Juned Project

Savitribai Phule Pune University.
(Completing M.Com Postgraduate Course.)
Akole Taluka Education Society‘s
Tal-Akole, Dist. – Ahmedanager.
A Project on
“A STUDY OF THE TAX FILLING PROCESS FOR

INDIVIDUAL TAXPAYER: A CASE STUDY OF
TAXBLOCK INDIA PVT LTD”
****Submitted by****
BAGWAN JUNED
Roll No. 02.
EJAJ
M.com 2nd
Advance Accounting Paper VIII.
Project Work.
Guided By
Prof. Dr. M. D. Sayyad.
Commerce Department.
(2022-23.)
1
Certificate
This is certified that Mr. BAGWAN JUNED EJAJ student of M.com II

year (Advance Accounting & Taxation Paper VIII) in Agasti Art‘s
Commerce and Dadasaheb Rupawate Science College, Akole has completed
his completed project work with ‗A STUDY OF THE TAX FILLING
PROCESS FOR INDIVIDUAL TAXPAYER: A CASE STUDY OF
TAXBLOCK INDIA PVT LTD‘. And submitted in partial in fulfill of the
degree in MASTER OF COMMERECE as per syllabus prescribed by the
Savitribai Phule Pune University.
(Academic Year 2022-2023)
Prof. Lt. S. A. PALANDE. Dr.BHASKAR SHELKE
Prof. Dr. M.D. SAYYAD. External Examiner.
(Research Guide)
2
3
ACKNOWLEDGMENT.
There are various people to acknowledgment and thank for

their contributions to this project. Here is a consideration of all these
estimate people who provides not only there valuable time but also
their views, which further enhanced the projects and made it more
than what it would have been.
I offer my special thanks to my projects guide Dr. M. D. Sayyad

Madam for all her educative guidance and more supports that he has
provided me during the preparation of the project. I would also like
to thanks our faculties who provided there valuable guidance which
has helped me in enhancing the quality of the project report.
I am also thankful to all our friends, and well-wishers. Who have

directly or indirectly contributed to the success of my project?
Last but not least very heartiest thanks with my folded hands
from the bottom of my hearts to the almighty God, who made all
these possible.
Also please accept my sincere apologies along with a thank you that
have contributed but their manes have not been included.
Date-
Place-
[Mr. BAGWAN JUNED EJAJ]
4
DECLERATION.
I undersigned hereby declare that the project report entitled A

Study of A STUDY OF THE TAX FILLING PROCESS FOR
INDIVIDUAL TAXPAYER: A CASE STUDY OF TAXBLOCK
INDIA PVT LTD. Written and submitted by me to the Savitribai
Phule Pune University in partial fulfillment of the requirements for
award of degree of master of Advance Accounting and taxation
under the guidance of Dr. M.D. Sayyad Madam is my original work
expects the topic on organization profile and the conclusion drawn
there in are based on the materials collected by myself.
MASTER OF COMMERCE (ADVANCE ACCOUNTING)
Date: / /
Place: Akole.
College Seat No . Year.

Exam Seat No. Year.
Date:
Place: Akole Name and Signature
Research scholar.
5
INDEX
CHAPTER NO. CONTENTS PAGE NO.
Introduction
Objectives of Study
Organizational Profile
Research Methodology 11
1 To
Primary Data 13
Secondary Data
Scope of the Study
Limitation Of Study
14
2. Review of Literature
To 21
22
3. Historical Background To
46
4. Data Analysis 47 To 53
Findings
Suggestion
54
5
Conclusion To 55
Bibliography
6
Chapter No 01.
Tax Management Strategies For The benefit of Salaried

Assesses.
All arrangements by which the tax is saved by ways and means, which
comply with the legal obligation and requirements and are not colorable
devices or tactics to meet the letters of law but not the sprite behind
these, would constitute tax planning. Tax planning should not be done
with an intent to defraud the revenue, All transactions entered into by
an assessed could be legally correct, yet on the whole these transactions
may be devised to defraud the revenue. All such devices where status
is followed in strict words but actually spirit behind the statute is marred
would be termed as colorable devices and they do not form part of the
tax planning. All transactions in respects of tax planning must be in
according with the true spirit of statute and should be correct in form
and substance. The form and substance of a transaction is real test of any
tax-planning device. The form of transaction, as it appears superficially and
the real intention behind such transaction may remain concealed. Substance
of a transaction refers to lifting the veil of legal documents and ascertaining
the intention of parties behind the transaction. Tax planning is the
arrangement of one‘s affairs in such a manner that the tax planner may
either reduce the incident of tax wholly or reduce it to maximum possible
extent as may be permissible within the framework of the taxation land. It
does not amount to evasion of tax. It is an act of prudence and
farsightedness on the part of the taxpayer who is entitle to reduce the
burden of his tax liability to the maximum possible extent under the
7
existing law. Tax planning ensures not only accruals of tax benefit with in
the four
corners of law, but it also ensures that the tax obligations are
properly discharged to avoid penal provision.
1. To study taxation provisions of The Income Tax Act, 1961 as amended

by Finance Act, 2016.
2. To explore and simplify the tax planning procedure from a layman‘s
perspective.
3. To present the tax saving avenues under prevailing statures.
4. To study the process of filling income tax.
5. To study the problem faced by salaried person in filling income tax
return.
6. To Suggest how to manage tax in order to make more investment and
get benefitted.
1. The project studies the tax planning for individuals, salaried assesse to
income tax.
2. This study covers individual tax assesses only and does not includes
business firm , partnership firm's or Company's.
:
1. Study cover individual income tax assesse only and does not hold
good for corporate tax payers.
2. The project studies the tax planning and management for salaried
individual assessed only.
3. There is a only one month's training for the income tax filing of an
8
individual after that real time work started.
9
4. Company doesn't allow me to use original data of the clients due to
their security issues.
Hypothesis :
1. Indian income tax contains complicated provision and there is a scope
to simplify the same.
2. Assesse can make better planning to reduce tax burden legally.
Research Methodology
A) Data collection :
1. Primary Data:
Primary research entails the use of immediate data in determining a stable all-
tax system. As I am working as a tax advisor in tax block India LTD Company
has assigned my clients that client I have received primary data through
questionnaire on call
2. Secondary Data:
Whereas Secondary research is means to reprocess and reuse collected
information as an indication for betterment of service or product. In this data
related to a past period. I collected data of my project form work in chartered
Accountants office related to different department are handle like tax planning
auditing tax consultant, audit report etc.. List of customer for advisory, tax
details, fee structure etc. Data is collected from past record that means history
& I collected the data for tax planning for the tax payer. The site ministry of
finance, income tax reports data on quarterly/ monthly/ half yearly/ annually
respectively.
B) Data analysis:
1. Table
2. Percentage
3. Graph
1
4. Chart
5. Diagram
Sample Selection
1. While doing project to find the data of clients I have decided that i have to
collect 150 clients data but at the end, I could get only 50 clients data. Some
client was not receiving the phone calls and some of them are not interested to
share their information. hence i could get include only 50 clients data in the
project
Review of literature
1. Mrs. R.VASANTHI 2015, a Study on Tax Planning Pattern of

Assesse Research Journal of Finance and Accounting RJFA Vol.6,
No.1, 2015
The word ―Tax‖ is derived from the Latin word called Taxes and Taxon
means to estimate, appreciate or value. The word Income Tax itself implies it
is a tax on earnings. It plays vital role in the national economy. The ever
increasing functions of the government have naturally lead to increasing
expenditure for instance achieving the social and economic objectives laid
down in the constitution, reducing the inequality of income, removing the
concentration of economic power in few hands, balancing regional economic
growth and so on.
The planning is the arrangement of one‘s financial affairs in such a way
that without violating in any way the legal provisions, full advantage is taken
to allow tax exemptions, deductions, concessions, rebates, allowances and
other reliefs or benefits permitted under the Income Tax Act.
2. Sativa, Likes Gautama, May 2013, Income Tax Planning: A Study of
Tax Saving Instruments, International Journal of Management and
Social Sciences Research (IJMSSR)
1
Tax planning is an essential part of our financial planning. Efficient tax
planning enables us to reduce our tax liability to the minimum. This is done by
legitimately taking advantage of all tax exemptions, deductions rebates and
allowances while ensuring that your investments are in line with their long-
term goals. The purpose of the study is to find out the most suitable and
popular tax saving instrument used to save tax and also to examine the amount
saved by using that instrument. Over all findings reveals that the most adopted
tax saving instrument is Life Insurance policy, which got the first rank in this
study and the second most adopted tax saving instrument is Provident Fund.
3. directors‘ views are significant in assessing the progress being made.
4. K. Savanna Dr. K. Moth Lakshmi, 2017, Tax Saving Scheme and

Tax Saving Instruments of Income Tax in India, International
Journal for Scientific Research & Development IJSRD, Vol. 5,
Issue 07, 2017
To study the planning of individual income tax and tax saving
instruments of individual income tax. By doing so they can plan in advance
about their Tax savings instrument. Tax planning is an essential part of our
financial planning. Efficient tax planning enables us to reduce our tax liability
to the minimum. This is done by legitimately taking advantage of all tax
exemptions, tax saving scheme, deductions under chapter VIA, rebates and
popular tax saving scheme and tax saving instrument used to save tax and also
to examine the amount saved by using that instrument. Tax is a fee charged by
a government on a product, income or activity. There are two types of taxes –
direct taxes and indirect taxes.
1
Chapter scheme:
Chapter I: Introduction and research methodology
(Introduction, Abstract, Objective, Hypothesis, Scope, Limitation, Sample
Selection)
Chapter II: Review of literature.
Chapter III: Profile / Historical Background
Chapter IV: Data Analysis
(Chart, Table, Graph, Diagrams)
Chapter V: (Conclusion, Suggestion, hypothesis, Testing, Bibliography)
Bibliography:
1. Taxyes.wordpress.com
2. http://taxindiaonline.com
3. http://taxmanagementindia.com
4. Income tax ready reckoner
5. Dr. vino k singhania student guide to income tax
EXECUTIVE SUMMARY
Title: “Tax Management for Individual Assesses”.
» Primary Objective:
To get acquaint with the actually practical work in the outside industry
by using various skill sets to make oneself more competitive &
knowledgeable.
» Objective of Project:
1. To study taxation provisions of The Income Tax Act, 1961 as amended
by Finance Act, 2016.
2. To explore and simplify the tax planning procedure from a layman‘s
perspective.
1
3. To present the tax saving avenues under prevailing statures.
» Need of the Study:

In last some years of my career and education, I have seen people
grappling with the taxation issue and unwire about the taxation system.
Not equipped with proper knowledge of taxation and tax saving avenues
available to them, & Fair practice in the industry.
» Background of the Study:

The Income Tax Act, 1961 is the charging statute of income Tax in
India. It provides for levy, administration, collection and recovery of
Income Tax. Recently the Government of India has brought out a draft
statue called the ―Direct Taxes Code‖ intended to replace the
Income Tax Act, 1961 and Wealth Tax Act, 1956.
The total income of a person is segregated into five heads:-
A. Income from salaries

B. Income from house property
C. Profits and gains of business or profession
D. Capital gains and
E. Income from other sources
Some incomes under the section 80 are allowed as deductions after
calculating the total income from the five heads. Then the income which
comes out after deducting the allowed incomes is taxable as per Income
Tax Act, 1961.
» Methodology:
1. Primary Data:
Primary research entails the use of immediate data in determining
the for stable all tax system. Primary data is more accommodating as it
1
shows latest information. Primary data collected from the clients as
their income statements & proofs.
2. Secondary Data:
Whereas Secondary research is means to reprocess and reuse
collected information as an indication for betterment of service or
product. In this data related to a past period. I collected data of my
project form work in chartered Accountants office related to different
department are handle like tax planning auditing tax consultant, audit
report etc.. List of customer for advisory, tax details, fee structure etc.
Data is collected from past record that means history & I collected the
data for tax planning for the tax payer. The site ministry of finance,
income tax reports data on quarterly/ monthly/ half yearly/ annually
respectively.
INTRODUCTION
Income Tax Act, 1961 governs the taxation of incomes generated within
India and of incomes generated by Indians overseas. This study aims at
presenting a lucid yet simple understanding of taxation structure of an
individual‘s income in India for the assessment year 2022-2023. Income Tax
Act, 1961 is the guiding baseline for all the content in this report and the tax
saving tips provided herein are a result of analysis of options available in
current market. Every individual should know that tax planning in order to
avail all the incentives provided by the Government of India under different
statures is legal.
This project covers the basics of the Income Tax Act, 1961 as amended
by the Finance Act 2016, and broadly presents the nuances of prudent tax
planning and tax saving options provided under these laws. Any other hideous
means to avoid or evade tax is a cognizable offence under the Indian
constitution and all the citizens should refrain from such acts.
1
Objective for Income Taxes
The objective of income taxes on an accrual basis is to recognize the

amount of current and deferred taxes payable or refundable at the date of the
financial statements (a) as a result of all events that have been recognized in
the financial statements and (b) as measured by the provisions of enacted tax
laws. Other events not yet recognized in the financial statements may affect
the eventual tax consequences of some events that have been recognized in the
financial statements. But that change in tax consequences would be a result of
those other later events, and the Board decided that the tax consequences of an
event should not be recognized until that event is recognized in the financial
statements.
AN EXTRACT FROM INCOME TAX ACT, 1961

Tax Regime in India
The tax regime in India is currently governed under The Income Tax,
1961 as amended by The Finance Act, 2016 notwithstanding any amendments
made thereof by recently announced Union Budget for assessment year 2019-
20.
Chargeability of Income Tax
As per Income Tax Act, 1961, income tax is charged for any assessment
year at prevailing rates in respect of the total income of the previous year of
every person. Previous year means the financial year immediately preceding
the assessment year. Basic Knowledge of Income Tax According to Income
Tax Act 1961, every person, who is an assessed 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 shall be paid
on the total income of the previous year in the relevant assessment year.
1
Assesse means a person by whom (any tax) or any other sum of money is
payable under the Income Tax Act, and includes –
(a) Every person in respect of whom any proceeding under the Income Tax
Act has been taken for the assessment of his income or of the income of
any other person in respect of which he is assessable, or of the loss
sustained by him or by such other person in respect of which he is
assessable, or of the loss sustained by him or by such other person, or
of the amount of refund due to him or to such other person.
(b) Every person who is deemed to be an assessed under any provisions of
the Income Tax Act.
(c) Every person who is deemed to be an assessed in default under any
provision of the Income Tax Act.
Income tax is an annual tax imposed separately for each assessment
year (also called the tax year). Assessment year commence from 1 st
April and ends on the next 31st March.
The total income of an individual is determined on the basis of his residential
status in India. For tax purposes, an individual may be resident, nonresident or
not ordinarily resident.
Scope of Total Income
Under the Income Tax Act, 1961, total income of any previous year of a
person who is a resident includes all income from whatever source derived
which:
 is received or is deemed to be received in India in such year by or on
behalf of such person.
 accrues or arises or is deemed to accrue or arise to him in India during such
year. or
 accrues or arises to him outside India during such year:
1
Provided that, in the case of a person not ordinarily resident in India, the
income which accrues or arises to him outside India shall not be included
unless it is derived from a business controlled in or a profession set up in
India.
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
 Profits and gains of business or profession
 Income from other sources
Concepts used in Tax Planning

2. Tax Evasion
Tax Evasion means not paying taxes as per the provisions of the law or
minimizing tax by illegitimate and hence illegal means. Tax Evasion can be
achieved by concealment of income or inflation of expenses or falsification of
accounts or by conscious deliberate violation of law. 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 Rest. 50,000/- from Mr. B. A tells B to pay him Rest.
50,000/- in cash and thus does not account for it as his income. Mr. A has
resorted to Tax Evasion.
3. Tax Avoidance
Tax Avoidance is the art of dodging tax without breaking the law.
While remaining well within the four corners of the law, a citizen so arranges
1
his affairs that he walks out of the clutches of the law and pays no tax or pays
minimum tax. Tax avoidance is therefore legal and frequently resorted to. In
any tax avoidance exercise, the attempt is always to exploit a loophole in the
law. A transaction is artificially made to appear as falling squarely in the
loophole and thereby minimize the tax. In India, loopholes in the law, when
detected by the tax authorities, tend to be plugged by an amendment in the
law, too often retrospectively. Hence tax avoidance though legal, is not long
lasting. It lasts till the law is amended.
Example: Mr. A, having rendered service to another person Mr. B, is entitled
to receive a sum of say Rest. 50,000/- from Mr. B. Mr. A‘s other income is
Rest. 200,000/-. Mr. A tells Mr. B to pay cheque of Rs. 50,000/- in the name
of Mr. C instead of in the name of Mr. A. Mr. C deposits the cheque in his
bank account and account for it as his income. But Mr. C has no other income
and therefore pays no tax on that income of Rs. 50,000/-. By diverting the
income to Mr. C, Mr. A has resorted to Tax Avoidance.
Tax Planning
Tax Planning has been described as a refined form of ‗tax avoidance‘
and implies arrangement of a 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 the 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. 300,000/- receives income of Rs.
50,000/- from Mr. B. Mr. A to save tax deposits Rs. 100,000/- in his PPF
account and saves the tax of Rs. 10,000/- and thereby pays no tax on income
of Rs. 350,000.
Tax Management
1
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. 100,000 in his PPF account and
saving tax of Rs. 10,000/- 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.
The Income Tax Equation

For the understanding of any layman, the process of computation of income
and tax liability can be outlined in following five steps. This project is also
designed to follow the same.
 Calculate the Gross total income deriving from all resources.
 Subtract all the deduction & exemption available.
 Applying the tax rates on the taxable income.
 Ascertain the tax liability.
 Minimize the tax liability through a perfect planning using tax saving
scheme
2
Chapter No 2
Review of literature
1. Mrs. R.VASANTHI 2015, a Study on Tax Planning Pattern of

Assesse Research Journal of Finance and Accounting RJFA Vol.6,
No.1, 2015
means to estimate, appreciate or value. The word Income Tax itself implies it
is a tax on earnings. It plays vital role in the national economy. The ever
concentration of economic power in few hands, balancing regional economic
growth and so on.
The planning is the arrangement of one‘s financial affairs in such a way
that without violating in any way the legal provisions, full advantage is taken
to allow tax exemptions, deductions, concessions, rebates, allowances and
other reliefs or benefits permitted under the Income Tax Act.
2. Kristina Minnick, Tracy Neoga, 2010, Do corporate governance
characteristics influence tax management, Journal of Corporate
Finance
This paper investigates how corporate governance plays a role in long-run
tax management and contributes to the existing literature in several ways.
First, we add insight into the horizon problems related to executive and
director compensation and show that incentive compensation provides long-
term incentives to improve performance by establishing a link between higher
pay-performance sensitivity and lower taxes. Second, this is one of the first
papers, to our knowledge, to empirically examine the role of governance in
corporate tax management from a long-term perspective in order to better
2
understand the lasting effects of governance. We find that incentive
compensation drives managers to make investments into longer-horizon pay
outs such as tax management. Furthermore, we find that this investment into
tax management benefits shareholders. better tax management is positively
related to higher returns to shareholders. We also address the endogeneity
issues of corporate governance and performance measures. Finally, our paper
is unique in examining which type of tax management strategy (domestic or
foreign) different firms focus on. Our results shed light into how governance
can improve firm performance and increase shareholder value in the long run.
3. Sativa, Likes Gautama, May 2013, Income Tax Planning: A Study of
Tax Saving Instruments, International Journal of Management and
Social Sciences Research (IJMSSR)
4. JUDITH FREEDMAN, GEOFFREY LOOMER AND JOHN
VELLA April 2009 Corporate Tax Risk and Tax Avoidance: New
Approaches
The relationship between tax authorities and large corporate taxpayers is
a concern world-wide as can be seen from the 2008 OECD Study into the Role
of Tax Intermediaries. In the United Kingdom, HMRC have been developing a
risk rating approach to tax risk management as part of their Review of Links
with Large Business. The approach is designed to promote an enhanced
2
relationship between HMRC and the taxpayer, based on trust and
transparency. The objectives include the improvement of resource allocation
and the encouragement of companies to consider their position so as to
achieve the benefits of low risk rating, which may involve altering their tax
planning strategy. In addition, new approaches to tax avoidance legislation
such as targeted anti-avoidance rules and principles-based legislation are being
introduced or considered. This article discusses a survey of tax directors in
which the authors used detailed tax planning scenarios to investigate the views
of tax directors on the impact and success or otherwise of these new
approaches. The views of tax directors are only one factor in judging the
success of these developments, but given that one aim of current tax policy is
an enhanced relationship with corporate taxpayers, directors‘ views are
significant in assessing the progress being made.
5. K. Savanna Dr. K. Moth Lakshmi, 2017, Tax Saving Scheme and
Tax Saving Instruments of Income Tax in India, International
Issue 07, 2017
financial planning. Efficient tax planning enables us to reduce our tax liability
to the minimum. This is done by legitimately taking advantage of all tax
exemptions, tax saving scheme, deductions under chapter VIA, rebates and
popular tax saving scheme and tax saving instrument used to save tax and also
to examine the amount saved by using that instrument. Tax is a fee charged by
a government on a product, income or activity. There are two types of taxes –
direct taxes and indirect taxes.
2
6. Mrs.R.VASANTHI 2015, A Study on Tax Planning Pattern of
Assessee Research Journal of Finance and Accounting RJFA
Vol.6, No.1, 2015
means to estimate, appreciate or value. The word Income Tax itself implies
it is a tax on earnings. It plays vital role in the national economy. The ever
concentration of economic power in few hands, balancing regional
economic growth and so on. The planning is the arrangement of one‘s
financial affairs in such a way that without violating in any way the legal
provisions, full advantage is taken to allow tax exemptions, deductions,
concessions, rebates, allowances and other reliefs or benefits permitted
under the Income Tax Act.
7. Kristina Minnick, Tracy Noga, 2010, Do corporate governance
characteristics influence tax management, Journal of Corporate
Finance
This paper investigates how corporate governance plays a role in long-run
tax management and contributes to the existing literature in several ways.
First, we add insight into the horizon problems related to executive and
director compensation and show that incentive compensation provides long-
term incentives to improve performance by establishing a link between higher
pay-performance sensitivity and lower taxes. Second, this is one of the first
papers, to our knowledge, to empirically examine the role of governance in
corporate tax management from a long-term perspective in order to better
understand the lasting effects of governance. We find that incentive
compensation drives managers to make investments into longer-horizon pay
2
outs such as tax management. Furthermore, we find that this investment into
tax management benefits shareholders.
8. Savita, Lokesh Gautam, May 2013, Income Tax Planning: A Study
of Tax Saving Instruments, International Journal of Management
and Social Sciences Research (IJMSSR)
9. JUDITH FREEDMAN, GEOFFREY LOOMER AND JOHN
VELLA April 2009 Corporate Tax Risk and Tax Avoidance: New
Approaches
The relationship between tax authorities and large corporate taxpayers is a
concern world-wide as can be seen from the 2008 OECD Study into the
Role of Tax Intermediaries. In the United Kingdom, HMRC have been
developing a risk rating approach to tax risk management as part of their
Review of Links with Large Business. The approach is designed to
promote an enhanced relationship between HMRC and the taxpayer, based
on trust and transparency. The objectives include the improvement of
resource allocation and the encouragement of companies to consider their
position so as to achieve the benefits of low risk rating, which may involve
altering their tax planning strategy. In addition, new approaches to tax
avoidance legislation such as targeted anti-avoidance rules and principles-
based legislation are being introduced or considered. This article discusses
2
a survey of tax directors in which the authors used detailed tax planning
scenarios to investigate the views of tax directors on the impact and
success or otherwise of these new approaches. The views of tax directors
are only one factor in judging the success of these developments, but given
that one aim of current tax policy is an enhanced relationship with
corporate taxpayers, directors‘ views are significant in assessing the
progress being made.
10.K. Saravanan Dr. K. Muthu Lakshmi, 2017, Tax Saving Scheme
and Tax Saving Instruments of Income Tax in India, International
Issue 07, 2017
financial planning. Efficient tax planning enables us to reduce our tax
liability to the minimum. This is done by legitimately taking advantage of
all tax exemptions, tax saving scheme, deductions under chapter VIA,
rebates and allowances while ensuring that your investments are in line
with their long-term goals. The purpose of the study is to find out the most
suitable and popular tax saving scheme and tax saving instrument used to
save tax and also to examine the amount saved by using that instrument.
Tax is a fee charged by a government on a product, income or activity.
There are two types of taxes – direct taxes and indirect taxes.
11.Gurpreet Kaur, 2016, Self-Assessment System of Taxation as a
Challenge for India, International Journal of Advanced Education
and Research, Volume 1. Issue 3. March 2016
Economic resources of government can be effectively utilized by the
government through an effective implementation of tax administration
system which largely depends upon tax assessment system having two
2
types one is Official Assessment System (OAS) and another is Self-
Assessment System (SAS). In OAS taxpayers are only required to file their
annual tax returns when tax official‘s issues the notices of assessment to
tax payers whereas under Self-Assessment System (SAS) tax payers are
required to assess their tax liability and to file the tax return properly. Most
of the countries namely Sri Lanka, Pakistan, Indonesia, Australia, New
Zealand and the United Kingdom have implemented the SAS and are
availing the forthcoming opportunities in this regard. So it is suggested that
India should review the practicality of this system and the present system
should be revised keeping in view the Self-Assessment System.
12.G. Tarun and K.S. Shoba Jasmin, A Study on Tax Evasion in India,
International Journal of Pure and Applied Mathematics, Volume
119 No. 17 2018,
Tax is the compulsory public contribution and primary source of
government revenue. Tax evasion is an unlawful action which results in
inequality of income distribution and brings the economic growth to a
halt, leading to economic instability. The act of tax evasion is usually
associated with informal economy. The inequality in the income
distribution widens the tax gap, the amount of unreported income of an
individual. This is sum of the total differenc between amount to be
reported and the actual amount reported. This paper attempts to
understand the relationship between tax revenue and tax evasion with
government‘s revenue. In contrast, the paper also studies the principle
of tax avoidance and states how an individual or a corporate
organization can legally use tax laws to reduce the tax burden. Both the
activities are in a range making a state‘s tax system unfavorable.
Ultimately tax avoidance and tax evasion reduces the government‘s
revenue source, but the latter reduces the income flow for the
government significantly. The papers shows that a large number of
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people considered paying taxes as burden even if the amount of tax is
significantly less. This is may be due to the fact that tax payers feel that
their tax money isn‘t utilized efficiently by the government or the tax
rate is high.
13.Rajiv kaushik, Assessment of Individual Income Tax, Tax Planning
and Saving in India, International Journal of Computational
Engineering & Management, IJCEM Vol. 15 Issue 4, July 2012
Individual income tax is a subject matter of central govt. If an
individual want to assess his/her income tax then he/she should have
knowledge of individual income tax structure. Individuals after
calculating their total income for a particular financial year can assess
their income tax after deduction of saving and doing other adjustments.
By doing so they can plan in advance about their savings and income
tax. The tax system in India mainly, is a three tier system which is based
between the Central government, State Governments and the Local
government organizations. India has a well-developed tax structure with
clearly separated authority between Central and State Governments and
local bodies. Central Government levies taxes on income, customs
duties, central excise and service tax.
14.Dildora Abdusattarova, 2016, Effective Tax Management: Selected
Issues and Solutions in International Practice, European Journal of
Business and Management, Vol.8, No.17, 2016
Contemporary government and business sector relations are primarily
built on fiscal foundations which rooted from a dilemma of further
strengthening for sound performance and tightening for poor performance.
Business rounds around the world admit that an effective tax management can
be central to thinking of beneficial interaction with tax authorities to keep the
relations in mutually fair way. Considering the effects of global financial crisis
in global business environment, fiscal profile and behavior of many crisis-hit
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economies, visibility of relevance of effective tax management may be far-
reaching and prioritized in the context of tight tax policies and pressures. Tax
management has greater impact on enterprise‘s performance, as private
entities always seek profit and try to avoid taxes by reducing taxable income.
15.Dr. Sanjeeb Kumar Dey, 2014, Income Tax Department of India: A
Summary Assessment, Research Journal of Finance and
Accounting, Vol.5, No.15, 2014
The overall development of society is the primary objective of any
government and India has no exception to it. It should focus both on basic
functions and on welfare and developmental activities that requires
finance.Government raises finance for public necessities through tax may be
direct tax or indirect tax. Tax system of India has come a long way, dating
back to the colonial era till now. This paper examines the performance Income
Tax Department of India during last decade. The overall development of
society in India is the primary objective of the Government. It should focus
not only on traditional function (defense, maintenance of law and order) but to
consider welfare and developmental activities that requires finance.
Government raises finance for public necessities through tax. It has been
divided into direct tax and indirect tax. Income tax constitutes a major part in
all direct taxes. The socio economic objective of economic system of our
country includes application of progressive rate schedule, provision for
exemption limit, incorporation of incentive provisions etc.
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Chapter No 3.
Historical Background
The Taxation Structure of the country can play a very important role in
the working of our economy. Some time back the emphasis was on higher
rates of Tax and more incentives. But recently, the emphasis has shifted to
Decrease in rates of taxes and withdrawal of incentives. While designing the
Taxation structure it has to be seen that it is in conformity with our economic
and social objectives. It should not impair the incentives to personal savings
and investment flow and on the other hand it should not result into decrease in
revenue for the State. In our present day economy structure Income Tax plays
a vital role as a source of Revenue and a measure of removal economic
disparity. Our Taxation structure provides for two types of Taxes - DIRECT
and INDIRECT. Direct Tax include Income Tax, whereas Goods & Service
Tax comes under Indirect Tax.
HISTORY
The Income Tax was introduced in India for the first time in 1860 by
British rulers following the mutiny of 1857. The period between 1860 and
1886 was a period of experiments in the context of Income Tax. This period
ended in 1886 when first Income Tax Act came into existence. The pattern
laid down in it for levying of Tax continues to operate even to-day though in
some changed form. In 1918, another Act- Income Tax Act, 1918 was passed
but it was short lived and was replaced by Income Tax Act, 1922 and it
remained in existence and operations.
PRESENT ACT
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On the recommendation of Law Commission & Direct Taxes Enquiry
Committee and in consultation with Law Ministry a Bill was framed. This Bill
was referred to a select committee and finally passed in Sept. 1961. This Act
came into force from 1st.April 1962 in whole of the country. It provides for
levy, administration, collection and recovery of Income tax. The government
of India brought draft statute called the ―Direct taxes code‖ intended to
replace the Income tax act, 1961 and the wealth Tax act, 1957 This Act has
been amended by several amending Acts since 1961. The Annual Finance
Bills presented to Parliament along with Budget make far-reaching
amendments in this Act every year.
ASSESSEE:
As per Sec.2 (7) of the Income Tax Act, 1961, unless the context
otherwise requires, the term ―assesse‖ means a person by whom any tax or any
other sum of money is payable under this Act, and includes-
(a) every person in respect of whom any proceeding under this Act has been
taken for the assessment of his income or assessment of fringe benefits or of
the income of any other person in respect of which he is assessable, or of the
loss sustained by him or by such other person, or of the amount of refund due
to him or to such other person.
(b) Every person who is deemed to be an assessed under any provision of this
Act.
(c) Every person who is deemed to be an assessed in default under any
provision of this Act.
From above definition, we can construe that normally the term ‗Assessee‘ is
considered as one who is supposed to pay tax under the Income Tax Act
1) INCOME FROM SALARIES
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The meaning of term ‗Salary‘ for purpose of income tax is much wider than
what is normally understood. Every payment made by an employer to his
employee for service rendered would be chargeable to tax as income from
Salaries. The term ‗Salary‘ for the income tax act, 1961 will include both
monetary payments (e.g. basic salary, bonus, commission, allowance etc.)
as well as non- monetary facilities (e.g. housing accommodation, medical
facility, interest free loans etc.)
―Employer-Employee‖ relationship is a must before charging any income
under the head ―Salaries‖. In the absence of this relationship, the income
can never be characterized as salary. For instance, a partner in a partnership
firm is not an employee of the firm, so the salary paid to a partner is not
accounted for under the head Salaries. Similarly, a college teacher doing
assessment of papers for the University is not an employee of the
University. So any honorarium paid to her by the University is not salary.
Chargeability
Any salary due to an employee, whether paid to him during that
previous year or not, shall be chargeable to Income-tax for that previous
year. Similarly, if any advance salary is paid to an employee, the same
shall be chargeable to tax in the year of payment, even if the same has not
become due to the employee. Thus, salary is taxed on due or receipt basis,
whichever is earlier.
The term salary has been defined to include:
 Wages.
 Annuity/ pension (received from former employers).
 Gratuity (to the extent it is not exempt u/s 10).
 Other retirement benefits like leave encashment to the extent it is not
exempt u/s 10.
 Fees, commissions, perquisites or profits in lieu of salary.
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 Advance salary
 Allowances
Allowances
An allowance is payment made to an employee in addition to salary to
meet specific expenses related to the performance of duties. The common
allowances that are offered to employees in their salary structure are House
Rent Allowances, Children Education Allowance, entertainment allowance,
transport allowance, telephone allowance, medical allowance, dearness
allowance, overtime allowance, special allowance, etc.
Tax treatment of allowances
The allowances would be fully taxable, exempt to the extent amount
spent by the employee or exempt to the extent notified by the ITA. Medical
allowance, Overtime allowance, special allowances are examples of
allowances which are fully taxable. Uniform allowance, helper allowance,
conveyance allowances are examples of allowances which are exempt to
the extent of amount received by the employee and the amount spent for
the specified purposes, whichever is lower. Children Education Allowance,
Transport Allowances are examples of allowances which are exempt to the
extent of amount received by the employee and the amount notified by the
Act, whichever is lower. In this regard it may be noted that Children
Education Allowance is exempt to the extent Rs.100 p.m. per child up to 2
children while Transport Allowance is exempt to the extent of Rs. 1600
p.m.
House Rent Allowance (HRA)
Being the most common allowance claimed by employees, merits a
brief explanation for the calculation of exemption here. The HRA received
by the employee from the employer is exempt subject to limits prescribed
under Rule 2A of the Income Tax Rules. According to this rule the lower
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of the following three parameters will be exempt from Tax and the balance
will be Taxable as salary:
a. Actual amount of HRA received.
b. Amount equal to 50% of salary for the relevant period, in case the rented
house is situated in the four metro cities – Mumbai, Delhi, Kolkata and
Chennai, and 40% of salary if the house is situated in any other cities.
c. Rent paid in excess of 10% of salary for the relevant period.
Salary for this purpose means basic salary and dearness allowance. to the
extent it forms part of salary for the purpose of retirement benefits. All other
allowances and perquisites will be excluded. However, it may be noted that
HRA exemption is not available in case the residential accommodation is
owned by the employee or in case he is not incurring any expenditure on rental
payment. However, it may be noted that HRA exemption is not available in
case the residential accommodation is owned by the employee or in case he is
not incurring any expenditure on rental payment.
Perquisites
Perquisites have been defined to mean and include any benefits,

amenities, services or facilities granted to employees over and above the
salary. It basically is a personal advantage to employees.
Taxable Perquisites
Section 17 of the Act includes the following benefits granted to employees as

perquisites:
I. Value of rent-free accommodation provided to the employee by

his employer.
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ii. Value of any concession in the matter of rent in respect of any
accommodation provided to the employee by his employer.
iii. Value of any benefit or amenity granted or provided free of cost or at

concessional rate to any of the following employees:
● To a director.
● To an employee being a person who has substantial interest in the company
(a person having more than 20% beneficial ownership of shares in a
company or more than 20% share in profits in entities other than
companies).
● To an employee (not covered under ‗a.‘ and ‗b.‘ above) and whose income
under the head ―Salaries‖, excluding the value of all benefits or amenities
not provided for by way of monetary payment, exceeds Rs. 50,000.
iv. Any obligations of the employees being met by the employer.
v. Any sum payable by the employer, whether directly or through a fund, other
than a recognized provident fund or an approved superannuation fund or
a Deposit-linked Insurance Fund established under section 3G of the
Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948,
or, as the case may be, section 6C of the Employees‘ Provident Funds
and Miscellaneous Provisions Act, 1952, to affect an assurance on the
life of the assesse or to affect a contract for an annuity.
vi. The value of any specified security or sweat equity shares allotted or
transferred, directly or indirectly, by the employer, or former employer,
free of cost or at concessional rate to the assesse.
vii. The amount of any contribution to an approved superannuation fund by

the employer in respect of the assesse, to the extent it exceeds one lakh
rupees.
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viii. Value of any other fringe benefits.
Tax-free perquisites
Some of the Tax-free perquisites as provided in the Act are given below for a
ready reference:
i. Value of any medical facility provided to the employee or any

member of his family in a hospital, clinic, dispensary or nursing home
maintained by the employer.
ii. .Medical expenses reimbursed by the employer for any expenditure on
medical treatment of employee or any member of his family in any
private hospital, clinic, nursing homes, etc. up to Rs. 15,000 per
annum.
iii. Tea, snacks and other refreshments provided by the employer
during office hours will be exempt.
iv. Non-transferable meal vouchers which is usable at eating joints
and where the value of each voucher is up to Rs. 50 per meal.
v. Interest-free or concessional loans to employees up to Rs. 20,000.
vi. Expenditure on telephones, including mobile phones, incurred by
employers on behalf of employees.
Hints for tax planning in respect of Salaries
For the purpose of tax planning under the head salaries the following
propositions should be borne in mind. However, these proposition would
hold good only in the context in which they have been made:
● It should be ensured that, under the terms of employment, dearness
allowance and dearness pay forms part of basic salary. This will minimize
tax incidence on house rent allowance, gratuity and commuted pension.
Likewise, incidence of tax on employer‘s contribution to recognized
provident fund will be lesser if dearness allowances forms part of salary.
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● The Supreme Court has held in Gestate Duplicators (P) Ltd. V. CIT that
commission, payable as per terms of contract of employment at a fixed
percentage of turnovers achieved by an employee, falls within the
expression salary as defines in rule2 (h) of Part A of the Fourth Schedule.
Consequently, tax incidence on house rent allowance, entertainment
allowance, gratuity and commuted pension will be lesser if commission is
paid at fixed percentage of turnover achieved by the employee.
● As uncommitted pension is always taxable, employees should get their
pension commuted. Commuted pension is fully exempt from tax in case of
Government employees and partly exempt from tax in case of non-
Government employees who can claim relief under section 89.
● An employee, being a member of recognized provident fund, who resigns
before completing five years of continuous service, should ensures that he
joins a firm which maintains a recognized provident fund for the simple
reason that the accumulated balance of the provident fund with the former
employer will be exempt from tax, provided the same is transferred to the
new employer who also maintains a recognized provident fund.
● Since employer‘s contribution towards recognized provident fund is
exempt from tax up to 12 percent of salaries, employer may give extra
benefits to their employees by raising their contribution to 12 percent of
salaries without increasing any tax liability.
● While medical allowances payable in cash is taxable, provisions of
ordinary medical facilities is not taxable if some conditions are fulfilled.
Therefore, employees should go in for free medical facilities instead of
fixed medical allowances.
● Since incidence of tax on retirement benefits like gratuity, commuted
pension, accumulated balance of unrecognized provident fund is lower if
they are paid in the beginning of the financial year, employer and
employee should mutually plan their affairs in such a way that
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retirement,
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termination, or resignation as the case may be take place in the beginning
of the financial year.
● An employee should take the benefit of relief available under section 89
wherever possible. Relief can be claimed even in the case of a sum
received from unrecognized provident fund so far as it is attributable to
employer‘s contribution and interest thereon. Although gratuity received
during the employment is not exempt from tax under section 10(10), relief
under section 89 can be claimed. It should, however, be ensured that the
relief is claimed only when it is beneficial.
● Pension received in India by a nonresident assesse from abroad is taxable
in India. If however such pension is first received by or on behalf of the
employee in a foreign country and later on remitted in India it will be
exempt from tax.
● As the perquisites in respect of leave travel concession is not taxable in the
hands of employees if certain conditions are satisfied, it should be ensured
that the travel concession should be claimed to the maximum possible
extent without attracting any incidence of tax.
● As the perquisites in respect of free residential telephone, providing use of
computer/laptop, gifts of movable assets by employer using it for 10 years
or more are not taxable. employees can claim benefits without adding to
their tax bill.
● Since the term salary includes basic salary, bonus, commission, fees and all
other taxable allowances for the purpose of valuation of perquisites is
respect of rent free accommodation it would be advantageous if the
employees go in for perquisites rather than for taxable allowances. This
will reduce valuation of rent free house.
2) INCOME FROM HOUSE PROPERTY
―Income from House Property‖ is the second head of income as
laid down under the scheme of taxation. The ownership of the property
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may be
4
director even deemed (as per the prescribed provisions). Computation of
income from house property involves determining the annual value of the
property under different scenarios, deductions available from the annual
value and some relevant provisions. The annual value of a house property
is taxable as income in the hands of the owner of the property. House
property consists of any building or land, or its part or attached area, of
which the assesse is the owner. The part or attached area may be in the
form of a courtyard or compound forming part of the building. But such
land is to be distinguished from an open plot of land, which is not charged
under this head but under the head ‗Income from Other Sources‘ or
‗Business Income‘, as the case may be. Besides, house property includes
flats, shops, office space, factory sheds, agricultural land and farm houses.
Chargeability
Any income earned by a person from properties owned by him/her

would be taxed under this head. The three most important conditions that are
to be fulfilled for charging income under this head are:
I. The person should own the property.
ii. The property should not be used for the purposes of business by the person.
iii. The property should consist of both land and buildings.
In other words, if a person earns any income from a plot of land, whether
vacant or not, such income cannot be counted under this head of income.
Taxability of income in whose hands
The income is always taxable in the hands of the owner/ deemed owner
of the property. The income is chargeable in the hands of a person, even if he
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is not the registered owner of the property. Transfer of property to one‘s
spouse or minor children (except in prescribed circumstances) without
adequate consideration is one example where the transferor is deemed to be
the owner of such property for calculating income under house property.
Computing income
The annual value of the property is the most important factor for calculating
the income under this head. Annual value begins by calculating the Gross
Annual Value (GAV) of the property. For determining the GAV, the higher of
the following values will be considered:
a. The sum for which the property might reasonably expect to be let out from
year to year based on higher of municipal valuation and fair rent.
b. In case the property is subject to the Rent Control Act, then the value,
determined as above, cannot exceed the Standard Rent as set by this
Act.
c. Where the property is let out and the rent received or receivable is more
than the amount determined in ‗a.‘ or ‗b.‘ above, then the annual value
would be the actual rent received.
d. In case of a let out property, if there is any portion of rent that has remained
unrealized, the same will be deductible from the actual rent subject to
fulfillment of prescribed conditions
e. If an individual is in occupation of a house for the purposes of his residence,

the annual value of the property shall be considered to be nil (provided
he does not derive any other benefit from the property). Such a property
is also called as ‗Self Occupied Property‘.
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f. If the individual has more than one house for the purposes of his residence,
the annual value of any one of such houses, at his option, would be
considered nil. Notional income of the other residential house would be
liable to tax.
3) INCOME FROM BUSINESS OR PROFESSION

Business as defined in Section 2(13) as under:
BUSINESS: SECTION 2 (13) Business includes any trade, commerce or
manufacture or any adventure or concern in the nature of trade, commerce
or manufacture. From the above definition, we can make out that business
means any continuous or systematic or organized activity carried on with
the intention to earn profits. Even a single transaction can be business if it
is aimed at earning profit. The above definition is an inclusive definition
i.e. it is not exhaustive. The definition does not explain what the business
is, but it says that every activity intended to earn profits is included in the
definition of business. The definition says not only continuous transactions
as business but also a single transaction can be covered by the definition.
PROFESSION: SECTION 2 (36)
―Profession is defined to include vocation.‖ The word ―Profession‖
implies professed attainments in special knowledge which is to be acquired
only after patient study and application. Profession includes self-
employment. If a person carried any activity on account of inborn
talents/skill and attributes any income derived therefrom, it shall also be
considered as professional income for e.g. Income earned by rendering
discourses on philosophy, religion, etc.
Section 44AD
To reduce the burden of compliance of small taxpayers, the govt provides for
a scheme of Presumptive Taxation which is very easy to understand and
comply with. Under the scheme of Presumptive Taxation, the small taxpayers
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are not required to maintain any books of accounts and their profits are
presumed to be a certain percentage of the Total Sales.
This is a fairly old and useful scheme and various improvements have been
brought in by the Gov. at regular intervals so as to ensure that it remains
helpful and easy to understand for the taxpayers. As per the current scheme of
Presumptive Taxation, the profits of a business are assumed as follows:-
1. Section 44AD: Profits assumed at 8% of Sales for Businesses with
Turnover of less than Rs 2 Crores per annum
2. Section 44ADA: Profits assumed at 50% of Sales for Professionals with
Turnover of less than Rs. 50 Lakhs per annum
3. Section 44AE: Profits assumed at 7500 per Vehicle per month for
Transporters
To encourage businesses to receive payments digitally, the govt has also
provided an incentive to Businesses who receive payments digitally. Profits on
payment received digitally by businesses would be considered at 6% of the
total amount received digitally. This incentive is applicable from Financial
Year 2016-17 onwards. For payments received in cash, the profits would
continue to be considered at 8%. The above incentive is only provided to
businesses under Section 44AD and not for Professionals or Transporters.
After computing the Profits, the business would be required to pay Tax on
such Profits as per the Income Tax Slab rates applicable.
4) CAPITAL GAINS
―Capital gains‖ is the fourth head of income when arranged chronologically as

per the sections. The income offered under this head of income represents the
capital profits earned by an assessed on transfer of assets. Any profits or gains
arising from the transfer of capital assets effected during the previous year is
chargeable to income-tax under the head ―Capital gains‖ and shall be deemed
to be the income of that previous year in which the transfer takes place.
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Taxation of capital gains, thus, depends on two aspects – ‗capital assets‘ and
transfer‘.
 Chargeability
Profits or gains arising from the transfer of a capital asset is chargeable to tax
in the year in which transfer take place under the head ―Capital Gains‖. The
Act defines the following concepts as follows:
Transfer (section 2(47)): Transfer in relation to a capital asset includes the

following:
• Sale.
• Exchange.
• Relinquishment of the asset.
• Extinguishment of any rights in the asset.
• Compulsory acquisition of an asset under any law.
• Conversion of the asset into stock-in-trade of a business.
• Maturity or redemption of a zero coupon bond. However, the following
modes are specifically excluded from the definition of transfer:
• Gift
• Distribution of capital assets on partition of a HUF
• Transfer under a will or an irrevocable trust
• Conversion of bonds / debentures/ deposit certificates of a company into
shares.
Year of Taxability:
Capital gains form part of the taxable income of the previous year in which the
transfer giving rise to the gains takes place. Thus, the capital gain shall be
chargeable in the year in which the sale, exchange, relinquishment, etc. takes
place. Where the transfer is by way of allowing possession of an immovable
property in part performance of an agreement to sell, capital gain shall be
deemed to have arisen in the year in which such possession is handed over. If
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the transferee already holds the possession of the property under sale, before
entering into the agreement to sell, the year of taxability of capital gains is the
year in which the agreement is entered into.
Capital Asset (section 2(14)): Capital Asset means property of any kind -
fixed, circulating, movable, immovable, tangible or intangible - whether or not
connected with his business or profession. Exclusions —
• Stock-in- trade, raw materials, and consumables stores held for business
purposes.
• Personal effects of the assesse (excluding jewelry, archaeological collections,
paintings, sculptures, etc.).
• Agricultural land in a rural area.
• 6½% Gold Bonds 1977 or 7% Gold Bonds 1980 or National Defense Bonds
1980 issued by the Central Government.
• Special Bearer Bonds 1991 issued by the Central Government.
• Gold Deposit Bonds issued under Gold Deposit Scheme 1999.
5) INCOME FROM OTHER SOURCES
This is the last and residual head of charge of income. Income of every
kind which is not to be excluded from the total income under the Income Tax
Act shall be charge to tax under the head Income from Other Sources, if it is
not chargeable under any of the other four heads-Income from Salaries,
Income From House Property, Profits and Gains from Business and Profession
and Capital Gains. In other words, it can be said that the residuary head of
income can be resorted to only if none of the specific heads is applicable to the
income in question and that it comes into operation only if the preceding heads
are excluded.
Chargeability & nature of income
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Any item of income which is not covered in any of the earlier heads of income
is included under this head. The Act enumerates the following types of income
which would be chargeable to Tax under this head:
1. Dividends (excluding Dividend income referred to in section 115-O which

is exempt).
2. Winning from lotteries, crossword puzzles, races, card games and other
games, gambling or betting etc.).
3. Any sum received from employees by way of contribution to any P.F,
ESIC or superannuation fund.
4. Any sum received under a Key man insurance policy including amount
allocated by way of bonus on such policy, if not chargeable under the
earlier heads.
5. Interest on securities if not chargeable under the head business income.
6. Income from letting of machineries, plants or furniture belonging to assess,
if not chargeable under the head business income.
Deemed gifts
In terms of clause (vii) to section 56 of the Act, specified gifts received by

an individual or HUF is chargeable to Tax, subject to certain exclusions. The
deemed gifts covered by the provision are as follows:
1. Any sum of money received without consideration from persons in excess

of Rs. 50,000 during a given year, the whole of such aggregate sum.
2. Any immovable property without consideration the stamp duty value of
which exceeds Rs. 50,000, the stamp duty value of such property.
3. Any movable property without consideration, the aggregate fair market
value of which exceeds, Rs. 50,000, the whole of such fair market value.
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4. Any movable property for an inadequate consideration, the difference
between the fair market value and the consideration, provided the
difference is greater than Rs. 50,000.
Property means capital assets of the assesse in the nature of land or building or
both, shares & securities, jewelry, bullion, paintings, drawings, archaeological
collections, sculptures or any art work.
Exclusions
The above provision would not be applicable to the money or property

received:
1. from any relatives

2. on the occasion of marriage of the recipient
3. under a will or inheritance
4. in contemplation of death of the payer
5. Amount received from any local authority
6. Amount received from any fund or foundation or university or other
educational institution or hospital or other medical institution or any trust
or institution
7. Any amount received from any trust or institution
Deductions
Any expenditure (not being in nature of capital expenditure or personal

expenditure)laid out or expended wholly and exclusively for the purpose of
making or earning income chargeable under the head ‗Income from Other
Sources‘, is deductible. However, in case of income in the nature of winning
from lotteries, crossword puzzles, races including horse race and games of any
sorts, etc., no deduction are allowed for expenses or allowances incurred in
connection with such income. Further, in case of pension received by the
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family of a deceased employee from the employer the deduction available
would be lower of 1/3rd of such pension or Rs.15, 000.
SET OFF & CARRY FORWARD OF LOSSES
An assessed may also earn losses during a previous year. The losses that
an assessed incurs under any head of income, is allowed to be set off against
other incomes under that head of income or even other heads of income,
subject to certain exceptions. In case the assesse has inadequate or no profits,
against which the losses can be set-off, then the unabsorbed losses may be
carried forward to the subsequent years for setting off against the profits in
that year.bThe scheme of setting off of losses and their carry forward has been
covered in the table below:
Losses under the head „Income from House Property‟
These losses can be set-off against income from other house properties as well
as income under any other heads in the same year. The losses can be carried
forward for a further period of 8 assessment years.
Losses under the head „Capital Gains‟
Any losses arising out of the transfer of short term capital assets can be set off
only against short-term capital gains and long-term capital gains, if any,
during the relevant previous year. Long-term capital losses, however, can be
set-off against long-term capital gains and not against any short-term capital
gains. Any unabsorbed long-term and short-term capital losses can be carried
forward for a further period of 8 assessment years. Any long-term capital
losses, arising out of the sale of equity shares, through a recognized stock
exchange or from the redemption of units of equity oriented mutual funds
cannot be set-off against any capital gains.
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Losses under the head „Income from Other Sources‟
Any losses arising under this head can be set-off against income under any
other head, but any unabsorbed losses are not allowed to be carried forward. A
specific source of income covered under this head – profits/losses from the
activity of owning and maintaining race horses needs a special mention here.
Any losses from this activity can be set-off only against the income from the
same activity and not against any other income under any other head. The
unabsorbed losses from the referred activity can be carried forward for a
period of 4 assessment years. In terms of section 80 of the Act, the unabsorbed
losses as discussed above, other than depreciation & house property loss, can
be carried forward only if the assesse has filed the return within the time
prescribed under section139 of the Act.
INCOME TAX DEDUCTION FOR F.Y 2018-19 & A.Y. 2019-20
SECTION 80C:
` The maximum tax exemption limit under Section 80C has been retained
as Rs 1.5 Lakh only. The various investment avenues or expenses that can be
claimed as tax deductions under section 80c are as below:
PPF (Public Provident Fund)
EPF (Employees‘ Provident Fund)
Five year Bank or Post office Tax saving Deposits
NSC (National Savings Certificates)
ELSS Mutual Funds (Equity Linked Saving Schemes)
Kid‘s Tuition Fees
SCSS (Post office Senior Citizen Savings Scheme)
Principal repayment of Home Loan
NPS (National Pension System)
5
Life Insurance Premium
Sukanya Samriddhi Account Deposit Scheme
SECTION 80CCC:
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or
any other Life Insurance Company for receiving pension from the fund is
considered for tax benefit. The maximum allowable Tax deduction under this
section is Rs 1.5 Lakh.
SECTION 80CCD:
Employee can contribute to Government notified Pension Schemes (like
National Pension Scheme – NPS). The contributions can be up to 10% of the
salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b)
was proposed in Budget 2015. To claim this deduction, the employee has to
contribute to Gov. recognized Pension schemes like NPS. The 10% of salary
limit is applicable for salaried individuals and Gross income is applicable for
non-salaried. The definition of Salary is only ‗Dearness Allowance.‘ If your
employer also contributes to Pension Scheme, the whole contribution amount
(10% of salary) can be claimed as tax deduction under Section 80CCD. Kindly
note that the Total Deduction under section 80C, 80CCC and 80CCD together
cannot exceed Rs 1, 50,000 for the financial year 2016-17. The additional tax
deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh
limit.
SECTION 80D:
Deduction u/s 80D on health insurance premium is Rs 25,000. Is
allowed for 60 age .for Senior Citizens (60 and above ) it is Rs 50,000.
For very senior citizen above the age of 80 years who are not eligible to
take health insurance, deduction is allowed for Rs 50,000 toward medical
expenditure.
SECTION 24 (B):
5
The interest component of home loans is allowed as deduction under
Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your
property is a let-out one then the entire interest amount can be claimed as tax
deduction.
SECTION 80EE:
This is a new proposal which has been made in Budget 2016-17. First time
Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on
home loan interest payments u/s 80EE. The below criteria has to be met for
claiming tax deduction under section 80EE.
 The home loan should have been sanctioned in FY 2016-17.
 Loan amount should be less than Rs 35 Lakh.
 The value of the house should not be more than Rs 50 Lakh & the
home buyer should not have any other existing residential house in
his name.
SECTION 80U:
This is similar to Section 80DD. Tax deduction is allowed for the tax assesse
who is physically and mentally challenged.
SECTION 80GG:
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has
been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section
80GG is applicable for all those individuals who do not own a residential
house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the
following. 9
Rent paid minus 10 percent the adjusted total income.
 Rs 5,000 per month.
 25 % of the total income.
SECTION 80G:
5
Contributions made to certain relief funds and charitable institutions can be
claimed as a deduction under Section 80G of the Income Tax Act. This
deduction can only be claimed when the contribution has been made via
cheque or draft or in cash. But deduction is not allowed for donations made in
cash exceeding Rs 10,000. In-kind contributions such as food material,
clothes, medicines etc. do not qualify for deduction under section 80G.
SECTION 80E:
If you take any loan for higher studies (after completing Senior Secondary
Exam), tax deduction can be claimed under Section 80E for interest that you
pay towards your Education Loan. This loan should have been taken for
higher education for you, your spouse or your children or for a student for
whom you are a legal guardian. Principal Repayment on educational loan
cannot be claimed as tax deduction.
There is no limit on the amount of interest you can claim as deduction under
section 80E. The deduction is available for a maximum of 8 years or till the
interest is paid, whichever is earlier.
SECTION 87A REBATE:
If you are earning below Rs 5 lakh, you can save an additional Rs 3,000
in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs
5,000 for FY 2018-19 (AY 2019-20).
In case if your tax liability is less than Rs 5,000 for FY 2018-19, the rebate u/s
87A will be restricted up to income tax liability only.
SECTION 80 TTA:
Deduction from gross total income of an individual or HUF, up to a
maximum of Rs. 10,000/-, in respect of interest on deposits in savings
account with a bank, co-operative society or post office can be claimed
under this section. Section 80TTA deduction is not available on interest
income from fixed deposits.
5
Tax Deducted at Source (TDS)
Certain items of income (namely commission, interest, professional
fees, rent, contractors‘ payments etc.) are liable for Tax deduction at the
prescribed rates at the time of payment thereof. In other words, the payers of
such amount are responsible for deducting Tax in respect of such payments
and deposit the same in the Government treasury while the recipient avails of
the credit for the Tax so deducted against his/ her Tax liability.
Advance Tax
Every assesse should compute his/her estimated Taxable income for
the year and discharge the Tax liability thereon (after considering the TDS
credit, if any) in specified proportions, by way of advance Tax payable on
specified due dates. The due dates for payment of advance Tax in case of non-
corporate assesses are as follows:
15 June 15%
15 September 45%
15 December 75%
15 March 100%
Self-assessment Tax
Where any tax is payable by the assessed on the total taxable income after
taking into account the TDS and advance tax, the same has to be paid by way
of self-assessment, along with interest, if any
Tax Slabs
In India there is progressive taxation policy, i.e. rich people will be taxed more
than less income earner. This is done to bring the income equality as well as
the low income earners will not get burden of the taxation. That‘s why the
taxation is done on slab basis. These slabs change every financial year or may
remain same as per the need.
5
New Income Tax Slabs and Rates for
Financial Year – 2019-20
Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ₹2,50,000* Nil
₹2,50,001 to ₹5,00,000 5% of total income exceeding ₹2,50,000
₹5,00,001 to ₹12,500 + 20% of total income exceeding ₹5,00,000

₹10,00,000
Above ₹10,00,000 ₹1,12,500 + 30% of total income exceeding ₹10,00,000
● Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less
Than 60 Years Old) for FY 2022-2023– Part I
Note: An additional 4% Health & education chess will be applicable on the tax
amount calculated as above.
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to
Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
*Income tax exemption limit for FY 2022-2023is up to Rs. 2, 50,000 for

individual & HUF other than those covered in Part (II) or (III)
5
● Income Tax Slabs for Senior Citizens (60 Years Old or More but
Less than 80 Years Old) for FY 2022-2023– Part II
Income Tax Slabs Tax Rate for Senior citizens aged 60 Years But
Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5%

5,00,000
Income from Rs 5,00,000 – 20%

10,00,000
Income more than Rs 10,00,000 30%
Note: An additional 4% Health & education chess will be applicable on the

tax amount calculated as above.
Rs.1 crore.
*Income tax exemption limit for FY 2022-2023is up to Rs. 3, 00,000 other

than those covered in Part (I) or (III)
● Income Tax Slabs for Super Senior Citizens (80 Years Old or More)
5
For FY 2022-2023– Part III
Income Tax Slabs Tax Rate for Super Senior Citizens
(Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income
Income more
from Rsthan Rs 10,00,000
5,00,000 – 10,00,000 30%
20%
Note: An additional 4% Health & education chess will be applicable on the tax
amount calculated as above.
Rs.1 crore.
*Income tax exemption limit for FY 2022-2023is up to Rs. 5, 00,000 other

than those covered in Part (I).
5
Scope & Limitations
Scope
 This project studies the tax planning for individuals assessed to Income
Tax.
 The study relates to non-specific and generalized tax planning, eliminating
the need of sample/population analysis.
 Basic methodology implemented in this study is subjected to various pros
& cons, and diverse insurance plans at different income levels of individual
assesses.
 This study may include comparative and analytical study of more than one
tax saving plans and instruments.
 This study covers individual income tax assesses only and does not hold
good for corporate taxpayers.
 The tax rates, insurance plans, and premium are all subject to FY 2022-
2023
Limitation
 The project studies the tax planning for individual assessed to income Tax.
 The Study relates to non-specific and generalized tax planning, eliminating
the need of sample/population analysis.
 Basic Methodology implemented in this study is subjected to various pros
& cons and diverse insurance plans.
 This study may include comparative and analytical study of more than one
tax saving plans and instruments.
 This study covers individual income tax assesses only and does not hold
good for corporate tax payers.
5
Chapter No 4.
Data Analysis
»
3. Primary Data:
Primary research entails the use of immediate data in determining
the for stable all tax system. Primary data is more accommodating as
it shows latest information. Primary data collected from the clients
as their income statements & proofs.
4. Secondary Data:
Whereas Secondary research is means to reprocess and reuse collected
information as an indication for betterment of service or product. In this
data related to a past period. I collected data of my project form work in
chartered Accountants office related to different department are handle
like tax planning auditing tax consultant, audit report etc.. List of
customer for advisory, tax details, fee structure etc. Data is collected
from past record that means history & I collected the data for tax
planning for the tax payer. The site ministry of finance, income tax
reports data on quarterly/ monthly/ half yearly/ annually respectively.
Questioner and Clients Response
1) Have you ever filed an Income Tax Return (ITR) before?
YES NO TOTAL
40 10 50
80% 20% 100%
5
45
40
35
30
25
20
15
Axis
10 YES
5 NO
0
50
Axis Title
(Conclusion:- From the above information it is observed that 40% people have filed
RTI and 10% have not filed RTI)

2) Are you aware of the different tax slabs and rates applicable to
individuals?
YES NO TOTAL
50 00 50
100% 00% 100%
Answer YES
Axis
NO
0% 20% 40% 60% 80% 100%

Axis Title
6
(Conclusion:- Above information is more on target that people are
updated)
3) Have you experienced any issues related to e-filing or using online

platforms for filing your ITR?
YES NO TOTAL
40 10 50
90% 10% 100%
Chart Title
YES, 30
30
25
20
NO, 10
Axis
15
10
0
50
Conclusion: - There were many problems associated with using online

platforms for e-filing
6
4) Are you aware of the penalties or consequences for late filing
or incorrect filing of your ITR?
YES NO TOTAL
40 10 50
90% 10% 100%
RESPONCED
20%
YES NO
80%
6
5) Do you find it difficult to keep up with the changing tax laws
and regulations?
YES NO TOTAL
10 40 50
20% 80% 100%
Sales
YES NO
Other
20% 80%
80%
6) Are you familiar with the process of adjusting and carrying

forward losses for future years?
YES NO TOTAL
25 25 50
50% 50% 100%
6
Chart Title
100%
90% 25
80%
70%
60%
50%
NO
YES
40%
30%
20%
10%
0%
6
Chapter No.5
Findings, Conclusion and References.

FINDINGS
1. The clients are least interested in filing their returns well in time. They
used to file their returns as the last date come close. that‘s why there is
heavy workload in the company in July as clients are not filing the
returns well in time
2. Some clients are having negligence regarding to their income tax
returns, they are least concern about their obligations towards Income
Tax filing and payment.
3. Many times it is observed that, clients are not providing proper
documentations
4. Clients are not interested in declaring their actual income.
5. It has been found that clients are not declaring their investments against
salary to their employers.
6. The use of E-filing is increasing day by day as it is easy and
convenience.
7. Client 1 did not need to publish all Books of Accounts & other
compliances as per Presumptive Taxation Scheme.
8. Client 4 must invest in sec 80 C under Senior Citizen Pension Scheme.
9. Client no 4 is using 80c.ccc.ccd under of contribution and life insurance
Tuition fees and saving a 205969 tax.
SUGGESTION
1. Some motivational events should be carried out to encourage the people
to file their returns though their income is below exemption limit.
2. Before the filing date comes professional should inform their clients
about what are the documents required so that clients will be ready with
the documents at the time of filing.
6
3. Client 1 is suggested to continue with the Presumptive Taxation
Scheme which is beneficial to the client as Professional Individual.
4. Client 4 is suggested to make investment under sec 80C in ‗Senior
Citizen Saving Scheme‘ to reduce tax liability
CONCLUSION
Every assesse liable to pay tax needs to manage his/her taxes. Tax
management relates to management of finances for payment of tax,
assessing the advance tax liability to pay tax in time. Tax management has
nothing to do with planning to save tax it is just related with operational
aspect of payment of tax i.e. while managing his taxes a person ensures that
he/she is making timely payment of taxes without running out of the
money and he is complying with all the provisions of the law.
BIBLIOGRAPHY
1. Income Tax: Theory Law And Practice: Gaur and Narang, Kalyani Publishers.
2. How to Save Tax on Hour Salary and Perquisites: R.N. Lakhotia, Vision Books,
ISBN: 8170947545.
3. WWW.Taxoblock.in
6
ANNEXTURE ATTACHMENT NO 01
1) CLIENT
1:
A.Y. 2022-2023
Name : MMM Previous Year : 2021-2022
Father's Name : PPP PAN : XXXXX
0000 X
Address : AT POST satpur Ward/Circle : ITO WD 1
Nasik
DIST : Nashik Status : Individual
Date of Birth : 03-Nov-
1969
Statement of Income
Rs. Rs. Rs.
PROFITS AND GAINS OF BUSINESS
OR PROFESSION
Business: Presumptive profits u/s 44AD 1 267,995
Income chargeable under the head 267,99
"Business and Profession" 5
INCOME FROM OTHER SOURCES
Bank Interest 2 32,759
Income chargeable under the head "other 32,759
sources"
GROSS TOTAL INCOME 300,75

4
Deductions under Chapter VI-A
80D: Medical Insurance Premiums 3 9,099
80TTA - Interest on saving Bank a/c 591
Investment u/s 80C, CCC, CCD
Life insurance premium 79,359
Deduction subject to ceiling u/s 80CCE 79,359 89,049
TOTAL INCOME 211,70
5
Total income rounded off u/s 288A 211,71
0
Tax on total income 0
6
SCHEDULE 1
Presumptive Profits-u/s 44AD Turnover % Profits
/
Receipts
ABC PACKAGING SATPUR 2,407,39 11.13 267,99
1 5
Rs.
Gross profit 575,545
SCHEDULE 2
Bank interest
Name of the Bank Interest
Interest on time deposits
By Bank Deposit Interest 32,168
Interest on SB a/c (80TTA)
BANK SAVING INTEREST 591
Taxable interest 32,759
SCHEDULE 3
80D-Medical Insurance/health
check-
up
Paid Deductibl
e
In respect of Self / Family
Others 9,099 9,099
Total Deductible amount 9,099 9,099
Income with full exemption

Income Section Amount
Maturity value of Insurance policy 10(10D) 179,600
Total exempted income 179,600
INTERPRETATION:
The Client MMM having income under the head Business & Profession
which comes under the Presumptive Profit u/s 44 AD is below the tax slab
rate. Client took the beneficial advantage of sec 44 AD Presumptive Taxation
Policy. Instead to made all the compliances, client shown only amount of
Cash, Sundry Debtors, and Creditors & Turnover while filling e-return.
6
2) CLIENT 2:
A.Y. 2022-2023
Name : XYZ Previous Year : 2021-2022
Father's Name : ABC PAN : XXXPX 0000
X
Address : JEL ROAD, Ward/Circle : ITO WARD 3
NASHIK NASHIK
Status : Individual
Date of Birth : 10-Feb-1963
Statement of Income
Rs. Rs. Rs.
N INCOME FROM SALARIES
Salary: as per Form 16 / Certificate 1 711,877
Total salary 711,877
Less: Tax on employment u/s 16(iii) 2 2,500
"Salaries"
N INCOME FROM HOUSE

PROPERTY
Self-occupied property: 3
Gross annual value u/s 23(a) NIL
Income chargeable under the head 0
"House Property"
N GROSS TOTAL INCOME 709,377

80D: Medical Insurance Premiums 4 14,910
80E: Interest on education loan 18,400
repayment
Investment u/s 80C, CCC, CCD
PF contribution 42,000
Life insurance premium 47,707
Tuition fees 79,259
NPS - Assessee's contribution u/s 50,000
80CCD & (1B)
Deduction subject to ceiling u/s 80CCE 150,000
Additional Deduction for NPS u/s 50,000 233,310
6
80CCD(1B)
N TOTAL INCOME 476,067
Tax on total income 22,607
Rebate u/s 87A 5,000
Tax after rebate 17,607
Add: Education cess 528
Tax with cess 18,135
Net Tax 18,135
TDS 5 21,750
Total prepaid taxes 21,750
N REFUND DUE 3,620
Schedule 1
Salary as per Form 16
Salary u/s 17 711,877
Net salary 711,877
Schedule 2
Tax on employment u/s 16(iii)
Employer Amount
Employer1 2,500
Total 2,500
Schedule 4
80D-Medical Insurance/health check-
up
Paid Deductib
le
In respect of Self / Family
Others 14,910 14,910
Total Deductible amount 14,910 14,910
Schedule 5
TDS from Salaries
Name of the employer and TAN TDS TDS Net
deducted claimed Salary
PQR 21,750 21,750
INTERPRETATION:
7
Client 2 have taxable income in the slab rate 2, 50,000 to 5, 000, 000 so
that he paid 5% tax on his taxable income.
3) CLIENT 3:
A.Y. 2022-2023
Name : LMN Previous Year : 2021-2022
Father's Name : PQR PAN : XXXXX 0000
X
Address : SAI SANTOSH Ward/Circle : ITO WARD 1
BHUVAN NASHIK
PIMPALWADI ROAD Status : Individual
A/P SHIRDI, Date of Birth : 01-Jul-1944
TAL.RAHATA
DIST
AHMEDNAGAR, RAHATA - 423 109
Statement of Income
Rest. Rest. Rest.
INCOME FROM SALARIES
Salaries, allowances and perquisites 1 407,488
Total salary 407,488
"Salaries"
INCOME FROM OTHER SOURCES

Bank Interest 2 182,695
"other sources"
GROSS TOTAL INCOME 590,183

80TTA - Interest on saving Bank a/c 10,000
TOTAL INCOME 580,183
Tax on total income 36,036
Add: Education chess 1,081
Tax with chess 37,117
Net Tax 37,117
TDS 3 506
7
Total prepaid taxes 506
Self-assessment tax paid 4 36,610
BALANCE TAX PAYABLE 0
Schedule 1
Salary Income Received Exempt Taxable
Pension 407,488 407,488
Taxable portion of
Salary income 407,488
Schedule 2
Bank interest
Name of the Bank and Account No. Interest
Interest on time deposits
Syndicate Bank 63,990
Bank Of Baroda FDR Interest 24,482
Andhra Bank FDR Interest 14,858
Total 103,330
Interest on SB a/c (80TTA)
Bank Of Baroda PENSION A/C – 1,835
000000
BANK OF BARODA 17,701
BANK OF BARODA 7,618
Andhra Bank 52,211
Total 79,365
Taxable interest 182,695
Schedule 3
TDS as per Form 16A
Name of the Deduct or, TAN and TDS TDS Gross
Certificate No. claimed Receipts
deducted in as per
current 26AS
year
Andhra Bank-shard Branch, TAN- 506 506 14,858
NSKA02696B
Bank Of Baroda, TAN- ALDB00330B 0 24,482
Syndicate Bank -shard, TAN- 0 63,990
PNES11850G
7
Schedule 4
Self-Assessment tax paid
Name of the Bank and BSR Code Date of Chillan Chillan
deposit Sl.no. Amount
State Bank of India – 0011111 17-Jun- 0000 36,610
17
Bank A/c for Refund: BANK OF BARODA 04560100002579 IFSC:

BARB0KOPERG
INTERPRETATION:
Client is a senior citizen individual assesses having total taxable income

more than 5, 00,000. According to slab rate for senior citizens he paid 20% tax
on his total income. As well as he suggested to make investments under
section 80C for the financial year 2018-19.
INTERPRETATION:
Client 4 have income from other sources & it is below to the tax slab rates, the
tax deducted by the bank, will be refunded in client‘s bank account.
INTERPRETATION:
Client OPQ have the total taxable income between the slabs 5, 00,000 to 10,
00,000 according to that 20% tax charged on that income
7
Project Photo Gallery
71
QUESTIONERY
1. Question To the Clients -
2. Have you ever filed an Income Tax Return (ITR) before?

3. How frequently do you file your ITR (annually, quarterly, or not at all)?
4. What are the primary challenges you face when filing your ITR?
5. Are you aware of the different tax slabs and rates applicable to
individuals?
6. Have you encountered any difficulties in understanding the tax
calculations or determining your taxable income?
7. Are there any specific deductions or exemptions that you find confusing
or complicated?
8. Do you face challenges in collecting and organizing the necessary
documents and supporting evidence for your ITR filing?
9. Have you experienced any issues related to e-filing or using online
platforms for filing your ITR?
10.Are you aware of the penalties or consequences for late filing or
incorrect filing of your ITR?
11.Have you encountered any problems in claiming tax refunds or
receiving them in a timely manner?
12.Do you find it difficult to keep up with the changing tax laws and
regulations?
13.Are there any challenges in reporting income from multiple sources or
investments?
14.Do you face any issues related to calculating and reporting capital gains
or losses from investments or property transactions?
7
15.Are you familiar with the process of adjusting and carrying forward
losses for future years?
16.Have you experienced any difficulties in dealing with tax notices or
audits from the tax authorities?
17.Are there any specific complexities or challenges you face as a self-
employed individual or freelancer when filing your ITR?
18.Do you face any challenges in reporting income from foreign sources or
dealing with international tax matters?
19.Are you aware of any tax planning strategies or methods that could help
reduce your tax liability?
20.Have you ever sought professional assistance or used tax software to
simplify the ITR filing process?
21.Are there any suggestions or improvements you would like to see in the
overall ITR filing system to make it more user-friendly?

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Savitribai Phule Pune University.

(Completing M.Com Postgraduate Course.)

Akole Taluka Education Society‘s

Tal-Akole, Dist. – Ahmedanager.

“A STUDY OF THE TAX FILLING PROCESS FOR

Advance Accounting Paper VIII.

Prof. Dr. M. D. Sayyad.

This is certified that Mr. BAGWAN JUNED EJAJ student of M.com II

(Academic Year 2022-2023)

Prof. Lt. S. A. PALANDE. Dr.BHASKAR SHELKE

Prof. Dr. M.D. SAYYAD. External Examiner.

There are various people to acknowledgment and thank for

I offer my special thanks to my projects guide Dr. M. D. Sayyad

I am also thankful to all our friends, and well-wishers. Who have

[Mr. BAGWAN JUNED EJAJ]

I undersigned hereby declare that the project report entitled A

MASTER OF COMMERCE (ADVANCE ACCOUNTING)

College Seat No . Year.

Place: Akole Name and Signature

CHAPTER NO. CONTENTS PAGE NO.

Scope of the Study

Tax Management Strategies For The benefit of Salaried

1. To study taxation provisions of The Income Tax Act, 1961 as amended

1. Mrs. R.VASANTHI 2015, a Study on Tax Planning Pattern of

4. K. Savanna Dr. K. Moth Lakshmi, 2017, Tax Saving Scheme and

Title: “Tax Management for Individual Assesses”.

» Need of the Study:

» Background of the Study:

The total income of a person is segregated into five heads:-

A. Income from salaries

The objective of income taxes on an accrual basis is to recognize the

AN EXTRACT FROM INCOME TAX ACT, 1961

Concepts used in Tax Planning

The Income Tax Equation

1. Mrs. R.VASANTHI 2015, a Study on Tax Planning Pattern of

Perquisites have been defined to mean and include any benefits,

Section 17 of the Act includes the following benefits granted to employees as

I. Value of rent-free accommodation provided to the employee by

iii. Value of any benefit or amenity granted or provided free of cost or at

iv. Any obligations of the employees being met by the employer.

vii. The amount of any contribution to an approved superannuation fund by

i. Value of any medical facility provided to the employee or any

Any income earned by a person from properties owned by him/her

I. The person should own the property.

iii. The property should consist of both land and buildings.

Taxability of income in whose hands

e. If an individual is in occupation of a house for the purposes of his residence,

3) INCOME FROM BUSINESS OR PROFESSION

―Capital gains‖ is the fourth head of income when arranged chronologically as

Transfer (section 2(47)): Transfer in relation to a capital asset includes the

1. Dividends (excluding Dividend income referred to in section 115-O which

In terms of clause (vii) to section 56 of the Act, specified gifts received by

1. Any sum of money received without consideration from persons in excess

The above provision would not be applicable to the money or property

1. from any relatives

Any expenditure (not being in nature of capital expenditure or personal

SET OFF & CARRY FORWARD OF LOSSES

Losses under the head „Income from House Property‟

Losses under the head „Capital Gains‟

INCOME TAX DEDUCTION FOR F.Y 2018-19 & A.Y. 2019-20