DEPARTMENT OF MANAGEMENT STUDIES

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
SHALINI SHETTY
(Professor)
BUSINESS IMMERSION PROJECT REPORT
On

INCOME TAX RETURN AND E-FILING PROCESS

BY
KIRAN SR
USN : 23MBA128
Submitted to
DEPARTMENT OF MANAGEMENT STUDIES
NEW HORIZON COLLEGE OF ENGINEERING
OUTER RING ROAD, MARATHALLI,

BENGALURU

2023-25
 DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that K iran s r bearing USN 23MBA128 is a bonafide student of

Master of Business Administration course of the Institute 2023-25, autonomous
program, affiliated to Visvesvaraya Technological University, Belgaum. Business
Immersion Project report on “INCOME TAX RETURN AND E-FILING
PROCESS”is prepared by him under the guidance of Prof shalini shetty, in partia l
fulfilment of requirements for the award of the degree of Master of Business
Administration of Visvesvaraya Technological University, Belgaum, Karnataka.

Signature of Internal Guide Signature of HOD

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examiner
 DECLARATION

I, student name, hereby declare that the Business Immersion Project report entitled
“INCOME TAX RETURN AND E-FILING PROCESS” is prepared by me
under the guidance of Prof Shalini shetty faculty of M.B.A Department, New Horizon
College of Engineering.

I also declare that this Business Immersion Project report is towards the partia l
fulfillment of the university regulations for the award of the degree of Master of
Business Administration by Visvesvaraya Technological University, Belgaum.

I further declare that this report is based on the original study undertaken by me and
has not been submitted for the award of a degree/diploma from any other University /
Institution.

Signature of Student
Place:
Date:
 TABLE OF CONTENTS

Sl.NO. Contents Page

Numbers

1
Introductionand Theoretical study. 1-19

2
Literature Review 20

3
Research Objective 22-24
Research methodology
4
Procedure 25-34

5
Data Analysis & Interpretation 35-40

• Finding and Analysis 41-43

6 • Suggestion
• Conclusion

7 Bibiliography and Annexure 44-45

INTRODUCTION
Income tax is an annual tax on income which is levied by the central government. The taxpayer

has to communicate the details of his taxable income/loss to the Income Tax Department.
These

are communicated to the Income Tax Department in the form of return of income.
Governments around the world are using e-government services in various areas of public
service delivery due to effectiveness and applicability of electronic services. Increasing use of
information and communication technologies and applicability of e-governance services in
various areas helps government to successful implementation of e-governance services. Income
tax department of India launched the electronic tax filing system of income tax returns. E-
taxation scheme was one of the action plans introduced in Indian Tax Department in the A.Y.
2006-07 for all assesses. E- filing system provides facilities to taxpayers to submit their tax
returns electronically.

Electronic filing is an emerging area of e-governance. Many developed countries today have
initiated e-filing of Income Tax Returns. The aim of e-governance is to provide better services
for the people by taking advantage of information and communication technology. E-
Governance creates better communication between government and its citizens. It not only
helps the government to accomplish daily administrative activities, also provides more easy
way to communicate with external entities such as citizens and business through the utilization
of information technology. Success of e-governance depends on the importance that citizen’s
place on factors such as convenience and usefulness of such services. Various measures have
been taken by government on simplification of tax administration. E-filing is one of the most
important and advanced e-governance services. It provides convivence to taxpayer for tax
assessment
Theoretical Background of the study
Income Taxin India: Guide, IT Returns, E-filing Process
Taxes in India can be categorized as direct and indirect taxes. Direct tax is a tax you pay on your
income directly to the government. Indirect tax is a tax that somebody else collects on your behalf
and pays to the government such as restaurants, theatres and e-commerce websites recover
taxes from you on goods you purchase or a service you avail. This tax is, in turn, passed down to
the government. Direct Taxes are broadly classified as:

1. Income Tax – This is taxes an individual or a Hindu Undivided Family or any taxpayer other than
companies, pay on the income received. The law prescribes the rate at which such income should
be taxed.

2. Corporate Tax – This is the tax that companies pay on the profits they make from their
businesses. Here again, a specific rate of tax for corporates has been prescribed by the income
tax laws of India.

Indirect taxes take many forms: service tax on restaurant bills and movie tickets, value-added tax
or VAT on goods such as clothes and electronics. Goods and services tax, which has recently been
introduced, is a unified tax that has replaced all the indirect taxes that business owners have to
deal with

31 January 31 March 31 July OCT- NOV

Deadline to submit Deadline to make Last date tofile your tax Time to verify your tax
your investment investments under return return
Section 80C
proofs

Income Tax Basics

Everyone who earns or gets an income in India is subject to income tax. (Yes, be it a resident or a
non-resident of India). Also read our article on Income Tax for NRIs. Your income could be salary,
pension or could be from a savings account that’s quietly accumulating a 4% interest. Even,
winners of ‘Kaun Banega Crorepati’ have to pay tax on their prize money. For simpler
classification, the Income TaxDepartment breaks down income into five heads:
 1. Income From Salary

Any income that you receive in terms of the service you provide on a contract of employment is
applicable for taxation under this head. This includes salary, advance salary, perquisites, gratuity,
commission, annual bonus and pension.

This tax head also includes some exemptions:

 House Rent Allowance (HRA): As a salaried individual, if you live in a rented house, you
can claim House Rent Allowance for partial or complete tax exemptions.
 Conveyance Allowance: You can get a monthly tax exemption of up to Rs.800.
 Income from house property

An individual’s income from his or her property or land is taxable under the head of income from
house property. To put it simply, this head includes the policy for calculating tax on rental income
that you receive from your properties.

In case you own more than one self-occupied house, then only one house is considered to be
occupied and the rest are considered to be rented out. The taxation occurs on income received
from both commercial and residential property.

2. Income from profitsand gainsfrom business or profession

The profits that you earn from any kind of business or profession are taxable under this head. You
can subtract your expenses from the total income in order to determine the amount on which tax
is chargeable.

Here are the types of income that are chargeable underthis head:

 Profits generated from the sale of a certain license

 Gains earned by an individual during an assessment year

 The profits that an organisation makes on its income

 Cash received on the export of a government scheme

 The benefits that a business receives

 Gains, bonuses or salarythat an individual receives due to a partnership with a firm

 3. Incomefrom capital gains

When you earn profits by transferring or selling an asset that was held as an investment, that
income is taxable under the head of income from capital gains. A large number of assets, like gold,
bonds, mutual funds, real estate, stocks, etc., fall under capital assets.

Now, you can subdivide capital gains into short-term capital gains and long-term capital gains.
When you sell your capital assets after holding them for a period of 36 months or more, they will
fall under long-term capital gain and will have a tax rate of 20%. Alternatively, if you sell your
capital assets within a period of 36 months, the tax deduction will be under short-term capital
gain at the rate of 15%. In the case of securities, this is applicable if you sell your holdings within
12 months from the purchase date.

4. Incomefromother sources

Among the five heads of income tax, this one includes any other income that does not have any
mention in the above 4 heads. They fall under Section 56 sub-section (2) of the Income Tax Act
and include income from lottery, bankdeposits, gambling, card games, sports rewards, etc.

Head of Income Nature of Income covered

Income from Salary Income from salaryand pension are covered under here

Income from Income from savings bankaccount interest, fixed deposits, winning KBC

Other Sources

Income from This is rental income mostly

House Property

Income from Income from sale of a capital asset such as mutual funds, shares, house

Capital Gains Property

Income from This is when you are self-employed, work as a freelancer or contractor, or

Business and you run a business. Life insurance agents, chartered accountants, doctors
and lawyers who have their own practice, tuition teachers
Profession
Taxpayers and Income Tax Slabs

Taxpayers in India, for the purpose of income tax include:

 Individuals, HinduUndivided Family (HUF), Association of Persons (AOP) and

Body of Individuals (BOI)
 Firms
 Companies

Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and
Indian companies have a fixed rate of tax of 30% of profits, the individual, HUF, AOP and BOI
taxpayers are taxed based on the income slab they fall under. People’s incomes are grouped into
blocks called tax brackets or tax slabs. And each tax slab has a different tax rate. In India, we have
four tax brackets each with an increasing tax rate

 Income earners of up to 2.5 lakhs

 Income earners of between 2.5 lakhs and 5 lakhs
 Income earners of between 5 lakhs and 10 lakhs
 Those earning more than Rs10 lakhs

Income Range Tax rate

Up to Rs, 2,50,000 0

Between Rs.2.5 lakhs and Rs.5 lakhs 5%

Between Rs.5 lakhs and Rs.10 lakhs 20%

Above 10 lakhs 30%

Income TaxReturn (ITR)
Income Tax Return (ITR) is a form that an individual submits to the Income Tax Department of
India to file information about his income and taxes payable during that year. Information filed in
an ITR should be applicable for a particular financial year between 1st April to 31st March of the
next year.

The income you earn can be from sources such as salary, profit in business, sale of house or
property, dividend or capital gains, and interest received among others. If you have paid tax in
excess duringa year, you will get a refund by the Income Tax Department

Is Filing ITR Compulsory?

Income Tax rules dictate that if you earn more than the limit that is exempted from being taxed
by the Government, you are mandatorily required to file your tax return according to the tax slabs
for each year. Filing your ITR post the due date may attract a penalty and also become a deterrent
in getting a loan or visa approved in the future.

Differenttypes of ITR forms

Following are the various types of ITR-

1. ITR Form– 1
 If income is created from a pensionor salary

 If income is created from single house property, however, in case the losses have been

carried forward from the previous year, the exclusion is allowed.

 In case the income is generatedfrom agriculture (not more than Rs.5,000)

 The total income produced can be a maximum of Rs.50 lakh and not more

 Income that has been created from other sources such as lottery or winning horse races
2. ITR form-2
 The income of the taxpayermust be more than Rs.50 lakh
 Income can be created via salary or from a pension
 Income generatedfrom house property
 Income generated from sources such as lottery or horse races
 In case the taxpayeris a company’s director)
 Agricultural income of the taxpayeris higher than Rs.5,000
 Revenueproduced from capital gains
 In case any investments were made in equity bonds unlistedduring the financial year
 Income is generated from foreignassets and foreign income
3. ITR Form-3
 Individuals creating a profit from a business or profession
 In case any investments were made in equity shares unlistedat anytime during a financial
year

 In case the taxpayeris a partner in a company

 In case the taxpayeris a Directorof a company
 If income is produced from salary or a pension, house property, or any other source of
income

 Turnoverof the business pension exceeds Rs.2 crore

2. ITR Form 4

In the case of individuals, HUFs and Partnership Firms who are residents of India create an
income from a business or profession; they must select ITR-4. Limited Liability Partnerships
(LLPs) cannotchoose 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 TaxAct
1961, must also choose this form.
5. ITR Form 5

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

 Artificial Juridical Person (AJP)

 Business trusts
 Estate of insolvent
 Estate of deceased
 Associations of Persons (AOPs)
 Body of Individuals (BOIs)
 LLPs and companies
6. ITR Form 6

The ITR-6 form is to be filed electronically by companies, except for those that claim an
exemption under Section 11, which is income from a religious or charitable property.

7. ITR Form 7

It is the federal tax return for businesses, partnerships, and trusts that continue to be excluded
from paying income tax.

Types of Forms to File ITR

Form 16

An employee gets a Form 16 TDS certificate from their boss. The gross pay,as well as
exemptions such as HRA and LTA,are listed on Form 16. The form also includes information on
the employee’s net taxable pay, all other revenue or loss reported tax-saving deductions and

salary TDS.

Form 26AS

The tax deducted at source (TDS) on differentearnings, such as wages, debt,and the selling of
immovable property, is detailed on Form 26AS. Details of self-assessment tax, advance tax paid
by an individual, and listed financial transactionsare also included on the form.
E-Filing of Income TaxReturn

Meaning of E Filling :

e-Filing refers to the process of submitting your tax returns electronically. Short for electronic
filing, e-Filing can be completed throughincome tax website. e-Filing can be used by all taxpayers.

e-Filing offers speed, security, and convenience to taxpayers. It also reduces the income tax
department’s burden and provides a sophisticated alternative to traditional paper filing.

Type of E Filling
Document Required for incometaxfiling

PANCard
PAN Card is a government-issued identity card and contains a unique 10-digit alphanumeric code,
known as Permanent Account Number. It is the first and one of the most important documents
required to file an ITR. PAN is also required for TDS deduction and must be linked to your bank
account for direct credit of income tax refund (in case any). Also, as per the latest amendment by
the government, taxpayers can now use their Aadhaar number to file their ITR insteadof PAN.

Aadhaar Card
The UIDAI-issued Aadhaar card contains the biometric and demographic details of residents of
India and acts as a unique identity proof for various purposes. As per Section 139AA of the Income
Tax Act, individuals have to provide their Aadhaar card details while filing their Income Tax Return.
In case they don’t have their Aadhaar card but have applied for the same, they will have to provide
their enrolment ID in their IT return. Also, linking PAN and Aadhaar is mandatory and helps in
verifying your ITR online via an OTP

Form 16
Form 16 or Salary Certificate is issued to you by your employer and provides details relating to
salary paid, taxes deducted and deposited during the financial year. The employer needs to
mandatorily issue Form 16 in case he/she has deducted taxes. Form 16 consists of two parts- Part
A and Part B, both of which have the TRACES logo and unique ID. It is a mandatory document
required from a salariedindividual to file an ITR.

Month-wise Salary Slips

Your month-wise salary slips are also essential forITR filing if you are salaried individual.
Bank Account Details

It is mandatory to provide details of all active bank accounts in the ITR. You are required to provide
details such as your bank name, account number, IFSC, account type and the number of account
that you hold. Bank details are used to validate your income details, high volume transactions,
etc. You also need to select one primary account from the accounts mentioned wherein the
Income Taxrefund may be credited (in case any) by the Income TaxDepartment.

Bank Statement/Passbook

Bank account statements/passbook is required at the time ITR filing to know interest earned on
savings account, interest income on fixed deposits, etc. during a financial year.

Investment Proofs

Tax savings investment and expenditure proofs such as receipt of life insurance premium paid,
receipt of medical insurance, Public Provident Fund passbook, fixed deposit receipt, home loan
repayment certificate/receipt, donation paid receipt, tuition fee paid receipt, mutual fund
consolidated account statement, education loan repayment certificate, etc. are essential to claim
deduction when filing ITR. However, these deductions can be claimed only if you opt for the old
tax regime when filing ITR.

Generally, these proofs are declared and submitted by employees to their employers to avoid
higher TDS on their salary. The proofs submitted are mentioned in Part B of Form 16 and the
Income Tax department uses this information and pre-fills it in the ITR form. However, in case you
miss declaring any tax-saving proof, then you can claim it at the time of ITR filing

Form 26AS
Form 26AS can be downloaded by individuals from the new income tax portal. It is an annual tax
statement like a tax passbook that has details of the taxes deposited and deducted with the
government against your PAN. You must ensure that the taxes deducted during the financial year
are reflected against your PAN in Form 26AS. If there is a mismatch, you must get it rectified at
the earliest by getting in touch with the deductor, otherwise you will not be able to claim tax
credit for the TDS deduction.

Capital Gains from Sale of Property, Mutual Funds, Shares

Sale of property, shares or securities will result in capital gains or losses. For this, you need to
have documents like property sale deeds, broker statements, etc.

Interest Income and Other Interest Certificates

Individuals also need to provide a breakup of the interest income that they earn from different
sources such as fixed deposits, savings accounts, etc. Thus, it is crucial to collect interest
certificates from banks, post office and other financial institutions and report correct income
details in ITR as well as claim tax deductions and exemptions. You can also check your updates
bank passbook(s) in case interest certificates are not available.

Detailsof Investment in Unlisted Shares

In case you were holding unlisted shares during the financial year, you need to disclose the same
in your ITR. In this case, you also need to file your tax return using ITR-2 instead of ITR-1

Home Loan Statement

In case you have taken a loan from a bank or any other financial institution, then you also need
to have your loan statement for the previous financial year. Your loan statement contains a
breakup of the loan principal and interest paid by you and is needed as a proof and for providing
information while filing your ITR.

Rental Income

If you earn income from your house/property, the same needs to be reported while filing ITR.
Also, in case you pay rent, you need to collect rent receipts from your landlord. You need not
submit these when filing your ITR but should be kept safe to be submitted to your employer or
Income TaxDepartment in case of future requirements.
Foreign Income/Dividend Income

In case you have earned income in/from a foreign country during a job deployment or otherwise
you need to have and furnish the same when filing your tax return. Also, in case you have invested
in mutual funds or shares and have earned dividend income on the same, you need to report it
while filing your ITR.

Procedure for E-Filing of Income TaxReturn

1. Checking all the documents in place

This is the foremost step for E-filing of income Tax Return. The assesse has to organize all his
documents in order to correctly and accurately upload his return on the e- filing portal of the
Government of India.

2. Creation of E-Filing account at the Government website

The second step is to create an account at the website for e-filing of income tax return. If the
return is to be filed for the first time, then an account is to be created at the website and in case
the assesse is already filing the return for the previous year/s then the assesse needs to log in to
the already created account with inputs of PAN. Password and DOB. A captcha code is also asked
for verifying the existence of the human involvement

3. Selection ofthe ITRform

– After logging in the account, click the filing linkappearing on the screen

– Select the assessment year

– Applicable ITR form is to be selected

This is the most important part while filing income tax return on the portal. The assesse has to
select the right ITR form while filing return on the portal failing which the ambiguity will prevail
for the Government as well as the assesse. It will make the return defective or may consider as
not filed.
4. Fill up the requisite details

There are various fields in the ITR form which are required to be incorporated while filing the
income tax return on the portal. The various important fields include the inclusion of AADHAR
number, exemptions. Deductions, address and other relevant particulars.

5. Upload the return

After incorporating all the necessary information in the correct ITR form, the assesse is required
to upload all the particulars for further processing on the portal

6. E-verification of the uploaded details

Once all the details are uploaded in the system , then there is an option given in the window
under which the e-verification of the return is to be done. The Government has given an option
of e-verifying your return within 120 days from the days of filing of return. Alternatively a signed
copy of the ITR V can also be sent to the Bangalore head office by a registered post for onwards
submission to concerned authorities.
LITERATURE REVIEW
A literature review or narrative review is a type of review article. A literature review is a
scholarly paper, which includes the current knowledge including substantive findings, as well as
theoretical and methodological contributions to a particular topic. Literature reviews are
secondary sources, and do not report new or original experimental work. Most often associated
with academic-oriented literature, such reviews are found in academic journals, and are not to
be confused with book reviews that may also appear in the same publication. Literature
reviews are a basis for research in nearly every academic field. A narrow-scope literature
review may be included as part of a peer-reviewed journal article presenting new research,
serving to situate the current study within the body of the relevant literature and to provide
context for the reader. In such a case, the review usually precedes the methodology and results
sections of the work.

To find-out the gap in the literature, the following review of earlier works been done and
summarized as below:

1. Anna A. CheAzmi and YusnizaKamarulzman, (2000),”Adoption of Tax E-filing: A

conceptual paper”, in their contribution towards providing useful input on the adoption
and evaluation of the E-filing system by users. It is predicted that many of these risks
facts will be significant. Among the risks that could possibly be significant are
performance risk, psychological risk, time risk and privacy risk. This study aims to the
relationship of perceptions of risk and its facts within the Technology Acceptance Modal
with the tax E-filing context.

2. Yi-shun Wang, (2002), “The Adoption of Electronic Tax Filing Systems: An Empirical
Study”. He explained that the benefits, treads and highlights (ITRs) of E-filing among the
residents of the country. E-filing Income tax return using internet is a gift to a tax payers.
Using the Technology Acceptance Model (TAM) as a theoretical framework, this study
introduces ‘perceived credibility’ as a new factor that reflects use of E-tax filing system.
3. Dr.Sujeet Kumar Sharma, Dr.RajanYadav, (2011), “An Empirical Study on Tax Payer’s

Attitude towards E-return Filing in India”, in their opinion that study employed factor
analysis and multiple regression analysis to understand tax payers’ attitude towards E-
filing. The study found that perceived ease of use, perceived usefulness, perceived
credibility and computer awareness significantly influence the customer’s acceptance of
E-filing.

4. Geetha R. and Sekar M. (2012) ,” E-filing of IncomeTax: Awareness and Satisfaction level

of Individual Tax Payers in Coimbatore city, India”, This study reveals that the existing
users are satisfied with the E-filing facilities but most 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 mind of tax payers regarding E-filing of Income tax.

5. Meenu Gupta, (2012), she analysed that the acceptance of E-filing of Tax Returns is

much better than traditional system of paying Income tax. The benefits of E-filing heads
up the importance of technological advancement.

6. BrahmbhattMamta, (2012),”Tax Payers Perception towards E-file Adoption: Empirical

Investigation”, 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 filling individual Income tax return.

7. Mukesh Kumar and Mohammed Anees (2014),”E-filing Creating New Revolution in

Taxation of India”, in their opinion that changing scenario in Income tax due to
implementation of E-filing. India is in the phase of revolutionary changes in information
technology which also gives great advancement in E-filing field of Income tax
department.
 8. Dr.Samir MazidbhaiVohra, (2015) “E-filing; New Revolution in Taxation of India”.
Analysed that the Income tax department has introduced E-filing of Income tax returns
to make the filing process easier for tax payers which will result into reduction of time
and paper work. India is in the phase of revolutionary changes in information technology
which ultimately gives more encouragement in E-filing of Income tax return. The study
shows that the E-filing is the new effective method of filing Income tax return through
online and make E-payment of tax.

9. JyothiArora, (2016), “E-filing of Income Tax Return in India”, he analysed in this study,
deals with the benefits, process, trends and highlights (ITRs) of E-filing among the
residents of country. In the current world new information technology is being
introduced very fast in all fields. Due to the facet of time, researchers could not review
more articles and books, but with the available literature, they found that a very few
works have been done on the area of this topic earlier, hence, it’s a small effort is put in
to fill-up the literature gap.

RESEARCH OBJECTIVE

OBJECTIVES OF THE STUDY:

• To assess the perception and awareness of tax-payers towards e-filing of income tax
returns.

• To study the satisfaction level of tax-payers towards e-filing of income tax returns.

• To know about the online process of filing ITR or e-filing.

•
LIMITATIONS OF THE STUDY:
• All respondents may not give correct answers; the answer may vary according to their
mood and the technology given to them.
• The answer given by the respondent can also reflect by accommodations given to them,
work load and other aspects. For example, if the respondent has been given good
accommodations to use like latest computer with comfortable chair with latest gadget
like computer and with 4g speed net in a comfortable environment, the respondent may
 feel easy to file income tax return thus respondent will give positive response and vice
versa.
• The respondents may not give answer what is actually in their mind due to shy or any
other feelings also the interviewee may not be interested in our questions or research.
The respondent may not have detail knowledge about our topic which can affect our
research

RESEARCH METHODOLOGY

The purpose of methodology is to describe the purpose involve in the research work. This
include the overall research design, the data collected method Research methodology refers to
the various sequential steps to be adopted by a researcher in studying a problem with certain
object or objective in view.

Sources of data collection:

Data was selected by using both primary and secondary method, in Primary method of data
collection questionnaire was used, in case of secondary data was collected by using magazine,
books and data available with the person working there.

Primary data:
Information obtained from the original source by research is called Primary Data. They offer
much greater accuracy and reliability. The data was collected from the respondents through the
questionnaire.

Secondary data:
It means data that are already available that is they refer to the data which has already been
collected and analysed by someone else. The data was collected from the websites and
journals.

Questionnaire:
A structure questionnaire was administered to the respondent for the collection of primary
data. Questionnaire consists of 10 questions.

Research Design
Research design is the arrangement of conditions for collection for collection and analyse of
data in a systematic manner that aims to combine relevance to research purpose with economy
in procedure. The research study applied here is purely descriptive.

Sample size 50 Respondents are chosen as a sample size for the study.

Sampling technique
The simple random sampling method was used for the primary data collection. Simple
random sampling is the basic sampling technique where we select a group of subjects (a
sample) for study from a larger group (a population). Each individual is chosen entirely by
chance and each member of the population has an equal chance of being included in the
sample. Every possible sample of a given size has the same chance of selection i.e., each
member of the population is equally to be chosen stage in the sampling process
Procedure for E-Filing of Income TaxReturn
Deadline for E-Filing Tax Returns: The last date for e-filing income tax returns for FY 2021-22 is
31st July 2023. You can e-file your tax returns any time before then, but it is always better to e-
file early to avoid the rush and heavy website traffic in the last month.

Penalty for Late Filing Income Tax Return: Taxpayers who do not file their income tax return on
time are subject to penalty and charged an interest on the late payment of income tax

6 Benefits of Filing Income TaxReturn

As a responsible citizen, you need to make sure that you file your returns every year. This is a
moral duty of every working Indian.

Filing ITR can be useful to you as well. Here are the various ways in which filing an Income Tax
Return can benefit you

1. It Actsas a Legal Document

Income Tax Return holds immense legal value. It is recorded with the government. It acts as legal
proof in two ways,

a. 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.

b. Income Proof

As discussed, the ITR form contains a detailedlist of all your incomes and expenses. On this basis,
the tax you have to file is calculated.

Thus, ITR can also be used as income proof as some transactions such as the purchase of property
do require you to show proof of income.
2. Can help you Claim Deductions

To reduce the burden on the taxpayers and to encourage more people to pay their taxes, the
government allows certain deductions to you.

a) These deductions and exemptions can be availed in some investments and thus help in

reducing the tax you ultimatelypay.

b) TDS and rebates can also be claimed back.

But to have access to these tax benefits, you are requiredto file an income tax return. If you have
not filed ITR you cannot claim deductions as well.

3. Important Document While Applyingfor Loans

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 the loan or not.

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.
4. Helps if Planning to go Abroad

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 that you want to visit.

This is because of the following:

a. Having a history of filing income tax returns helps your case and improves your chances of
getting visa approval.

b. It gives details aboutyour financial situation to the embassy.

5. Avoid Penalty and Punishment

The taxes that apply to you are governed by the Income TaxAct 1961. Thus, you are required to
pay taxes if you fall above the exempt criteria.

So, if you are eligible to pay taxes on your income and yet still fail to file your Income TaxReturns,
then you attractcharges

The income tax officer can levya penaltyof up to Rs 5000 Rs. Other serious punishments can also
occur if you do not file returns.

Thus, you should file ITR to be safe from such penalties and punishments

6. Losses can be Carried Forward

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.
Company Profile

Firm Name :- MOHAN & SRIDHAR, CharteredAccountants is apartnership

firm

Established In The Year :- 1986

Address :- Office at # 27, Sri Nilaya, 2nd Floor, 10th Cross, Margosa Road,
Malleswaram, Bengaluru - 560 003.

CONTACT DETAILS
Office Telefax:+91-80-2344 0931/2331 5335Email: [email protected]

Auditor

Mr.M.G.MohanKumar - B.Sc., LLB, F.C.A., LicentiateICSI

Mobile No: +91-98440 11940

Email Id [email protected]

Qualified as Chartered Accountant in 1984 and was employed with M/s. Kumbhat & Co.,
Chartered Accountants, Bengaluru for about 5 years. Served as Director – Finance of Deccan
Aviation Ltd. Founder partner of the firm in 1986. Presently in full time practice as partner of the
firm. Also Director on the Board of several companies

Mr.K. Sridhar - B.Com., F.C.A

Mobile No: +91-98440 11941

Email Id [email protected]
Qualified as Chartered Accountant in 1985 and was employed with M/s. Price Waterhouse,
Chartered Accountants, Bengaluru for a year. Founder partner of the firm in 1986. Presently in
full time practice as partner of the firm. Also Director on the Board of several companies

Firm Services

 Audits - Bank Statutory Audits,Statutory audits of Companies, Internal audit, Stock audit
for Banks and other Clients, Audit under Income Tax Act, VAT audit, Management Audit,
Due Diligence auditand GST.

 Income tax matters - Consultancy, preparation and filing of Income tax returns -
individuals, firms, corporate, non corporate, trusts,

 Tax deducted at source, double taxation, audit, filing returns, transfer pricing study,
transfer pricing report, representations & appeals
 Other Registrations and Compliances - Formation of Trust, Partnership Firm, Consultancy,
Registrations, Representation and appeals – Value Added Taxes, Goods & Service Tax,
Commercial taxes, Professional Tax, Service tax, Shops and Establishments Act, Provident
Fund and ESI, Import/Export, STPI, EOU& Factories Act.

 Accounting and Statutory Compliance Services.

 Company Law matters - Incorporation of companies - Limited, Private Limited, Sec.25/8
Company & Conversion under Companies Act, 1956/2013, Incorporation of LLP,Obtaining
DIN, DPIN, Post incorporation compliance, consultancy, Drafting of minutes, maintaining
statutory and other records as required under the Companies Act, share transfers, filing
of documents and returns, preparation & filing of XBRL reports, Company secretarial
services, drafting of agreements, representation before the Registrar of Companies and
Company Law Bench

 Public Issues - matters relating to Public issue of securities.

 Management & Financial consultancy including setting up of systems and procedures,
consultancy and preparation of CMA and other details on bank related matters with
respectto borrowings, renewals and enhancement applications.
 Project consultancy including preparation of project and feasibility reports, representation
and liaison with Financial Institutions andBanks

 Business valuations and acquisitions, Amalgamations, Mergers and Demergers

 Rehabilitation of sick units and BIFR matters
 Reserve Bank of India and FEMA matters including setting up of liaison offices, branch
offices, investment by NRIs/FDI, intimation of investments including filing of FCGPR,
Approvals from FIPB/SIA for foreign direct investment, Share Valuations for issue/transfer
to Non Residents.
 Certification on matters relating to Reserve Bank of India, Central Excise, Income tax
authorities, Import/Export, compliance with Indian accounting standards and
International Accounting Standards including IFRS & German Gap
DATAANALYSISAND INTERPRETATION
A questionnaire was prepared for measuring the effectiveness of training and development under
the guidance of ms Siri CA . The primary data collected by simple random sampling by using
questionnaires was tabulated, converted in to percentage and displayed both in table as well as
by graphical representation for analysis. Based on the data, Interpretations were made. The
questionnaire used for carrying out survey is included in the annexure.

Q 1: Who Does Your Tax Filing?

TABLE 1.1
OPTIONS RESPONSE IN PERCENTAGE %

Easy 23 16%

Employer 6 12%

Tax Advisor 28 56%

Others 8 16%

Total 50 100
CHART 1.1

Sales

Own Employer Tax Advisor Others

Interpretation:-
From the survey conducted, the researcher has concluded that, 8 respondents
will prefer to pay their tax filing by their own, 28 respondents will prefer to
pay through the tax advisor, 6 respondents will prefer through their employer
and the rest 8 will prefer to pay their tax through others sources.
 Q 2: How would you ratethe income tax department free e-filing service?

TABLE 2.2
OPTIONS RESPONSE IN PERCENTAGE %

Easy 23 46%

Difficult 8 16%

Cantsay 5 10%

I don’t use I- department of e file 14 28%

TOTAL 50 100

Chart 1.2

Easy

Difficult
28%
46% Cant say

10%
I don’t use I- department
16%
of e fi le

Interpretation:-

From the survey conducted, the researcher has conducted that, 23 respondents finds the e-filing
service easy while for the 8 respondents the following service is difficult, 5 respondents can’t say
whether it is difficultor easy , andthe rest 14 respondents don’t use I-T department e-file service.
Q 3: How do you e-file?

TABLE 1.3

OPTIONS RESPONSE IN PERCENTAGE

I.T. department’s free 40 80%
website
Paid e-filing site 6 12%
Others 4 8%
TOTAL 50 100%

Chart 1.3

8.00%

12.00%

I.T. department's free

websitePaid e-filing
site

Others

80.00%

Interpretation

From the survey conducted, the researcher has concluded that, 40 respondents will prefer
I.T.deparment’s free website to e- file their income tax return while 6 respondents’ e- file through
Paid e-filing site and the rest 4 respondents will prefer to use other sources for e-filing
Q-4: How would u rate the paid e filing service ?

TABLE 6.4

OPTIONS RESPONSE IN-PERCENTAGE

Easy 10 20%
Difficult 3 6%
Can’t say 7 14%
I don’t use paid e-filing 30 60%
TOTAL 50 100%

Chart 1.4

20.00

5.00

60.00 Easy
15.00
Difficult

Can't say

I don’t usepaid e-filing

Interpretation:
From the survey conducted, the researcher has conducted that, 10 respondents finds
the e-filing service easy while for the 3 respondents the following service is difficult,
7 respondents can’t saywhether it is difficult or easy , and the rest 30 respondents
don’t use I-T department e-file service.
Q 5: Do you understand the tax calculationsin your tax returns?

TABLE 6.5

OPTIONS RESPONSE IN-PERCENTAGE

Yes 42 84%
No 3 6%
Not sure 5 10%
TOTAL 50 100%

CHART 6.5

14.29%

4.76%

80.95%

Interpretation

From the survey conducted, the researcher has concluded that, 42 respondents understand the
tax calculations in theirtax returns while, 3 respondents do not understand the calculationin
their returnsand the rest 5 respondents are not sure whether they understand or not
FINDINGAND ANALYSIS

E-filling Survey : 80% use I-T department's free facility for filing returns
Over 70% feel satisfied with with free e-filing facility providedby the Income Tax
Department. However, only half are using tax calculation to verify.
➢ Our online survey on “Do you e-file of your tax returns” received 688 responses.
At first glance, the survey shows that an overwhelming 65% are doing their own
e-filing, while 26% are using the services of a tax advisor or a chartered
accountant (CA). Only 13% are using paid e-filing sites when compared to nearly
80% using I-T department’s free e-filingwebsite.

➢ Over 70% of the respondents, who have used free e-filing feel that it is easy or
somewhat easy. It means I-T department e-filing services have come a long way
and still dominate, eventhough paid e-filing services claim to provide easy filing
and better support. Six out of 10 respondents who have used paid e-filing are
also satisfied and hence e-filing services are providing value for the charges.
Those who file by visiting the I-T office to submit should consider e-filing for
convenience and ease.

➢ A good 87% claim to understand the calculations in tax returns. But, only
one in two respondents have used online or offline tax calculator to verify
tax computation. Tax calculators do help to catch any error in your tax
returns preparation before it is e-filed.

➢ Two out of 10 respondents have not looked at Form 26AS before filing tax
returns. This is a matter of concern as you are overlooking the critical
information that can even help to reducetaxes. For example, you may have
missed the credits for TDS. On the other hand, the I-T department will catch
you, if you failed to report the bank interestfor which TDS was deducted.

➢ Over 78% have easily got Form 16/16A from employer and banks, which means
the process is now smooth. Only 44% out of those who were eligible for refund
have received it within six months of tax filing. It means the majority of
consumers are still struggling to get their taxrefund even after six months delay.
Nearly eight out of 10 respondents who were required to pay taxes found e-tax
payment easy. It means you don’t have to visit banks to pay taxes. Tax payers are
doing it online.
SUGGESTION

• It is suggested that the income tax department can give information about
e-filing throughmedia and Newspapers because only 4% of respondents know about
e filing throughMedia.

• From the above study it is found that there has been extensive advertisement in
national newspaper. It is suggested that it can extended to local newspapers and also
using radiostations andlocal channels through local languages.

• It is suggested that the awareness can be increased by organizing awareness

programs in office/workplaces for the tax payers so that they are aware about e
filing andfile their income taxreturns easily by saving their cost and time.

• Theresearcher also intends to suggest to the income tax department upgrade its
technologiesin e-filing of returns(e-filing website) because many respondents find
reasons for their unsuccessful attempt for e filing their income tax returns like e filing
website not responding half way etc.

• Knowledgeabout convenience of e-filing should be given to those who do not

have anymotivation towards e-filing.

• Campaigns on e-filing shouldbe taken upin certain places, so thatall are aware
of itsflexibility.
Awareness towards correct ITR forms should be given to the tax payers
CONCLUSION

In the present world, new technologies are introduced and improved very fast in all
fields. Now new technology is gifted to tax payers for filing their income tax returns
through online i.e. through e- filing. The e-filing is the new effective method of filing
income tax return through online and make e-payment tax. It saves time, energy and
cost and also reduces tension. So the tax– payers are requestedto use e-filing and e
payment facilities. This study reveals that the existing users are satisfied with the e-
filing facilities but most of the individual tax payers are not aware of the e-filing and e-
payment procedures. Therefore through this research adequate steps to create more
awareness in the minds of tax payers regarding e-filing of income tax are provided. This
study is carried out to determine the taxpayer’s perception towards e-filing of income
tax returns. One of the main challenges in e-filing is therisk of security. As individual tax
payers are the most important end users, sufficient understanding of tax payers
acceptance and usage of e-filing system should be made to reduce the risk of user
rejection,preventive and predictive measures ought to be taken on a timely basis to
ensure further acceptance among the non-users of e-filing.
BIBLIOGRAPY

• https://cleartax-in.cdn.ampproject.org/v/s/cleartax.in/s/income-tax/

• https://www.coverfox.com/personal-finance/tax/income-tax/income-tax-return/

• https://www.moneylife.in/article/e-filing-survey-80-percentage-use-i-t-
departments-free- facility-for-filing-returns/38553.html
ANNEXURE.

1. Who does your tax filing?

a. Own b. Employer
c. Tax advisor d. others

2. How would you rate the Income tax department free e-filing service?

a. Easy b. Difficult
c. Can’t say d. I don’t use I-T department e-file

3. How do you e-file?

a. I-T department’s b. Paid e-filing site

-free website
c. Others

4. How would you rate the paid e-filing service?

a. Easy b. Difficult
c. Can’t say d. I don’t use paid e-filing

5. Do you understand the tax calculations in your tax returns?

a. Yes b. No
c. Not Sure

6. Have you looked at Form 26AS before filing tax returns?

a. Yes b. No
c. Not Sure

7. Have you used online or offline tax calculator to verify your tax computation?

a. Yes b. No
c. Sometimes