SUMMER INTERNSHIP REPORT

ON

ACCOUNTING & FINANCE

JAISWAL YASH & ASSOCIATES COMPANY

Submitted in the partial fulfillment for the award

of degree of
Bachelor of Commerce
University of Lucknow,
Lucknow

Batch: 2021-2025
UNDER THE GUIDANCE
OF:

JAISWAL YASH & ASSOCIATES COMPANY

LUCKNOW CHRISTAIN COLLEGE

(2021-2024)

SUBMITTED TO: SUBMITTED BY:

ABHISHEK PANDEY

UNIVERSITY OF LUCKNOW, Roll No:2110452010018

LUCKNOW 5th Semester
BCOM
(NEP)
 INDEX

SL. CONTENTS
NUMBER

1 Acknowledgment

2 Declaration

3 Certificate from the company

4 Certificate of SIP Presentation

5 Company Profile

6 Objective of the Study

7 Role & Responsibilities

8 MSME

9 ITR

10 GST

11 Learning Experience

12 Conclusion

13 References
 ACKNOWLEDGEMENT

The successful completion of my internship was possible because of the guidance

and support from many people. I want to express my sincere thanks to CA YASH
JAISWAL & Associates for allowing me to intern at JAISWAL YASH &
ASSOCIATES Company.

I'm grateful to the employees of at JAISWAL YASH & ASSOCIATES Company.

Company, Lucknow, for their valuable support and guidance throughout my
internship journey.

Their assistance played a crucial role in helping me successfully complete my

internship.

A special thank you goes to the mentor of my department, for his encouraging
suggestions and support. His guidance was particularly helpful in coordinating my
presentation and writing this comprehensive report.

In addition, I would like to convey my heartfelt gratitude to my parents and my

friend for their unwavering support during the entire duration of this summer
internship report. Their encouragement has been a source of motivation, and I am
truly thankful for their continuous backing.

ABHISHEK PANDEY
 DECLARATION

I, ABHISHEK PANDEY, want to say that I made this internship report about
"Account & Finance" at " & CO" with the JAISWAL YASH & ASSOCIATES
Company.
help of department. I declare that this summer internship presentation on
Accounts & Finance is my own work for the year 2023-2024.

I also want to mention that this internship report is part of the things I need
to do to get my "Bachelor of Commerce" degree from the university. It's like
a rule or requirement they have.

During this internship, I learned a lot about accounts and finance, and
department guidance was really helpful. This report is my way of showing
what I've learned and how it connects to what I'm studying in university.

I'm thankful to everyone who supported me, especially my parents and

friends. Their continuous support made this internship and report
possible for me. I appreciate it a lot.

Place: Lucknow
Date:
 COMPANY PROFILE
JAISWAL YASH & ASSOCIATES Company.

JAISWAL YASH & ASSOCIATES Company,

established in 2017, has been providing a wide array of Accounting, Auditing, Taxation,
Assurance and Business advisory services to various enterprises. The firm maintains a
high degree of professional ethics and integrity and strives for total client satisfaction at
all times. We believe in the philosophy and approach of the Management to render
Professional Services of the highest standards to various clients. Our in-depth Accounting,
Audit, Tax and Financial knowledge and expertise has enabled us to deliver quality
professional services to our clients effectively and efficiently. All of our Clients benefit
from our exceptional services with competitive pricing. We view every Client relationship
like a partnership and truly believe that our success is a result of our client's success.
Our professional staff will ensure that our clients benefit from personalized, quality
service that is beyond comparison.

Our Vision,
To enable our client to realize and reach their potential by optimal leverage of resources
and constantly strive to better them.

Our Mission,
To establish Trust, Comfort and Convenience as a one stop
business solutions provider.
To provide simple, effective and progressive solutions for
business. To be a partner that enables and ensures business
growth.

Our Help,
To establish Trust, Comfort and Convenience as a one stop business solutions
Provider.

Our Supports,
To provide simple, effective and progressive solutions for business.
 Objectives of the study

The objective of the study under. JAISWAL YASH & ASSOCIATES Company.
internship is to provide hands-on experience and training in the field of
accounting and finance. It is an opportunity for me to apply the concepts and
theories learned in the coursework to real-world situations and gain practical skills
that are valuable in my future careers. The ultimate aim is to be prepared for a
successful career as a Finance Personnel by providing myself with a
comprehensive understanding of accounting, auditing, and taxation practices. The
objective of a study under the above internship is to:

1. Provide practical experience: The internship provides us with hands-on

experience in the field of accounting, finance, and taxation, which
complements our theoretical knowledge gained through coursework.

2. Apply theoretical concepts: We can apply the concepts and theories learned
in our coursework to real-world situations and gain practical skills.

3. Enhance skills and knowledge: The internship helps us to develop and enhance
our technical, analytical, and communication skills, which are crucial for our
future careers in the field of Finance.

4. Develop professional networks: We can make valuable connections with

industry professionals and gain insights into the accounting and finance
industry.

5. Prepare for the Market Demand as a Finance Personnel: The ultimate goal
of the internship is to prepare us for a successful career as a finance personnel
by providing us with a comprehensive understanding of accounting, auditing,
and taxation practices.
 Role & Responsibilities

I have tried my best to enhance my abilities and apply the knowledge that I gained
during the internship. On my first day in the office, gave me a training JAISWAL YASH
& ASSOCIATES Company.
session about GST and computerized accounting in tally software and also shared his
practical experience with me and gave me some techniques of this process. He also guided
me on how to prepare GST return and filing data in income tax return software.
Different task that I performed during my internship:
• MSME Registration
• GST Registration & GST Return filing
• ITR Filing
• Preparing books of accounts in tally
• Preparing Data in Excel Sheet
• Preparing Partnership Deed
• Preparing Projected Trading Account, Profit & Loss Account & Balance Sheet
• Theoretical learning of different type of Taxation and GST
• Maintenance of accounts/ bookkeeping.
Softwares used during internship:
• MS office
• Tally software
• My GST Cafe
• Compu Tax
The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly
vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs
not only play a crucial role in providing large employment opportunities at
comparatively lower capital cost than large iSndustries but also help in
industrialization of rural & backward areas, thereby, reducing regional imbalances,
assuring more equitable distribution of national income and wealth. MSMEs are
complementary to large industries as ancillary units and this sector contributes
enormously to the socio-economic development of the country.
Micro, Small, and Medium Enterprises (MSME) are a vital part of the Indian
economy, contributing significantly to the country's GDP and employment
generation. MSMEs play a crucial role in the country's economic growth and
development, and their success is crucial for the overall growth of the economy.
The Government of India has implemented various schemes and initiatives to
support and encourage the growth of MSMEs in the country. One such initiative is
the MSME registration process, which is a mandatory requirement for any MSME
looking to operate legally in India.
The National Board for Micro, Small and Medium Enterprises (NBMSME) was
established by the Government under the Micro, Small and Medium Enterprises
Development Act, 2006 and Rules made thereunder. It examines the factors affecting
promotion and development of MSME, reviews existing policies and programmes
and makes recommendations to the Government in formulating the policies and
programmes for the growth of MSME.
How to register on MSME

MSME online registration process for businesses

You can register your MSME on the Udyog Aadhaar Memorandum (UAM) portal.
Here’s how to apply for MSME Udyam registration online:

• Visit the MSME Udyam registration web portal.

• For new or unregistered businesses, click on the first link – “For new
entrepreneurs who are not registered yet as MSME or those with EM-
II”.

• Submit your Aadhaar Number and name.

• Then tick the consent button and click on the ‘Validate & Generate
OTP’ button.
 • On the next page, submit details of your PAN and organization type. If
you don’t have PAN, select the ‘No’ option.

• Fill in the rest of the fields on the form.

• Enter the OTP received on your phone number and verification code to
submit the form.

• On successful registration, a “Thank You” message will appear with

your registration number.

It may take 2-3 days to get approval for your SMEs registration. On approval, you
will receive a registration certificate via email.

MSME registration fees and documents

The MSME registration process does not require extensive documentation. All you
need is your Aadhaar number. Details related to your PAN- and GST- linked
investments and turnover will be automatically sourced from government
databases. You also do not need to pay any fees to get your MSME registered
through the Udyam portal.

How to download the MSME registration certificate

Once your MSME is successfully registered, you will receive a permanent

registration number and an e-certificate. The MSME registration certificate requires
no renewals as it has lifetime validity unless you get it canceled. It features a
dynamic QR code linked to the Udyam portal, where you can access details
regarding your enterprise.

Check your inbox and spam folder to see if you have received the certificate. But if at
any point you need to download the certificate, follow these steps:

• Go to the Udyam Registration portal.

• Go to the “Print/Verify” drop-down button on the top menu bar.

• Click on “Print Udyam Certificate”. This will take you to a login page if
you aren’t already logged in.

• Here, enter your Udyam registration and registered mobile numbers.

• Choose the preferred option in the third field and press “Validate &
Generate OTP”.

• Enter the OPT you received in the next field and press “Validate OTP
and Login”.
• You will see your Udyam Certificate on the next page. Download or print
it from here.

MSME Certificate
 INCOME TAX RETURN
INTRODUCTION
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of
the income or profits earned by them (commonly called taxable income). Income
tax generally is computed as the product of a tax rate times the taxable income.
Taxation rates may vary by type or characteristics of the taxpayer and the type of
income.
The tax rate may increase as taxable income increases (referred to as
graduated or progressive tax rates). The tax imposed on companies is usually
known as corporate tax and is commonly levied at a flat rate. Individual
income is often taxed at progressive rates where the tax rate applied to each
additional unit of income increases (e.g., the first RS@10,000 of income
taxed at 0%, the next Rs@10,000 taxed at 1%, etc.). Most jurisdictions
exempt local charitable organizations from tax. Income from investments may
be taxed at different (generally lower) rates than other types of income.
Credits of various sorts may be allowed that reduce tax. Some jurisdictions
impose the higher of an income tax or a tax on an alternative base or measure
of income.
Taxable income of taxpayers resident in the jurisdiction is generally total
income less income producing expenses and other deductions. Generally, only
net gain from the sale of property, including goods held for sale, is included
in income. The income of a corporation's shareholders usually includes
distributions of profits from the corporation. Deductions typically include all
income-producing or business expenses including an allowance for recovery
of costs of business assets. Many jurisdictions allow notional deductions for
individuals and may allow deduction of some personal expenses. Most
jurisdictions either do not tax income earned outside the jurisdiction or allow
a credit for taxes paid to other jurisdictions on such income. Nonresidents are
taxed only on certain types of income from sources within the jurisdictions,
with few exceptions.
Most jurisdictions require self-assessment of the tax and require payers of
some types of income to withhold tax from those payments. Advance
payments of tax by taxpayers may be required. Taxpayers not timely
paying tax owed are generally subject to significant penalties, which may
include jail-time for individuals. Taxable income of taxpayers resident in
the jurisdiction is generally total income less income producing expenses
and other deductions. Generally, only net gain from the sale of property,
including goods held for sale, is included in income. The income of a
corporation's shareholders usually includes distributions of profits from
the corporation. Deductions typically include all income-producing or
business expenses including an allowance for recovery of costs of
business assets. Many jurisdictions allow notional deductions for
individuals and may allow deduction of some personal expenses. Most
jurisdictions either do not tax income earned outside the jurisdiction or
allow a credit for taxes paid to other jurisdictions on such income.
Nonresidents are taxed only on certain types of income from sources
within the jurisdictions, with few exceptions.

BACKGROUND

The concept of taxing income is a modern innovation and presupposes

several things: a money economy, reasonably accurate accounts, a
common understanding of receipts, expenses and profits, and an orderly
society with reliable records.

For most of the history of civilization, these preconditions did not exist,
and taxes were based on other factors. Taxes on wealth, social position,
and ownership of the means of production (typically land and slaves)
were all common. Practices such as tithing, or an offering of first fruits,
existed from ancient times, and can be regarded as a precursor of the
income tax, but they lacked precision and certainly were not based on a
concept of net increase.

Taxes in India are of two types, Direct Tax and Indirect Tax.

Direct Tax, like income tax, wealth tax, etc. are those whose burden falls directly on
the taxpayer.

The burden of indirect taxes, like service tax, VAT, etc. can be passed on
to a third party.Income Tax is all income other than agricultural income
levied and collected by the central government and shared with the states.

According to Income Tax Act 1961, every person, who is an

assessee and whose total income exceeds the maximum exemption
limit, shall be
chargeable to the income tax at the rate or rates prescribed in the finance
act. Such income tax shall be paid on the total income of the previous
year in the relevant assessment year.

The total income of an individual is determined on the basis of

his residential status in India.

INCOME TAX RETURN

• Income Tax Return" is a term which is often used when we talk
about income tax. It is a way by which we pay this tax. When
total annual income of a person, including all sources, is more
than maximum unchangeable limitation ( At present it is Rs.
1,50,000/-) then that person is liable to pay income tax.
• According to Income Tax Act 1961, every person, who is an
assessee and whose total income exceeds the maximum
exemption limit, shall be chargeable to the income tax at the
rate or rates prescribed in the finance act.

Residence Rules

An individual is treated as resident in a year if present in India

I. for 182 days during the year or

II. for 60 days during the year and 365 days during the preceding
four years. Individuals fulfilling neither of these conditions
are nonresidents. (The rules are slightly more liberal for
Indian citizens residing abroad or leaving India for
employment abroad.)

A resident who was not present in India for 730 days during the
preceding seven years or who was nonresident in nine out of ten
preceding years I treated as not ordinarily resident. In effect, a
newcomer to India remains not ordinarily resident.

For tax purposes, an individual may be resident, nonresident or

not ordinarily resident.

Non-Residents and Non-Resident Indians

Residents are on worldwide income. Nonresidents are taxed only on
income that is received in India or arises or is deemed to arise in India. A
person not ordinarily resident is taxed like a nonresident but is also liable
to tax on income accruing abroad if it is from a business controlled in or
a profession set up in India.

Capital gains on transfer of assets acquired in foreign exchange is not

taxable in certain cases.

Non-resident Indians are not required to file a tax return if their income
consists of only interest and dividends, provided taxes due on such
income are deducted at source.

It is possible for non-resident Indians to avail of these special provisions

even after becoming residents by following certain procedures laid
down by the Income Tax act.

Taxability of individuals is summarized in the table below

Status Indian Income Foreign Income

Resident and ordinarily resident Taxable Taxable
Resident but not ordinary resident Taxable Not Taxable
Non-Resident Taxable Not Taxable

Know how of Income Tax

• Income tax is levied on the 'total income' of the assessee.

• Income of the 'previous year' is taxed in the 'assessment year.'
• Income is classified into and computed under five
categories called 'heads of income.'
• The basic scheme of income tax is the principle 'pay as you earn.'
• One must pay his taxes in advance and by the due dates,
in the prescribed percentages.
• Deferment in the payment of advance tax would result in
the payment of interest.
The income tax basic scheme is explained in brief as:
• Income tax is levied on the 'total income' of the
assessable entity which is computed under the provisions
of the Act.
• The income which pertains to the 'previous year' is taxed, but
in the 'assessment year.'
• Income tax is charged at the rates being fixed for the year by the
annual Finance Act. But the liability to pay the tax is based on
the principle 'pay as you earn.'

Also check Taxable Heads of Income for the definition of salary, wages,
pension, allowance, etc.

Pay as you Earn

A person is not allowed to wait until 31 March to pay his/her taxes. The
Income Tax Act has the provision of 'pay as you earn.' This do not pinch a
tax payer at the end of the year making a lump sum payment. Such
payment.
CHAPTER-2 HEAD OF INCOME TAX

The total income of a person is divided into five heads, viz., taxable.

1. Income from Salary

2. Income from House Property
3. Income from profits and gains of Business or Profession
4. Income from Capital Gains
5. Income from Other sources

• Salary Income:-
In certain cases, an employee can claim both HRA (house
rent allowances) as well as interest on housing loan.

• House property Income :-

if interest paid for property given on rent is less than taxable
rent (after standard deduction -30%). Such loss can be set off against
income from other heads including income from salary.

• Income from capital gain:-

surplus from derivative contracts is non- speculation.
Archaeological collection, Drawings, Painting, Sculptures, Any other
work of Art. Thus, any surplus received from sale of these articles
would be liable to tax under the head capital gain.

• Business income :-
Any type of income received from business

• Income from other sources:-

Dividend, Commission, lotteries, crossword puzzles,
races including horse races, card games, any sort or from gambling
or betting.
1. Income from Salary
If you are a professional with a salary as your primary source of income,
this head is primarily applicable to you. Under this heading, any
compensation paid to you as employee remuneration, is accounted for.
However, remember that income will only be considered under this head
if there is an employee- employer relationship between the payee and
the payer of such salary.

The income under the salary head involves an employee’s basic wages,
pension, perquisites, gratuity, commission, annual bonus and any salary
paid in advance, if applicable. Upon adding the various components under
this head, one can get their gross income.
The following are some of the common allowances for which you can
claim tax deductions:

1. HRA
House Rent Allowance (HRA) is generally part of a standard salary
package. It is an allowance that employees receive to pay their house rent.
Subject to certain conditions, you can claim exemptions for HRA under
Section 10
(13A) of I-T Act, 1961. The tax exemption you can claim for HRA will
be the lowest among the following:
• HRA received from your employer
• 50% of the basic salary if you live in a metro city or 40% if
you live in a non-metro city
• Actual rent paid per month minus 10% of your annual salary
2. Conveyance Allowance
This is an allowance that employers generally pay to compensate for the
cost of travel between your home and workplace. Under Section 10
(14(ii)) of I-T
Act 1961, you can claim a maximum tax exemption of ₹1,600 per month or
₹19,200 per year.

3. LTA
Leave Travel Allowance or LTA is a part of your compensation which
you can use to pay for your personal travel expenses. It is a
cost-to-the-company (CTC) component and is usually offered as a yearly
benefit. However, note that subject to certain conditions and limits, you
can claim tax benefits against LTA for up to 2 leisure trips in a block of
4 calendar years, under Section 10(5).

4. Medical Allowance
This is an allowance that is paid to employees to help them meet their
medical expenses. Under Section 17 (2) of I-T Act, 1961, you can claim
tax exemption of up to ₹15,000 by producing your supporting medical
documents.

2. Income from House Property

The second of the 5 heads of income includes income from house
property. It accounts for all rental income earned by a taxpayer. Sections
22 to 27 of I- T Act, 1961 cover this income head in great detail.
However, note that if a taxpayer’s house has not been rented out, then
the amount that the person would have received as rent if he/she had let
it out, would be considered as taxable income under this head.
This is a head under which tax is calculated on the basis of assumption.
Moreover, tax is levied both on income earned from house property and
commercial property. The different deductions that come under this head
of income are standard deduction, deductions for home loan interest
payment, and deduction for municipal tax.

Here, an assessee will also have to pay 10% TDS on rent if the
rent value is more than the specified limit.
Here are a few conditions that must be fulfilled for the income to be
taxable under this head:

• The assessee should be the house property owner

• House property can include a building, a land
appurtenant, or a bungalow
• Individuals must not use their property for any other
purposes than residency
3. Income from Capital Gains
If any profit/gain arises from the transfer or sale of a capital asset held as
an investment, it is taxable under capital gains. Income or proceeds from
a large number of asset classes, such as stocks, bonds, mutual funds,
gold, and real estate among others, can be considered under this head.
You should also remember that capital gains are generally classified as
short- and long-term gains. Based on the asset class, long-term capital
gains tax is applied at a maximum rate of 20% on investments held for 3
years or more, while short- term capital gains tax is applied at a
maximum rate of 15% on investments held for less than 3 years.
However, you must check if the income is eligible for an exemption
under Sections 54, 54B, 54EC, 54F, 54D, 54ED, 54GA, or 54G.

4. Income from Profits and Gains of Business/Profession

Your income will be considered under this head if your earnings come
from a business or if you are self-employed. To calculate your profit or
gross income, you will have to deduct your expenses from the total
revenue. Then, tax will be applicable under this income head.

This head will also include incomes, such as bonuses, salary, and
profit earned due to a partnership with a business organization.
However, the following rules apply:

• A taxpayer must be controlling the operations of

this business or profession.
 • There business or profession declared under this head
must be legitimate.
• The business or profession in question must be carried out
by the taxpayer themselves.
• The taxpayer must be actively engaged in a particular
business or profession for the greater part of the
previous year.
• If taxpayers operate any other professions or businesses,
they must also include it.
5. Income from Other Sources
For the earnings that do not belong to any of the heads of income
mentioned above, it will fall under the 5th category called income from
other sources. Some common examples of earnings that fall under this
head include income from lottery, gambling, gift card games, bank
deposits, rewards from other sports, and more. Section 56(2) of the IT Act
covers these incomes.
SLAB IN INDIA

Income Tax Slab Rates AY 2023-24 for

Individuals Below 60 Years, NRIs and
HUFs

Net Income Tax Slab Rates FY Income Tax Slab Rates FY

Taxable 2022- 2022-23
Inco 23 (Old Tax (New Tax
me Regime) Regime)
Up to Rs 2.5 Ni
lakh
Ni l
Rs 2,50,001 to 5%
Rs 3
lak
h
Rs 3,00,001 to 5
Rs 5 %
lak
h
Rs 5,00,001 to
Rs 10
7.5 %
lakh 20
Rs 7,50,001 to Rs %
10 15
%
lak h

Rs 10,00,001 to 20
Rs %
12.5
lakh
Rs 12,50,001 to 30 25
Rs % %
15
lakh
Over Rs. 15 lakh 30
%
Income Tax Slabs FY 2022-23 (AY 2023- 24) for
Senior Citizen Taxpayer

In India, Senior Citizen tax payers are individuals above

60 years of age but below 80 years of age. These
taxpayers enjoy a higher basic exemption limit of Rs. 3
lakh as compared to individuals aged below 60 years
under the old tax regime. However, this benefit of higher
exemption is not available for senior citizen tax payers
opting for the new tax regime. The below table
summarizes the Income Tax slab rates in AY 2023-24 (FY
2022-23) for senior citizens in India:

Income Tax Slabs in AY 2023-24 (FY 2022- 23)

for Super Senior Citizens
Under current tax rules, super senior citizen tax payers
are individuals who are aged 80 years or more. Under the
old tax regime, super senior citizens have a higher basic
exemption limit of Rs. 5 lakh as per income tax slab rates
for the financial year 2022-23. This benefit is however
not applicable under the new tax regime even though the
slab rates for AY 2023-24 are lower as compared to the
old tax regime. This summarizes the income tax slab and
rates applicable to super senior citizens in FY 2022
Beyond the income tax liability computed using the
Income Tax slab rates for FY 2022-23, you also have to
pay a 4% health and education cess as part of your
overall tax outgo for the fiscal
New Income Tax Slab Rates Announced in Budget 2023
The Union Budget 2023 announced a change to number
of income tax slabs applicable to the new tax regime for
FY 2023-24
i.e. AY 2024-25 along with an increase in the tax
exemption limit to Rs. 3 lakh. These changes are
however not applicable to the old tax regime for FY
2023-
24. Subsequent to these changes, the comparison of old
tax regime (tax payer aged less than 60 years) vs. new
tax regime slab rates for FY 2023-24 (AY 2024-25)
subsequent to the Budget 2023 announcement of tax
slab rates for AY 2024-25, the number of slabs available
under the new tax regime has decreased to 5 from the
current 6 in AY 2023-24.
Additionally, Budget 2023 has also increased the income
tax rebate limit for individuals opting for the new tax
regime to Rs. 7 lakh for FY 2023- 24 from the current FY
2022-23 rebate limit of Rs. 5 lakh. However, none of the
above changes are applicable if you opt for the old tax
regime in FY 2023-24 i.e. AY 2024-25.
CHAPTER-3 DEDUCTION

Income Tax Deductions List - Deductions on Section 80C, 80CCC,

80CCD & 80D - FY 2022-23 (AY 2023-24)

Income tax department with a view to encourage savings and investments

amongst the taxpayers have provided various deductions from the taxable
income under chapter VI A deductions. 80C being the most famous, there
are other deductions which are beneficial for the taxpayers to reduce their tax
liability. Let us understand these deductions in detail:

Section 80 Deduction List

Section 80C – Deductions on Investments

Section 80C is one of the most popular and favourite sections amongst
taxpayers as it allows them to reduce taxable income by making tax-saving
investments or incurring eligible expenses. It allows a maximum deduction
of Rs 1.5 lakh every year from the taxpayer's total
income. The benefit of this deduction can be availed by Individuals
and HUFs.
Companies, partnership firms, and LLPs cannot avail the benefit of this
deduction.
Section 80C includes subsections, 80CCC, 80CCD (1), 80CCD (1b) and
80CCD (2).

It is important to note that overall limit including the subsections for

claiming deduction is Rs 1.5 lakh except an additional deduction of Rs

50,000 allowed u/s 80CCD(1b)

Section 80C and its subsections

Sections Eligible investments for tax

deductions

Payments made towards life insurance premiums, Equity Linked

80C Saving Schemes, payments made towards the principal sum of a

home loan, SSY, NSC, SCSS, and so on.

80CCC Payment made towards pension plans, and mutual funds.

80CCD Payments paid to government-sponsored plans such as the National

(1) Pension System, the Atal Pension Yojana, and others.

80CCD
Investments of up to Rs.50,000 in NPS.
(1B)
80CCD Employer’s contribution towards NPS (up to 10%, comprising basic
(2) salary and dearness allowance, if any)

Investment Average
Lock-in period for Risk factor
options
Interest

ELSS funds 12% – 15% 3 years High

NPS Scheme 8% – 10% Till 60 years of age High

ULIP 8% – 10% 5 years Medium

Tax saving FD Up to 8.40% 5 years Low

PPF 7.90% 15 years Low

Senior citizen 5years (can be extended for other

8.60% Low
savings scheme
3 years)

National
7.9% 5 years Low
Savings Certificate

8.50% Low
Sukanya Samriddhi Till girl child reaches 21 years of
 age

Yojana (partial withdrawal allowed when

she reached 18 years)

Here are some investment options that are allowed as deduction u/s

80C. They not only help you with saving taxes but also help you grow

your money. A quick comparison of the options is tabulated

below:

Section 80C Deductions List

Deductions
Section 80CCC
Look for INSERT for AY 2023-24
Any individual who makes a contribution for any annuity plan of the
Life Insurance Corporation of India or any other insurer is eligible for
a

Deduction of the amount paid or Rs. 10,000, whichever is less.

When an Individual or his nominee receives any amount under the
following Circumstances it will be taxed as the income of the
individual or his Nominee, in the year of withdrawal or the year in
which the pension is Received:
 On the surrender of the annuity plan or
 A pension received from the annuity plan.

The limit of investment is proposed to increase from Rs 10,000 to Rs

1,00,000
Subject to overall cap of Rs 1,00,000 provided under section 80CCE.

Section 80CCD
The deduction for contributions to a pension scheme of
the Central Government is available only to those
individuals Who have been employed by the central
government.
A pension scheme. But, in this case, deduction of more than 10 per
cent of The employees salary shall not be allowed the contributions
to the fund are also made by the Central Government. Deduction will
be available for any contribution which is made by the Central
Government or 10 percent of the employees salary, whichever is
Less.
When the individual or his nominee receives any amount out of the
scheme Which meets the following descriptions, it shall be taxed in the
hands of the Recipient.
 On closure/ opting out of the pension scheme; or
 A pension received from the annuity plan.
The term salary here includes Dearness Allowance (if considered for
Retirement benefits), but it excludes other allowances and perquisites.
The aggregate deduction under the Sections 80C, 80CCC and 80CCD
cannot
Exceed Rs 1 lakh as whole.

Section 80D
INSERT (AY 2023-24)
Additional deduction of Rs 15,000 under Section 80D is allowed to an
individual
Who pays medical insurance premium for his/ her parent or parents.
Any Premium which is paid for medical insurance that has been taken on
the Health of the assessee, his spouse, dependent parents or dependent
children, Is allowed as a deduction, subject to a ceiling of Rs 10,000.
Where any premium is paid for medical insurance for a senior citizen, an
Enhanced deduction of Rs 15,000 is allowed. The deduction is available
only
If the premium is paid
by cheque. INSERT
(AY 2023-24)
Under section 80D, the deduction has been increased to Rs
15,000 And for senior citizens it is now Rs 20,000.

Section 80DD
Deduction under this section is available to an individual who:
 Incurs any expenditure for the medical treatment, training
and Rehabilitation of a disabled dependant; or
 Deposits any amount in schemes like Life Insurance Corporation for
The maintenance of a disabled dependant. An annuity or a lump
sum Amount is paid to the dependant or to a nominee for the
benefit of the Dependant in the event of the death of the individual
depositing the Money, from the said scheme,
A deduction of Rs 50,000 is available. Where the dependent is with a
severe Disability, a deduction of Rs 1,00,000 is allowed.
If the death of the dependent occurs before that of the assessee, the
amount In the scheme is returned to the individual and is taxable in his
hands in the Year that it is received.
An individual should furnish a copy of the issued certificate by the medical
Board constituted either by the Central government or a state
government in The prescribed form, along with the return of income of
the year for which The deduction is claimed.
The term dependent here refers to the spouse, children, parents and
siblings
Of the assessee who are dependant on him for maintenance and
who Themselves haven't
claimed a deductionfor the disability in
computing their
Total incomes.
This deduction is also available to Hindu Undivided Families (HUF).

Section 80DDB
An individual, resident in India spending any amount for the
medical Treatment of specified diseases affecting him or his spouse,
children, parents,
Brothers and sisters who are dependent on him, will be eligible for a
Deduction of the amount actually spent or Rs 40,000, whichever is
less. Note:- For the complete list of disease specified, refer to Rule
11DD of the Income Tax Rules.
For any amount spent on the treatment of a dependent senior
citizen an Individual is eligible for a deduction of the amount spent
or Rs 60,000, Whichever is less is available.
The individual should furnish a certificate in Form 10-I with
the return of Income issued by a specialist working in a
government hospital.
If any amount of medical expenditure is borne by the employer or is
Reimbursed under an insurance scheme, the eligibility of the deduction is
the
Reduction to that extent. This deduction is also available to Hindu
Undivided
Families (HUF).

Section 80E
INSERT (AY 2023-24)
Deduction under section 80E of the Income-tax Act allowed in respect of
interest on
Loans taken for pursuing higher education in specified fields of study to
be extended
To cover all fields of study, including vocational studies, pursued after
completion of
Schooling.

Under this section, deduction is available for payment of interest on a

loan Taken for higher education from any financial institution or an
approved Charitable institution. The loan should be taken for either
pursuing a full- Time graduate or postgraduate course in engineering,
medicine or Management, or a post-graduate course in applied science
or pure science. The deduction is available for the first year when the
interest is paid and for The subsequent seven years. Up to March 2005,
deduction was available for The repayment of principal and interest
aggregating to Rs 40,000 a year.
Section 80U
It is deduction in the case of a person with a disability. An individual
who is Suffering from a permanent disability or mental retardation as
specified in The persons with disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1995 or the
National Trust for Welfare of Persons With Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities Act, 1999, shall be
allowed a deduction of Rs 50,000. In case of severe Disability it is
Rs. 75,000.
The assessee should furnish a certificate from a medical board
constituted by Either the Central or the State Government, along with the
return of income For the year for which the deduction is claimed.

Donatios
Section
80G
For the Assessment Year 2023-24
Donations to electoral trusts to be allowed as a 100
percent Deduction in the computation of the income of
the donor. For the Assessment Year 2006-07
Under this section deduction is made in respect of donations to certain
funds,

Charitable institutions, etc. Deduction is not available for donations

given in Kind.
The deduction is available only for the entity to which donations are
made is An approved charitable institution by the government. A
receipt of the Institute, in evidence made, should be attached to the
return of income.
Section 80GG
Under this section a non-salaried person or a salaried person, if not
getting House rent allowance, he/she can claim deduction for the rent he
pays For a residential accommodation. The deduction available is least
of the Following:
 Rent paid in excess of 10 percent of total income.
 25 percent of total income.
 Rs 2,000 per month.
The total income of the individual is computed after reducing the
amount Deductible under other sections, receipts exempt from tax, and
long-term &
Short-term capital gains taxable at concessional rates.
The deduction is not available if the assessee or his spouse or minor child
Owns the accommodation in which he stays or works, or carries on his
Business or profession. Deduction is even not allowed, if the assessee
owns A house in any other place, and the concession in respect of a
self-occupied House is claimed by him.

Section 80GGA
An individual, who is not engaged in any business or profession, is
eligible For a deduction of the amount donated to certain institutions
engaged in Scientific research, rural development, etc.

Section 80GGC
It is the deduction in respect of contributions given by any person to
political Parties. An individual shall be allowed a deduction of any
amount Contributed by him to a political party.
CHAPTER-4 ITR E-FILING PROCEDURES

E-filing of Tax Returns

• The process of electronically filing Income tax returns

through the internet is known as e-Filing.
• It is mandatory for Companies and Firms requiring statutory
audit u/s 44AB to submit the Income tax returns electronically
for AY 2009-10.
– Any Company/Firm requiring statutory audit u/s
44AB return submitted without a e-Filing receipt will
not be accepted.
• e-filing is possible with or without digital signature.

The Income Tax Department is keen to encourage efiling of IT returns by

all taxpayers in view of the following benefits to taxpayers.

• Anywhere-Anytime Filing
• No long queues
• No Personnel Interface
• Quick Processing
• Accurate data in return

Paid taxes, made your tax saving investments... now get geared up for
filing income tax returns as the month of July is on the horizon and the
time has come when one is supposed to file IT returns.

In the year 2007 the Income Tax Department of India took many
initiatives such as training TRPS, launching saral forms in a new avatar
and so on for making tax filing convenient and handy for the citizens.

In this e-age when ICT is successfully intervening in so many fields

and providing services from online banking to online news, online
mutual fund investments to online buying and selling, the Income Tax
Department of India launched the Electronic Filing of income tax
returns.

Yes, using the e-filing process one can file in tax returns just within a
few clicks at any time of the day and that too without any hassles. Using
this technology all you have to do is fill the form and submit it, online
or offline.

MORE ABOUT THE E-FILING PROCESS WORK

The e-filing process is really easy and takes a very little time and all
you have to do is fill up your tax return form online provided and the
other required information about income, expenditure and savings.
Filing tax returns online is the easiest and the simplest method and all
one needs is to log on and follow the simple instructions.

For e- filing process one needs to have a software application that

generates the income tax form, which is available at the Income Tax
Department website.

TYPES OF E-FILING
• There are three ways to file returns electronically.

• Option 1: Use digital signature, in which case no

further action is required.

• Option 2: File without digital signature, in which case ITR-

V form is to be filed with the department. This is a single
page receipt cum verification form.

• Option 3: File through an e-return intermediary who would

do eFiling and also assist the Assessee file the ITR -V Form.

Documents required for e-filing

• Form No. 16 (for Tax deducted by employers)

• Form No. 16A

• Account statements of bank accounts

• Property details

• Sale and purchase of investments / assets

• Details of tax payments made

• PAN card photo copy

 • Birth date

• TAN number

• Bank A/c no

• Bank details – MICR code, Type of A/c.

PROCESS OF E-FILING
Welcome Back, Abhishek
z
37
39
 CHAPTER-5 Benefits of e-Filing:

One of the foremost benefits of electronic filing is the facility of

anywhere / anytime filing, and one can just file returns anytime of the day
or night. Other than this, online tax returns are processed much faster
than paper returns and the tax is worked out automatically as the payee
completes the form. With this the payee also gets the acknowledgement
slip immediately. Also online filing is a safe and secure mode.

Excess TDS Claim

Tax can be taken from your salary, Fixed Deposit, or any other source
even if your income is not taxable. For instance, if your total income is
under
₹2.5 Lakhs but you received ₹1 Lakh from an FD in the bank, the bank is
required to deduct 10% tax from this amount. In this situation, the tax
that was subtracted by filing an ITR can be repaid. In plain English, a
person must submit a tax return in order to claim any TDS that was taken
at the source.

VISA Application

The likelihood that a visa application will be rejected or flagged as

problematic decreases if ITR documentation is submitted with the
application. The tax return illustrates the person's civic responsibility.
Several countries now demand ITR for visas due to rising security
concerns. For instance, even if you had no income during those three
years, you must submit the returns from the previous three years when
applying for a Schengen Visa.
Establishing Losses

If you want to carry over a loss from the previous year's stock market,
you must file a return, even if it is NIL. If you want to offset those capital
losses, you should file an ITR whether you obtain any profit or not.
Additionally, if a person owns foreign stocks, they must file an ITR in
accordance with income tax regulations.

A Reliable Proof of Address

The Income Tax Return is valid as address verification. Even an Aadhaar

Card can be obtained using it. Aadhar Cards, licenses, passports, and
other documents like those are all required to have address proofs.
Frequently, these documents do not accept common forms of
identification like ID cards. Your Income Tax Return can be applied in
such cases.

Authentic Evidence of Your Earnings

Form 16 is typically given by employers to their employees as proof of

income. The ITR Filing form serves as actual income verification for
self- employed or independent contractors. It includes a thorough
breakdown of a person's income and expenses for the entire fiscal year.

For Purchasing High Coverage Insurance

More people are purchasing life insurance policies for over ₹50 Lakhs.
However, insurance companies will not accept it unless you show them
your ITR records that show your yearly income. Your working income
will determine how much coverage you receive, and ITR shows the
insurance company that you make a lot of money.
A Crucial Document for Loan Application

The bank requests certain documents from you when you apply for a loan
to buy something, like a car or a new home for your family or business.
Aadhar Cards, PAN Cards, Licenses, Photo Identification, etc., are some
of the documents that might be required. Additionally, your income proof
is one important document that is requested. ITR for the previous three
years was frequently requested by banks. This is done to determine
whether you will be able to repay the loan given your past and present
financial circumstances. ITR is helpful not only when requesting bank
loans, but it can also help you apply for a credit card. Before issuing you
a credit card, credit card companies will also request your prior earnings
and tax returns.

Scholarship Advantages

Various authorities view an ITR as a source of income documentation

(both government and private). For instance, you can submit an ITR to
claim specific institute and/or university scholarships. The ITR aids in
establishing the prospective student's ability to prove their income, and
insurance companies also accept them as acceptable documentation.

Funding for Startup Ventures

When planning to launch a new company or grow an existing one, you

might require funding from outside sources like venture capitalists or
seed investors. These investors might inquire about the specifics of your
ITR in order to evaluate the business's financial stability and profitability.
They could cross-check the data in the audited report using your ITR
forms as well.
Benefits for Independent Contractors & Professionals

Self-employed or independent contractors do not receive Form 16. Their

ITR is frequently the only record that demonstrates they have filed
income taxes. Without this evidence, they might run into funding
problems and transactional issues.

Importance of Filing Income Tax Returns

Many people appear to believe that filing tax returns is optional, so they
disregard it as pointless and burdensome. This is not a very wholesome
way to view tax filing. Every year, filing tax returns is viewed as a moral
and social obligation of each and every responsible citizen of the nation.
It serves as the basis on which the government calculates the amount and
means of citizen expenditures and offers the assessee a platform to
occasionally request refunds in addition to other forms of relief.

Effects of Failing to File An ITR

Now that you are aware of the benefits of filing an Income Tax Return,
consider some of the repercussions that could result from failing to do so:

• If a person is subject to Income Tax, a notice will be sent to them.

• The liable body will accept a thorough letter and any necessary
supporting documentation if someone is unable to submit Income
Tax Returns for a legitimate reason. In this situation, they may
request relief from condonation.
• The IT Department will fine an individual in the event that their
ITR is filed after the deadline. Generally, if one's income exceeds
₹5
 lakhs, one must ₹10,000. The fine is ₹1,000 if
pay a penalty of
income is less
than this amount.

• Assessees may face harsh detainment in serious situations like tax

evasion.
• Some people, however, are exempt from the requirement to file an
income tax return. According to the Finance Minister's
announcement in the Union Budget for 2021, 75 years or older
seniors can receive a full exemption from filing ITRs.

As you might have understood now, there is no reason for you to avoid
the annual ITR Filing process. Pay your taxes on time, and submit your
returns. The advantages are what truly discern the difference. Lastly, this
blog is published in the public interest and is only intended for
informational and educational purposes.
 CHAPTER-6 CONCLUSION:

Under the umbrella of my project, the participants of this project were

glad to understand the design and pattern of income tax e-filing online.
My experience was totally different and gave us an edge adding to my
knowledge. Old regime is better as compared to the new regime.

SUGGESTION

After collecting all the information, broadly summarize

your financial information, such as professional receipts
received, rent received, dividend, capital gain/loss,
salary, savings interest, etc. Similarly, you can collect all
the information about investments made during the year
for tax saving purposes. With this practice, you can avoid
underreporting of income and underclaiming of the
deductions.
• Find out which ITR form is applicable. ...
• Collect and collate documents related to various income sources.
...
• Avoid mistakes while reporting income or deductions in ITR. ...
• Carefully verify Form 26AS. ...
• Compute income tax liability as per the new or old tax regime.

This is all required to file the income tax return. Once you
have done with all the above basic requirements, you just
need to report all the information in the income tax return
and submit it to the income tax department.
 GST – Goods and Service Tax

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in
India on the supply of goods and services. It is a comprehensive, multistage,
destination-based tax: comprehensive because it has subsumed almost all the
indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at
every step in the production process, but is meant to be refunded to all parties in
the various stages of production other than the final consumer and as a
destination based tax, it is collected from point of consumption and not point of
origin like previous taxes.
Goods and services are divided into five different tax slabs for collection of tax:
0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and
electricity are not taxed under GST and instead are taxed separately by the
individual state governments, as per the previous tax system. There is a special
rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In
addition, a cess of 22% or other rates on top of 28% GST applies on few items like
aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate
for most goods was about 26.5%, Post-GST, most goods are expected to be in the
18% tax range.
The tax came into effect from 1 July 2017 through the implementation of the
One Hundred & First Amendment of the Constitution of India by the Indian
Government. The GST replaced existing multiple taxes levied by the central and
state governments.
The tax rates, rules and regulations are governed by the GST Council which
consists of the finance ministers of the central government and all the states. The
GST is meant to replace a slew of indirect taxes with a federated tax and is
therefore expected to reshape the country's $2.4 trillion economy, but its
implementation has received criticism. Positive outcomes of the GST include the
travel time in interstate movement, which dropped by 20%, because of
disbanding of interstate check posts.

It is charged at the national and state level at similar rates for the same
products and it also replaces almost all the current indirect taxes that are
imposed separately by the Central and the States. Goods & Services Tax is a
destination based tax which means that the tax is paid at the place of
supply.
The following is the list of indirect taxes in the pre-GST rule:

• Central Excise Duty

• Duties of Excise
• Additional Duties of Excise
• Additional Duties of Customs
• Special Additional Duty of Customs
• Cess
• State VAT
• Central Sales Tax
• Purchase Tax
• Luxury Tax
• Entertainment Tax
• Entry Tax
• Taxes on advertisements
• Taxes on lotteries, betting, and gambling

CGST, SGST, and IGST has replaced all the above taxes. However, the
chargeability of C G S T for Inter-state purchase at a concessional rate of
2%, by issue and utilization of c- Form is still prevalent for certain non-
GST goods such as:
(i) Petroleum crude
 (ii) High-speed diesel
(iii) Motor spirit (commonly known as petrol)
(iv) Natural gas
(v) Aviation turbine fuel and
(vi) Alcoholic liquor for human consumption. in respect of following
transactions only:

• Resale
• Use in manufacturing or processing

Objectives of GST

❖ To concentrate and conform to One Country – One Tax.

❖ To ensure consumption-based tax instead of Manufacturing.

❖ To ensure Uniform GST Registration, payment and Input tax Credit.

❖ To eliminate the cascading effect of Indirect taxes on single transactions.

❖ To ensure the subsume all indirect taxes at Central and State Level under.

❖ To reduce tax evasion and corruption.

❖ To increase productivity.

❖ To increase Tax to GDP Ratio and Revenue surplus.

❖ To increase Compliance.
❖ To reduce economic distortions.

❖ Boost to exports: If the Indian market will be competitive in pricing, then

more and more foreign players will try to enter the market, which results in
more numbers of exporters and benefits to the Indian Market. As far as no tax
rate is finalized, but yes GST is much needed in the countries where it lacks
transparency and a complex taxation system. GST will take away the cascading
effect of various taxes that are charged on sale/ production/ purchase and so.
Products reach customers at a very high rate as compared to manufacturing, so
with GST there will be only one tax and it will reduce burden to pay on
manufacturers.

Types of Goods and Service Tax (GST)

1. Central Goods and Services Tax (CGST):

Under GST, CGST is a tax levied on Intra State supplies of both goods
and services by the Central Government and will be governed by the
CGST Act. SGST will also be levied on the same Intra State supply but will
be governed by the State Government.

This implies that both the Central and the State governments will agree
on combining their levies with an appropriate proportion for revenue
sharing between them. However, it is clearly mentioned in Section 8 of
the GST Act that the taxes be levied on all Intra-State supplies of goods
and/or services but the rate of tax shall not be exceeding 14%, each.

2. State Goods and Services Tax (SGST)

Under GST, SGST is a tax levied on Intra State supplies of both goods and
services by the State Government and will be governed by the SGST Act.
As explained above, CGST will also be levied on the same Intra State
supply but will be governed by the Central Government.
An example for CGST and SGST:

Let’s suppose Ram is a dealer in Karnataka who sold goods to Sham in

Karnataka worth Rs. 10,000. The GST rate is 18% comprising of CGST rate
of 9% and SGST rate of 9%. In such case, the dealer collects Rs. 1800 of
which Rs. 900 will go to the Central Government and Rs. 900 will go to the
Karnataka Government

3. Integrated Goods and Services Tax (IGST):

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or
services and will be governed by the IGST Act. IGST will be applicable on any
supply of goods and/or services in both cases of import into India and export
from India.

An example for IGST:

Consider that a businessman Ramesh from Karnataka had sold goods to

Anil from Kerala worth Rs. 1,00,000. The GST rate is 18% composed of
18% IGST. In such a case, the dealer has to charge Rs. 18,000 as IGST. This
IGST will go to the Central.

Advantages of GST

Advantages for the government:

▪ Will help to create a unified common national market for India, giving a
boost to foreign investment and “Make in India” campaign;
▪ Will mitigate cascading of taxes as Input Tax Credit will be available across
goods and services at every stage of supply;
▪ Harmonization of laws, procedures and rates of tax between Centre and
States and across States;
▪ Improved environment for compliance as all returns are to be filed online,
input credits to be verified online, encouraging more paper trail of
transactions at each level of supply chain;
▪ Similar uniform SGST and IGST rates will reduce the incentive for evasion
by eliminating rate arbitrage between neighboring States and that between
intra and inter-state sales;
▪ Common procedures for registration of taxpayers, refund of taxes, uniform
formats of tax return, common tax base, common system of classification
of goods and services will lend greater certainty to taxation system;
▪ Greater use of IT will reduce human interface between the taxpayer and
the tax administration, which will go a long way in reducing corruption;
▪ It will boost export and manufacturing activity, generate more
employment and thus increase GDP with gainful employment leading to
substantive economic growth;
▪ Ultimately it will help in poverty eradication by generating more
employment and more financial resources.

Advantages to Trade and Industry:

▪ Increased ease of doing business;

▪ Reduction in multiplicity of taxes that are at present governing our indirect
tax system leading to simplification and uniformity;
▪ Elimination of double taxation on certain sectors like works contract,
software, hospitality sector;
▪ Will mitigate cascading of taxes as Input Tax Credit will be available across
goods and services at every stage of supply;
▪ Reduction in compliance costs - No multiple record keeping for a variety of
taxes - so lesser investment of resources and manpower in maintaining
records;
▪ More efficient neutralization of taxes especially for exports thereby making
our products more competitive in the international market and give boost
to Indian Exports;
▪ Simplified and automated procedures for various processes such as
registration, returns, refunds, tax payments, etc;
▪ Average tax burden on supply of goods or services is expected to come
down which would lead to more consumption, which in turn means more
production thereby helping in the growth of the industries manufacturing
in India.

Advantages to Consumers:

▪ Final price of goods is expected to be transparent due to seamless flow of

input tax credit between the manufacturer, retailer and service supplier;
▪ Reduction in prices of commodities and goods in long run due to reduction
in cascading impact of taxation;
▪ Relatively large segment of small retailers will be either exempted from tax
or will suffer very low tax rates under a compounding scheme - purchases
from such entities will cost less for the consumers;
▪ Poverty eradication by generating more employment and more financial
resources.

Advantages to States:

▪ Expansion of the tax base as they will be able to tax the entire supply chain
from manufacturing to retail.
▪ Power to tax services, which was hitherto with the Central Government
only, will boost revenue and give States access to the fastest growing
sector of the economy;
▪ GST being destination based consumption tax will favor consuming States;
▪ Improve the overall investment climate in the country which will naturally
benefit the development in the States;
▪ Largely uniform SGST and IGST rates will reduce the incentive for evasion
by eliminating rate arbitrage between neighboring States and that
between intra and inter-state sales;
▪ Improved Compliance levels of the taxpayers will contribute greatly in
improving the revenue collection of the States.
GST Council Meetings

GST Council has met thirteen times since its constitution and some important
decisions taken in the GST Council meeting are:-
Rules for conduct of business in GST Council;

Timetable for implementation of GST;

The threshold limit for exemption from levy of GST would be Rs. 20 lakhs for
the States except for the Special Category States, as enumerated in Article
279A of the Constitution, for which it will be Rs 10 Lakhs);

The threshold for availing the Composition scheme would be Rs. 50 lakhs.
Service providers and some others would be kept out of the Composition
Scheme;

To compensate States for 5 years for loss of revenue due to implementation

of GST, the base year for the revenue of the State would be 2015-16 and a
fixed growth rate of 14% will be applied to it;

Approval of the Draft GST Rules on registration, payment, return, refund and
invoice, debit/credit Notes with the understanding that minor changes may
be permitted with the approval of the Chairperson, if required, based on
suitable suggestions from the stakeholders or from the Law Department;

All entities exempted from payment of indirect tax under any existing tax
incentive scheme would pay tax in the GST regime and the decision to
continue with any incentive scheme shall be with the concerned State or
Central government. In case, the State or Central Government decides to
 continue with any existing exemption/incentive scheme; it will be
administered by way of a reimbursement mechanism.
Adoption of four slabs tax rate structure of 5%, 12%, 18% and 28%. In
addition, there would be a category of exempt goods and further a cess would
be levied on certain goods such as luxury cars, aerated drinks, pan masala and
tobacco products, over and above the rate of 28% for payment of
compensation to the states.
GST rates on 1211 items were approved at the 14th GST Council meeting held
at Srinagar on 18th and 19th of May 2017.

At the 15th GST Council meeting held at New Delhi on 3rd June 2017, tax
rates on the remaining goods were approved
22 states, and 2 Union Territories with Legislatures (Delhi and Puducherry)
have already passed their respective State GST Bill in their State Assemblies.
Issue of cross empowerment and administrative division of taxpayers
between the States and Centre has been resolved.

The implementation of GST has the following challenges:

Challenging time frame of rolling out GST by 1st July, 2017;

Infrastructure and Technology up-gradation of tax system particularly of the
States;
Up-gradation of IT systems of trade & industry;

Taxes which are not to be subsumed

GST may not subsume the following taxes within its ambit:

1. Basic Custom Duty: These are protective duties levied at the time of
Import of goods into India.
2. Export Duty: This duty is imposed at the time of export of certain
goods which are not available in India in abundance.
3. Road and Passenger Tax: These are in the nature of fees and not in the
nature of taxes on goods and services.
4. Toll tax: these are in the nature of user fees and not in the nature of taxes
on goods and services.
 Various Tax Rates imposed by GST

Registration under GST Law

In any tax system registration is the most fundamental requirement for
identification of taxpayers ensuring tax compliance in the economy.
Registration of any business entity under the GST Law implies obtaining a
unique number from the concerned tax authorities for the purpose of collecting
tax on behalf of the government and to avail Input tax credit for the taxes on his
inward supplies. Without registration, a person can neither collect tax from his
customers nor claim any input tax credit of tax paid by him.

Need and advantages of registration

Registration will confer the following advantages to a taxpayer:

• He is legally recognized as a supplier of goods or services.

• He is legally authorized to collect tax from his customers and pass on the
credit of the taxes paid on the goods or services supplied to the
purchasers/ recipients.
 • He can claim input tax credit of taxes paid and can utilize the same for
payment of taxes due on supply of goods or services.
• Seamless flow of Input Tax Credit from suppliers to recipients at the
national level.

Liability to register
GST being a tax on the event of “supply”, every supplier needs to get
registered. However, small businesses having all India aggregate turnover
below Rupees
20 lakh (10 lakh if business is in Assam, Arunachal Pradesh, Himachal
Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or
Tripura) need not register. The small businesses, having turnover below the
threshold limit can, however, voluntarily opt to register.
The aggregate turnover includes supplies made by him on behalf of his
principals, but excludes the value of job-worked goods if he is a job worker. But
persons who are engaged exclusively in the business of supplying goods or
services or both that are not liable to tax or wholly exempt from tax or an
agriculturist, to the extent of supply of produce out of cultivation of land are not
liable to register under GST.
Also, if all the supplies being made by a supplier are taxable under reverse
charge, there is no requirement for such a supplier to register in light of
Notification No. 5/2017-Central Tax dated 19.06.2017.

Nature of Registration

The registration in GST is PAN based and State specific.

Supplier has to register in each of such State or Union territory from where he
affects supply. In GST registration, the supplier is allotted a 15-digit GST
identification number called “GSTIN” and a certificate of registration
incorporating this GSTIN is made available to the applicant on the GSTN
common portal. The first 2 digits of the GSTIN is the State code, next 10 digits
are the PAN of the legal entity, the next two digits are for entity code, and the
last digit is the check sum number. Registration under GST is not tax specific
which means that there is single registration for all the taxes i.e. CGST,
SGST/UTGST, IGST and cesses.
A given PAN based legal entity would have one GSTIN per State, that means a
business entity having its branches in multiple States will have to take separate
State wise registration for the branches in different States. But within a State an
entity with different branches would have single registration wherein it can
declare one place as principal place of business and other branches as additional
place of business. However, a business entity having separate business verticals
(as defined in section 2 (18) of the CGST Act, 2017) in a state may obtain
separate registration for each of its business verticals. Further a unit in SEZ or a
SEZ developer needs to necessarily obtain separate registration.

 Generally, the liability to register under GST arises when you are a
supplier within the meaning of the term, and also if your aggregate
turn over in the financial year is above the exemption threshold of 20
lakh rupees (10 lakh rupees in special category states except J & K).
However, the GST law enlists certain categories of suppliers who are
required to get compulsory registration irrespective of their turnover,
that is to say, the threshold exemption of 20 lakh rupees or 10 lakh
rupees as the case may be is not available to them. Some of such
suppliers who need to register compulsorily irrespective of the size of
their turnover are those who are,-


Inter-state suppliers; However, persons making inter-state supplies of

taxable services and having an aggregate turnover, to be computed on
all India basis, not exceeding an amount of twenty lakh rupees (ten lakh
rupees for special category States except J & K) are exempted from
 obtaining registration vide Notification No. 10/2017-Integrated Tax dated
13.10.2017.

 A person receiving supplies on which tax is payable by recipient on

reverse charge basis
Casual taxable person who is not having a fixed place of business in the
State or Union Territory from where he wants to make supply. However,
casual taxable persons making supplies of specified handicraft goods
need not take compulsory registration and are entitled to the threshold
exemption of Rs. 20 Lakh. Handicraft goods are specified in Notification
no. 33/2017-Central Tax dated 15.09.2017 as amended by Notification
 no. 38/2017-Central Tax dated 13.10.2017.

 non-resident taxable persons who is not having fixed place of business

in India
A person who supplies on behalf of some other taxable person (i.e. an
 Agent of some Principal)
E-commerce operators, who provide platform to the suppliers to make
 supply through it
Suppliers of goods who supply through such e-commerce operator who
are liable to collect tax at source. Persons supplying services through e-
commerce operators need not take compulsory registration and are
entitled to avail the threshold exemption of Rs. 20 Lakh as per
 Notification No. 65/2017-Central tax dated 15.11.2017.
Those ecommerce operators who are notified as liable for GST payment
under Section 9(5) of the CGST Act, 2017

TDS Deductor

Input service distributor

Those supplying online information and database access or retrieval
services from outside India to a non-registered person in India.
 A casual taxable person is one who has a registered business in some State in
India, but wants to effect supplies from some other State in which he is not
having any fixed place of business. Such a person needs to register in the State
from where he seeks to supply as a casual taxable person. A non-resident
taxable person is one who is a foreigner and occasionally wants to effect
taxable supplies from any State in India, and for that he needs GST registration.
GST
law prescribes special procedure for registration, as also for extension of the
operation period of such casual or non- resident taxable persons. They have
to apply for registration at least five days in advance before making any
supply. Also, registration is granted to them or the period of operation is
extended only after they make an advance deposit of the estimated tax
liability.
In respect of supplies to some notified agencies of the United Nations
organization, multinational financial institutions and other organizations, a
centralized unique identification number (UIN) is issued.

Documents Required for GST Registration

❖ PAN of the Applicant.

❖ Aadhaar Card.

❖ Proof of business registration or Incorporation certificate.

❖ Identify and Address proof of Promoter.

❖ Address proof of the place of business. ❖ Bank Account statement/

Canceled cheque ❖ Digital Signature.

❖ Letter of Authorization/ Board Resolution of Authorized signatory

GST Composition Scheme
Composition Scheme is a simple and easy scheme under GST for
taxpayers. Small taxpayers can get rid of tedious GST formalities and
pay GST at a fixed rate of turnover. This scheme can be opted by any
taxpayer whose turnover is less than Rs. 1.0 crore*.
 *CBIC has notified the increase to the threshold limit from Rs 1.0
Crore to Rs. 1.5 Crores.
Who can opt for Composition Scheme
A taxpayer whose turnover is below Rs 1.0 crore* can opt for a
Composition Scheme. In case of North-Eastern states and Himachal
Pradesh, the limit is now Rs 75* lakh.

As per the CGST (Amendment) Act, 2018, a composition dealer can

also supply services to an extent of ten percent of turnover, or Rs.5
lakhs, whichever is higher. This amendment will be applicable from the
1st of Feb, 2019. Further, GST Council in its 32nd meeting proposed an
increase to this limit for service providers on 10th Jan 2019*.

Turnover of all businesses registered with the same PAN should

be taken into consideration to calculate turnover.

Who cannot opt for Composition Scheme

The following people cannot opt for the scheme-

• Manufacturer of ice cream, pan masala, or tobacco

• A person making inter-state supplies
• A casual taxable person or a non-resident taxable person
• Businesses which supply goods through an e-commerce operator

What are the conditions for availing Composition Scheme?

The following conditions must be satisfied in order to opt for composition
scheme:
• No Input Tax Credit can be claimed by a dealer opting for composition
scheme
• The dealer cannot supply GST exempted goods
• The taxpayer has to pay tax at normal rates for transactions under the
Reverse Charge Mechanism
• If a taxable person has different segments of businesses (such as textile,
electronic accessories, groceries, etc.) under the same PAN, they must
register all such businesses under the scheme collectively or opt out of
the scheme.
• The taxpayer has to mention the words ‘composition taxable person’
on every notice or signboard displayed prominently at their place of
business.
• The taxpayer has to mention the words ‘composition taxable person’
on every bill of supply issued by him.
 As per the CGST (Amendment) Act, 2018, a manufacturer or trader
can now also supply services to an extent of ten percent of turnover, or
Rs.5 lakhs, whichever is higher. This amendment will be applicable
from the 1st of Feb, 2019.

How can a taxpayer opt for a composition scheme?

To opt for composition, a taxpayer has to file GST CMP-02 with the
government. This can be done online by logging into the GST Portal.

This intimation should be given at the beginning of every Financial Year

by a dealer wanting to opt for a Composition Scheme.

How Should a Composition Dealer Raise a bill?

A composition dealer cannot issue a tax invoice. This is because a

composition dealer cannot charge tax from their customers. They
need to pay tax out of their own pocket.
Hence, the dealer has to issue a Bill of Supply.
The dealer should also mention “composition taxable person, not eligible
to collect tax on supplies” at the top of the Bill of Supply.

How should GST payment be made by a composition dealer?

GST Payment has to be made out of pocket for the supplies made.

The GST payment to be made by a composition dealer comprises of the

following:

• GST on supplies made.

• Tax on reverse charge
• Tax on purchase from an unregistered dealer*
*Only on the specified categories of goods and services and well as
the notified class of registered persons with effect from 1st Feb 2019
but is yet to be notified. Hence, not applicable until then.

What are the returns to be filed by a composition dealer?

A dealer is required to file a quarterly return GSTR-4 by 18th of the

month after the end of the quarter. Also, an annual return GSTR-9A has
to be filed by 31st December of next financial year*.
 What are the GST rates for a composition dealer?

Following chart explains the rate of tax on turnover applicable for composition
dealers :
Input Tax Credit

Input credit means at the time of paying tax on output, you can reduce
the tax you have already paid on inputs and pay the balance amount.

Here’s how-

When you buy a product/service from a registered dealer you pay

taxes on the purchase. On selling, you collect the tax. You adjust the
taxes paid at the time of purchase with the amount of output tax (tax
on sales) and balance liability of tax (tax on sales minus tax on
purchase) has to be paid to the government. This mechanism is called
utilization of input tax credit.

For example- you are a manufacturer: a. Tax payable on output (FINAL

PRODUCT) is Rs 450 b. Tax paid on input (PURCHASES) is Rs 300 c.
You can claim INPUT CREDIT of Rs 300 and you only need to deposit
Rs 150 in taxes.

Who can claim ITC?

ITC can be claimed by a person registered under GST only if he fulfills

ALL the conditions as prescribed.

a. The dealer should be in possession of tax invoice

b. The said goods/services have been received

c. Returns have been filed.

d. The tax charged has been paid to the government by the supplier.

e. When goods are received in installments ITC can be claimed only when
the last lot is received.

f. No ITC will be allowed if depreciation has been claimed on tax

component of a capital good

What can be claimed as ITC?

ITC can be claimed only for business purposes. ITC will not be available
for goods or services exclusively used for: a. Personal use b. Exempt
supplies c.
Supplies for which ITC is specifically not available.

How to claim ITC?

All regular taxpayers must report the amount of input tax credit (ITC)
in their monthly GST returns of Form GSTR-3B. The table 4 requires
the summary figure of eligible ITC, Ineligible ITC and ITC reversed
during the tax period. The format of the Table 4 is given below:
 Reversal of Input Tax Credit

ITC can be availed only on goods and services for business purposes. If
they are used for non-business (personal) purposes, or for making exempt
supplies ITC cannot be claimed . Apart from these, there are certain other
situations where ITC will be reversed.

ITC will be reversed in the following cases-

1) Non-payment of invoices in 180 days– ITC will be reversed for

invoices which were not paid within 180 days of issue.

2) Credit note issued to ISD by seller– This is for ISD. If a credit note
was issued by the seller to the HO then the ITC subsequently
reduced will be reversed.

3) Inputs partly for business purpose and partly for exempted

supplies or for personal use – This is for businesses which use inputs
for both business and non- business (personal) purpose. ITC used in
the portion of input goods/services used for the personal purpose
must be reversed proportionately.
4) Capital goods partly for business and partly for exempted supplies
or for personal use – This is similar to above except that it concerns
capital goods.
5) ITC reversed is less than required- This is calculated after the annual
return is furnished. If total ITC on inputs of exempted/non-business
purpose is more than the ITC actually reversed during the year then
the difference amount will be added to output liability. Interest will
be applicable.

6) The details of reversal of ITC will be furnished in GSTR-3B. To find

out more about the segregation of ITC into business and personal
use and subsequent calculations, please visit our article.
Special cases of ITC

□ ITC for Capital Goods.

□ ITC on Job work.

□ ITC provided by Input service distributor.

□ ITC on Transfer of Business.

Stages of GST

There are multiple change-of-hands an item goes through along its supply
chain: from manufacture to final sale to the consumer.

Let us consider the following case:

1. Purchase of raw materials.

2. Production or manufacture.
3. Warehousing of finished goods.
4. Sale to wholesaler.
5. Sale of the product to the retailer.
6. Sale to the end consumer.
 Goods and Service Tax is levied on each of these stages which makes it is
multi stage tax.

Types of GST

Returns GSTR-1

GSTR-1 is the return to be furnished for reporting details of all outward

supplies of goods and services made, or in other words, sales
transactions made during a tax period, and also for reporting debit and
credit notes issued. Any amendments to sales invoices made, even
pertaining to previous tax periods, should be reported in the GSTR-1
return.

GSTR-1 is to be filed by all normal taxpayers who are registered

under GST. It is to be filed monthly, except in the case of small
taxpayers with turnover up to Rs.1.5 crore in the previous financial
year, who can file the same on a quarterly basis.

GSTR-2A
 GSTR-2A is the return containing details of all inward supplies of
goods and services i.e., purchases made from registered suppliers
during a tax period. The data is auto-populated based on data filed by
the suppliers in their GSTR-1 return. GSTR-2A is a read-only return and
no action can be taken.

GSTR-2

GSTR-2 is the return for reporting the inward supplies of goods and
services i.e., the purchases made during a tax period. The details in the
GSTR-2 return are auto-populated from the GSTR-2A. Unlike GSTR-2A,
the GSTR-2 return can be edited.

GSTR-2 is to be filed by all normal taxpayers registered under GST,

however, the filing of the same has been suspended ever since the
inception of GST.

GSTR-3

GSTR-3 is a monthly summary return for furnishing summarized

details of all outward supplies made, inward supplies received and
input tax credit claimed, along with details of the tax liability and taxes
paid. This return is auto-generated on the basis of the GSTR- 1 and GSTR-
2 returns filed.

GSTR-3 is to be filed by all normal taxpayers registered under GST,

however, the filing of the same has been suspended ever since the
inception of GST.

GSTR-3B

GSTR-3B is a monthly self-declaration to be filed, for furnishing

summarized details of all outward supplies made, input tax credit
claimed, tax liability ascertained and taxes paid.

GSTR-3B is to be filed by all normal taxpayers registered under GST.

 GSTR-4 / CMP-08

GSTR-4 is the return that was to be filed by taxpayers who have opted
for the Composition Scheme under GST. CMP-08 is the return which has
replaced the now erstwhile GSTR-4. The Composition Scheme is a
scheme in which taxpayers with turnover up to Rs.1.5 crores can opt
into and pay taxes at a fixed rate on the turnover declared.

The CMP-08 return is to be filed on a quarterly basis.

GSTR-5

GSTR-5 is the return filed by non-resident foreign taxpayers, who are

registered under GST and carry out business transactions in India. The
return contains details of all outward supplies made, inward supplies
received, credit/debit notes, tax liability and taxes paid.

The GSTR-5 return is to be filed monthly for each month that the
taxpayer is registered under GST in India.

GSTR-6

GSTR-6 is a monthly return to be filed by an Input Service Distributor

(ISD). It will contain details of input tax credit received and distributed
by the ISD. It will further contain details of all documents issued for
the distribution of input credit and the manner of distribution.

GSTR-7

GSTR-7 is a monthly return to be filed by persons required to deduct

TDS (Tax deducted at source) under GST. GSTR 7 will contain details of
TDS deducted, the TDS liability payable and paid and TDS refund
claimed, if any.
 GSTR-8

GSTR-8 is a monthly return to be filed by e-commerce operators

registered under the GST who are required to collect tax at source
(TCS). GSTR-8 will contain details of all supplies made through the E-
commerce platform, and the TCS collected on the same.

The GSTR-8 return is to be filed on a monthly basis.

GSTR-9

GSTR-9 is the annual return to be filed by taxpayers registered under

GST. It will contain details of all outward supplies made, inward
supplies received during the relevant previous year under different tax
heads i.e. CGST, SGST & IGST and HSN codes, along with details of
taxes payable and paid. It is a consolidation of all the monthly or
quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that year.

GSTR-9 is required to be filed by all taxpayers registered under GST*,

except taxpayers who have opted for the Composition Scheme, Casual
Taxable Persons, Input Service Distributors, Non-resident Taxable
Persons and persons paying TDS under section 51 of CGST Act.

*The 37th GST Council meeting took the decision to make GSTR-9 filing
optional for businesses with turnover up to Rs.2 crore in FY 17-18 and FY 18-
19.

GSTR-9A
GSTR-9A is the annual return to be filed by taxpayers who have registered
under the Composition Scheme in a financial year*. It is a consolidation of all
the quarterly returns filed during that financial year.

*GSTR-9A filing for Composition taxpayers has been waived off for FY
201718 and FY 2018-19 as per the decision taken in the 27th GST Council
meeting.

GSTR-9C

GSTR-9C is the reconciliation statement to be filed by all taxpayers

registered under GST whose turnover exceeds Rs.2 crore in a financial
year. The registered person has to get their books of accounts audited
by a Chartered/Cost Accountant. The statement of reconciliation is
between these audited financial statements of the taxpayer and the
annual return GSTR-9 that has been filed.

GSTR-9C is to be filed for every GSTIN, hence, one PAN can have multiple
GSTR-9C forms being filed.

GSTR-10

GSTR-10 is to be filed by a taxable person whose registration has been

canceled or surrendered. This return is also called a final return and has to
be filed within 3 months from the date of cancellation or cancellation
order, whichever is earlier.

GSTR-11

GSTR-11 is the return filed by persons who have been issued a Unique
Identity Number (UIN) in order to get a refund under GST for the goods
and services purchased by them in India. UIN is a classification made
for foreign diplomatic missions and embassies not liable to tax in India,
for the purpose of getting a refund of taxes. GSTR-11 will contain details
of inward supplies received and refund claimed

Due Dates of filing GST Returns

Late filing of GST Returns
 □ Return filing is mandatory under GST. Even if there is no transaction,
you must file a Nil return.

□ You cannot file a return if you do not file the previous month/quarter’s
return.

□ Hence, late filing of GST return will have a cascading effect leading to
heavy fines and penalty.

□ The late filing fee of the GSTR-1 is populated in the liability ledger of
GSTR-3B filed immediately after such delay.
Interest/late fees to be paid

□Interest is 18% per annum. It has to be calculated by the taxpayer

on the amount of outstanding tax to be paid. It shall be calculated
on the Net tax liability identified in the ledger at the time of
payment. The time period will be from the next day of filing due
date till the actual date of payment.

 As per GST Act Late fee is Rs. 100 per day per Act. So it is 100
under CGST & 100 under SGST. Total will be Rs. 200/day. The
maximum is Rs. 5,000. There is no late fee on IGST.
 Learning Experience

The learning experience under JAISWAL YASH & ASSOCIATES Company.

internship is designed to provide me with practical and hands-on training in the

field of accounting and finance. Some of the key learning experiences include:

Exposure to real-world accounting and finance tasks: I have gained experience in

areas such as auditing, tax preparation, and financial analysis.

Development of technical skills: It developed my technical skills in areas such as

financial reporting, tax compliance, and accounting systems.

Opportunities for professional growth: I have expanded my knowledge and

understanding of the accounting and finance industry through exposure to new
and challenging tasks.

Mentorship: I also have the opportunity to work with experienced professionals

and receive guidance and feedback on my work.

Networking: I made valuable connections with industry professionals and

learned about different career paths within the field of accounting and finance.

Building confidence: By working on real-world tasks, I have gained confidence

in my abilities and developed a sense of pride in my work.
During this internship I have learnt so many new skills. At present I have some
practical experience of working in an organization. I also have knowledge about
the organization's working environment and how organizations work to achieve
their goals and objectives. This internship has given me the understanding of
business and also about the elements of strategic thinking, planning and
implementation, and how these skills are implemented in the real-world
organization environment. This internship also helped me to know the
applicability of accounting in the business.
 Conclusion

A conclusion on an under JAISWAL YASH & ASSOCIATES Company.

internship focused on income tax would typically summarize the main learning
experiences and takeaways related to the field of income tax. It might also reflect
on the impact of the internship on the intern's career goals and future plans, and
highlight any skills or knowledge gained related to tax laws and regulations. Here
are a few points that could be included in a conclusion under internship in
income tax:

Overview of the internship program and the tasks and responsibilities assigned
related to income tax.

Key learnings from the internship, such as a deeper understanding of tax laws and
regulations, tax compliance, tax planning, and tax consultancy services.

Reflection on the internship experience and its impact on the intern's personal and
professional development in the field of income tax.

Appreciation for the guidance and support provided by mentors and supervisors
in the area of income tax.

Acknowledgement of the skills and knowledge gained during the internship

related to income tax and how they can be applied in the future.

It's important to note that a conclusion under this internship in income tax may
vary depending on the specific internship program, the intern's individual
experiences, and the type of internship report being written.