Income Tax Return AMAN
Income Tax Return AMAN
Income Tax Return AMAN
PROJECT REPORT
SUBMITTED TO UNIVERSITY OF JAMMU
IN PARTIAL FULFILMENT OF THE
REQUIREMENT FOR THE DEGREE OF
MASTER OF COMMERCE
BY
Amandeep
ROLL NO 0041COM21
I would like to express my deepest appreciation to all those who provided me the possibility to complete
this report . I have taken efforts in this project.However, it would not have been possible without the kind
support and help of many individuals and the organization. A special gratitude I give to our project
manager Prof. JYOTI SHARMA and our summer training co-ordinator Dr. Jyoti Sharma, Dr. Rupa
Mahajan, Dr Vishal Gupta whose contribution in stimulating suggestions and encouragements, helped me
Futhermore, I would also like to acknowledge with much appreciation the crucial role of the IT system
and our mentor, who gave the permission to use all required equipments and necessary materials
throughout the period. Last but not least, my thanks go to the head of the organization and our mentor CA
Numit Verma who has invested her full efforts in guiding us to achieve the goal. I would like to
appreciate her professionalism, guidance and co-operation that helped me to upgrade my knowledge my
experiencing the pragmatic way of doing work thanks to her comment and advances.
CONTENTS
CHAPTER NO. TOPIC PAGE
NO.
CHAPTER 1 Firm Profile 1-3
CHAPTER 2 Income Tax Return 4
2.1 Benefits of filing ITR 5-9
2.2 Tax Deducted at source 9-16
CHAPTER 4 REFRENCES 32
CHAPTER1: FIRM PROFILE
RAGHAV GUPTA & ASSOCIATES (RGA) is a niche professional services firm rendering suite of
value added services. The firm takes pride in its ability to constantly deliver out of box solutions that are
technically sound, innovative and implementable for its clients We are a team of chartered accountants
with diverse skills and proficiency, enabling us to service clients of various sizes across industries.
RGA has been associated with RSM Astute Consulting Group for referral practice which is a part of RSM
International (globally of 6th largest accounting and consulting firm) and which has been ranked among
RGA has been a statutory auditor of the J&K Bank, Bank of India and Sydicate Bank.Besides this, RGA
Has been concurrent auditor of J&K bank, JBK Financial Services Ltd., Punjab & Sind bank and Punjab
National Bank.
RGA provides services to national/ international business houses for setting up their business units in
J&K. The clients include several large Indian groups, multinational corporations, government
Publications for the Institute of Chartered Accountants of India (ICAI) from the team members of RGA:-
RGA, currently working with the infrastructure of self owned 2 storey building having 12 operational
work stations, Wi Fi, a well equipped conference hall with, separate reception area and recreation
area.
CA DIMPI GUPTA
B.com.,F.C.A
She is a qualified Chartered Accountant. She has carried out Statutory Audits,
Internal Audit, Bank Audits, Due Diligences, Tax Audits, System Audits & other Audits of various
companies covering wide range of industry. She has been associated with Resource Person for conducting
Investor Awareness Programmes organised for Ministry of Corporate Affairs, Govt. of India and
successfully conducted more than 20 such programmes. She has a core expertise in the area of Audit and
Taxation.
CA Numit Verma
She is a qualified Chartered Accountant. Her area of practice includes GST, Bank Audits, Government
Audits and Investigation Audits. She has been invited to attend a workshop on Financial Education
conducted by SEBI in New Delhi. She is also faculty with the Committee on Government Accounting,
Institute of Chartered Accountants of India to share knowledge relating to relevant subjects. She is guest
Particulars of Proprietor/Partners:
Diploma
Income tax is a direct tax that a government levies on the income of its citizens. The income tax, 1961,
mandates that the central government collect this tax. The government can change the income slabs and
tax rates every year in its union Budget. Income does not only mean money earned in the form of salary.
An Income tax return (ITR) is a form used to file information about your income and tax to the Income
Tax Department. The tax liability of a taxpayer is calculated based on his or her income. In case the return
shows that excess tax has been paid during a year, then the individual will be eligible to receive a income
As per the income tax laws, the return must be filed every year by an individual or business that earns any
income during a financial year. The income could be in the form of a salary, business profits, income
from house property or earned through dividends, capital gains, interests or other sources.
Tax returns have to be filed by an individual or a business before a specified date. If a taxpayer fails to
As a responsible citizen, you need to make sure that you file your returns every year. This is a moral duty
Filing ITR can be useful to you as well. Here are the various ways in which filing an Income Tax Return
Income Tax Return holds immense legal value. It is recorded with the government. It acts as legal proof
in two ways,
Identity Proof
The return that you fill can be used as identity proof in various scenarios such as while applying
for an AADHAR card, or any other document. The government accepts it as a proof of address as
well.
Income Proof
As discussed, the ITR form contains a detailed list of all your incomes and expenses. On this
Thus, ITR can also be used as income proof as some transactions such as the purchase of property
This can come in handy for the ones who are self-employed and don't receive Form 16.
To reduce the burden on the taxpayers and to encourage more people to pay their taxes, the
a) These deductions and exemptions can be availed in some investments and thus help in reducing
But to have access to these tax benefits, you are required to file an income tax return. If you have
When you decide to apply for a loan to purchase something, say a car or a new home for your family or
for business, the bank requires you to submit some documents such as
a) Aadhar card
b) PAN card
c) Driver's license
d) Photo ID etc
One important document asked is your income proof. Banks generally asked for ITR for the last three
years. This is done to assess your past and current financial situation and whether you will be able to pay
Not only while applying for loans from the bank, but ITR can also be useful to get you a credit card as
well. Credit card companies also ask for your past salary and returns before issuing you the card.
Going abroad involves some procedures to be followed. If you do not file your ITR, then it can deter your
plans to go abroad. ITR form is one item in the list of the documents that are required by the countries
a. Having a history of filing income tax returns helps your case and improves your chances of getting visa
approval.
So, if you are eligible to pay taxes on your income and yet still fail to file your Income Tax Returns, then
The income tax officer can levy a penalty of up to Rs 5000 Rs. Other serious punishments can also occur
Section 70 and 71 of The Income-tax Act 1961 contains some provisions for carrying forwarding losses
of a particular year to the subsequent year. This means that you can move your loss to the next assessment
year.
a. Losses from house property can be carry-forward till the next 8 assessment years and can be set off
b. Loss from business can be carried forward and paid with the future income from the business.
If you do not file an Income tax return, you cannot carry forward or set off your losses.
Filing of the Income-tax return not only helps you but also helps the nation. The tax that you pay is used
by the government to build infrastructure and to improve other facilities of the nation such as medical,
defence, etc.
The more people file, the more can government spend and provide us with a good country.
What is TDS?
TDS or Tax Deducted at Source is a specific amount that is reduced when a certain payment like salary,
commission, rent, interest, professional fees, etc. is made. The person who makes the payment deducts tax
at the source, while the person who receives a payment/income has the liability to pay tax. It lowers tax
In the Union Budget for FY22, Finance Minister Nirmala Sitharaman announced that dividend payments
to REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) will be made
exempt from Tax Deduction at Source (TDS). This aims to increase compliance with tax laws. A proposal
was also made to take advance tax liability on dividend income after the payment or declaration of a
deducted at the time of these payments. However, no TDS will be deducted if you are an
individual or Hindu Undivided Family (HUF), and your books are not required to be audited.
In case of rent payment by an individual or HUF member, where the amount payable exceeds
Rs.50,000, then a TDS at 5% will be deducted even if your books are not liable for a tax audit.
You will not be required to apply for a Tax Deduction Account Number (TAN) if you are liable to
If you are a working professional then your employer will deduct TDS as per the applicable
income tax slab rates. The bank with whom you hold a working account will deduct TDS at 10%.
However, if they do not have your PAN details, then TDS at 20% will be deducted. For the
majority of payments, TDS rates are set in the Income Tax Act the payer deducts TDS as per the
rates applicable.
You will not be required to pay any tax if you submit your investment proofs to your employer
and your total income that can be taxed is below the total taxable threshold. Thus, no TDS will be
deducted in this case. You can also submit Form 15G and Form 15H to the bank if the total
taxable income is below the total taxable limit. The bank in this case will not deduct any TDS on
In case you failed to submit the investment proof to your employer and the bank deducted the
TDS, you can file a return and claim a refund of it, provided your total taxable income is below
Types of TDS
Here are some of the income sources that qualify for TDS:
Salary
Brokerage or Commission
Commission payments
Contractor payments
Deemed Dividend
Insurance Commission
Interest on securities
Payment of rent
In order to file your TDS return, there are few things you must ensure. They are as follows:
You must have a valid Tax Deduction and Collection Account Number (TAN) and make sure it is
Prepare your TDS statements using Return Preparation Utility before validating the same using
Provide the demat account or bank account details of your principal contact, or ensure that his/her
PAN is linked with his/her Aadhaar in case you want to upload your returns using Electronic
Verification Code
Here is a simple guide to upload your TDS statements on the official website of the Income Tax
Department :
2. Click on the aforementioned option and fill in your login information before clicking on 'Login'. Your TAN
3. After you have logged in, locate the 'TDS' drop-down menu where you will have to select 'Upload TDS'.
4. A form will appear, and you will have to choose the right details before clicking on 'Validate'.
5. You will then have to validate your returns using either DSC or EVC.
(Tax Collected at Source). Challan No. 281 is applicable for Tax Deducted at Source / Tax Collected at
Source (TDS/TCS) from corporates and non-corporates. TDS exception is essentially a mechanism
developed by the Indian Government where in there is a tax deduction at the source of an income,
calculated at a specific rate and thereby becomes payable to the department of Income Tax.
Rs.100 will be levied for each day that the returns remain unsubmitted, subject to a maximum of
Failure to file your returns on time: Under Section 234E of the Income Tax Act, a penalty of
Rs.200 will be levied for each day that the returns remain unfiled, subject to a maximum of the
TDS amount.
For defaults in the filing of TDS statement: Under Section 271H of the Income Tax Act, a
penalty of Rs.10,000 to Rs.1 lakh will be levied in case the deductor defaults at the time of filing
For incorrect details: Under Section 271H of the Income Tax Act, a penalty of Rs.10,000 to Rs.1
lakh will be charged in case the deductor submits incorrect information pertaining to PAN, challan
For non-payment of TDS: Under Section 201A of the Income Tax Act, interest will also be
levied along with the penalty in case TDS is not paid within the due date. In case a part of the tax
amount or the whole of it is not deducted at source, interest will be charged at 1.5% every month
starting from the date on which the tax was deductible to the date on which the tax is actually
deducted.
one needs to follow the steps mentioned below to check their status of TDS
3. Under the 'My Accounts' tab, click on 'view Form 26AS (Tax Credit)'.
mentioned on your PAN. For example, if your date of birth is 5 March 2000 then the password
will be 05032000.
6. You can then view all the details related to the TDS deduction.
7. You can use your bank's net banking facility to check whether your TDS has been deducted
Individuals can claim TDS refund on the Income Tax website. However, the Income Tax Returns must be
filed, and the TDS refund must be shown. Once the ITR is filed, the TDS refund will be processed by the
Income Tax Department. The refund might be credited to the bank account within 6 months. Individuals
can also check the status of the refund on the official website of the Income Tax Department.
TDS Certificates are of two types: Form 16 and Form 16A. Under Section 203 of the Income Tax Act,
1961, a certificate must be provided to the deductee showing the amount that has been subtracted as tax.
For salaried class: In case of salaried employees, employers are required to provide them with Form 16
with a mention of the amount that has been deducted as TDS. Form 16 contains a host of details such as the
computation of tax, the deduction of tax, and the payment of TDS. Employers must issue this form to their
For non-salaried class: The deductor provides the deductee with Form 16A, and it contains all the details
Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it
can be deposited with the tax authorities. Section 206C of the Income-tax act governs the
goods on which the seller has to collect tax from the buyers. Such persons must have the Tax
Income tax return is a form which is filed with the taxing authority. It reports income, expenses, and other
relevant tax information. Tax returns make it easy for taxpayers to determine their tax liability, plan their
tax payments and request refunds for its over payment. Taxpayers are required first to determine the type
of ITR forms they need to fill before actually submitting the returns. ITR forms are solely dependent on
Income Tax Return (ITR) forms refer to those forms in which taxpayers file information
about their income earned and tax applicable to the department of income tax. The department
ITR 2
ITR 3
ITR 4
ITR 5
ITR 6
ITR 7
Every taxpayer must know all the ITR forms details and file the ITR before the specified due
date to avoid penalties. The applicability of ITR forms depends on the amount of the income
earned, sources of income of the taxpayer, and the category the taxpayer belongs to, such as
Age Amount
2. If you earn from more than one source,such ascapital gains or house property
To know more about ITR forms details let us look at the types of ITR forms. There are
various types of ITR forms available for taxpayers to file taxes. Depending on the type/source
of income generated, the group of the taxpayer falls under (individual, company, and Hindu
Undivided Families). The income of the individual will make the income Tax Returns (ITR)
The following forms are to be taken into consideration by individuals while filing returns as
I TR1 is for a person with an income of up to RS50 lakhs. When the income is from salaries, one house
property other sources ( interest, dividend etc). And agricultural income up to INR 5000. It is not for non
ordinary residence for an individual who is either director in a company or has done investment in
This form is for resident Indians who fall under the below-mentioned categories:
1. If income is created from a pension or salary
2. If income is created from single house property, however, in case the losses have been
3. In case the income is generated from agriculture (not more than Rs.5,000)
4. The total income produced can be a maximum of Rs.50 lakh and not more
5. Income that has been created from other sources such as lottery or winning horse races
Individuals who fall under the following groups cannot opt for ITR-1:
3· In case income is created from more than one house property
4· During the financial year, if any investments were made in unlisted equity bonds
6· If you are an NRI (Non-Resident Indian) or RNOR (Resident Not Ordinary Resident)
7· In case there is an income produced from agriculture more than Rs.5,000
started from 1st April and hence at 31st March Financial year it is the year in which Income is
earned.
Assessment year it is the year that follows the financial and it is the period in which tax return are
filled.
ITR 2 Form
ITR 2 is a form which is filed by the person who earns is income from salary, one house property,
Capital gain is the income which individual earns by selling of fixed asset share and equity.
ITR-2 form is for individuals and Hindu Undivided Families (HUFs) who fall under any of the following
categories:
8· In case any investments were made in equity bonds unlisted during the financial year
Taxpayers who make an income from profession and business cannot opt for ITR 2 form.
ITR 3 Form
ITR3 is a type of form which filed by group of individual in a partnership firm and notinperfession under
any proprietorship.
This form must be chosen by individual taxpayers and HUFs who make an income from a profession or from
2. In case any investments were made in equity shares unlisted at any time during a financial year
5. If income is produced from salary or a pension, house property, or any other source of income
In the case ofindividuals, HUFs and Partnership Firmswho are residents of India create an income from a
business or profession; they must select ITR-4. Limited Liability Partnerships (LLPs) cannot choose this
type of ITR form. Taxpayers who have also selected the presumptive income scheme under Section
44ADA, Section 44AD, and Section 44AE of the Income Tax Act 1961, must also choose this form.
Who cannot opt for this form?
The below-mentioned taxpayers and HUFs are not allowed to opt for ITR-4:
2. In case any losses have been carried forward from previous years
3. In case the taxpayer has a signing authority at a place outside India
4. In case any investments were made in equity bonds unlisted at any time during the financial year
6. In case the income has been produced from more than one house property
ITR 5 Form
Anyone following under the categories mentioned below can file ITR 5 Form:
2. Business trusts
3. Estate of insolvent
4. Estate of deceased
ITR 6 Form
ITR-6 is for any company that are not claiming exemptions related to Section 11 of the Income Tax Act,
1961. Firms that are filing income tax returns under this section can only do it electronically.
ITR 7 Form
Individuals and firms that have furnished returns related to Section 139(4A), Section 139(4B), Section
139(4C), Section 139(4D), Section 139(4E) and Section 139(4F) must choose this ITR form.
Listed below are the details of the returns that should be filed section-wise:
Section 139(4A): The ITR forms must be submitted by individuals who gain an income from a property
that belongs to a charity/trust or other legal obligations and the income that is produced is solely used for
Section 139(4B): ITR forms must be filed under this section by a political party if the gross income that
Section 139(4C): ITR forms must be submitted under this section if it is a Scientific Research
association, hospitals, medical institutions, universities, funds, News agencies and other educational
institutions
Section 139(4D): Any educational institution such as a college or university that are not required to
furnish any income or loss must submit ITR forms under this section
Section 139(4E): Business trusts that do not need to furnish any kind of income or loss must file ITR
In an old regime tax rate are high but we can take advantage of deductions .
In an new regime tax rates are comparability are low but we cannot take advantage of deductions
How to file Income Tax Return?
Step 2: If you are already listed on the portal, click ‘Login Here’. In case you are not listed on the portal,
Step 3: Next, you will have first to choose your ‘User Type’. The options available to you will include
Individual, Hindu Undivided Family (HUF), Other than Individual/HUF, Chartered Accountants,
External Agency, Tax Deductor and Collector, and Third-Party Software Utility Developer.
Fill in your current address and your permanent address before entering the Captcha code and hit
‘Submit’.
Step 4: Fill up your details such as name, PAN, birth date, mobile number and email id.
Step 5: The system will then verify your pan number, and your transaction ID will be displayed on the
screen.
Step 6: Finally, activate your Income Tax Department account through the link received by your email id.
multicultural environment.
Communication skills.
Vouching
Voucher Entry
Taxation
E-Way Bill
Banking Statement
Itr E-Filling
MS office
Tally Software
Busy
Chapter4:References
Pandey, Prof. Dr. K. A. (n.d.). Way to e-Filing of Income Tax Return. Lulu.com.
Publications, T. (2022). Taxmann’s Direct Taxes Manual (3 Vols.) – Covering Amended, Updated
& Annotated text of the Income Tax Act, Rules, 25+ Allied Acts & Rules, Circulars &
Notifications, Case Laws, etc. | 52nd Edition. Taxmann Publications Private Limited.
Taxmann. (2020). FAQs on income-tax returns for assessment year 2020-21. Taxmann
Taxmann. (2021). Know about 30 changes in new ITR forms for AY 2021-22. Taxmann
Taxmann. (2022a). Taxmann’s Income Tax Rules – Covering Amended, Updated & Annotated
text of the Income-tax Rules, 1962 [updated till Income Tax (Second Amendment) Rules 2022] |
Taxmann. (2022a). #TaxmannAnalysis | Know about the 30 changes in the new Income-tax
Returns (ITR) Forms for A.Y. 2022-23. Taxmann Publications Private Limited.
Taxmann. (2022b). Taxmann’s 60+ faqs on income tax returns (ITR) | A.Y. 2022-23. Taxmann
https://www.hdfclife.com/insurance-knowledge-centre/about-life-insurance/what-is-income-tax-
return
https://en.m.wikipedia.org/wiki/Income_tax
https://www.bankbazaar.com/tax/all-about-tds.html
https://www.canarahsbclife.com/tax-university/articles/6-benefits-of-filing-income-tax-return.html
https://www.maxlifeinsurance.com/blog/tax-savings/itr-forms