Summer Internship Project Report

ON

Submission of Income Tax Returns of various entities

In CA Firm
Towards Partial Fulfillment of
BACHELOR OF COMMERCE
Affiliated to

UNIVERSITY OF LUCKNOW
Submitted To-
Submitted by-
UNIVERSITY OF LUCKNOW
Navya Raj Yadav
LUCKNOW
Roll No.-

B.com Vth Semester

 TABLE OF CONTENT
PARTICULAR PAGE
NO.
Cover Page

Internship Offer Letter

Certificate of Internship

Declaration

Acknowledgement

Table of Content

About Internship Organization

About work Profile

Work Experience

Key Learnings

Challenges Faced during internship

Conclusion

Future Scope
 DECLARATION
This is to certify that I Navya Raj Yadav, student of B.com 3 rd

year , have personally work on the project entitled “SUBMISSION

OF INCOME TAX RETURNS ON VARIOUS ENTITIES at CHAKRAVARTI

GHOSH GUHA & CO.”

The data mentioned in this report were obtained during genuine

work done and collected by me. The data obtained from other

sources have been dully acknowledged. The result embodied in

this project has not been submitted to any other University or

Institute for the award of any degree.

Date-

Navya
Raj Yadav
 Acknowledgement
Gratitude is not a thing of expression; it is more a matter of

feeling. There is always a sense of gratitude which one express for

others their help and supervision in achieving the goals. I too

express my deep gratitude to each and everyone who has been

helpful t me in completing the project report successfully. I would

also like to thank Almighty God for blessings showered on me

during the completion of Internship Project Report successfully. I

give my regards and sincere thanks to The Principal sir Mr.

Chandra Mohan Upadhyay for providing us this opportunity. I am

deeply gratified to --------------------------------- for his earnest

coordination and valuable efforts. He constantly encouraged me

right from the inception to final preparation of my project. He has

been a constant source of knowledge and experiences. I

acknowledge the insight provided by my external guide, CA Mr.

Harendra Kumar Tripathi, which helped me to a great extent in

completing the project work. Last but not the least; I am hugely

indebted to all the faculty member of my institute, my family

members and friends for their sincere advice & cooperation to

complete my project in efficient & effective manner.

Navya Raj Yadav
 COMPANY PROFILE
CHAKRAVARTI GHOSH GUHA & COMPANY
(Chartered Accountants)

FIRM NAME- Chakravarti Ghosh Guha & Company

CA FIRM STATUS- Partnership Firm.
MAIN PARTNER NAME- Harendra Kumar Tripathi.
TOTAL NO. OF PARTNERS- 5
NO. OF BRANCHES AND DETAILS- Mumbai & Kolkata Head
Office Lucknow.
YEAR OF ESTABLISHMENT- 1949
SERVICES OFFERED BY FIRM- Chakravarti Ghosh Guha &
Company is the 68 years old well established firm with
multidicipliary assignments all round exposure.
OTHER DETAILS OF THE FIRM
ADDRESS- III Floor New Janpath Complex Hazratganj, Lucknow
Uttar Pradesh.
E-MAIL- ca.tripathi@yahoo.com
PHONE NO.- 9450658813
 ABOUT INTERNSHIP ORGANISATION
VISION AND MISSION

Chakravarti Ghosh Guha & Company is a Team of individuals that

collects, interprets, and maintains Financial Information while
providing quality customer service and training. We strive to
protect the financial integrity of the university in a changing
regulatory and technical environment. A department recognized
for providing excellent customer service, including training, and
reliable, accurate financial information.

Our goal is to provide a full range of financial information from

detailed information.
 SERVICES OFFERED BY CHAKRAVARTI
GOSH GUHA & COMPANY
Account & Advisory Services-
 CHAKRAVARTI GOSH GUHA & COMPANY Accounting Advisory
Services can help you plan and complete acquisition or
divestiture transaction and it also provides you with
accountability of a single rupee.
Tax Compliance-
 Our team of Tax Professionals draws on their diverse
experiences and knowledge to provide seamless services
through the entire spectrum of challenges pertaining to
planning, financial accounting and tax compliance.
Social Security Consulting-
 At present, various social security schemes are in operation
for different categories of employees. All these schemes are
formed after considering the benefits of employees and their
future.
Audit and Assurance-
 Chakravarti Ghosh Guha & Company aims to be at the
cutting edge of the evolution of the best practices in the
Audit domain. Our contemporary Audit Processes enable
Effectiveness and Efficiency in our methodology.
Company Law-
 The firm provide all the necessary services to existing and
prospective clients to facilitate Business Formation in India.
Business Advisory-
 Our company takes care of all the payroll process
requirement. We provide simple and convenient way to pay
salary to the employees and file Tax return in time.

 INTRODUCTION
Income tax is a financial and legal obligation in India. All
individuals earning above a certain amount are required to pay
income tax on their earned income. The income tax rates, income
slabs, and rules are regulated by the government and are subject
to change from time to time. However, all taxpayers are
responsible for accurately reporting their income and filing their
taxes on time. Failure to do so can result in penalties and fines.

Definition of Income Tax

Income tax is a tax charged on the annual income of an individual
or business earned in a financial year. The Income Tax system in
India is governed by The Income Tax Act, 1961, which lays out the
rules and regulations for income tax calculation, assessment, and
collection. All taxpayers are mandated to submit an Income Tax
Return (ITR) every year by respective due dates as per the law to
report their income and claim a tax refund if applicable. An
income tax return can be filed online or offline on the Income Tax
Department's official website or through verified third-party
websites.
The Indian Income Tax system also includes various deductions
and exemptions that can be used to lower the tax liability for a
given financial year.

About Income Tax Department,

India
The Income Tax Department is a Ministry of Finance, Government
of India organisation. It administers the collection, computation,
and refund of direct taxes, such as income tax, in the country. The
department works under the Central Board for Direct Taxes
(CBDT).
 Income Tax Act
The Income Tax Act, 1961 is the primary law governing the
collection, computation, and administration of income tax in India.
The act lays down all the rules and regulations as well as the
rights and responsibilities of taxpayers. It also underlines the
Income Tax Department's role in the collection of tax and tax
returns.
The Income Tax Act, 1961 includes various sections and sub-
sections, like Section 80C, Section 80D, Section 80G, Section
10(10D), and several others highlighting the exemptions,
deductions, as well as limits to help taxpayers reduce their
taxable income and compute their tax liabilities accurately.

Income Tax Return (ITR)

The ITR is a document that all taxpayers are required to file with
the Income Tax Department of India. It consists of details on the
income earned during a financial year and the taxes owed to the
government. It is mandatory to submit the tax return each year
under Section 139 of The Income Tax Act, 1961. Failure to file the
return on time can result in a late fees under Section 234F of The
Income Tax Act, 1961.
There are two ways to file a tax return in India - offline or online.

e-Filing Income Tax

 The government allows taxpayers to file their returns online from
the comfort of their homes and offices. Electronically filing ( e-filing)
tax returns offer several advantages. It takes less time. The
computation of tax becomes simpler as the process is
straightforward and streamlined. Taxpayers also do not
necessarily need to hire tax professionals or chartered
accountants to file their returns but can do so themselves. This
helps save money too. Moreover, e-filing is a 24x7 service, and
taxpayers can easily track the status of their claims/ refunds
online.

Income Tax Calculation

Income tax calculation can be done manually by taxpayers.
Alternatively, they can also use an online income tax calculator. The
calculation of income tax is done on the basis of the tax slab, the
individual falls into. Additionally, taxpayers can also claim tax
deductions and exemptions, such as on life insurance premiums,
investments in the Public Provident Fund (PPF), National Pension
Scheme (NPS), House Rent Allowance (HRA), Leave Travel
Allowance (LTA), and more. The government also offers a standard
deduction of up to ₹ 50,000.

Who Is Required to Pay Income

Tax?
Any individual earning more than ₹ 2.5 lakh annually in a financial
year is required to pay income tax to the Government of India.
Here are the different types of taxpayers in India:
 Individuals: (Further divided as individuals under 60 years,
individuals between the ages of 60 and 80 years, and
individuals aged over 80 years)
 Hindu Undivided Family (HUF)
 Association of Persons (AOP)
 Artificial Juridical Person
 Firms
 Companies
 For the purpose of Income-tax Law, an individual may have
any one of the following residential statuses:
 Resident and ordinarily resident in India (ROR)
 Resident but not ordinarily resident in India (RNOR)
 Non-resident (NR)
 Under Indian tax laws, the scope of taxation differs as per
the residential status of an individual:
 RORs are subject to tax in India on their global income,
wherever received
 RNORs are subject to tax in India only in respect to income
that accrues/arises or is deemed to accrue/arise in India, or
is received or deemed to be received in India, or is from a
business controlled from India or from a profession set up in
India
 NRs are subject to tax in India only in respect to income that
accrues/arises or is deemed to accrue/arise or is received or
deemed to be received in India.
Nature of Income Residential status
ROR RNOR NR

Income which accrues or arises in Taxed Taxed Taxed

India
Income which is deemed to accrue Taxed Taxed Taxed
or arise in India
Income which is received in India Taxed Taxed Taxed
Income which is deemed to be Taxed Taxed Taxed
received in India
Income accruing outside India from Taxed Taxed Not
a business controlled from India or taxed
from a profession set up in India
Income other than above (i.e., Taxed Not Not
income which has no relation with taxed taxed
India)
 TAXABLE 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 and profession.
4. Income from Capital Gain.
5. Income from Other source.

 Salary Income :-
In certain cases, an employ can claim
both HRA (House Rent allowance) 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 derivatives
contracts is non- speculation Archaeological collection,
Drawings, paintings, Sculptures, Any other work of Art. Thus,
now 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, card games, any sort or
from gambling or betting.

Income Tax Forms List

There are different ITR forms to pay income tax in India that
taxpayers can choose from, based on the type of income and
nature of employment.
ITR 1
For individuals being a resident (other than not ordinarily
resident) having total income upto ₹ 50 lakh, having Income from
Salaries, one house property, other sources (Interest etc.), and
agricultural income upto ₹ 5,000/-

ITR 2
For individuals and HUFs having total income more than ₹ 50 lakh.
Also, Individuals and HUFs not having income from profits and
gains of business or profession can opt for this form. Individuals
and Non-Resident Indians (NRIs) not having income from profits
and gains of business or profession can also use this form.

ITR 3
For individuals and HUFs having total income more than ₹ 50 lakh.
Also, Individuals and HUFs not having income from profits and
gains of business or profession can opt for this form. Individuals
and Non-Resident Indians (NRIs) not having income from profits
and gains of business or profession can also use this form.

ITR 4
For Individuals, HUFs and Firms (other than LLP) being a resident
having total income upto ₹ 50 lakh and having income from
business and profession which is computed under sections 44AD,
44ADA or 44AE and agricultural income upto ₹ 5,000/-

ITR 5
For persons other than individual, HUF, company and person filing
Form ITR-7

ITR 6
For companies that have not claimed a tax exemption under
Section 11 need to use ITR 6.

ITR 7
For Persons including companies who need to file their tax returns
under Section 139(4A), Section 139(4B), Section 139(4C), Section
139(4D), Section 139(4E), and Section 139(4F) must use ITR 7.

ITR V
ITR V is the acknowledgement form that is used for the
verification of a tax return. This should be duly e-verified In case
e-verification is not possible, it is to be signed and sent to the
Income Tax Department, Centralized Processing Centre (CPC) in
Bangalore.
Investment Options for Income Tax
Saving in 2023
Fixed deposit
Tax-saving fixed deposits are a low-risk savings tool with a
guaranteed return. Fixed deposits are time deposits that have a
lock-in period of five years. The rate of interest can also differ
from bank to bank. Five-year fixed deposits are the only type of
savings deposit that is covered under Section 80C for
tax* deductions.

Public Provident Fund

The Public Provident Fund is a government-backed savings
scheme. It has a maturity period of 15 years. However, account
owners are allowed to make withdrawals every year from the
seventh financial year onward. It is suitable for long-term goals
because of the lock-in periods. Moreover, it offers low risk and can
be ideal for conservative investors. It also offers tax* deductions
under Section 80C.

Unit-Linked Insurance Plan (ULIP)

A Unit-Linked Insurance Plan is a type of insurance product.
However, apart from life insurance, it also allows investors to
invest their money in the funds of their choice. This unique
product secures the life insured financially while enabling them to
fulfil various financial goals by investing in equity, debt, and
hybrid funds. ULIPs have a five-year lock-in period, and their
returns can vary based on the choice of funds and prevailing
market conditions. However, they can be the most suitable for
long-term goals like your child's higher education, your
retirement, and more. ULIPs offer tax* deductions under Section
80C and proceeds are exempt subject to conditions under Section
10(10D).
 National Savings Certificate
The National Savings Certificate is another one of the Government
of India-backed savings schemes. However, it can only be opened
in a post office. It is primarily aimed at encouraging small to mid-
income investors to save for their future needs. It is a low-risk
plan with a guaranteed return and tax* deductions under Section
80C.
Senior Citizen Savings scheme
The Senior Citizen Savings Scheme is a special savings scheme
for senior citizens. Only people over the age of 60 can use it to
save for their retirement needs. Since it is aimed at senior
citizens, it contains low risk. It also offers deductions subject to
conditions prescribed under Section 80C*.

Life insurance
Life insurance is a financial tool that offers financial protection
against loss of life during the policy tenure. Life insurance offers
guaranteed payouts to the insured's beneficiary in the case of an
unfortunate event. There are several types of life insurance plans,
such as term insurance, endowment insurance, annuity insurance,
ULIPs, and more. All of these offer tax* benefits subject to
conditions prescribed under Section 80C* and Section 10(10D) *.

Pension plans
Pension plans are a type of life insurance tool that offers dual
benefits. These plans offer financial protection against loss of life
during the policy term while allowing investors to build a
retirement nest egg for their future needs. Pension plans also
offer a guaranteed return and can be used to create an assured
stream of income after retirement. Additionally, they offer
deductions subject to conditions prescribed under Section 80C * &
80CCC.

Health insurance or Mediclaim

Health insurance is a type of insurance that offers financial
protection against the treatment of illnesses and injuries. It can
also be used to cover supplementary costs like ambulance
expenses, pre- and post-hospitalisation care, preventative health
check-ups, medicines, room rent at the hospital, and more. The
premiums paid towards a life insurance plan qualify for
deductions subject to conditions prescribed under Section 80D*.
These deductions can be made for a policy for self, spouse,
dependent children, and parents.

New Pension Scheme

The New Pension Scheme is a voluntary defined pension plan. The
scheme has two accounts- Tier 1 and Tier 2. Tier 1 is mandatory
for all government servants who joined the service on or after
January 1, 2004. Tier 2 is an optional account. The scheme
qualifies for deductions subject to conditions prescribed under
Section 80C* and Section 80CCD*.

Tax-Saving Mutual Funds

Some mutual funds, like the Equity-Linked Savings Scheme
(ELSS), also qualify for deductions subject to conditions prescribed
under Section 80C*. ELSS funds invest in equity and equity-
related securities and have lock-in period of three years. They can
be ideal for high-risk investors with a long investment horizon as
they are subject to market volatility. There is no guarantee of a
return. However, they have delivered high gains over the long
term.
Income Tax Deduction Section List
Section 80C
Section 80C* of The Income Tax Act, 1961 allows for tax
deductions on several types of investments and expenses, such
as contributions to fixed deposits, PPF, NPS, life insurance
premiums, and more. The section allows a deduction of up to a
maximum limit of ₹ 1.5 lakh per annum.

Section 80CCC
Section 80CCC offers tax deductions of up to ₹ 1.5 lakh per
annum for contributions towards pension funds offered by a life
insurance company. Taxpayers can claim the money spent on the
purchase, renewal, and continuation of such pension plans.

Section 80CCD
Section 80CCD offers tax deductions on contributions made to the
National Pension Scheme (NPS) and Atal Pension Yojana (APY).
Taxpayers can claim a tax deduction of up to ₹ 1.5 lakh in a
financial year under Section 80CCD(1) and an additional
deduction of ₹ 50,000 under Section 80CCD(1B) per annum.
The aggregate amount of deductions under Section 80C, Section
80CCC & Section 80CCD(1) shall not be more than ₹ 1.5 lakh per
annum.

Section 80D
Section 80D* pertains to tax deductions for medical insurance
premiums. It offers a deduction of up to a maximum limit of ₹
25,000 in a financial year for a policy bought for self, spouse, and
dependent children. It further offers a tax deduction up to ₹
50,000 per annum if any of the insured is a senior citizen. Hence,
the maximum tax deduction under this section can be extended
to ₹ 1 lakh in a financial year.

Section 80DDB
This section offers a tax deduction on the expenses incurred on
the treatment of specified diseases and ailments. It includes
neurological diseases where the disability level is 40% and above,
malignant cancers, chronic renal failure, haematological
disorders, and others. The section offers a tax deduction of ₹
40,000 per annum, or the amount actually spent, whichever is
less. For senior citizens, the amount is increased to ₹ 1,00,000 per
annum, or the amount actually spent, whichever is less.

Section 80E
This section offers tax deductions on interest paid for education
loans. The deductions are available for a maximum period of 8
years or till the interest is paid, whichever is earlier. There is no
limit on the amount of tax deduction.

Section 80EE
Section 80EE* of The Income Tax Act, 1961 offers a tax deduction
on the interest paid for a loan for a residential property. The
maximum tax deduction can be up to ₹ 50,000 in a financial year.

Section 80RRB
Residents in India earning income from royalty from a patent
registered on or after April 1, 2003, under the Patents Act, 1970,
can claim a tax deduction of up to ₹ 3 lakh per annum or the
whole income earned from royalty, whichever is less.

Section 80TTA
Section 80TTA* of The Income Tax Act, 1961 offers a tax deduction
of up to ₹ 10,000 per annum on the income earned from interest
on savings accounts deposits of a bank, post office, or co-
operative society.

Section 80U
Section 80U* offers tax deductions to disabled persons with at
least 40% disability, as declared by a certified medical authority.
The maximum tax deduction limit is ₹ 75,000 or ₹ 1,25,000 in a
financial year if the disability is certified as 80%.

Section 24
This section allows house owners to claim a tax deduction of up to
₹ 2 lakh in a financial year on the interest paid for a home loan.