under the head capital gains. The gain can be on account of short- and long-term gains.

 A capital gain arises only when a capital asset is transferred. Which means if the asset transferred
is not a capital asset; it will not be covered under the head capital gains.

 Profits or gains arising in the previous year in which the transfer took place shall be considered as
income of the previous year and chargeable to income tax under the head Capital Gains and the concept of
indexation shall apply, if applicable.

 Capital Asset :- Capital Asset means property of any kind by an assessed including property of
his business or
profession, but excludes non-capital assets.

Transfers resulting in Capital Gains

 Sale or exchange of assets
 Relinquishment of assets
 Extinguishment of any right in assets
 Compulsory acquisition of assets

Conversion of assets into stock- in-trade of a business carried on by owner of asset :

 Handing over the possession of an immovable property in part performance of a contract for the
transfer of that property : Transaction invoice transfer of membership of a group housing society, company,
etc., which have the effect of transferring or

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 Enabling enjoyment of any immovable property or any right therein :

Transfer of a capital asset by a partner or member to the firm or AOP, whether by way of capital
contribution or otherwise; and

 Transfer under a gift or an irrevocable trust of shares, debentures or debentures or warrants allotted by
a company as per central Govt. guidelines.

Capital assets are of 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 recognized stock exchange of India,
Units of specific equity mutual funds and Zero-coupon bonds.

Long term capital asset: This is an asset that is held for more than 36 months or 12 months as the case may
be. Transfer is defined as the sale of the asset, giving up of rights on the asset, forceful takeover by law or
maturity of the asset. Many transactions are not considered as transfer, for example,

Transfer of a capital asset under a will. Stocks and units of equity diversified mutual funds qualify for long
term capital gains if held for more than a year. In case of real estate, it qualifies for long term capital gains if
it is held for more than two years. Earlier to the Finance Act 2017, real estate was considered as a long term
capital asset only if it was held for more than three years.

Capital Gains: Any profits or gains arising from the transfer of a capital asset effected in the previous year
shall be chargeable to income-tax under the head capital gains. Examples of assets are a flat or apartments,
land, shares, mutual funds, gold among many others. There are two types of capital gains:
Short-term capital gain: capital gain arising on transfer of short-term capital asset.
Long-term capital gain: capital gain arising on transfer of long-term capital asset.
Capital gains can be taxed subject to the following conditions:
 The assessee must have owned a capital asset

 The assessee must have transferred the capital asset in the previous year.

 There must have been profit or gains as a result of such transfer

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Computing Capital Gains

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. Higher
capital gains taxes will apply only on those transactions where STT is not paid.

Concept of Indexation

The value of a rupee today is not same as will be its value tomorrow because of inflation. Likewise, to be fair
when paying capital gain tax, the effect of inflation on the purchase is included. For instance, if you bought a
flat in January 2002 for Rs 20 lakh and sold it in January 2017 for Rs 60 lakh; you don't pay tax on the Rs 40
lakh gain. The tax authorities allow the concept of indexation so that you can show a higher purchase cost,
lowering the overall profit and reducing the tax you pay on the gain. Using the inflation index, one needs to
increase the purchase price of the asset to reflect inflation-adjusted true price in the year of sale.
Indexed cost of acquisition= (Cost Inflation Index (CII) for year in which asset is transferred or sold) divided
by CII for year in which asset was acquired or bought). So in the above example, the year in which asset is
transferred or sold is 2016-17 and the Cost Inflation Index (CII) for 2011 = 264. The year in which asset is
acquired or bought is 2001-2002 and the Cost Inflation Index (CII) for 2001-02 = 100. So the Cost Inflation
Index (CII) = 264/100 = 2.64
Tax Planning for Capital Gains

 An Assessed should plan transfer of his capital assets at such a

capital gains arise in the year in which his other recurring
below taxable limits.

 Assessee having income below Rs. 60,000/- should go for short term capital gain instead of long-term
capital gain, since
Rs. 60,000/- is taxable @ 10% 10% whereas long-term capital gains are taxable at a flat rate of 20%. These
having income above 1,50,000 should plan their capital gains vice versa

 Since long-term capital gains enjoy a concessional treatment,

should so arrange the transfer of capital assets that they fall in the category of long-term capital loss or loss
under any other head that
can be set off against such income.

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Income From Business or Profession

Under the Income Tax Act, 'Profits and Gains of Business or Profession' are also subjected to taxation. The
term "business" includes any (a) trade, (b)commerce, (c)manufacture, or (d) any adventure or concern in the
nature of trade, commerce or manufacture.
The term "profession" implies professed attainments in special knowledge as distinguished from mere skill;
"special knowledge" which is "to be acquired only after patient study and application".
The words 'profits and gains' are defined as the surplus by which the receipts from the business or profession
exceed the expenditure necessary for the purpose of earning those receipts. These words should be understood
to include losses also, so that in one sense 'profit and gains' represent plus income while 'losses' represent
minus income.

Income from Business or Profession :

The following types of income are chargeable to tax under the heads profits and gains of business or
profession:-

Profits and gains of any business or profession

Any compensation or other payments due to or received by any person specified in section 28of the Act
Income derived by a trade, profession or similar association from specific services performed for its members
profit on sale of import entitlement licenses, incentives by way of cash compensatory support and drawback
of duty

Value benefit or perquisite, whether converted into money or not, arising from business
Any interest, salary, bonus, commission, or remuneration received by a partner of a firm, from such a firm

Any sum whether received or receivable in cash or kind, under an agreement for not carrying out any activity
in relation to any business or not to share any know-how, patent, copyright, franchise, or any other business
or commercial right of similar nature or technique likely to assist in the manufacture or processing of good

Any sum received under a keyman insurance policy

Income from speculative transactions.

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The following cases, income from trading or business is not taxable under the head "Profits and Gains of
Business or Profession":

Rent of house property is taxable under the head " Income from house property". Even if the property
constitutes stock in trade of recipient of rent or the recipient of rent is engaged in the business of letting
properties on rent.
Deemed dividends on shares are taxable under the head "Income from other sources".
Winnings from lotteries, races etc. are taxable under the head "Income from other sources".

Profits and gains of any other business are taxable, unless such profits are subjected to exemption.

General principals governing the computation of taxable income under the head "Profits and Gains of Business
or Profession:-

Business or profession should be carried on by the assessee. It is not the ownership of business which is
important, but it is the person carrying on a business or profession, who is chargeable to tax.
 Income from business or profession is chargeable to tax under this head only if the business or
profession is carried on by the assessee at any time during the previous year. This income is taxable
during the following assessment year.

EXPENSES DEDUCTIBLE FROM INCOME FROM BUSINESS/PROFESSION

All the expenses relating to business and profession are allowed against income. Following are few examples
of expenditures which are allowed against income:-

 Rent rates and insurance of building.

 Payment for know-how, patents, copy rights, trade mark, licenses.
 Depreciation on fixed assets.
payment for professional services.
 Expenditures on scientific research for business purposes.
 Preliminary Expenses in case of Limited companies.
 Salary, bonus, commission to employees.
 Salary, interest and remuneration to working partners subject to certain conditions.
 Communication expenses.

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 Traveling and conveyance expenses.

 Membership fees etc.
 Advertisement expenses in respect of promotion of business products.
 Discount allowed to customers.
 Interest on loans (Whether Private of Institutional).
 Bank Charges/Bank Commission expenses.
 Entertainment/Business Promotion expenses
 Staff Welfare expenses.
 Festival Expenses.
 Printing and stationery expenses
 Postage expenses.
 All other expenses relating to business/profession

Note: The above expenditures are allowed on the basis of actual payment as well as on accrual basis at the
date of finalization accounts

24
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Income From Other Sources

Understanding the head of Income from Other Sources is residuary in nature. It includes incomes which are
not taxable in other heads of income.

Income from Other Sources is one of the heads of income chargeable to tax under the Income tax Act. 1961.
Any income that is not covered in the other four heads of income is taxable under income from other sources,
because of this, it is known as residuary head of income. All the incomes excluded from salary, capital gains,
house property or business & profession (PGBP) are included in IFOS, except those which are exempt under
the Income Tax Act.
Section 56- Incomes taxable only in Income from Other Sources are

 Dividend Income;
 Income earned from winning lotteries, crossword puzzles, races (including horse race), gambling or betting
of any kind;

 Money or movable/immovable property received without consideration or inadequate consideration during

previous year;

 Interest on compensation or enhanced compensation received;

 Advance money received or money received in negotiation for transfer of a capital asset (only if the money
is forfeited and it doesn't result in the transfer of such asset).


Income Computation and Disclosure Standards: Section 145 states that Income from Other Sources must
be computed on the regular accounting methods followed by the assessee. It can be either cash or mercantile
system of accounting. The Central Government has notified Income Computation and Disclosure Standards
to be followed while computing the income.
Section 57- Expenditures allowed as deductions

 Expenses incurred for realization of dividend or interest income;

 Deductions to the extent amount remitted within due date are authorized in respect to contribution towards
funds for the welfare of employees;

 Family Pension- deduction is allowed to the extent of 33-1/3% of pension or Rs. 15000 whichever is less;
 Deductions for current repairs, insurance and depreciation, will be allowed for income earned by way of
lease rental;

 A deduction equal to 50% will be allowed for interest received on compensation or enhanced compensation.

25
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Section 58- Sum not allowed as deductions while computing taxable income

 Personal expenditure;
 Interest or salary payable outside India without TDS deduction;
 Wealth tax;
 Expenditure concerning winnings from lotteries, crossword puzzles, races, and gambling, etc.; and
 Expenses specified in Section 40A.

Deductions From Gross Taxable Income

1. Section 80C

Deductions on Investments

You can claim a deduction of Rs 1.5 lakh your total income under Section 80C. In simple terms, you can
reduce up to Rs 1,50,000 from your total taxable income, and it is available for individuals and HUFs.

filing your Income Tax Return. The Income Tax Department will refund the excess money to your bank
account.

2. Section 80CCC – Insurance Premium

Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer

Section 80CCC provides a deduction to an individual for any amount paid or deposited in any annuity plan
of LIC or any other insurer. The plan must be for receiving a pension from a fund referred to in Section
10(23AAB). Pension received from the annuity or amount received upon surrender of the annuity, including
interest or bonus accrued on the annuity, is taxable in the year of receipt.

3. Section 80 TTA – Interest on Savings Account

Deduction from Gross Total Income for Interest on Savings Bank Account

If you are an individual or an HUF, you may claim a deduction of maximum Rs 10,000 against interest income
from your savings account with a bank, co-operative society, or post office. Do include the interest from
savings bank account in other income.

Section 80TTA deduction is not available on interest income from fixed deposits, recurring deposits, or
interest income from corporate bonds.

26
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4. Section 80E – Interest on Education Loan

Deduction for Interest on Education Loan for Higher Studies

A deduction is allowed to an individual for interest on loans taken for pursuing higher education. This loan
may have been taken for the taxpayer, spouse or children or for a student for whom the taxpayer is a legal
guardian.

80E deduction is available for a maximum of 8 years (beginning the year in which the interest starts getting
repaid) or till the entire interest is repaid, whichever is earlier. There is no restriction on the amount that can
be claimed.

5. Section 80EE – Interest on Home Loan

Deductions on Home Loan Interest for First Time Home Owners

FY 2017-18 and FY 2016-17 This deduction is available in FY 2017-18 if the loan has been taken in FY
2016-17. The deduction under section 80EE is available only to home-owners (individuals) having only one
house property on the date of sanction of the loan. The value of the property must be less than Rs 50 lakh and
the home loan must be less than Rs 35 lakh. The loan taken from a financial institution must have been
sanctioned between 1 April 2016 and 31 March 2017. There is an additional deduction of Rs 50,000 available
on your home loan interest on top of deduction of Rs 2 lakh (on interest component of home loan EMI) allowed
under section 24.

FY 2013-14 and FY 2014-15 During these financial years, the deduction available under this section was
first-time house worth Rs 40 lakh or less. You can avail this only when your loan amount during this period
is Rs 25 lakh or less. The loan must be sanctioned between 1 April 2013 and 31 March 2014. The aggregate
deduction allowed under this section cannot exceed Rs 1 lakh and is allowed for FY 2013-14 and FY 2014-
15.

6. Section 80D – Medical Insurance

Deduction for the premium paid for Medical Insurance

You (as an individual or HUF) can claim a deduction of Rs.25,000under section 80D on insurance for self,
spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000,
if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000,
which has been increased in Budget 2018 from Rs 30,000.

In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section
is up to Rs.1 lakh.

27
[Type here]

Example: Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can
claim under section 80D is Rs. 100,000. From FY 2015-16 a cumulative additional deduction of Rs. 5,000 is
allowed for preventive health check.

7. Section 80DD – Disabled Dependent

Deduction for Rehabilitation of Handicapped Dependent Relative.

Section 80DD deduction is available to a resident individual or a HUF and is available on:

a. Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped
dependent relative

b. Payment or deposit to specified scheme for maintenance of handicapped dependent relative.

i. Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000.

ii. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,25,000.

To claim this deduction a certificate of disability is required from prescribed medical authority. From FY 2015-
16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs
1,25,000.

8. Section 80DDB – Medical Expenditure

Deduction for Medical Expenditure on Self or Dependent Relative

a. For individuals and HUFs below age 60

A deduction up to Rs.40,000 is available to a resident individual or a HUF. It is available with respect to any
expense incurred towards treatment of specified medical diseases or ailments for himself or any of his
dependents. For an HUF, such a deduction is available with respect to medical expenses incurred towards
these prescribed ailments for any of the HUF members.

b. For senior citizens and super senior citizens

In case the individual on behalf of whom such expenses are incurred is a senior citizen, the individual or HUF
taxpayer can claim a deduction up to Rs 1 lakh. Until FY 2017-18, the deduction that could be claimed for a
senior citizen and a super senior citizen was Rs 60,000 and Rs 80,000 respectively. This has now become a
common deduction available up to Rs 1 lakh for all senior citizens (including super senior citizens) unlike
earlier.

c. For reimbursement claims

Any reimbursement of medical expenses by an insurer or employer shall be reduced from the quantum of
deduction the taxpayer can claim under this section.

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7. Section 80U – Physical Disability

Deduction for Person suffering from Physical Disability

A deduction of Rs.75,000 is available to a resident individual who suffers from a physical disability (including
blindness) or mental retardation. In case of severe disability, one can claim a deduction of Rs 1,25,000.

From FY 2015-16 – Section 80U deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000
has been raised to Rs 1,25,000.

8. Section 80G – Donations

Deduction for donations towards Social Causes

The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without
restriction. From FY 2017-18 any donations made in cash exceeding Rs 2,000 will not be allowed as
deduction. The donations above Rs 2000 should be made in any mode other than cash to qualify for 80G
deduction.

29
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Research Methodology

Research methodology is a way to systematically solve the research problem. It may be understood as a science
of studying how research is done scientifically. The various steps that are generally adopted by a researcher
in studying research problem along with the logic behind them. It is necessary for the researcher to know not
only the research methods or techniques but also the methodology.

Types of Method of Data collection and sources

The study of the research design is Descriptive and Analytical in nature because it throws light on
relationship between income range and tax paid.

 If they do proper Tax Planning.

 If they are taking full advantage of all the tax Exemptions, Deductions, Rebates, Reliefs,
Allowances and other benefits granted by the tax laws so that incidence of tax is reduced.

Primary Data:

Primary data collected from the discussion with CA and Individual tax payers. Studied the Tax Planning
Pattern of 50 Respondents tax return which were filed.

Secondary Data:

The study is analytical and Descriptive in nature. The secondary data for the study was collected from
Individual tax payer’s investments reports and receipts, CA Reports, Reports of comptroller and Auditors
General of India (Union Taxes), NSDL (TRACES Login), Circular And Notification of central Board of
Direct Taxes, Books, journal And Newspaper Reports

Sample Size :- 50 Respondents & 2 Cases

30
[Type here]

Data Analysis and Interpretation

To ascertain the level of awareness of the Taxpayer on various taxes planning measures available under the
Income Tax Act. The Following Questionnaire are prepared:

- 50 respondents survey is taken in to consideration.

1) Gender of Respondents from whom data is collected:
Respondents Gender
Male Female

33 17

Respondent Gender
40
30
20
10
0
Male Female

INTERPRETATION:

For the purpose of data collection, the sample includes more male Respondents then female.

2) Age Group of Respondents considered for Data Analysis:

Age Group
21-30 31-45 46-60 Above 60

8 22 15 5

Age Group
30

20

10

0
21-30 31-45 46-60 Above 60

INTERPRETATION:

The data is collected from respondents of different age group, the respondents in the age group of
31-45 are more compared to respondents of other age group.

31
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3) Are you aware of Tax Planning?

Sr. No Age Group Yes No

1 21-30 3 5
2 31-45 14 8
3 46-60 11 4
4 Above 60 2 3

Aware about Tax Planning

16

14

12

10

0
21-30 31-45 46-60 Above 60

YES NO

INTERPRETATION:-
i. In the age group of 21-30 as of now only 3 Respondents are doing their Tax Planning and 5 are still
not aware about it.
ii. Age group of 31-45 consists of 14 Respondents who are aware of Tax Planning and 8 other
Respondents are not aware.
iii. In the age group of 46-60 only 4 Respondents are not aware of Tax Planning whereas other 11
Respondents are aware of Tax Planning.
iv. In the age group of above 60 we can see that 2 Respondents are doing Tax Planning and 3 are not.

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4) Do you avail Exemptions, Deductions, Rebates, Reliefs, Allowances and other benefits
involved in Income Tax Computation?

Sr. No. Age Group Yes No

1 21-30 3 5
2 31-45 14 8
3 46-60 11 4
4 Above 60 2 3

Avail Benefits of Tax Computation

16
14
12
10
8
6
4
2
0
21-30 31-45 46-60 Above 60

YES NO

INTERPRETATION:-

i. Out of 8 Respondents in 21-30 age group 5 Respondents avail benefits of Income Tax Computation
under various sources of Income, whereas 3 do not avail benefits of Income Tax the elements involved.
ii. In 31-45 age group most of the people i.e. 16 Respondents avail benefits of Income Tax Computation
on the other hand there are 6 Respondents who still are not aware.
iii. In 46-50 age group 10 Respondents avail benefits of Income Tax Computation whereas 5 Respondents
do not avail benefits Income Tax Computation.
iv. In age group above 60, only 2 Respondents avail benefits of Income Tax Computation and 3
Respondents do not avail benefits.
Therefore,
We can say that Respondents in the age group of 31-45 & 46-60 avail more benefits of Income Tax
Computation than other age groups.

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5) Do you know the Income Tax Slab under New Tax Regime?

Sr. No Age Group Yes No

1 21-30 7 1
2 31-45 18 4
3 46-60 11 4
4 Above 60 2 3

Awareness about Income Tax Slab Rates

20
18
16
14
12
10
8
6
4
2
0
21-30 31-45 46-60 Above 60

Yes No

INTERPRETATION:-

i. In the age group of 21-30, only 7 Respondents are aware of tax slab whereas 1 client is not
aware of the tax slab.
ii. In the age group of 31-45, there are 18 Respondents who are aware of Tax slabs however there
are 4 Respondents who are not aware of it.
iii. In the age group of 46-60, 3 Respondents are not aware on the other hand there are 11
Respondents who know Tax Slabs.
iv. Above 60 age group, 4 Respondents are not aware and only 1 client is aware of Tax Slabs.
We can say that the Respondents in the age group of 21 to 45 (i.e. 21-30 & 31-45) are aware of Income
Tax Slab.

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6) Which Tax Planning Instrument you prefer mostly under Section 80C?

National Public Mutual Life

Age Fixed
Sr. No Saving Provident Funds / Insurance
Group Deposits
Certificate Fund Bonds Policy
1 21-30 0 1 2 4 1
2 31-45 2 4 6 7 3
3 46-60 4 2 3 4 2
Above
4 2 0 0 2 1
60

Tax Planning Instruments

8
7
6
5
4
3
2
1
0
National Saving Public Provident Mutual Funds / Life Insurance Policy Fixed Deposits
Certificate Fund Bonds

21-30 31-45 46-60 Above 60

INTERPRETATION:-

i. With reference to the above given data we can interpret that Respondents mostly prefer Life or Health
insurance so as to plan their tax liability.
ii. Respondents above the age of 46 (i.e. 46-60 & above 60) are seen investing more in low risk
instruments such as Fixed Deposits and National Saving Certificate.
iii. Respondents in the age group of 31-45 invest more in Mutual Fund and Health or Life Insurance.

35
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7) What is your major source of Earning?

Income
House Capital
Age Business Salary from
Sr. No Property Gain
Group Income Income Other
Income Income
Sources
1 21-30 2 6 0 0 0
2 31-45 10 7 2 3 0
3 46-60 6 3 4 2 0
4 Above 60 1 0 2 0 2

Sources of Income in Respective Age Group

12

10

0
Business Income Salary Income House Property Capital Gain Income Income from Other
Income Sources

21-30 31-45 46-60 Above 60

INTERPRETATION:-

i. Here we can interpret that majority of Respondents in the age group of 46-60 are involved in
business.
ii. Whereas in the Age group of 21-30 Respondents have more of salary income.
iii. On the other hand we can see that Respondents in age group of 31-45 have more of business and
salary income.
iv. Respondents above 60 have more of Pension income.

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8) Do you utilize full Deduction of Rs. 1,50,000 under 80C?

Age
Sr. No 21-30 31-45 46-60 Above 60
Group
1 YES 1 13 12 5

2 NO 7 8 3 0

Full Utilization of Deduction under 80C

14

12

10

0
21-30 31-45 46-60 Above 60

YES NO

INTERPRETATION:-

i. Respondents in the age group of 31-45 & 46-60 are seen taking the full deduction of Rs. 1,50,000
with respect to the income earned.
ii. While Respondents in the age group of 21-30 have not claimed full deduction under 80C.
iii. On the other hand, Respondents above the age group of 60 have claimed Full amount of deduction
under section 80C.

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CASE 1

Name :- Chandan Ramakant Deshmukh

Date of Birth :- 11/05/1989
Permanent Account Number :- DOBPD9510F
Assessment Year :- 2021 - 2022
Previous Year :- 2020 - 2021
COMPUTATION OF TOTAL INCOME
PARTICULARS Amount (Rs.) Amount (Rs.)

INCOME FROM SALARY

Salary from Ratnarup 13,12,500.00
Deduction:
a. Standard Deduction 50,000.00
b. Tax on Employment 2,500.00 12,60,000.00

INCOME FROM OTHER SOURCES

Bank Interest 9,503.00
Interest on IT Refund 431.00 9,934.00
GROSS TOTAL INCOME 12,69,934.00

Less :- Deduction under chapter VI A

u/s 80 C-PF 1,50,000.00 1,50,000.00
u/s 80 TTA 9,503.00 9,503.00
TOTAL INCOME 11,10,431.00
Tax on Total Income
Upto Rs. 250000 -
From Rs. 250000 to Rs. 500000 12,500.00
From Rs. 500000 to 1000000 1,00,000.00
From Rs. 1000000 an above 33,129.00
Tax on Total Income 1,45,629.00
Less: Rebate -
1,45,629.00
Add : Education cess 5,825.00
Total tax payable 1,51,454.00
234A 95,568.00
234B 19,489.00
234C 8,213.00

Total Payable 2,74,724.00

Less: TDS 2,76,000.00

TAX PAYABLE / ( REFUNDABLE ) (1,276.00)
Interpretation:

I. Mr. Chandan is good in Tax Planning, as he invests in PF he gets full deduction u/s 80C for the amount
invested.
II. He has paid Tax Deducted at Source more than his Tax Liability therefore he is eligible for Refund.
III. Mr. Chandan reduced his Tax Liability with the help of different Investment patterns, If he had not
done such Tax Planning than he may have suffered from Tax Liability.

38
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CASE 2

Swarup Prashant Mahajan

STATUS: INDIVIDUAL ASSESSMENT YEAR: 2021-22
PAN No: PZDPM0756P
COMPUTATION OF TOTAL INCOME
Particulars AMOUNT (RS) AMOUNT (RS)
Income from Salary :
- Yashoda Shikshan Sanstha 13,53,690.00
Total Salary 13,53,690.00
Less: Professional tax (2,500.00)
Less: Standard Deduction u/s 16(ia) (50,000.00) 13,01,190.00
Income from Other Sources :
- Interest on Fixed Deposits 91,967.60
- Bank Interest 26,881.00
- Other income 200.00
1,19,048.60 1,19,048.60
GROSS TOTAL INCOME 14,20,238.60
Less Deductions Under Chapter VI
Under Section 80C (NSC) 1,50,000.00 1,50,000.00
Under Section 80D
Under Section 80TTA 26,881.00 10,000.00
Total Deduction 1,60,000.00
TAXABLE INCOME 12,60,238.60
Add: Agriculture Income 1,97,000.00
Taxable Income including Agriculture Income 14,57,238.60
Tax on Above : 2,49,672.00
Less: Rebate on Agriculture Income 9,850.00
Total Tax Payable 2,39,822.00
Education Cess 9,593.00
TOTAL TAX AND CESS PAYABLE 2,49,415.00
TAX PAID:
TDS :
TDS on FD 4,249.00
TDS on Salary 1,51,290.00
1,55,539.00
Tax Payable : 93,876.00
Less : Advance Tax Paid
Add :Interest Payable 13,178.56
234 A -
234 B 8,437.84
234 C 4,740.72
Tax & Interest Payable : 1,07,054.56
Less Self Assessment Tax Paid : 1,11,759.00
Tax Payable : (4,710.00)
Interpretation:

I. Since Mr. Swarup has Agricultural Income as per specified conditions the assessee is eligible for
Rebate on Agricultural Income.
II. Mr. Swarup is also claiming full deduction u/s 80C for his eligible investments in National Saving
Certificate.

39
[Type here]

Findings
The Findings of the Project Report are as follows

1) The respondents in the age group of 21-30 & above 60 are not aware of Tax Planning compared to
respondents in the other age groups.
2) The respondents in the age group of 31-45 & 46-60 avail more benefits of Income Tax Computation
than respondents in other age groups.
3) The respondents in the age group of 31-45 prefer more of Tax Saving Instruments as they are aware
of Tax Planning.
4) Respondents needs to compare the advantages of several tax saving scheme and depending upon
their age, social liabilities, tax slabs and personal preferences to decide upon a right mix of
investment, which shall reduce their tax liability.

40
[Type here]

Limitations of the Project

The study uses both primary and secondary data for the successful completion of the study. Therefore, the
limitations of these data will affect the study.

1) The analysis is for a particular period of time and results will change for an analysis made at any
other point of time.
2) The study limits itself to the respondents in Pune city. The results might vary if the study is
conducted in different geographical location.
3) The study is conducted for only 50 respondents, the result may vary if the sample size of
respondents is increased.
4) The 2 cases taken here belong to the same head of Income class and not of any other Income class.

41
[Type here]

Learnings of the Project

 From the above study we can say that Assesses should be more aware of Tax Planning, so as to save
their hard earned money in a legal way.
 Tax saving is permitted only for investment made in Government Securities and Bonds of priority
sectors, which ultimately help the whole nation.
 Assesses just need knowledge of few sections of Income-Tax Act to save themselves from Tax Burden.

42
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Bibliography

WEBSITES

1. http://in.taxes.yahoo.com/taxcentre/ninstax.html

2. http://in.biz.yahoo.com/taxcetre/section80.html

3. http://www.bajajcapital.com/financial-planning/tax-planning

4. www.Incometaxindia.gov.in

5. www.taxguru.in

6. www.moneycontrol.com

43
[Type here]

ANNEXURE

Questionnaire:

1. Gender of Respondents from whom data is collected.

a. Male
b. Female

2. Age Group of Respondents considered for Data Analysis.

a. 21-30
b. 31-45
c. 46-60
d. Above 60

3. Are you aware of Tax Planning?

a. YES
b. NO

4. Do you avail Exemptions, Deductions, Rebates, Reliefs, Allowances and other benefits involved
in Income Tax Computation?
a. YES
b. NO

5. Do you know the Income Tax Slab?

a. YES
b. NO

6. Which Tax Planning Instrument you prefer mostly under Section 80C?
a. National Saving Certificate
b. Public Provident Fund
c. Mutual Funds / Bonds
d. Life Insurance Policy
e. Fixed Deposits

44
[Type here]

7. What is your major source of Earning?

a. Business Income
b. Salary Income
c. House Property Income
d. Capital Gain Income
e. Pension Income

8. Do you utilize full Deduction of Rs. 150,000 under 80C?

a. YES
b. NO

45