Study Of INCOME TAX E-FILING

1 Alard Institute Of Management Sciences, Pune

Title of Project
Study Of INCOME TAX E-FILING

Company Name
G.C. Godbole & Co. (Chartered Accountant)


Academic Year
(2012-2014)





Submitted To Submitted By
PRIYANKA MAM SAGAR F. KOLAGE

Study Of INCOME TAX E-FILING
2 Alard Institute Of Management Sciences, Pune


Introduction to the Study-
An income tax is a tax levied on the income of individuals or businesses (corporations or
other legal entities). Various income tax systems exist, with varying degrees of tax incidence.
Income taxation can be progressive, proportional, or regressive. When the tax is levied on the
income of companies, it is often called a corporate tax, corporate income tax, or profit tax.
Individual income taxes often tax the total income of the individual (with some deductions
permitted), while corporate income taxes often tax net income (the difference between gross
receipts, expenses, and additional write-offs). Various systems define income differently, and
often allow notional reductions of income (such as a reduction based on number of children
supported).
The Indian Income Tax Act provides for chargeability of tax on the total income of a
person on an annual basis. The quantum of tax determined as per the statutory provisions is
payable as:
a) Advance Tax
b) Self Assessment Tax
c) Tax Deducted at Source (TDS)
d) Tax Collected at Source (TCS)
e) Tax on Regular Assessment
Tax deducted at source (TDS) and Tax collection at source(TCS), as the very names
imply aim at collection of revenue at the very source of income. It is essentially an indirect
method of collecting tax which combines the concepts of pay as you earn and collects it is
being earned. Its significance to the government lies in the fact that it proposes the collection of
tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. A
the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and
convenient mode of payment. The concept of TDS requires that the person on whom
responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific
nature which are being made to a specified recipient. The deducted sum is required to be
Study Of INCOME TAX E-FILING
3 Alard Institute Of Management Sciences, Pune


deposited to the credit of the Central Government. The recipient from whose income tax has
been deducted at source, gets the credit of the amount deducted in his personal assessment on the
basis of the certificate issued by the deductor.
While the statute provides for deduction of tax at source on a variety of payments of different
nature, in this booklet, an attempt is being made to discuss various provisions of TDS on
payments of nature other than salaries and of Tax collection at source.

BASIC INFORMATION ABOUT TAX
1. Taxes in india are of two types, direct tax and indirect tax.
2. Direct tax like income tax, wealth tax, etc are those whose burden falls directly on the
taxpayer.
3. The burden of indirect tax 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 assesee and whose total
income exceeds The maximum exemption limit, shall be charge free 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
Study Of INCOME TAX E-FILING
4 Alard Institute Of Management Sciences, Pune


sources, is more than maximum unchangeable limitation (at present it is Rs 1,80,000/-
and 1,90,000/-) than that person is liable to pay income tax.

According to income tax act 1961, every person, who is an assesses 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
As individual is terated as resident in a year if present in india.
1. For 182 days during the year or
2. For 60 days during the year and 365 days during the procceding four year. Individual
fulfiling neither of these conditions are non-residents. ( the rules are slightly more liberal
for indian citizens residing abroad or leaving india for employment abroad.)
A resident who was present in india for 730 days during the preceding seven years or who
was non-resident in nine out of ten preciding years. I treated as not ordinarily resident. In effect,
a newcomer to india remains not oedinarily resident.
For tax purposes, an individual may be resident, non-resedent or not ordinarily resident.
Objectives:-
To find the market potential and market penetration of financial product offerings in Pune
and local area nearby them.
To collect the real time information about preference level of customers and give the best
solutions.
To expand the market penetrations on financial service.
To provide pricing strategy of competitors to fight cut throat competitions.
To increase the product awareness of G.C. Godbole & Co. (Chartered Accountant) as
single window shop for investment solution.

Study Of INCOME TAX E-FILING
5 Alard Institute Of Management Sciences, Pune


INCOME FOR OTHER SOURCE
This is residual head, under this head income which does not meet criteria to go to
other heads is taxed. Also there are also some specific income which are to be taxed under this
head.
Income by way of dividends
Income from horse races
Income from winning bull races
Income from winning of lotteries
Any amount received from kay man insurance policy
Any sort or from gambling or betting
Income from commission
Income from crossword puzzles
Income from card games
Scope of the Study:-
To study the various horizons of taxes.
To analyse the taxation policies under technology for corporate discipline
To make proper filing of taxes.
To record the various groups of taxable assesses.
To study the various provision, exemption and discount in taxation through practical
knowledge and practice.
The Central Board of Direct Taxes has widened the scope of mandatory e-filing of
income-tax returns.




Study Of INCOME TAX E-FILING
6 Alard Institute Of Management Sciences, Pune


INCOME TAX FILING STATISTICS IN INDIA
QUICK HIGHLIGHTS OF E-FILING IN F.Y. 2012-13 (UPTO 31/03/2013)
COMPARATIVE GROWTH OF E-FILING IN CURRENT YEAR
FORM WISE RECEIPT OF E-RETURNS UPTO 31st MARCH, 2013
S.N. FORM
NAME
F.Y.
2011-12
F.Y. 2012-
13
PERCENT GROWTH IN
F.Y. 2012-13
1 ITR-1 1,983,618 4,439,001 123.78%
2 ITR-2 1,040,281 1,773,659 70.50%
3 ITR-3 327,409 522,579 59.61%
4 ITR-4 & 4S 4,552,028 8,340,343 83.22%
5 ITR-5 616,007 765,054 24.20%
6 ITR-6 530,899 593,047 11.71%
Total 9,050,242 16,433,683 81.58%


The following table provides highlights of tax filing in the 2012-13 fiscal:
HIGHLIGHTS OF E-FILING IN F.Y. 2012-13
No. of Registered Users as on 31/03/2013 19,684,592
Peak rate of receipt of returns per minute 1401 / minute
(on 31st March at 15:25 hrs)
Peak rate of receipt of returns per hour 57,977 / hour
(on 31st March between 17-
18 hrs)
Peak rate of receipt of returns per day 6,83,732 / day
(on 31st March, 2013)
Peak utilization of bandwidth 148 Mbps
Percentage of returns received outside office hours 23%
Study Of INCOME TAX E-FILING
7 Alard Institute Of Management Sciences, Pune


Percentage of returns filed using Utility provided by
Department
30%
Income Tax Filing in India: State-wise Breakdown
State Wise Receipt Of E-Return
In F.Y. 2012-13 (Upto 31/03/2013)
Sno State Number Of E-Returns
1 Maharashtra 3,262,728
2 Gujarat 2,126,851
3 Delhi 1,303,508
4 Uttar Pradesh 1,223,413
5 Karnataka 1,221,234
6 Tamilnadu 1,017,054
7 West Bengal 990,891
8 Rajasthan 941,418
9 Punjab 814,010
10 Andhra Pradesh 803,939
11 Madhya Pradesh 649,777
12 Haryana 504,177
13 Kerala 293,734
14 Chhatishgarh 232,414
15 Orissa 175,471
16 Jharkhand 164570
17 Bihar 155,855
18 Assam 119,681
19 Uttaranchal 115,153
20 Chandigarh 78,182
21 Himachal Pradesh 66,847
22 Goa 52,247
Study Of INCOME TAX E-FILING
8 Alard Institute Of Management Sciences, Pune


23 Jammu And Kashmir 46,294
24 Pondicherry 19,802
25 Foreign 11,594
26 Tripura 9,392
27 Dadra And Nagar Haveli 9,225
28 Andaman And Nicobar Islands 6,074
29 Daman And Diu 5,821
30 Meghalaya 4,221
31 Nagaland 2527
32 Arunachal Pradesh 2,045
33 Manipur 1,691
34 Sikkim 1,379
35 Mizoram 263
36 Lakhswadeep 201

Conclusion:-
Under the umbrella of my project, we the participants of this project were Glad to
understand the design and pattern of income tax e-filing online. My experience with the various
customers of the various companies was totally different and gave us an edge adding to my
knowledge.
In my opinion, knowing these things about tax will be a good start for someone who is
starting to earn. This is basic information that most people should have, and at the same time its
not likely that it overwhelms you either.
Income tax e- filing is a great opportunity to all the income tax payer the income tax is
the most important for government. Income tax is the primary need of the economy. As per my
opinion income tax e-filing is the evolution for the income tax payer.