A Summer Internship Project Report

on

"A STUDY OF INCOME TAX FILING FOR INDIVIDUALS AND AVENEUS FOR
MAXIMIZING TAX EFFICIENCY"

At

“APDB AND ASSOCIATES”, Pune

By
“HEMANT RBAGUL ”
MBA(Finance)
Batch (2022-24)

Under the guidance of

Prof.Bankapure maam .

Submitted
to
Savitribai Phule Pune University

In partial fulfilment of the requirement for the award of

Master in Business Administration (MBA)

“Asma Institute of Business Management”

shivene , 411021

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 ACKNOWLEDGMENT

The satiation and euphoria that accompany the successful completion of the project would be incomplete
without the mention of the people who made it possible.

I would like to take the opportunity to thank and express my deep sense of gratitude to my faculty guide
Prof. Bankapure maam .

I am greatly indebted to both of them for providing their valuable guidance at all stages of the study, their
advice, constructive suggestions, positive and supportive attitude and continuous encouragement, without
which it would have not been possible to complete the project.

I would also like to thank Mrs.CA Diensh Bagade (Prof .APDP and Associates ) who allow me to the
project.

I owe my wholehearted thanks and appreciation to the entire staff of the company for their co-operation and
assistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained and make a valuable contribution.

Hemant Rajendra Bagul

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 DECLARATION

I the undersigned solemnly declare that the project report is based on my own work carried out during
the course of my study. I assert the statements made and conclusions drawn are an outcome of my
research work.
I further declare that the work contained in the report is original and has been done by me.

The work has not been submitted to any other Institution or for any other university. I have followed the guidelines
provided by the university in writing the report.

Whenever I have used materials (data, theoretical analysis, and text) from other sources, I have given due credit
to them in the text of the report and giving their details in the references.

Hemant Rajendra Bagul

3
Certificate from institute

4
Certificate from Company

5
 Executive Summary

This project report is based on the internship carried out by Amit Dixit, student of MBA in Finance at
RIIM-TASBM. It is a detailed report regarding the tasks performed at the internship under the summer
internship program as Income Tax Advisor intern at Taxblock India Pvt Ltd.

In the Internship my job role was to communicate with the client to know about their financial situation
and help them to minimize their tax- liability and also to file ITR.

The Income Tax Act of 1961 controls the taxation of money earned in India as well as income earned by
Indians living abroad. This project work is based on my on-job work study of Individual Assesses for the
Assessment-Year 2023-24. Aim of this project is to present a simple understanding about the taxation
structure of an Individual’s income in India.

Baseline for all the content in this report and the tax saving suggestion provided in this report are the
result of studying all the possible analysis of options available for the Individual Assesses which I
observed in my working period.

From training to working period my internship was of 2 months, where I worked as Income tax advisor.
First 15 Days of Internship it was training period where we learned about the working pattern and
everything after that our physical work in the office was started. I have stated all the details in the report
how we handled the clients. What we learned in internship from theoretical to practical knowledge.

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 Index
Sr Items Page No.
No.
1. Introduction to study 10

2. Company Profile 14

3. Outline of the problem/task undertaken 22

4. Research Methodology & Data Analysis 23

5. Relevant activity charts, tables, graphs, 36

diagrams

6. Learning of the student through the 51-76

project
7. Contribution to the host organization 77

8. References in appropriate referencing styles. 78

(APA, MLA, Harvard, Chicago Style etc.)

9. Annexure 79

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 CHAPTER -1

INTRODUCTION

8
 1. About the study

The report, title " A Study on Tax Compliance and Filling services with respect to Individual assesses" discusses the
significance of taxation as well as tax regulations and exemptions. As the name suggests, an income tax is a type of
tax that the government imposes on income derived from a different source. It's a Direct tax, which is paid to the
Indian government directly by the taxpayer. Taxes on income are one of the Government's primary revenue streams,
which are then used for welfare of the society.

This study enables us to better comprehend how income tax is levied against individuals and organizations in
accordance with their earnings or profits. Direct taxes are imposed on individuals or organizations and they include,
among others, income tax (individual and corporate), wealth tax, capital gains tax, perquisite tax, agriculture tax,
and property tax.
The fundamental significance of such taxes is that they are made directly to the governments and comprise a
sizeable amount of the money gathered. Income tax is due from all entities whose income exceeds the thresholds for
tax exemption.
Many people continue to struggle with issues like searching for paperwork, paying too much, misinterpreting forms,
being unprepared for advance taxes, and the complicated legal framework surrounding taxation. People become
perplexed by the new and old tax laws and get interested in prohibited actions like tax evasion and tax avoidance.
Taxpayers typically ignore their tax obligation just near the end of the fiscal year.

2. Purpose of study

1) The purpose of study is to check how many people are aware about the taxation.

2) Study is to check the different sources of income of an individual.

3) Study is to know the investment pattern of individuals for tax saving.

 3. Significance of study
With proper tax planning, you may be able to reduce your tax burden or earn a larger refund at the end of the
year. Without adequate insight, many taxpayers miss potential tax benefits and pay more than necessary. It's
important to anticipate taxes as you create your financial plan.
No tax planning would lead to the least benefits and more tax liability.
It is more reliable because Tax Evasion and Tax Avoidance is the wrong means to save taxes.
The government has provided individuals with deduction and exemptions in tax law so proper planning gets the
advantage to use such benefit.
With the increase in earning, the quantum of tax also increases and it necessitates the devotion of adequate time
on tax planning.
Helps in proper expense planning. These days saving tax can be seen as a non-repayable interest-free loan taken
for government

1. Scope of Study
Taxation is considered as a complex matter affecting financial planning of each individual income tax
assesses. The scope of the present study is limited to the tax planning measures adopted by the salaried
income tax assesses of the country. The study also evaluates the extent of awareness of employees on tax laws
and tax planning measures. The savings habits, investment pattern, repayment of liabilities, tax planning
measures adopted for the period under study and level of awareness of employees on tax laws and tax
planning measures were studied and evaluated

a) Geographic: PAN India

b) Functional: Salaried employee of the country.

c) Out of all samples we as a company take 40,000 as a sample for ITR filing.

d) The scope of study is getting familiar with various investment avenues available in market.

e) To study the life stages of an individual and to identify their risk tolerance, income flow, life goals
and current investment.
f) Study should cover all areas of the individual’s financial needs and should result in the achievement
of each of the individual’s goals.
 ● Retirement Planning

● Tax Planning.

2. Limitations of Study

There are several limitations in conducting this research. Some of them have a considerable effect on the study
while others do not have much effect. The significant limitations are as follows:
a) Sample Size: It is difficult to collect or extract the information from the individuals as the
data or information or credentials provided by the individuals are confidential
b) All individuals are different for each other as their investment pattern vary from person to
person
c) Income level of all individual are different
d) The area of the study covers only salaried
 CHAPTER -2

COMPANY PROFILE
 Tax block India Private Limited

❖ About the Company

A group of experienced chartered accountants founded Taxblock India Private Limited in 2019. The
Fintech company, which has its office in Pune, Maharashtra, has been certified by the Income Tax
Department as an E-Return Intermediary. Our group is made up of internal technology and tax
professionals who are collaborating to develop a "Financial Compliance Ecosystem" for both people and
businesses.
.

❖ Vision & Mission statement

Taxblock is prioritized by existing clients and every new client because Compliance process is a
combination of the traditional approach with automation that meets the need of our clients. We strive to
provide year- round end-to-end support to our clients, making the tax filing process simple, convenient, and
painless. From entry-level executives to CEO’s, we serve a diverse range of clients while developing long-
term relationships with them.
Taxblock believes in a system where we emphasize knowledge, technology, and innovation as priority and
offer opportunities to all employees, whether they are fresher or domain experts, and equip them with all of
the necessary training to provide quality strive to remain partners to our clients, combining traditional
values with innovative ideas to provide one-of-a-kind service. Our vision is to spread Tax literacy by
extending the reach of our services to everyone, everywhere with the power of Automation & AI
technology.

Automation benefits businesses of all sizes and in all industries. Any business that has a consistent and
well-defined set of processes, especially where volume is high, can leverage automation to reap the
benefits. Businesses keen to introduce automation should start small by assessing which are the easiest
processes that have no value added by humans. These processes could be automated to save time and
reduce human error.
Looking at one business function first is also a good approach to ensure that automation produces a
significant return on investment, and that it meets both the short- term and long-term strategic business
goals. For example, if you can use automation to reduce a task that takes two hours to 20 minutes there is a
clear time saving their mission is;

● People - Taxblock work for people with people

● Process - Applied technology to simplify the process.

● Partner - Advance digital tools to provide effective services to existing partners

● Presence - Extending the reach across the country while building a serviceable presence

● Price - Providing the excellent service at good price.

  Services Provided by the Taxblock

❖ Individuals

There are various services include in individuals i.e.self-filing, expert assisted filing, notices, tax
planning, AIS reconciliation.

 Self- Filing

 Expert Assisted ITR Filing

 Notices

 Tax Planning.

 NRI and Expert Services.

  AIS Reconciliation.

 PAN Application

❖ Businesses

They include income tax, self-employment tax, employment tax, and excise tax. In addition to these taxes,
each state requires that businesses pay certain taxes.

● GST Compliance

● GST Registration

● Remote Accounting

● Business Tax Planning

● CFO Service

❖ Consultations

The primary role of a tax consultant or a tax advisor is to help people and organizations in paying their taxes.

They hold expertise in tax law, tax compliance, and tax planning. Both individuals and business owners can
hire a tax consultant for long and short-term tax optimization. A correct advice on your finances can certainly

help you plan your business capital better. As far as taxes are concerned, you can save a lot of money with

correct knowledge in terms of tax credits and deductibles. And let us be honest this information may tend to be

boring or at least not come handy to every one of us

 Direct tax expert

 GST expert

 Financial Planner

 Startup learner

 Home loan expert

 CHAPTER -3
Outline of the Problem /task undertake

.
As discussed in the introduction part of the project, it is essential for the governments to charge the citizens of the

country and private institutions with tax for providing them with various facilities so that it can build a

conducive environment for the development of the country as a whole, therefore, it also becomes necessary at

the part of the individuals and institutions to plan their financial goals keeping in mind their total tax liability. As

giving away a part of income as taxes reduces the disposable income of the individuals, they are left with lesser

income they earn and hence they have to satisfy their needs and wants with the income left over after paying

taxes. This project primarily focuses on individual tax payers.

Objectives of study

To Study taxation provisions the Income Tax Act 1961as amended by finance Act 2015.
To show detailed Tax Computation of individual assessment.
To present the tax saving avenue under the prevailing stage.
To make appropriate suggestion on the basis of filing.
 CHAPTER – 4
Research Methodology & Data Analysis
Methodology:
This report is a kind of exploratory work that takes into consideration different facts and provisions given in Income Tax
Act, 1961 and highlights the important provisions that help in reducing the net tax liability of an individual

1. Research Design

i. Nature of research: Primary Research

ii. Type of research: Quantitative Research

2. Sources of data

i. Sources of Primary data

Primary Data are collected from respondents of salaried classes by using questionnaire

ii. Sources of Secondary data

Secondary Data collected from Income Tax Portal, Tax block Portal, Client Data

3. Methods used for Data collection: Survey

4. Instruments used for data collection: Questionnaire

5. Sample design:
 i. Sampling method: Random Sampling

ii. Sampling Unit: Individuals

iii. Sample size: 51

Tools used for data analysis: Pie Chart, Bar Chart

Data Analysis, Tabulation of Data and Interpretations

 Steps involved in the e-filing of Income Tax Return:

Step 1: Computation of Income Tax.

Step 2: Download TDS Certificate or Form 26AS, AIS and

TIS

Step 3: Select the ITR.

Step 4: Get the ITR utility from the Income Tax
Site Step 5: In the downloaded file, Fill your
information.
Step 6: Verify the data you entered.
Step 7: Create or else convert it at XML version

Step 8: Then, on the Income Tax Site, upload this file.

 Types of Forms used in filing ITR

a) ITR-1:
Resident Indians must fill out this form:

1. If the source of income is a pension or a salary

 2. Exemption is permitted, if income is derived from a single dwelling and losses from the prior
year were carried forward.
3. If income earned is from agriculture (up to Rs. 5,000)
4. The total revenue generated may not exceed Rs. 50 lakhs.

5. Income derived from other sources.

b) ITR-2:

Hindu Undivided Families (HUFs) and persons who fall into any of the following categories must use
the ITR-2 form:
1. The taxpayer's annual income must exceed Rs. 50 lakhs

2. Pensions and salaries are two sources of income.

3. Revenue from residential property
4. Revenue derived from events like lotteries or horse racing
5. If the taxpayer serves as a director of a corporation
6. The taxpayer's agricultural revenue exceeds Rs. 5,000
7. Money coming in from capital gains

8. If any investments in equity bonds that were not listed during the financial year were made

ITR-3:

Individual taxpayers and HUFs that derive their income from a profession or running a business must
select this option. The ITR-3 form is an option for the aforementioned taxpayers:
9. People who make money from their trade or business
10. If any investments in unlisted equity shares were made at any point in the FY
11. If the taxpayer is a business partner
12. If the taxpayer serves as a corporate director
13. If income is derived from a salary, pension, house, or any other form of income

ITR-4:
 Individuals, HUFs, and Partnership Companies that are Indian residents and generate revenue from a
company or profession must choose ITR-4. It is not possible for LLPs to select this ITR form. The
presumptive income scheme under Sections 44ADA, 44AD, and 44AE of the Income Tax Act of 1961
must also be chosen by taxpayers who have chosen this form.

c) ITR-5:

Anyone following under the categories mentioned below can file ITR 5 Form:

1. AJP

2. Business trusts

3. Estate of insolvent

4. AOP

5. BOIs

6. LLPs and companies

a) ITR-6:
Any corporation that does not claim exemptions under Section 11 of the Income Tax Act of 1961 must
file Form ITR-6. Under this provision, businesses may only file income tax returns electronically
b) ITR-7:
This ITR form must be used by individuals and businesses who have submitted returns under Sections
139(4A), 139(4B), 139(4C), 139(4D), 139(4E), and 139(4F).
Section 139(4A): Individuals who receive income from real estate owned by a charity, trust, or other legal obligations
and who utilize that money exclusively for charitable or religious purposes must file ITR forms

Section 139(4B): Any political party must file its tax returns if the total of the contributions it has
received exceeds the basic exemption threshold without taking into account any of the benefits listed in
Section 13A.
 Section 139(4C): If you work for a Scientific Research association, a hospital, a medical facility, a
university, a fund, a news organization, or another educational institution, you must submit ITR forms
under this section.
Section 139(4D): Any educational institution, such as a college or university, which is exempt from
reporting revenue or losses, must submit ITR forms in accordance with this provision.
Section 139(4E): Business trusts that are exempt from providing any type of revenue or loss must
submit ITR forms in accordance with this provision.
Section 139(4F): Investment funds that are present under Section 115UB but do not have to report any
income or losses shall submit ITR forms under this section.

● ITR Verification Methods:

1. Aadhaar-based OTP

2. Net-banking

3. Generating EVC via bank account

4. Verifying tax-returns through Demat account

5. Generating EVC through your bank ATM

6. signed ITR-V/Acknowledgement receipt

Advance tax:

The amount of income tax that is paid in instalments throughout the year as opposed to in one large sum at the end
is known as advance tax. Advance tax, which is often referred to as earn tax, must be paid in instalments by the due
dates specified by the income tax department.

Anyone whose projected tax due for the year is greater than or equivalent to Rs 10,000 is required to pay advance
tax, according to section 208 of the Income Tax Act of 1961. Senior citizens over 60 without a source of business or
profession-related income are exempt from paying advance tax.
Advance tax is due by the deadlines of 15 June at 15%, 15 September at 45%, 15 December at 75%, and 15 March
at 100%. The form that needs to be properly filed on the specified due dates is Challan No. ITNS280.
Tax Deducted at Source (TDS):

According to this, a person (deductor) who is required to make a payment of a certain nature to another
person (deductee) must withhold tax at source and deposit it into the Central Government's account. On the basis of
Form 26AS or a TDS certificate provided by the deduct or, the deductee from whose income tax, deductions have
been made is entitled to get credit for the amount so deducted.

TDS Rates:

Income Tax TDS Rate

Salary Slab rate

Fixed Deposit Interest 10%

Bonds 10%

Insurance Commissions 5%

Contractor Services 1%/2%

Rent 2%/10%/5%

Shares/Mutual Funds Nil

Savings Account Interest Nil

NCDs listed on exchange Nil

Property 1%

Brokerage 5%

Professional and Technical Services 10%

 4. Documents Required in filing the Income Tax:
1). Form-16(for salaried individual)
2).26AS (TDS Certificate)
3). AIS: Annual Information Statement provides a thorough overview of the data for a taxpayer.

Deductions to save Tax:

4) Deduction up to Rs 1,50,000 under 80C - Investment in tax saving alternatives such 80 C – Investing in
LIC, mutual funds, ELSS, NPS, deduction for child's school fees, deduction for house loan principal amount,
etc.

5) In 80 CCC (1b), there is an additional deduction of Rs 50,000 for contributions to the central
government's NPS beyond Rs 1,50,000.

6) Medical insurance premiums for oneself, one's spouse, one's children (up to Rs. 25000/50,000), and
one's dependent parents (up to Rs 25000 / 50,000).

7) As long as the donation doesn't exceed certain limits, it can be deducted under section 80G. 5).
HRA exempted partially or fully under 10 (13A)
6). Education Loan u/s 80E

g) Types of Income Tax Notices:

Notice under Section 142(1): In two circumstances, the assessing officer serves a notification
pursuant to Section 142(1). First, find out if the officer needs any more information or documentation about your
income tax filings. Second, if the officer wants the return to be filed even if it hasn't been filed yet. Under section
142(1), you could be subject to a Rs 10,000 fine, a prosecution lasting up to a year, or both if you fail to respond to
the notice.

Notice sent under Section 139(9): The AO would notify you in accordance with this section if he thought your
 income tax return was filed incorrectly. Missing information, using the incorrect ITR form, submitting an
incomplete return, etc. can all be errors. The officer would also draw attention to the error in the tax return and
suggest a fix it in 15 days and to reply to the notice. Your ITR would be rejected if you don't reply or respond on the
given time.

Notice under Section 148: When the assessing officer (AO) has grounds to suspect that a taxpayer filed his ITR
with a lesser income or did not file when required by the law, he will send this notification to the taxpayer. Under
this section the time limit to send the notice would be depending upon the type or nature of the income

Notice sent under Section 156: A notification pursuant to Section 156 would be given if there was any form of
demand, such as a penalty, fine, tax, or any other sum that the taxpayer was required or liable to pay to the income
tax department. The taxpayer must make the required payment within 30 days upon receiving this letter, also
known as a notice of demand.
Intimation under Section 143(1):
The Income Tax Department processes return online after you file & verify them. After this initial assessment, the
Income tax notifies each taxpayer in accordance with Section 143. (1). It includes details about whether there is a
need to increase or decrease the loss amount reported in the return, whether there is an additional tax due or
refund, and whether the return as filed is accurate.
Notice under Section 143(2) for scrutiny assessment u/s 143(3): If the Income Tax Department decides to
review the taxpayer's ITR, a notice pursuant to Section 143(2) is given to the taxpayer. Within six months of the
f.y. in which the return is submitted, the AO issues this notice. After receiving the notice, the taxpayer must
respond to the income tax department's enquiry and submit any necessary supporting documentation.

Notice under Section 131: The assessing officer may serve a notice under this section if he thinks the tax payer is
hiding all or part of his income. The notification gives the AO the opportunity to check the taxpayer's books of
accounts and look into their income.

Notice under Section 245: The AO serves you with this notification pursuant to Section 245 of the Income Tax Act
if it is thought that you failed to pay taxes in the prior FY in which you owed money and the current FY's tax refund can
be used to settle the your tax obligations. If you don't respond within 30 days, the AO will assume that you agree to the
adjustments and will release your returns after making the necessary adjustments to the tax refund.

 Penalty: Anyone missing the July 31 deadline may file the belated ITR with a late fee of up to Rs 5,000. For those

whose income is less than 5 lakh then late fees is Rs. 1000.

 Slab Rates:

Up to Rs 2,50,000 Nil

Rs 2,50,001 – Rs 5,00,000 5%

Rs 5,00,001 – Rs 7,50,000 10%

Rs 7,50,001 – Rs 10,00,000 15%

Rs 10,00,001 – Rs 12,50,000 20%

Rs 12,50,001 – Rs 15,00,000 25%

>Rs 15,00,000 30%

 Rebate u/s 87- Upto Rs 5,00,000 of Total Income there is a rebate or relief of Rs 12,500 or Tax liability

whichever is less.

 Health and Education Cass- 4% on the amount of income-tax

 Surcharge: People who make income beyond the specified limits are subject to an additional fee known

as a surcharge, which is added to the amount of income tax determined using the current rates.

 10% - Taxable Income > Rs 50 lakh - Upto Rs 1 crore

 15% - Taxable Income > Rs 1 crore - upto Rs 2 crore

 25% - Taxable Income > Rs 2 crore - Upto Rs 5 crore

 37% - Taxable Income > Rs 5 crore

 The maximum rate of surcharge under Sections 111A, 112A, and 115AD on income received in the
form of dividends or income is 15

Tax obligation when Income is below 50 lac .

Tax obligation when Income is Above 50 lakhs:
Tax obligation when Income is upto 5 lakhs:
 CHAPTER - 5
Relevant activity charts, tables, graphs, diagrams
Table-1: Age

Age In Numbers In Percentage (%)

18-25 19 37.3
26-40 22 43.1
41-60 10 19.6
61-80 0 0
>80 0 0

Fig 4
Interpretation:

From the above table and the below pie chart shows that 18-25 age individual were 37.3% (19). 26-40 age
individual were 43.1% (22). 41-60 age individual were 19.6% (10) and no response is from age more than
Table-2: Gender

Gender In Number In Percentage (%)

Male 37 72.5
Female 14 27.5

Fig 5

Interpretations:

From the above table and the below pie chart shows that 72.5% (37) responses are collected from Male and the
rest 27.5% (14) responses is from Female
Table-3: Are you salaried?

Are you salaried? In Number In Percentage (%)

Yes 39 76.5
No 12 23.5

Fig 6

Interpretations:

From the above table and the below pie chart shows that the salaried individuals are 76.5% (39) and the rest
23.5% (12) are earning income from different sources. More people are salaried person and very few have
income from other sources.
3