Summer Training Report

On

E-filing Of Income Tax Return

Completed In

SPA Capital Services

Submitted In Partial Fulfilment
Of the Requirement
Of Masters of Business Administration
Corporate Mentor:
Name: Ms. Yogita Manhas
Designation: Asst Manager
Organization: SPA Capital Services

Submitted By:
Name of the student: Madhu Ruhil
ENR No: 00361203912
Batch : 2012-2014

Submitted To: Ms. Kamini Tandon

Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)

CERTIFICATE
This is to certify that the project work done on E-filing Of Income Tax Return Submitted to
Guru Gobind Singh Indraprastha University, Delhi by Madhu Ruhil in partial fulfilment of the
requirement for the award of degree of Master Of Business Administration, is a bonafide work
carried out by him/her under my supervision and guidance. The work was carried during 5th June
2013 to 5th August 2013 in SPA Capital Services.
During the training period his/her behavior & performance was satisfactory.
Date: Seal/Stamp of the Organization

Name of the guide: Ms. Yogita Manhas

Address: 25 C-Block Community Center
Janak Puri, New Delhi- 110058

SUMMER TRAINING
REPORT
ON

E-FILING OF INCOME
TAX RETURN

BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled E-Filing of Income Tax
Return is the bonafide research work carried out by Madhu Ruhil student of MBA, BCIPS,
Dwarka, New Delhi during June-July 2013, in partial fulfillment of the requirements for the
Summer Training Project of the Degree of Master of Business Administration.
She has worked under my guidance.

-------------------Ms. Kamini Tandon

Project Guide (Internal)
Date:
Counter signed by
------------Dr. Satish Taneja
Director
Date:

DECLARATION
I hereby declare that this Project Report titled E-Filing Of Income Tax Return submitted by me
to Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work
undertaken during the period from 5th June 2013 to 5th August 2013 by me and has not been
submitted to any other University or Institution for the award of any degree diploma / certificate
or published any time before.

(Signature of the Student)

Madhu Ruhil
Enroll. No.: 00361203912

Date: / / 2013

ACKNOWLEDGEMENT
I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report. A special gratitude I give to my summer training supervisor, Ms. Kamini
Tandon, whose contribution in stimulating suggestions and encouragement, helped me to
coordinate my project especially in writing this report.
Furthermore I would also like to acknowledge with much appreciation the crucial role of the staff
of SPA Capital Services, who gave the permission to use all required equipment and the
necessary materials to complete the task E-Filing of Income Tax Return. A special thanks goes
to my team mate, who help me to assemble the parts and gave suggestion about the task EFiling of Income Tax Return. Last but not the least, many thanks go to the head of the project,
Ms. Yogita Manhas whose have invested her full effort in guiding me in achieving the goal. I
have to appreciate the guidance given by other supervisor as well as the panels especially in our
project presentation that has improved our presentation skills thanks to their comments and
advices.

CONTENTS
Chapter
No.

PARTICULARS

Executive Summary

Introduction/Theoretical Background

Literature Review

Objective & Scope of the study

Company Profile

Research Methodology

Data Collection & Analysis

Findings, Conclusion, Suggestion &

Bibliography

Appendix-1: Questionnaire

PAGE NO.

Executive Summary

The Income Tax Department (ITD) of the Ministry of Finance, Government of India, is
committed to provide world - class services to taxpayers in the country, making tax compliance
easy and convenient. One of the initiatives of the Income Tax Department was the introduction
of Electronic Filing (e - Filing) of income tax returns (ITRs) to make the filing process easier for
taxpayers as well as to reduce the time required for data entry on receipt of returns. This project
deals with the process, importance, awareness and satisfaction of e-filing among the citizens of
the country.
E-filing of income tax is understood as successful filing of income tax return through the
internet. The e-governance has developed the concept and strategies of e-filing of income tax
return through the internet. Thus the income tax department has facilitated the taxpayers with
defining the provisions to be followed, which can be filed and how to file the income tax for the
benefit of tax payers as well as the Government. The e-filing of income tax returns has its own
limitations like, slow processing, frequent crashes etc., but, the government has taken necessary
steps like, employing 5000 unemployed people to perform as tax return preparers after getting
training from NIIT.
This study attempts to develop an understanding of the factors that influence citizens adoption
of electronic tax-filing services and to discuss taxpayer perception and satisfaction with an online
system for filing individual income tax returns. A survey has been used to collect primary data
and questionnaire approach was used in final analysis.

Chapter-1

Introduction/Theoretical
Background

10

BASIC INFORMATION ABOUT TAX

Taxes in India are of two types, Direct Tax and Indirect Tax.
Direct taxes are like income tax, wealth tax, etc. are those whose burden falls directly on
the tax payer.
The burden of Indirect tax are 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 assesse and whose total income exceeds
the maximum exemption limit, shall be chargeable to the income tax at the rates or rates
prescribed in the finance act. Such income tax shall be paid on the total income of previous year
in the relevant assessment year.
The total income of an individual is determined on the basis of his residential status in India.
Taxability of individuals is summarized in the table below
Status
Indian Income
Foreign Income
Resident and ordinarily resident

Taxable

Taxable

Resident but not ordinarily resident Taxable

Not Taxable

Non-Resident

Not Taxable

Taxable

I. Individual (Male and Female)

Income Slabs
i. Where the total income does not exceed
2,00,000/-.
ii. Where the total income exceeds
2,00,000/- but does not exceed
5,00,000/-.
iii. Where the total income exceeds
5,00,000/- but does not exceed

Income Tax Rate

Rs.NIL
Rs.10% of amount by which the total income
Rs.exceeds Rs. 2,00,000/Rs.Rs. 30,000/- + 20% of the amount by which the
Rs.total income exceeds Rs. 5,00,000/-.
11

10,00,000/-.
iv. Where the
10,00,000/-.

total

income

exceeds

Rs.Rs. 130,000/- + 30% of the amount by which

the total income exceeds Rs. 10,00,000/-.

Education Cess: 3% of the Income-tax.ident who is of the age of 60 years or more but below
the age of 80 years at any time during the previous year
Income Slabs
Income Tax Rate
Where the total income does not exceed Rs.NIL
2,50,000/-.
ii. Where the total income exceeds Rs.10% of the amount by which the total income
2,50,000/- but does not exceed Rs. 5,00,000/- exceeds Rs. 2,50,000/-.
iii. Where the total income exceeds Rs.Rs. 25,000/- + 20% of the amount by which the
5,00,000/- but does not exceed Rs.total income exceeds Rs. 5,00,000/-.
10,00,000/iv. Where the total income exceeds Rs.Rs. 125,000/- + 30% of the amount by which
10,00,000/the total income exceeds Rs. 10,00,000/-.
i.

Education Cess : 3% of the Income-tax.

III. Individual resident who is of the age of 80 years or more at any time evious year
Income Slabs
Income Tax Rate
i. Where the total income does not exceed Rs.NIL
5,00,000/-.
ii. Where the total income exceeds Rs.20% of the amount by which the total income
5,00,000/- but does not exceed Rs.exceeds Rs. 5,00,000/-.
10,00,000/iii. Where the total income exceeds Rs.Rs. 100,000/- + 30% of the amount by which
10,00,000/the total income exceeds Rs. 10,00,000/-.
Education Cess : 3% of the Income-tax.

Know-how of Income Tax

Income tax is levied on the total income of the assesse.

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 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.

ADVANCE TAX
12

If the Income Tax Liability of any assesse is more than Rs.10,000 in a financial year, then
he is liable to pay such tax in installments during the year itself rather than paying this tax at the
end of the year. This tax which is payable during the year is called Advance Tax or pay as you
earn tax as tax is liable to be paid at the time the income is earned i.e. during the year rather
than paying this tax at the end of the year.
Advance Tax receipts help the Govt. to receive a constant flow of tax receipts throughout
the year so that expenses can be incurred rather than receiving all tax payments at the end of the
year. Advance Tax is liable to be paid by all assesses like Salaried, Self Employed, Businessman
etc. before the filing of Income Tax Return. For Individuals with Salary as the sole source of
income, Advance Tax would be taken care of by the TDS deducted by the employer at the time
of payment of salaries as reflected in Form 16 and thus there would hardly be any Advance Tax
payable.
For all assesses earning income from any source other than salary, Advance Tax is
payable in instalments as explained below.

Payment of Advance Tax

Advance Tax is liable to be paid as per the following schedule

In case of Assesses
Due
Date
of
Installment
On or before 15th
Sep
On or before 15th
Dec
On or before 15th
Mar

Amount Payable
Not less than 30% of the Advance Tax Liability
Not less than 60% of the Advance Tax Liability as reduced by the
amount, if any, paid in earlier installment
100% of the Advance Tax Liability as reduced by the amount, if any,
paid in earlier installments

Payment of Advance Income Tax is to be made through Challan No. 280 by selecting Advance
Tax (100) as the type of payment as shown below:-

Interest on Late Payment of Advance Tax

If the Income Tax is not payable as per the above schedule, Interest is liable to be paid
for late payment of tax as follows
1. Interest under section 234C Interest @ 1%per month is payable if the tax is not paid
as per the above schedule i.e. for Deferment in Installments of Advance Tax.
2. Interest under section 234B Interest @ 1% is payable if 90% of the tax is not paid
before the end of the financial year i.e. for Default in Payment of Advance Tax.
For computing Interest u/s 234A/B/C and any other Interest, Income Tax shall be rounded
off to nearest hundred and fraction of hundred shall be ignored

TAXABLE HEAD OF INCOME TAX

13

5 Heads of income in the Indian Income Tax Act:1) Income from salary (Section 15 17):Income can be charged under this head only if there is an employer employee
relationship between the payer and payee. Salary includes basic salary or wages, any
annuity or pension, gratuity, advance of salary, leave encashment, commission,
perquisites in lieu of or in addition to salary and retirement benefits.
The aggregate of the above incomes, after exemptions available, is known as
Gross Salary and this is charged under the head income from salary. Basic salary along
with commissions and bonuses is fully taxable.
The Act contains exemptions including (the list isn't exhaustive):Particulars
Leave travel concession
Death-cum-Retirement Gratuity
Commuted value of Pension (not taxable for specified
Government employees)
Leave encashment
Retrenchment Compensation
Compensation received at time of Voluntary Retirement
Tax on perquisite paid by employer
Amount received from Superannuation Fund to legal heirs
of employee
House Rent Allowance
Some Special Allowances

Relevant section for computing

exemption
10(5)
10(10)
10(10A)
10(10AA)
10(10B)
10(10C)
10(10CC)
10(13)
10(13A)
10(14)

2) Income from house property (Section 22 27):Any residential or commercial property that you own will be taxed as well. Even
if your piece of real estate is not let out, it will be considered earning rental income and
you will need to pay tax on it.
The income tax blokes are a bit easy going on this they tax you on the capacity
of the real estate to earn income and not the actual rent. This is called the propertys
Annual Value and is the higher of the fair rental value, rent received or municipal rent.
The Annual Value can go through a standard deduction of 30% and if you reduce
the interest on borrowed capital, then you get the value which is charged under the head
income from house property.
The computation of income from let-out property is as under:-

Gross annual value (GAV)

xxxx
14

Less: Municipal Taxes paid

Net Annual value (NAV)
Less: Deductions under section 24
Income from House property

(xxx)
xxxx
(xxx)
xxxx

3) Profits and gains of business or profession (Section 28 44):Income earned through your profession or business is charged under the head
profits and gains of business or profession. The income chargeable to tax is the
difference between the credits received on running the business and expenses incurred.
The deductions allowed are depreciation of assets used for business; rent for
premises; insurance and repairs for machinery and furniture; advertisements; traveling
and many more.
In summary, the sections relating to computation of business income can be grouped as under: Specific
deductions
Specific
disallowance
Deemed Incomes
Special
provisions
Presumptive
Income

Sections 30 to 37 cover expenses which are expressly allowed as deduction

while computing business income.
Sections 40, 40A and 43B cover inadmissible expenses.
Sections 33AB, 33ABA, 33AC, 35A, 35ABB, 41.
Sections 42, 43C, 43D, 44, 44A, 44B, 44BB, 44BBA, 44BBB, 44DA,
44DB.
Sections 44AD, 44AE.

The computation of income under the head "Profits and Gains of Business or Profession"
depends on the particulars and information available.
If regular books of accounts are not maintained, then the computation would be as under:
Income (including deemed income) chargeable as income under this
head
Less: Expenses deductible (net of disallowances) under this head

Xxx
(xx)

However, if regular books of accounts have been maintained and profit and loss account has been
prepared, then the computation would be as under: Net Profit as per profit and loss account
Xxx
Add: Inadmissible expenses debited to profit and loss account
Xx
Add: Deemed incomes not credited to profit and loss account
Xx
Less: Deductible expenses not debited to profit and loss account
(xx)
Less: Incomes chargeable under other heads credited to Profit & Loss A/c (xx)

4) Capital gains (Section 45 55):15

Any profit or gain arising from transfer of capital asset held as investments are
chargeable to tax under the head capital gains.
Hop over to the Long Term and Short Term capital gains article to read more
about this. Might be worth reading to see how indexation is used in long term capital
gains scenario to reduce tax outgo.
Computation of Capital Gains:Full value of consideration
Less:Cost of acquisition
Less:Cost of improvement
Less:Expenditure pertaining to transfer incurred by the
transferor

xxx
(xx)
(xx)
(xx)

5) Income from other sources (Section 56 59):Any income that does not fall under the four heads above is taxed under the head
income from other sources. An example is interest income from bank deposits, winning
from lottery, any sum of money exceeding Rs. 50,000 received from a person (other than
from relative, on marriage, under a will or inheritance).
There are also some specific incomes which are to be always taxed under this head.

1. Income by way of Dividends.

2. Income from horse races/lotteries.
3. Employees' contribution towards staff welfare scheme.
4. Interest on securities (debentures, Government securities and bonds).
5. Any amount received from keyman insurance policy as donation.
6. Gifts (subject to certain conditions and exemptions).
7. Interest on compensation/enhanced compensation.

16

TAX BENEFITS DEDUCTION, REBATES, DONATION

A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer's
burden while typically supporting certain types of commercial activity. A tax benefit allows some
type of adjustment benefiting a taxpayer's tax liability.

Section 80C :Section 80C replaced the existing Section 88 with more or less the same investment mix
available in Section 88. The new section 80C has become effective w.e.f. 1st April, 2006. Even
the section 80CCC on pension scheme contributions was merged with the above 80C. However,
this new section has allowed a major change in the method of providing the tax benefit. Section
80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt. One
must plan investments well and spread it out across the various instruments specified under this
section to avail maximum tax benefit.
Unlike Section 88, there are no sub-limits and is irrespective of how much you earn and under
which tax bracket you fall.
The total limit under this section is Rs 1 lakh. Included under this heading are many small
savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums
and investment in specified government infrastructure bonds are also eligible for deduction under
Section 80C.
Sec 80C of the Income Tax Act is the section that deals with these tax breaks. It states
that qualifying investments, up to a maximum of Rs. 1 Lakh, are deductible from your income.
This means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you
end up paying no tax on it at all.

Section 80CCC :Deduction for Contribution to Pension Funds-Section 80CCC provides deductions
from gross (total) income for amounts paid or deposited by the assessee to any annuity plan of
Life Insurance Corporation of India or any other insurer for receiving pension from the fund
referred to in clause (23AAB).

Section 80CCD:Deduction is allowed to an individual employed by the Central Government or any other
employer on or after the 1st day of January, 2004, has in the previous year paid or deposited any
amount in his account under a pension scheme notified or as may be notified by the Central
Government. However, the deduction is limited to 10 per cent of his salary in the previous year.

17

Where, the Central Government or any other employer makes any contribution to the
employees account, the employee shall be allowed a deduction in the computation of his total
income. However, the deduction is limited to 10 per cent of his salary in the previous year.

Section 80D: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.

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,

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, 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.
If the death of the dependent occurs before that of the assesse, the amount in the scheme is
returned to the individual and is taxable in his hands in the year that it is received. 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 and who are
dependent on him, will be eligible for a deduction of the amount actually spent or Rs 40,000,
whichever is less.

Section 80E: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 post-graduate course in engineering,
medicine or management, or a post-graduate course in applied science or pure science.

18

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 80G:Deduction under section 80G for Contribution/Donation to charitable organization

and maximum deduction under Section 80G is 100% of contribution amount to 10% of
10% of adjusted gross total income of the taxpayer.

Section 80GG:Deduction under section 80GG for payment of rent by individual salaried taxpayer who is
not receiving House rent allowance (HRA) and should not own any residential accommodation
and maximum deduction under Section 80GG is Rs 2000/- per Month.

Section 80GGA:Section 80GGA covers the following contributions:

Any sum paid by the assesse in the previous year to a university, college or other institution
which undertakes scientific research. The university/college/institution should be in the list
notified by the Income Tax department.
Any sum paid by the assesse in the previous year to an association or institution, which runs
programs for rural development.
Any sum paid by the assesse in the previous year to a public sector company or a local authority
or to an association or institution approved by the National Committee (please read the tax law to
know what National Committee is), for carrying out any eligible project or scheme.
Any sum paid by the assesse in the previous year to a rural development fund set up and notified
by the Central Government.
Any sum paid by the assesse in the previous year to the National Urban Poverty Eradication
Fund set up and notified by the Central Government.

Section 80U:Deduction under section 80U for disable person. Individual can claim deduction from
taxable income based on his physical disability and amount of deduction is dependent on
percentage of disability and maximum deduction under Section 80U is Rs.50,000/- and
Rs.100,000/-.

Exemption in Income Tax for Assessment Year 2013-14 (F.Y. 12-13)

19

S. No Section

Details of deductions

Limit

1.

80C

General deduction for investment in Maximum

PPF, PF, Life Insurance, ULIP, Stamp allowed.
duty on house, Fixed deposits for 5
years , bonds etc

Rs

1,00,000

is

2.

80CCC

3.

80CCD

Deduction in case of contribution to

pension fund. However, it should be
noted that surrender value or
employer contribution is considered
income.
Deduction in respect to contribution
to new pension scheme. Employees
of central and others are eligible.

4.

80D

5.

80DD

6.

80DDB

For medical treatment of self or Actual amount paid to the

relatives suffering from specified extent of Rs 40,000. In case of
disease.
patient being Sr. Citizen,
amount is Rs 60,000.

7.

80E

For interest payment on loan taken Actual amount paid as interest

for higher studies for self or and start from the financial
education of spouse or children.
year in which he /she starts
paying interest and runs till the
interest is paid in full.

Maximum is Rs 1,00,000

Maximum
is
sum
of
employers and employees
contribution to the maximum:
10 % of salary.

Medical insurance on self, spouse, Rs 15,000 for self, spouse &

children or parents.
children Extra Rs 15,000 for
insurance on parents. IF
parents are above 65 years,
extra sum should be read as Rs
20,000 Thus maximum is Rs.
35,000 p.a.
For maintenance including treatment Rs 50,000. In case disability is
or insurance of physical disable severe, the amount is Rs
dependent relatives.
1,00,000.

20

8.

80G

Donations to charitable institution.

9.

80GG

For rent paid.

10.

80GGA

11.

80U

100% or 50% of amount of

donation made to 19 entities
(National defense fund, Prime
minister relief fund etc.)

This is only for people not

getting any House Rent
Allowance. Maximum is Rs
2000 per month. Rule 11B is
method of computation.
For donation to entities in scientific Only those tax payers who
research or rural development.
have no business income can
claim
this
deduction.
Maximum is equivalent to 100
% of donation.
For disable person. Individual can Maximum deduction under
claim deduction from taxable income Section 80U is Rs.50,000/- and
based on his physical disability
Rs 100,000/-.

Computation of salary Income

Basic Salary
Dearness Allowance
House Rent Allowance
Pension
Annuity
Bonus
Commission
Arrears of salary
Advances of salary
Allowances
Total
Add: Gratuity
Leave encashment
Value of perquisite
Gross Taxable salary
Less: deduction allowed u/s 16
Deduction allowed u/s 80C
Income chargeable under the head salary

21

Example 1: Woman below age of 60 years with no tax savings investment

A female employee, say Ms Anjali, below the age of sixty years and has gross salary income of
Rs. 2,40,000. She has made no tax savings investments during the year. Let us calculate her
income tax liability.
Gross Total Income
Deductions
Taxable Income
Income Tax Calculations
Tax on Income upto Rs 1,90,000
Tax on the remaining Rs 50,000
Total Income Tax Due
Educational Cess @ 3%
Total Tax Payable
E XAMPLE 2: W OMAN
A CCOUNT

0%
10%

WITH I NCOME FROM

S ALARY

Rs. 240,000
Nil
Rs. 240,000
Tax
Zero
Rs.5,000
Rs.5,000
Rs. 150
Rs. 5,150

AND I NTEREST ON

S AVING B ANK

Ms Bharti is a salaried employee below 60 years of age. Basic salary is Rs 8,00,000. She has
received Rs 14,000 as interest from bank. Her contribution towards Employee Provident Fund is
Rs 34,000. TDS deducted by her employee is 80,000.
Income from salary
Income from other sources
Total Income
Deductions:

Rs. 8,00,000
Interest on Saving Bank Account Rs 14,000
8,14,000

Under Section 80C :Employee Provident Fund 34,000

Total Taxable Income
7,80,000
Income Tax Calculations
Tax on Income upto Rs 1,90,000 Zero
Tax at 10% ( on income between Rs 1,90,001 to Rs 5,00,000)
31,000
Tax at 20% (on income exceeding Rs. 5,00,000 i.e 280000)
56,000
Total tax on income of Rs 7,80,000
87,000
Education Cess @ 3% of Income Tax Payable
2,610
Total Tax liability
89,610
Less: TDS / Advance Tax deposited
80,000
Net Income Tax due
9,610
22

E XAMPLE 3: M AN
A CCOUNT

WITH I NCOME FROM

EXCEEDING 10,000

S ALARY

AND I NTEREST ON

S AVING B ANK

Mr Ajay is a salaried employee below 60 years of age. Basic salary is Rs 8,00,000. He has
received Rs 18,000 as interest from Saving Bank Account. His contribution towards Employee
Provident Fund is Rs 34,000. TDS deducted by his employer is 80,000.
Income from salary
Income from other sources
Interest on Saving Bank Account
Total Income
Deductions:
Under Section 80C :Employee Provident Fund
Total Taxable Income
Income Tax Calculations
Tax on Income upto Rs 1,80,000
Tax at 10% ( on income between Rs 1,80,001 to Rs 5,00,000)
Tax at 20% (on income exceeding Rs. 5,00,000 i.e 284000)
Total tax on income of Rs 7,84,000
Education Cess @ 3% of Income Tax Payable
Total Tax liability
Less: TDS / Advance Tax deposited
Net Income Tax due

Rs. 8,00,000
Rs 18,000
8,18,000
34,000
7,84,000

Zero
32,000
56,800
88,800
2,664
91,464
80,000
11,464

As total tax due is more than 10,000 Ajay had to pay advance tax . If Ajay has not paid advance
tax before 31st July he would also have to pay interest under Section 234 A, B and C. Which in
his case turn out to be Rs 883. So total tax due is 12,347(11,464 + 883)

INCOME TAX E-FILING

The process of electronically filing Income tax returns through the internet is known as eFiling.

It is mandatory for Companies and Firms requiring statutory audit u/s 44AB to submit the
Income tax returns electronically for AY 2013-14.

23

 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.

E-filing of income tax is understood as successful filing of income tax return through the
internet. The e-governance has developed the concept and strategies of e-filing of income tax
return through the internet. Thus the income tax department has facilitated the taxpayers with
defining the provisions to be followed, which can be filed and how to file the income tax for the
benefit of tax payers as well as the Government. Now there are 92 intermediaries performing this
function in 61 cities throughout India. The e-filing of income tax returns has its own limitations
like, slow processing, frequent crashes etc., but, the government has taken necessary steps like,
employing 5000 unemployed people to perform as tax return preparers after getting training from
NIIT. They will perform in 100 centers in 80 cities across the country. For the best e-filing, the
government is modifying provisions every year for the convenience of both beneficiaries.

Benefits of E-filing:

Convenience returns can be filed at anytime (day or night);

Certainty of delivery and quick confirmation provides immediate confirmation from
tax administration that returns have been received,
Fast refunds allows taxpayers receiving refunds to get them sooner,
Taxpayer privacy and security is assured,
Use of online commercial tax preparation software,
Eliminates error notices from tax administrations caused by data entry errors,
The transactions can be done electronically with a click of a button,
Accessibility is allowed 24x7x365,
Documents handling and storing is made easy

CHANGES IN E-FILING IN AY 2013-2014

E-Filing is compulsory for people earning more than Rs. 5Lakhs. This refers to the total
income amount after claiming tax deductions like section 80 deductions.

You will need to enter the IFSC code instead of MICR code while specifying your
account details.

For getting refund via ECS ( i.e. directly into your bank account ), you have to specify an
11-digit number Bank Account Number.
If you do not have an 11-digit bank account number, then you have t o request your
refund via cheque.

24

 You will have to file the ITR-2 in case of exempt income exceeding Rs. 5,000. Common
examples of Exempt Income are PPF interest. Dividend earned from shares etc.

Remember to claim Section 80TTA: Everyone should declare their Bank Interest Income
and then claim this deduction.

Section 80D (Preventive Healthcare Expenses)

You can claim up to Rs. 5000 for preventive Healthcare Expenses. (The expenditure
could have been in cash too)

Declaration of Assets and Liabilities for Business people:If you earn Income from
Business or Profession and your Total Income exceeds Rs. 25 Lakhs, you have to provide
the details of all your personal and business Assets & Liabilities in Income Tax return
itself. This is for people filling in ITR-3 and ITR-4 only.

Foreign Income declaration: Income earned from foreign countries has to be declared in
the ITR. This is in addition declaration of all foreign assets in your I-T Return.

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

Use digital signature in which case no paper return is required to be submitted.

File without digital signature in which case paper return has to be submitted.

File through an e-return intermediary who would do e filing and also file the paper return
on behalf of the taxpayer.

Figure No. 1: Types of e-filing

25

Figure No. 2:
By Intermediary
Without Digital Signature
With Digital Signature

26

27

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
Detail of tax payment made
Pan card photocopy
Birth date
Tan number
Bank account no.
Bank details- MICR code, Type of Account, IFSC code

28

Figure. 3: Process of e- filing

29

1. Open the web site http://incometaxindia.gov.in

2. Click the link eFile Income Tax Return at the top left corner of the

home page
3. Select the Correct Form
There are two income tax forms for salaried individuals. ITR-1 for those who derive their income
from salary, pension or interest while ITR-2 is for income from capital gains, house property and
other sources. Those who wish to submit their tax returns manually may download the pdf forms
which need to be printed, filled by hand and signed before submitting to your local income tax
office.

WHO CAN USE WHICH FORM

For Individuals
Select appropriate Income TaxITR-1
Return (ITR) Preparation Software
Individual
1

ITR-2

ITR-3

ITR-4

Individual

Individual

Individual

Income
from
Salary/Pension
Income from Other Sources
(only Interest income or
Family Pension)

Income/Loss from Other

Sources

Income/Loss from House

Property

Capital Gains/Loss on sale

of investments/property

Partner in a partnership
Firm
Income from Proprietary
Business/Profession

30

For Association of Persons (AoP), Body of Individuals(BoI), Local Authority,

Companies, Trusts, Fringe Benefit Tax (FBT) Return
Select appropriate Income Tax ReturnITR-5
ITR-2
(ITR) Preparation Software
Firms, AoP,Companies
BoI, LA
1
Income/Loss
from
Other

Sources
2
Income/Loss from House

Property

ITR-3

ITR-4

Trust

Only FBT

Capital Gains/Loss on sale of

investments/property

Income/Loss from Business

Fringe Benefit Tax

ITR-1
This Form can be used by an individual whose total income during the previous year i.e.,
financial year 2012-13 includes income chargeable to income-tax under the head salaries or
income in the nature of family pension as defined in the Explanation to clause (ii a) of section 57
but does not include any other income except income by way of interest chargeable to incometax under the head income from other sources. There should not be any exempt income other
than agriculture income and interest income. It may please be noted that a person in whose
income the income of other person like his/her spouse, minor child, etc. is to be clubbed is also
not entitled to use this form.

ITR-2
This Return Form is to be used by an individual or a Hindu Undivided Family whose total
income for the assessment year 2012-13 includes:(a) Income from Salary / Pension
(b) Income from House Property
(c) Income from Capital Gains
(d) Income from Other Sources (including Winning from Lottery and Income from Race
Horses).
Further, in a case where the income of another person like spouse, minor child, etc. is to
be clubbed with the income of the assesse, this Return Form can be used where such income falls
in any of the above categories.

31

ITR-3
This Return Form is to be used by an individual or a Hindu Undivided Family who is a partner in
a firm and where income chargeable to income-tax under the head Profits or gains of business
or profession does not include any income except the income by way of any interest, salary,
bonus, commission or remuneration, by whatever name called, due to, or received by him from
such firm. In case a partner in the firm does not have any income from the firm by way of
interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he
shall use this form only and not Form ITR-2.

ITR-4
This Return Form is to be used by an individual or a Hindu Undivided Family who is carrying
out a proprietary business or profession.

ITR-5
This Form can be used a person being a firm, LLPs, AOP, BOI, artificial juridical person referred
to in section 2(31) (vii), cooperative society and local authority. However, a person who is
required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D)
shall not use this form.

ITR-6
This Form can be used by a company, other than a company claiming exemption under section
11.

ITR-7
This Form can be used by persons including companies who are required to furnish return under
section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D).

ITR-8
This Form is applicable in case of a person who is not required to furnish the return of income
but is required to furnish the return of fringe benefits.

4. Use of Return Preparation SoftwareThose citizens who wish to avail the e-filing system need to download the Return Preparation
Software-External website that opens in a new window for each ITR form. This software is an
excel file that requires one to type in personal details as well as financial information from TDS
certificates, bank statements, deductions made and interest statements.
32

 Generating an XML fileAfter keying in the details, check once for accuracy. After you are satisfied, click the 'Generate'
button to create your tax return in XML format. This format helps in sharing of structured data
across different information systems. Save this XML file on your computer.

Register-

The next step requires you to Register at the Income Tax website-External website that opens in
a new window. Your registered Permanent Account Number (PAN card) has to be entered as
your username.

7. LoginAfter registering, enter your user id and password to login. Click on the relevant form on the left
panel and select 'Submit Return'.

8. Upload XMLBrowse to select the XML file, which you had generated and saved in Step 3. Click on the
'Upload' button to upload the file.

9. AcknowledgementAfter the file is successfully uploaded, acknowledgement details or the ITR-V Form will be
displayed. Take a printout of this acknowledgement for your records.

10.Digital SignatureIf your income tax return was digitally signed, then no further paperwork or visit to the income
tax office is needed. Here is some information about how to get digital signature- External
website that poens in a new window.

Instructions for filling up Form ITR-V

Rule 12(3)(iii) of the income-tax Rules, 1962 provides that any assessee can file a return
of income electronically without the use of a digital signature. In such cases only an
acknowledgement needs to be filed with the Department physically by the assessee.

Once a return of income is filed electronically on successful transmission of the data,

Form ITR-V duly filled shall be generated by the Income-tax Department's server to the
33

assessee. This ITR-V will also contain the acknowledgement number of electronic
transmission and the date of the transmission as an evidence of filing for the benefit of
the assessee. Please download a copy of such duly filled Form and verify under your
signature in the space provided. In case the return was prepared by a Tax Return Preparer
(TRP), the particulars of TRP be also filled and this verification form be countersigned by
the TRP.

This acknowledgement in Form ITR-V duly signed by the assessee needs to be filed
physically (in duplicate) with the concerned Assessing Officer. One copy of this
acknowledgement would be returned back to the assessee for his record.
The codes for the form number and the status of the assessee shall be generated
electronically by the Department's server.

11.VerificationIf your return is not digitally signed, then you need to print and fill up the verification part of the
acknowledgement cum verification form (ITR-V). This has to be signed and submitted to the
local Income Tax Office within 15 days to complete the e-filing process.

12.Additional AssistanceIn case you require any more help in filing the paper copy of the return, please contact the Public
Relation Officer at your local Income Tax Office. One may also phone the Aayakar Sampark
Kendra (ASK) call centre at 124-2438000 or email at ask@incometaxindia.gov.in.

Number of electronically filed returns in India

Year

%Returns e-filed

2007

58.00%

2008

60.00%

2009

64.20%

2010

69.00%

2011

86.00%

34

35

CHAPTER-2

Literature Review

36

1. The embryonic world of electronic filing has certainly evolved during the past few years.
Studies have concluded that electronic filing offers the potential to greatly enhance tax
services. Tax software often provides automatic error checking, expert tax advice, and
other services that can catch errors, cutting down on the chances of an audit. Taxpayers
without computers and/or Internet access at home may choose to use computers
elsewhere in order to e - file, though the data indicates this is a relatively infrequent
occurrence. In U.S Self - preparers may visit IRS Taxpayer Assistance Centers (TAC) or
VITA locations or may utilize computers that are available to them at work or a public
library. IRS Publication 17, Your Federal Income Tax, states, Many VITA sites offer free
electronic filing. The IRS list of e-file benefits includes IRS computers quickly and
automatically check for errors or other missing information. A 2005 survey by Anderson
of 277 preparers showed that respondents with larger practices were more likely to e-file
than those with smaller practices. At present, there is very limited literature that focuses
on the adoption of e-filing systems. Most of the literature related to e-filing adoption
applies and extends the well known technology acceptance model (TAM) by Davis
(1989) (Wang, 2002; Chang et al., 2005; Gallant et al., 2007), theory of planned
behaviour (TPB) Fishbein and Ajzen(1975) (Hsu and Chiu, 2004; Hung et al., 2006) and
a unified model of both theories (Fu et al., 2006) to assess the adoption intention of the efiling system. Other literature such as Carter et al. (2008) used the Unified Theory of
Acceptance and Use of Technology (UTAT), while Wang et al. (2007) used the
Innovation Diffusion Theory to observe e-filing adoption among taxpayers

2. Hite and McGill in their study state that tax practitioners must be a credible source of
information for tax payers they are to offer tax advice and have it receipted. As tax
system become more complex tax payers turn to tax practitioners for expert advice.

3. Kalyani in her study on tax planning of salaried employees in Coimbatore city of the
financial year 1998-1999. Identified that older the age. Higher the tax liability. Private
sector employees get higher income than the government employees. Tax payment
decreases when tax saving investment increases tax saving along with the income and
employees preferred to invest in life insurances corporation provident fund and national
savings certificates.

4. Kennedy and Henry. A in their study state that, the Income Tax Act may appear as though
it is difficult to comprehend but once a methodical approach is employed in reading and
using it, understanding the income tax law becomes easier. The reader should find out
who is liable to pay the tax, based upon which the tax will be levied, the tax rates to be
applied to the tax base and how or when the tax is to be paid. These are the four
requirements of a tax law which can be found in the divisions of each part of the act.
When these are identified, understanding of the other structural elements will not be
difficult.

37

CHAPTER-3

Objective & Scope of the study

38

PRIMERY OBJECTIVE:
The main objective of this project report or of this Internship is

To practically know how the process of e-Filing works

To find out the awareness and satisfaction level of tax-payers about e-filing of Income
Tax Return.

SECONDARY OBJECTIVE:

To get the basic knowledge of Income Tax

To know the benefits of e-filing of ITR.
Types of e- filing of ITR.
Documents required for filing ITR.
Changes in E-filing of ITR.
Process of E-filing of Income Tax Return.

39

CHAPTER-5
COMPANY PROFILE

40

(SPA CAPITAL SERVICES LTD.)

Objective:
To provide quality goods and services those are reliable and allow customers to receive

the performance that they expect.

To produce a given output efficiently.
Corrective actions taken to respond to customer needs.
Improving responsiveness to customers.
Maximizing output of goods and services with minimum resources
Maximizing utilization of manpower, machines etc.

output.

Mission:

To formulate progressive tax policies.

To make compliance easy.
To enforce tax laws with fairness.
To deliver quality services.
To continuously upgrade skills and build a professional and motivated
workforce.

Vision:
To partner in the nation building process through progressive tax policy,
efficient and effective administration and improved voluntary compliance.
SPA believes in attaining customer satisfaction, on continuing basis, by
providing highest standard of financial services in India. The philosophy at SPA
is to provide services to clients after assessment of their profile, needs and riskappetite.
The basic work theme at SPA is

Dedicated, competent and honest team of professional customer

Centric work environment

Insight of customer perspectives

41

Strong research base

Clear understanding of applicable laws

ORIGIN:
SPA Group was promoted by a team of finance professionals in 1995 with
an objective to provide value added financial services. Initially, the Group
focused as a niche financial solutions provider in corporate finance and wealth
management to Indian companies and high net worth individuals. In January
2000, the Group expanded its operations and the range of services. Today, SPA
provides services for securities broking, merchant banking, wealth management,
financial advisory, corporate finance, risk management and insurance broking.
SPA is being managed by its promoters along with a young and dynamic
team of over 500+ professionals with rich experience, in their respective fields.
The Group has established itself as one of Indias leading financial advisory
house, offering various financial solutions to its Institutional, corporate and
individualclients.
Customer centric approach of SPAs dedicated professional team has helped
carve a niche for itself in financial services arena and won confidence of its
clients. Clients of SPA are from a wide spectrum and comprise of Banks and
other financial institutions, Mutual funds, Insurance companies, foreign
institutional investors, public sector undertakings and government departments,
private corporates, trusts and individuals.

PRESENT STATUS OF THE ORGANIZATION

SPA CAPITAL SERVICES LTD is a financial services provider and deal
with all financial products like insurance, mutual funds, Equity broking, securities
broking and Merchant banking.
As a financial consulting firm, our major specialty is valuing businesses and
corporate securities. We are providing valuation services to various corporate and
have done more than 1000 valuations across industries. Our clientele consist of
domestic and multinational companies including various Fortune 500 companies.
The Team consists of very senior professional from Industry, Chartered
Accountants,
CFAs,
and
Company
Secretaries.
We prepare independent, unbiased business and professional practice
valuations for a variety of reasons including acquisition, investment, disposal,
buyout, merger, restructuring, accounting, statutory / legal etc.

MILESTONES
Since 1994, with the coming into existence of the SPA Group, we have
diversified into a complete financial solution providing house, catering varied
needs of our clients ranging from investment advisory services to investment
banking, corporate re-structuring, distribution and broking services, risk
42

management and insurance advisory. Within a short span of time, the Group has
made a place for itself in the midst of the top financial solutions provider in the
country.

FUNCTIONAL DEPARTMENT IN AN ORGANISATION

The main purpose of functional departments is to ensure that all important
business activities are carried out efficiently. This is essential if the business is
to achieve its aims and objectives.

FINANCE
This is the most important function in the business. This is because all
businesses need a regular stream of income to pay the bills. Finance staff record
all the money earned and spent so that the senior managers always know how much
profit (or loss) is being made by each product or each part of the business and how
much money is currently held by the business. This enables critical decisions to be
made rapidly and accurately because they are based on accurate information.
Finance staff supports the accountants by keeping financial records, chasing
up late payments and paying for items purchased.
Finally, businesses will often need money to fulfill specific aims and
objectives linked to growth, expansion or simply updating their equipment or
machinery. These items may be bought from money held back (reserved) from past
profits, but usually additional money will be needed. If the business needs to
borrow money it will want the cheapest interest rates possible and also want good
repayment terms. Deciding where to obtain these funds is a specialist job and
normally the task of the senior financial manager.

FINANCE FUNCTION IN AN ORGANISATION

Finance Concerned with money and future plans
Preparing accounts, e.g. invoices, management accounts, financial accounts
for shareholders and Inland Revenue.
Preparing wages and salaries.
Obtaining capital and resources, e.g. money for expansion or to pay for
resources such as, equipment and materials .

ORGANIZATION STRUCTURE OF THE SPA CAPITAL COMPANY

Managing Director

President

Senior Vice president

43

Vice president

Senior Manager

Manager

Senior Relationship Manager

Relationship Manager

Senior Executive

Executive
PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION
SPA CAPITAL PVT LTD is a financial services provider and deal with all financial products like
insurance, mutual funds, Equity broking, securities broking and Merchant banking.
SPA provides following services:
1. Merchant Banking
2. Insurance
3. Mutual Funds
4. Securities broking
5. Debt broking
6. Equity Services.

Head Office: New Delhi

25, C-Block Community Centre,
Janak Puri, New Delhi - 110 058
Ph - 011-25517371 / 25515086
Fax - 011-25532644
E-mail - info@spacapital.com

Corporate Office: Mumbai

101, 10th Floor, Mittal Court,
A Wing Nariman Point,
Mumbai - 400 021
44

Ph - 022-22801240-49
Fax - 022-22846318
E-mail - mumbai@spacapital.com

45

Chapter-6
Research Methodology

46

Hypothesis of the study:

To assess the tax payers perception, awareness towards e-filing of income tax returns.
To analyze the level of satisfaction among the tax payers towards e-filing of income tax
returns.

Results and Discussion

Limitations of the Study:

The survey was conducted only in Delhi city. Hence the results arrived at from this study
may not be applicable to other areas.
This study mainly focuses on assessing awareness and satisfaction level of tax payers
about e-filing of income tax returns.

Tools and Techniques: ANOVA:

It is an important technique in the context of that entire situation where we want to examine the
significant mean differences between more than two groups. The results of the ANOVA will
show whether or not the means of various groups are significantly different from one another as
indicated by F statistic.

Source: Primary Data:

Information required for fulfilling the objective of the study has been collected from various
sources. While information on tax system and its development were collected from secondary
information, primary data were collected through a set of questionnaire to the selected sample of
taxpayers to identify their level of satisfaction.

47

Chapter-7
Data Collection & Analysis

48

Source: Primary Data: Table-4 reveals that, out of 100 respondents 85% of the respondents
are highly aware of the using software of the e-filing and it is ranked first, 75% of the
respondents are highly aware of the registration number and it is ranked second. On the other
hand 20% of the respondents are highly no aware of the filling the Chelan for payment and it is
ranked last.

Analysis of awareness and satisfaction level of individual tax payers: Table-1 reveals
that 56% of the respondents are male, and 44% of the respondents are female. It is inferred from
the above that majority of the individual tax payers are male (56%).

Sex

Table-1
Sex-wise classification of the individual tax payers
No. of respondents
Percentage

Male

56

56

Female

44

44

49

100

Total

100

Source: Primary data.

Educational qualification-wise classification of the individual tax payers: Table-2

reveals that out of 100 respondents, 37 percent of the individual tax payers are studied up
to S.S.L.D / HSC, 34 percent of the individual tax payers are degree holders, 15 percent of the
individual tax payers are diploma holders, and 14 percent of the individual tax payers are
postgraduates. It is inferred from the above that majority of the individual tax payers are studied
up to S.S.L.C / HSC.

Table-2
Educational qualification wise the individual
Tax payers are given below
Educational qualification

No. of respondents

Percentage

Below S.S.L.C/HSC

37

37

Degree holders

34

34

Diploma

15

15

Postgraduates

14

14

Total

100

100

Sources of awareness: Table-3 reveals that out of 100 individuals, 44 percent of the individual
tax payers are aware about e-filing through the newspaper, 23 percent of the
individuals are availed e-filing information through their friends, 23 percent of the individuals
are aware about e-filing through auditors, 9 percent of the individuals are got awareness through
various advertisement made by the income tax departments, and only one individual are availed
e-filing information through other medias. It is inferred from the above that 44 percent of the
individual tax payers are got e-filing awareness through news papers.

Table-3
The classification of the respondents based on their sources
of awareness regarding e-filing of income tax
Sources of Awareness
No. of respondents
Percentage
Newspapers

44

44

Friends

23

23

Auditors

23

23

Media

Advertisement

9
50

Total

100

100

Satisfaction Levels of The Individual Tax payers: Assessment of the level of satisfaction
of individual tax payers about various aspects of e-filing of income tax returns are presented in
the table-5.It is observed from the table-5 89% of the respondents are highly satisfied with the efiling procedure and it is ranked first, 61% of the respondents are satisfied with safety of e-filing
and other hand 4% of the respondents are highly dissatisfied with the acknowledgement
generated. It is inferred from the above table that majority of the individual tax payers are
satisfied with the various aspects of e-filing.

Testing of Hypothesis using ANOVA: Relationship between Residential status and

awareness level of the individual tax payers: Ho: There is no significant relationship
between residential status and awareness level of the individual tax payers. Table-6 explains that,
the calculated value is greater than the 0.05 at 5% level of significance. So, hypothesis is
accepted. Hence, it is concluded that there is no significance relationship between the residential
status and the level of awareness regarding the e-filing of income tax returns, time limit of
returns, cost of e-filing, website address, digital signature, usage of ITR forms, e-payment, filing
the chelan for payment, usage of computer software for e-filing, e-payment through banks, TDS
returns, registration number, usage of IRS forms and the terms and conditions of e-payment. The
calculated value is less than 0.05 at 5% level of significance regarding the relationship between
residential status and the level of awareness regarding usage of e-forms and Awareness of e51

filing procedure. Hence the hypothesis is rejected. So, there is a significance relationship
between residential status and the level of awareness regarding usage of e-forms and Awareness
of e-filing procedure.

52

Chapter 8
FINDINGS
CONCLUSIONS, SUGGESTIONS &
BIBLIOGRAPHY

53

Findings from the Research

Individual Tax payers awareness and their level of Satisfaction: Profile of the
Individual tax payers:
1.
2.
3.
4.
5.
6.
7.

Majority (34%) of the individual tax payers are in the age group of 25 35 years.
Majority of the individual tax payers are male (56%) then female clients.
Majority of the individual tax payers are studied up to S.S.L.C / HSC.
Majority (58%) of the individual tax payers are married.
Majority (57%) of the individual tax payers are private employees.
Majority (33%) of the individual tax payers are earned income from salaries.
Majority (49 %) of the individual tax payers are having 10 20 years of experience in
filing of income tax returns.
8. Majority (72%) of the individual tax payers are living in the city area.
9. Majority (56%) of the individual tax payers are earned annual income of Rs.1,50,001
Rs.2,00,000.

Satisfaction level of the individual tax payers: Majority of the individual tax payers are
satisfied with the various aspects of e-filing

Testing of Hypothesis Using ANOVA: Relationship between Residential status and

awareness level of the individual tax payers:
i. The ANOVA results reveal that there is no significance relationship between the residential
status and the level of awareness regarding the e-filing of income tax returns, time limit of
returns, cost of e-filing, website address, digital signature, usage of ITR forms, e-payment, filing
the chelan for payment, usage of computer software for e-filing, e-payment through banks, TDS
returns, registration number, usage of IRS forms and the terms and conditions of e-payment.
ii. But there is a significance relationship between residential status and the level of awareness
regarding usage of e-forms and awareness of e-filing procedure.

Education qualification and awareness level of the individual tax payers:

The study reveals that there is a significance relationship between the educational
qualification and the awareness level regarding the website address.
But there is no significant relationship between the educational qualification of the
individual tax payers and their awareness level regarding e-filing procedure, e-forms,
time limit for return, cost of e-filing, digital signature, ITR form, e- payment, filling the
chelan for payment, computer software for e-filing, banks for e-payment, TDS return,
registration number, and terms and conditions of e-payment.
54

The most influencing Factor of Awareness: The factor analysis is used to find most
influencing factor for creating the awareness among the tax payers. Among the fifteen variables
used to assess the most influencing factor for creating e-filing awareness, the following seven
factors are identified as the most influencing factors for creating e-filing awareness among the
tax payers. i. Simplified Procedures, ii. Payments made easy, iii. Various simplified Forms, iv.
Time saving, v. Online facilities, vi. Payment through online Banking, vii. Cost effective.

55

CONCLUSION
Under the umbrella of my project, as a participant of the project I glad to understand the
design and pattern of income tax e-filing online. My experience with filing tax return on behalf
of various customers of the various companies was totally different and gave us an edge adding
to my knowledge.
In the present world day by day new technologies are introduced and improved very fast
in all fields. Now new technology gifted to tax payers for filing their income tax returns through
online is e-filing. The e-filing is the new effective method of filing income tax return through
online and make e-payment tax. It saves our golden time, energy and cost and also reduces our
tension. So the tax payers are requested to use e-filing and e-payment facilities.
This study reveals that the existing users are satisfied with the e-filing facilities but some
of the individual tax payers are not awareness of the e-filing and e-payment procedures so
sufficient steps are required to create more awareness in the minds of tax payers regarding efiling of income tax.

56

SUGGESTIONS
The management provides sufficient training to employees. A few measures can be taken to
develop and organize the training program.
The employees works are been recognized by the management and appreciated. It can be
maintained in such a way that the employee morale will be improved.
Employees have high trust in management. It can be maintained in such a way employees
involvement and commitment will increase.
Employees are willing to give suggestions for the development of the organization. The
suggestion given by the employees must be duly responded.
The employees should be rewarded according to the work done by them.

57

BIBLIOGRAPHY
1. www.incometaxindiaefiling.gov.in
2. www.spacapital.com
3. www.incometaxindia.gov.in
4. www.scribid.com
5. http://www.sensystechnologies.com/blog/?p=223
6. http://www.taxfaq.in/list-of-income-tax-deduction-under-section80c-80ccg-80d-80dd-80e80g-80gg-to-80u.html
7. htp://ftinance.indiamart.com/taxation/tax_rebates/income_tax_dedu
ctions.html#section-80e
8. http://www.isca.in/IJMS/Archive/v1i4/2.ISCA-RJMS-2012-031.pdf

58

APPENDIX 1

SURVEY QUESTIONNAIRE ON TAXPAYERS

AWARENESS AND SATISFACTION LEVEL
Instructions:
This survey is about taxpayers level of awareness & satisfaction. We would very much
appreciate your participation in this survey. Whatever information you provide will be kept
strictly confidential and will be used only for the said purpose.
Participation in this survey is voluntary and you can choose not to answer any individual
question or all of the questions. However, we hope that you will participate in this survey since
your views are important for reform measures.

Section A: Primary Details

Q.1 Full name of the respondent:
Q.2 What is your gender?
1. Male
2. Female
Q.3 In which age group you fall in?
1.
2.
3.
4.
5.

25-35
35-45
45-55
55-65
Above 65

Q.4 What is your marital status?

1.
2.
3.
4.
5.

Unmarried
Married
Separate
Divorce
Widower/ Widow

Q.5 What highest level of education have you completed?

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1.
2.
3.
4.

Below S.S.L.C/HSC
Degree holders
Diploma
Postgraduates

Q.6 What is the sources of awareness regarding e-filing of income tax?

1.
2.
3.
4.
5.

Newspapers
Friends
Auditors
Media
Advertisement

Q.7 What is the type of tax payer you are?

1.
2.
3.
4.
5.
6.
7.

Proprietorship
Partnership
Pvt. Ltd.
Public Ltd.
Co-operative
Public Organization
Individual Salary Earner/ Pension Holder

Section B: Awareness level of the individual tax payers

Please tick () in the appropriate box
Serial
No.
1
2
3
4
5
6
7
8
9
10
11

Questions
Respondent have:
Awareness of filing tax
Awareness of e-filing procedure
Awareness of e-forms
Awareness of time limit of return
Awareness of cost of e-filing
Awareness of web site address
Awareness of digital signature
Awareness of ITR-V form
Awareness of payment
Awareness of filing the Chelan for
payment
Awareness of using the computer
software for e-filing

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

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12
13
14
15
16

Awareness of list of banks for

payment
Awareness of TDS returns
Awareness of registration number
Awareness of IRS.
Awareness of terms and conditions
of e-payment

Section C: Satisfaction level of the individual tax payers

Please tick () in the appropriate box
Serial
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

How much satisfied are you with Highly

Satisfied
the following :
Satisfied
E-filing procedure
Safety of e-filing.
Accuracy of e-filing
Time limit given for e-filing
Acknowledgment generated by efiling systems
Easiness of e-filing
Availability of e-filing
Satisfaction level of IRS
Facilities provides by e-filing
Payment procedure
Satisfaction level with DGFT
online e-payment
Services if e-payment banks
Satisfy with the payment procedure
Satisfied with the payment of files
Satisfy with the e-payment
procedure

Neutral Dissatisfied Highly

Dissatisfied

Please provide us with any suggestions/ comments you may have to improve the tax system

Thank you for your contribution to our work.

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