EXPLAIN COMPUTERIZED ACCOUNTING SYSTEM AND WHAT ARE THE

ADVANTAGES OF MAINTAINING RECORDS THROUGH COMPUTERIZED

ACCOUNTING SYSTEM.
A computerized accounting system is an advanced software application used to manage financial
transactions and records. Unlike traditional manual bookkeeping, which involves physical ledgers and
papers, a computerized system leverages digital technology to enhance accuracy, efficiency, and
accessibility of financial data. Components of a Computerized Accounting System: 1.General Ledger:
The core component where all financial transactions are recorded. It includes accounts for assets,
liabilities, equity, income, and expenses. 2.Accounts Payable and Receivable: Tracks amounts owed by
the business (payable) and amounts owed to the business (receivables), ensuring timely payments and
collections. 3.Inventory Management: Manages stock levels, orders, sales, and deliveries, helping
businesses keep track of inventory in real-time. 4.Payroll: Automates employee payment processes,
including salary calculations, tax withholding, and benefits administration. 5.Financial Reporting:
Generates various financial statements such as income statements, balance sheets, cash flow
statements, and other customized reports. Advantages of Maintaining Records through a Computerized
Accounting System: 1.Accuracy: Minimizes human error by automating calculations and data entry,
ensuring precise financial records. 2.Efficiency: Speeds up the processing of financial transactions and
reduces the time required for bookkeeping tasks. Real-time data updates allow for immediate access to
financial information. 3.Scalability: Easily handles increased volumes of transactions as the business
grows. 4.Compliance: Assists in adhering to financial regulations and standards. The system can be
programmed to comply with local tax laws and accounting standards, reducing the risk of non-
compliance. 5.Security: Protects sensitive financial data with advanced security measures such as
encryption, access controls, and regular backups. 6.Data Analysis and Reporting: Provides powerful
tools for financial analysis and reporting. Customizable reports and dashboards offer insights into
financial performance, helping businesses make informed decisions. 7.Time and Cost Savings:
Reduces the need for manual record-keeping and paperwork, leading to significant time and cost
savings. 8.Ease of Access: Facilitates easy access to financial information from anywhere, at any time,
especially with cloud-based systems.
DEFINE THE TERM TALLY. AND DESCRIBE THE VERSION HISTORY OF TALLY. Tally
is a comprehensive accounting software designed to streamline financial and business operations for
enterprises of all sizes. Developed by Tally Solutions, an Indian company, Tally is known for its user-
friendly interface and extensive features, including bookkeeping, invoicing, inventory management,
payroll processing, and tax compliance, particularly for Goods and Services Tax (GST) in India. Tally
aids businesses in maintaining accurate financial records, ensuring regulatory compliance, and
generating detailed financial reports. Its flexibility and scalability make it suitable for various
industries, contributing to efficient financial management and decision-making. Tally's robust platform
supports remote access, data synchronization, and multi-user environments, making it an essential tool
for modern businesses.
Different versions and Evolution of Tally: A)Tally 3.0: Founded in the year 1990 and it offered basic
accounting features. B)Tally 4: Developed in the year 1992 and it supported Microsoft DOS. C).Tally
5.4: Developed in the year 1996 and it offered a graphic interface version. D)Tally 6.3: Developed in
the year 2001. It was compatible with Windows and offered features to calculate VAT. E)Tally 7.2:
Developed in the year 2005 with more enhanced features. f)Tally 8.1: Developed in the year 2006 with
features for managing payroll and point of sale. G)Tally 9: Developed in the same year 2006 with
features for TDS calculation, E-TDS filing, and FBT among other features. H)Tally ERP 9: Developed
in the year 2009. It could help with GST calculations, had a multi-user login feature, could generate
invoices, and could also be remotely accessed from various office locations. I)Tally Prime: Developed
in the year 2020 with easier navigation, user experience, and multi-tasking features
FEATURES OF TALLY *Comprehensive Accounting: Manages all accounting aspects, including
transactions, accounts payable/receivable, general ledger, and bank reconciliation. Supports multi-
currency transactions. *Inventory Management: Advanced capabilities for stock categorization,
movement analysis, reorder levels, and batch tracking to optimize inventory levels.
*Payroll Management: Efficiently handles payroll processes like attendance, salary calculation,
deductions, and compliance with PF and ESI regulations. *Tax Compliance: Automates tax
calculations and filings (GST, VAT, Income Tax) to ensure compliance and generate accurate reports.
*Invoicing and Billing: Creates professional invoices and bills, supports multiple formats and recurring
invoices, streamlining billing processes. *Multi-User Capability: Tally's multi-user feature allows
multiple users to work on the software simultaneously, improving collaboration and efficiency within
the organization. ADVANTAGES OF TALLY 1. Ease of Use:Tally is known for its user-friendly
interface, making it easy for users to navigate and perform tasks. Its simplicity reduces the learning
curve and increases productivity. 2. Scalability: Tally is scalable and can accommodate the growing
needs of businesses. Whether it is a small business or a large enterprise, Tally can be customized to
meet specific requirements. 3. Cost-Effective: Tally offers a cost-effective solution for managing
accounting and business operations. It eliminates the need for multiple software applications and
reduces administrative overheads. 4. Regulatory Compliance: Tally ensures compliance with local and
international accounting standards and tax regulations. It helps businesses avoid penalties and legal
issues by automating compliance processes. 5. Integration Capabilities: Tally can be integrated with
other business applications, such as Customer Relationship Management (CRM) and Enterprise
Resource Planning (ERP) systems, providing a unified solution for managing business operations.
6. Real-Time Information: Tally provides real-time updates on financial data, allowing businesses to
monitor their financial health and make timely decisions. EXPLAIN THE PROCESS OF
INSTALLATION OF TALLY PRIME SYSTEM. 1. Download the Setup File - Visit the Tally
Solutions website - Click on the "Download" button to download the setup file (setup.exe). 2. Run the
Setup File: - Locate the downloaded setup.exe file in your Downloads folder. - Double-click the
setup.exe file to start the installation process. 3. Configure Installation Settings: - The Install
Application screen will appear. - Press "C" (Configure) if you want to change the default settings. -
Configure options such as the application path, desktop shortcut, and Start menu entry.
4. Install the Application:- Press "I" (Install) to continue the installation. - The application will be
installed in the default location (C:\Program Files\TallyPrime) 5. Start Tally Prime: - After installation,
press "S" (Start Tally Prime) to launch the software. - You can also press "C" (Continue Setup) to
configure additional settings such as the data path, country, and accounting terminology.
6. Activate the License:- Enter your serial number, activation key, and email ID to activate the license.
- Follow the prompts to complete the activation process. 7. Initial Setup: - Create a new company or
open an existing company. - Configure basic settings such as the company name, financial year, and
currency. 8. Start Using Tally Prime: - Once the initial setup is complete, you can start recording
transactions, managing inventory, and generating reports
EXPLAIN THE PROCESS WITH STEPS OF THE FOLLOWING: A.Creation of Company:
1.Select create company option from the company information menu (Alt+K) from gateway of
tally.2.The company creation screen is divided into 2 parts that is the top portion which consist of the
basic information of the company like name, address, contact details etc. and the bottom potion which
consist of all base currency information. Some important in the company creation page includes the
following: i)Company data path/directory, Company name, Mailing name, Address, State,Country,
Pin-code, Telephone, Mobile, Fax, E-mail, Website, Financial year beginning from, Books beginning
from, Base currency symbol, Formal name. 3.Press yes or enter to accept the screen for successful
company creation (or Ctrl+A) B.Selection of Company: Press F3 from gateway of tally.2.Click on the
select company option, list of all the companies will appear with the options of company name, number
and financial year. 3.Click on the company you want to select and press enter to load the company.
C.Alteration of Company Information: 1.Press Alt+K from gateway of tally. 2.Select alter option
(press A) from the company information menu. 3.Select the field where you want to change the
information and make the unnecessary changes. 4.Press Ctrl+A to save the changed information.
D.Deletion of Company: 1.Press Alt+K / F3 from gateway of tally. 2.Select alter option (Press A)
from the company information menu. 3.In the company alteration page press Alt+D for deletion of
company. 4.Press Yes/Enter or accept the confirmation message. E.Shut Company: 1.Press Alt+K/
Ctrl+F3 from gateway of tally. 2.Select shut company option (Press H) from the company information
menu (Follow this step if pressed Alt+K). 3.Select the company you want to shut . 4.Press enter to
close the selected company F.Creation of Group Company: 1.Open all the member companies in the
gateway of tally using select company option. 2.Press Alt+K to go to create company screen, click on
create. 3.Press Alt+R or select group company option from the right hand side of the screen. 4.Fill all
the relevant information of the group company. 5.Select the member companies of the group. 6.Accept
the screen or press Enter or Ctrl+A for accepting and creation of group company. *Import and
Export of Data in Tally:Tally ERP 9 (and its later versions) provides functionalities to import and
export data to and from the software, enabling users to transfer information efficiently across different
systems and locations. This feature helps in reducing manual entry errors, ensuring consistency and
saving time. *Importing Data in Tally:1. Prepare the Data: - Ensure the data is in a compatible format
(XML, Excel, or JSON) - Structure the data according to Tally’s requirements (e.g., ledger accounts,
stock items, vouchers). 2. Access Import Feature: -Open Tally and go to the main menu - Navigate to
Gateway of Tally > Import of Data > Master/Vouchers. 3. Select File and Import: - Choose the type of
data to import (Masters or Vouchers) - Specify the file path of the data to be imported - Click on
“Import” and review any error messages or logs for successful import.4. Verify Data: - After the import
is complete, verify the data within Tally to ensure accuracy- Check that all records have been imported
correctly.*Exporting Data in Tally: 1. Select Data to Export:- Navigate to the specific report or data
you want to export (e.g., Balance Sheet, Profit & Loss Statement). - Go to the Display menu and
choose the report. 2. Choose Export Option - Press Alt+E to open the export options.- Select the format
you wish to export to (Excel, PDF, XML).3. Configure Export Settings: - Specify the file name and
destination folder - Choose additional settings like export range, style of report, and more. 4. Execute
Export: - Confirm the settings and press Enter to export the data - The file will be saved in the chosen
format at the specified location 5. Verify Exported Data: - Open the exported file to ensure the data has
been accurately transferred and formatted. *Data Backup in Tally: 1. Open Tally:- Launch Tally and
navigate to the Gateway of Tally.2. Select Company: - Choose the company for which you want to take
the backup.3. Backup Option: - Go to F3: Company Information or press Alt+F3 from the Gateway of
Tally - Select Backup. 4. Specify Backup Location:- In the Backup Companies screen, specify the
destination path where you want to save the backup file.
- You can either enter the path manually or use the browser button to choose the location.
5. Select Company to Backup:- The list of companies will be displayed. Select the company or
companies you wish to back up - Press Enter to start the backup process. 6. Confirm Backup: - Tally
will confirm the backup and display a message once the process is complete.
Data Restore in Tally: 1. Open Tally: - Launch Tally and navigate to the Gateway of Tally.
2. Restore Option:- Go to F3: Company Information or press Alt+F3 from the Gateway of Tally -
Select Restore. 3. Specify Source of Backup: - In the Restore Companies screen, specify the source
path where the backup file is stored- You can enter the path manually or use the browser button to
locate the file.4. Select Company to Restore: - The list of backup files will be displayed. Select the
company or companies you wish to restore - Press Enter to start the restore process.5. Confirm Restore:
- Tally will confirm the restore and display a message once the process is complete. ADVANTAGES
OF DATA BACKUP AND RESTORE IN TALLY
- Data Security: Ensures that your financial data is secure and can be recovered in case of accidental
deletion or hardware failure.- Business Continuity: Helps maintain business continuity by providing
access to critical financial information even in the event of data loss.
- Ease of Use: The backup and restore processes in Tally are simple and user-friendly, ensuring that
even non-technical users can perform these tasks effortlessly.
SETTING CURRENT DATE 1. Open Tally:- Launch Tally and navigate to the Gateway of Tally 2.
Alter Date Option: - Press F2 3.Enter Current Date 4. Enter Enter CURRENT PD. F3-> SEL ALTER
, ENTER FIN. PD. SAVE
ACCOUNTING MASTERS *Groups- categorize ledger(eg assests, liabilities,expenses,income)
*ledgers- are individual accounts for transactions and vouchers- are used to record transactions
*Creation of Accounting masters: 1.Go to Gateway of tally -> Masters -> Create -> Accounting
masters -> Group/ Ledger 2.Fill all the details of the group/ledger creation screen. 3.Press Ctrl+A to
Accept for the successful creation of the master.
*Alteration of Accounting masters: 1.Go to Gateway of tally -> Masters -> Alter -> Accounting
masters -> Group/ Ledger 2.Select the group or ledger you want to alter and press Enter. 3.Make all the
necessary changes in details of the group/ledger in the alteration screen 4.Press Ctrl+A to Accept.
*Deletion of Accounting masters: 1.Go to Gateway of tally -> Masters -> Alter -> Accounting
masters -> Group/ Ledger. 2.Select the group or ledger you want to delete and press enter.3. In the
alteration screen Press Alt+D for the successful deletion and accept the confirmation message to
delete.*Creation of Multi-masters:
1. Go to Gateway of tally -> Masters -> chart of accounts -> accounting masters -> group/ledger ->
press Alt+H or press on multi masters option in the right side menu of the screen -> select multi create
option and fill all the necessary details 2.Press Ctrl+A to accept the screen. *Alteration of Multi-
masters: 1.Go to Gateway of tally -> Masters -> chart of accounts -> accounting masters ->
group/ledger -> press Alt+H or press on multi masters option in the right side menu of the screen ->
select multi alter option and make all the necessary changes . 2. Press Ctrl+A to accept the screen.
INVENTORY MASTERS 1.Stock Groups : classify items (eg. Electronics, furniture) 2.stock items :
Represents individual inventory items (eg, laptop, chair).3.Stock categories : alternative classification
to track items differently 4.Units of measure: Defines measurements Like kg, meter piece. 5.Gudowns/
Locations. :Represents storage for stock (eg. Warehouse A)Creation: A Stock group 1.Go to gateway
of tally -> masters -> create -> inventory masters -> stock group /stock category/ stock item/ unit/
godown. 2.Fill all the details of the inventory masters creation screen. 3.Press Ctrl+A for successful
creation of the inventory master. Alteration 1. Go to gateway of tally -> masters -> alter -> inventory
masters -> stock group /stock category/ stock item/ unit/ godown. 2.Select the stock group /stock
category/ stock item/ unit/ godown that you want to alter and then press enter. 3.Make the necessary
changes as required and press Ctrl+A to save. Deletion 1.Go to gateway of tally -> masters -> alter ->
inventory masters -> stock group /stock category/ stock item/ unit/ godown.2. Select the stock group
/stock category/ stock item/ unit/ godown that you want to delete and then press enter. 3. In the
alteration screen Press Alt+ D and accept the confirmation message to delete the selected stock group
/stock category/ stock item/ unit/ godown VOUCHER is a document that contains the details of a
financial transaction and is required for recording the same in the books of accounts. For every
transaction one can use appropriate tally voucher to enter the details into the ledgers and update the
financial position of the company. Voucher entry A transaction in tally through voucher entry. To
enter a voucher in tally select the vouchers option under transaction in the gateway of tally or press “V”
at the gateway of tally At the voucher entry screen select the appropriate voucher type from the right
side of the screen or by pressing the appropriate button (F4 TO F10)Voucher configuration For
modifying or changing various options or features of a particular voucher type press F12 or select the
Configuration option at the bottom right of the voucher entry screen Voucher numbering Tally will by
default automatically enter the voucher numbers. However there are different options for voucher
numbering, namely: automatic, automatic (manual overwrite), manual & multi user auto.
To change the method of voucher numbering go to the Alter option under masters in the gateway of
tally & select voucher type option under accounting masters.
From the list of the voucher types select the voucher you want to modify and press enter.
Modify the method of voucher numbering as required and accept the screen.
TYPES OF VOUCHER 1.Contra Vouchers (F4): used for fund transfer between cash and bank
accounts Example: cash deposit in bank. ( gateway of tally -> transactions -> vouchers -> contra entry
(F4)) 2.Payment voucher (F5): Records cash or bank payment, ex paying rent, salaries or suppliers
(gateway of tally -> transactions -> vouchers -> Payment (F5)). 3.Receipt voucher (F6): Records
money received, ex : paying rent, salaries or suppliers (gateway of tally -> transactions -> vouchers ->
Receipt (F6)). 4. Journal Voucher (F7) used for adjustment or non cash transaction ex depreciation
entries(gateway of tally -> transactions -> vouchers -> journal(F7)) 5. sales voucher (F8): Records
sales transactions. ex: selling goods to a customer(gateway of tally -> transactions -> vouchers ->
sales(F8)) 6. Purchase Voucher (F9): records purchase transactions. ex buying raw material(gateway of
tally -> transactions -> vouchers -> purchase(F9)). 7.Debit Note (ctrl+ F9): Used for purchase returns
or claiming refunds. 8. Credit Note (Ctrl + F8): used for sales recturns or issuing refunds. (To view the
Debit note/ Credit note voucher entry screen go to gateway of tally -> transactions -> vouchers ->
Debit note (Alt +F5)/ Credit note (Alt +F6).)
Debit note (Alt +F5)/ Credit note (Alt +F6): A debit note is a commercial document issued as a
means of formally requesting a credit note. When the goods supplied are returned after issuing the
invoice or when there is a revision in the value of invoice due to discount or any other factors, a debit
note or credit note is issued by the supplier or receiver of goods and services. A debit note or credit
note can be issued in the following two situations: 1.When the amount payable by the buyer to the
seller decreases: When the value of the invoice decreases due to return of the goods, change in the
value of goods, discount received after issue of invoice etc, the buyer issues a debit note and the seller
issues a credit note as a response or acknowledgement to the debit note. The reason behind this is being
as follows:
In the books of the buyer the seller’s account will have a credit balance. When a debit note is issued the
credit balance of the seller decreases hence a debit note reduces the liability for buyer. 2.When the
amount payable by the buyer to the seller increases:
When the value of the invoice increases due to any reason, the seller issues a debit note and the buyer
issues a credit note as a response or acknowledgement of receipt to the debit note. The reason behind
this is being as follows:In the books of the seller the buyer’s account will have a debit balance. When a
debit note is issued by the seller the debit balance of the buyer increases it means that more amount is
required to be paid by the buyer to the seller. To view the Debit note/ Credit note voucher entry screen
go to gateway of tally -> transactions -> vouchers -> Debit note (Alt +F5)/ Credit note (Alt +F6).
ORDER PROCESSING can be classified into purchase order processing and sales order processing.
Purchase order processing is the process of placing an order with the supplier for the purchases to be
made and sales order processing is the process of receiving orders from the customers.Usually the
companies need to track the order details for the sales and purchases as this significantly planning the
production process accordingly. In tally prime order processing is linked to inventory, this allows the
tracking of the order position for a stock item like the arrival of the goods ordered, whether the ordered
stock items are delivered on time etc
I. The purchase order processing include these steps: 1. Purchase order: gateway of tally -> transaction
-> vouchers -> other vouchers-> Ctrl +F9 (purchase order) [to activate the inactive voucher click show
inactive option under other voucher and double click on the purchase order voucher] II.Fill all the
details of purchase order voucher namely: party account name, order number, purchase ledger and
stock item details. III.Press enter or Ctrl +A to accept the screen. 2. Receipt note: Gateway of tally ->
transaction -> vouchers -> other vouchers-> Ctrl +F9 (purchase order) [to activate the inactive voucher
click show inactive option under other voucher and double click on the purchase order voucher]
II. Fill all the details of purchase order voucher namely: party account name, order number, purchase
ledger and stock item details III.Press enter or Ctrl +A to accept the screen.
3.Rejection out and receipt note (if any): REJ: gateway of tally -> transaction -> vouchers -> other
vouchers-> Ctrl +F5 (rejection outward) [to activate the inactive voucher click show inactive option
under other voucher and double click on the purchase order voucher]
I. Fill all the details of rejection outward voucher namely: date, party account name, stock item,
tracking number etc. III.Press enter or Ctrl +A to accept the voucher.
RECEIPT NOTE I.gateway of tally -> transaction -> vouchers -> other vouchers-> Alt +F9 (receipt
note) [to activate the inactive voucher click show inactive option under other voucher and double click
on the purchase order voucher] II. Fill all the details of receipt note voucher namely: party account
name & select the order number from the list. III.All the items of stock will be automatically displayed
on the screen on the basis of the purchase order selected. IV.Press enter or Ctrl +A to accept the screen.
Purchase voucher: I.Gateway of tally-> transactions-> vouchers-> F9 purchases II.Fill all the detail of
the purchase voucher that is the party account name, suppliers invoice number, purchase ledger and
select the tracking order number from the list. All the stock items their quantity and rate will be
automatically filled up as per the order number selected.
III.Enter the GST ledgers as applicable after accepting the stock items displayed. IV.Press enter or
Ctrl+ A to accept the voucher. 5.Debit note (if any) 6.Payment voucher
*****************************
REGIST. OF E -FILING Step 1: Go to the e-Filing portal homepage, click Register. Step 2: Enter
PAN under Register as a Taxpayer option and click Validate. In case the PAN is already registered or
invalid, an error message is displayed Step 3: Enter all the mandatory details including Name, DOB,
Gender and Residential Status as per the PAN on the Basic Details page and click Continue. Step 4:
After PAN is validated, the Contact Details page appears for individual taxpayers. Enter Contact
Details including Primary Mobile Number, email ID and Address. Click Continue. Step 5: Two
separate OTPs are sent to the primary mobile number and email ID mentioned in Step 5. Enter the
OTPs received & click Continue. Step 6: Edit the details in the page if necessary and click Confirm.
Step 7: On the Set Password page, enter your desired password in both the Set Password and Confirm
Password textboxes. Enter your personalized message and click Register Step 8: When successfully
registered, click Proceed to Login to begin the login process *LOGIN TO E FILING PORTAL *Go
to https://www.incometax.gov.in -1. Click on "Login":Find the "Login" button on the top-right corner
of the homepage. 2. Enter Your PAN:Type your PAN (Permanent Account Number) as the User ID.-
Click “Continue” 3. Confirm Secure Access Message:If you set a secure message while registering, it
will appear now (for extra safety) 4. Enter Password:Type your password.-Click on "Continue" to log
in. 5. OTP Verification (if enabled):Enter the OTP to complete login. *VARIOUS HEADS UNDEF
DASHBOARD OF E FILING PORTAL 1. Dashboard Overview (Main Page):Total Tax Liability /
Refund Status *Filing Status of Current and Previous Years *Pending Actions / Notifications *Profile
Summary *e-Verify Return / Upload Return quick links 2. Tabs/Heads in the Main Menu (Top
Navigation): a. Dashboard -Summary of returns filed-Pending actions-Notices or communications-
Profile completeness score b. e-File-Income Tax Return → File Income Tax Return-View Filed
Returns-e-Verify Return -Submit Response to Outstanding Demand-Rectification-Response to Notice
u/s 139(9), 143(1), etc. c. Authorized Partners:EVC through bank/Demat account-Aadhaar linking
status d. Services-My Profile-My PAN-My Bank Account-My Aadhaar-View Form 26AS (Tax
Credit)-Annual Information Statement (AIS)-TDS/TCS View-E-Proceedings-Grievance Redressal e.
Pending Actions: response to Notices-Compliance Portal-Worklist (To-do items, like pending e-
verifications or responses) f. Grievances:Lodge a grievance-Check status g. Help:FAQs-Guides-Video
tutorials-Helpline

FORM 26AS is a consolidated tax credit statement issued by the Income Tax Department. It shows:
*Taxes deducted on your income (TDS)*Advance tax/self-assessment tax paid *High-value
transactions (like mutual funds, property, etc.)*Refunds received*Details of AIR/ SFT tansactions (like
big investments or spends) IMPORTANCE *Helps ensure all TDS deducted has been deposited against
your PAN *Useful for accurate ITR filing *Prevents notices for mismatch in income or TDS *Verifies
refunds issued by the department*allows convenient and easier return processing SECTIONS OF
FORMS 26AS Part A:(TDS ON SALARY, INTEREST , RATE, Etc) Part A of Form 26AS contains
TDS details with respect to tax deducted from the income earned or received by the taxpayer. This part
will segregate the TDS based on the type of income (head of income) and nature in which it is earned.
These subsections are based on sections under which TDS has been booked and deducted and paid to
the Treasury of government. So if a taxpayer earns interest income and salary income, then Part A of
Form 26AS will be segregated into section 192B (for TDS on salary) and section 194A (for TDS on
interest). Part A1: (TDS IN INCOME OFHER THAN SALARY (if not shown in part A):This part
contains the details of the income on which TDS is not deducted as a result of the submission of Form
15G or 15H. When any taxpayer submits Form 15G or 15H, it is considered as evidence which will
lead to no TDS on income received by the taxpayer. Part A2: (TDS ON SALE OF IMMOVABLE
PROPERTY)This part is specifically dedicated to TDS on sale of immovable property under section
194-IA. This section under Form 26AS requires the buyer to deduct and pay the TDS under section
194-IA on the consideration received on sale of immovable property.Part B:(TCS) This part holds the
details of TCS (Tax Collected at Source) based on PAN of the taxpayer. TCS is applicable on certain
goods like Scrap, Liquor, etc. In such cases, TCS is collected and paid to the government treasury by
the seller (one who receives money) rather than buyer (as in case of TDS). If you sell these goods and
are required to collect TCS then this section will have entries for transactions for which you have
collected TCS and filed TCS return. Part C: (TAX PAID): This part will hold the details of taxes paid
by the taxpayer in the nature of Self-Assessment Tax and Advance Tax. This section will show the
challan details through which the tax was paid by the taxpayer. Challan details will have break up of
tax paid (into tax, cess, etc.), BSR code, date of deposit, Challan Serial Number, etc. which should be
filled in the Return of Income as present in Form 26AS. Part D:(REFUND DETAILS) This part will
contain the details of the refund paid to the taxpayer in relation to return of income filed. Refund details
will have Assessment year, Mode of Payment, Refund amount, Interest on the refund, date of payment,
etc. This will help you verify whether you have actually received the refund and if not you can sort it
out with the assessing officer.Part E: This part is concerned with AIR (Annual Information Return)
transactions based on the PAN of the taxpayer: There are various high-value transactions which are
required to be reported in the AIR return by Mutual Fund Companies, banks, etc. Such transactions will
be traced from AIR returns filed by these Mutual Fund companies, etc. based on PAN and will be
displayed in Form 26AS. Part F: This part is concerned with TDS on immovable property under section
194-IA but for a buyer of the property. This would mean that entries will appear here only if there has
been the sale of immovable property and where the TDS has been deducted and paid to the government
treasury by the taxpayer.Part G:(TDS DEAFULT) This part deals with TDS defaults in the nature of
*Wrong deduction *Short deduction *Delayed deposit of TDS *No deposit of TDS etc. This part will
have details of TDS short payment, interest leviable thereof (due to delay). late filing fees, etc. This
will not include demands raised by the assessing officer.
TYPES OF ITR FORMS ITR-1 (SAHAJ)- For: Resident Individuals (other than Not Ordinarily
Resident)* Income from Salary or pension *income from One house property*income from Other
sources (like interest) *Total income up to ₹50 lakh Not for: Capital gains, business income, foreign
income/assets ITR-2 For: Individuals and HUFs (Hindu Undivided Families) Income from All types
of income except business/profession*Includes capital gains, more than one house property, foreign
income/assets Not for Income from business or profession ITR-3 For: Individuals and HUFs *Income
from business or profession (proprietorship) *Also includes salary, capital gains, house property, etc.
ITR-4 (SUGAM) For: Resident Individuals, HUFs, and Firms (other than LLP)
Income: Presumptive income under sections 44AD, 44ADA, or 44AE *Total income up to ₹50 lakh
Not for: Capital gains, foreign assets, if you’re a director in a company, etc.
ITR-5 For: Firms, LLPs, AOPs (Association of Persons), BOIs (Body of Individuals), and others
(excluding individuals/HUFs) ITR-6 For: Companies (other than those claiming exemption under
Section 11 — e.g., charitable/religious trusts) ITR-7 For: Persons including companies required to file
return under Sections 139(4A) to 139(4F) (e.g., trusts, political parties, research institutions, etc.)
139(4A): For charitable/religious trusts with income exceeding the basic exemption limit (before
claiming exemptions under Sec 11 & 12) 139(4B): For political parties with income exceeding
exemption limit (before Sec 13A exemption). 139(4C): For specific institutions (scientific research,
news agencies, etc.) claiming exemption under various sections like 10(23A), 10(23B), etc. 139(4D):
For educational institutions/universities/colleges, not required to file under any other section.139(4E):
For business trusts (e.g., REITs, InvITs). 139(4F): For investment funds (like AIFs under Sec 115UB).
TYPES OF ITR 1. Original Return:*This is the first return filed under section 139(1).*Filed on or
before the due date. 2. Belated Return:Under section 139(4). *Filed after the due date (deadline
missed). *You may have to pay a late fee and interest on tax due. 3. Revised Return: Filed under
section 139(5). *If you discover any error or omission in your original/belated return. *Can be filed
before the end of the relevant assessment year or completion of assessment, whichever is earlier.
4. Updated Return: *Introduced in Budget 2022 (section 139(8A)). *Can be filed within 24 months
from the end of the relevant assessment year. *Useful if you missed declaring some income earlier (but
comes with additional tax liability). 5. Defective Return: *If your filed return has missing or incorrect
information, it may be declared defective under section 139(9).*You’ll be asked to rectify it within a
time limit, else it may be considered invalid. 6. Return of Loss:*Filed to carry forward losses (like
business loss, capital loss). *Must be filed within due date to be eligible for carry forward (under
section 139(3)). MODES OF FILING ITR Income tax return is a form which a person supposed to
submit to the income tax dep. of india. The Assessee can file ITR in the following modes/ways:
1. offline (Using the upload XML. file) 2.Online (Filing the information online).
Filing ITR through offline Mode: Download the applicable ITR, fell-up the form offline, save the
generated XML fele and then upload it • To e-file the ITR using upload XML method the user must
download either of the following ITR utility- *Excel utility *Java utility *JSON Utility
Perform following steps to download utility, generate and upload XML:….step 1:Go to incomea tax E-
filing portal (www.incometax.gov.in) step 2: Download the apporopriate ITR utility, under Download
-> IT return preparation software.step 3: Extract the downloaded Utility zip file and open the utility
from the extracted foldeslr. Step 4: Fill the applicable and mandatory field of ITR form. Step 05:
Validate all the tabs of the ITR form and calculate the tax. step 6: Generate and save the XML. step 07:
Login to e-filing postal-> e-file menu-> income tax return→ File income tax retum. Step 08: Select the
assessment year and mode of filing the ITR. as offline. Step 9: select the filing Type and the ITR form
as applicable. click on continue step 10: Attach the generated and saved file of utility and click on
proceed to verification. step 11: Verify the Income tax Return by choosing any one of the
available option Steps to File ITR Online (e-Filing) 1.Go to: https://www.incometax.gov.in 2.Log in
using your PAN and password (or register if new). 3.Click on "File Income Tax Return". 4.Select
Assessment Year, status, and ITR form (like ITR-1, ITR-2, etc.). 5.Fill in your income details,
deductions, and bank info. 6.Preview and submit the return. 7.Verify it using: *Aadhaar OTP *Net
banking *EVC (bank/demat) *OR send ITR-V to CPC Bengaluru
E-VERIFICATION OF ITR uploading of the return of income alone does not complete the return
filing process it is mandatory for all to verify the return to complete the process of Return filing a
return file online must be verified if the assessee is unable to e-verify the return he can download the
return filing acknowledgement print it out signed and send the same to CPC that is centralised
processing centre Bangalore the various option to e verify the ITR are as follows: *Aadhar OTP
*digital signature certificate *electronic verification code AADHAR VERIFICATION ITR file can
be e-verified using an adhar with PAN and also the registered mobile no. step 1: click on e-file menu
and select e-verify retum step 2: click on e-verify link and select the option-3 that is "I would like to
generate adhar OTP to verify my return " step 3: The taxpayer will get an otp on registered mobile No.
step 4: enter the OTP and click on submit adhar OTP button. DIGITAL SIGNATURE
CERTIFICATE E-VERIFICATION: a DSC is the electronic format of physical or paper certificate
that serves as a proof of Identity of an individual it is used in e-Filing of ITR it should be registered on
e-filing portal STEP 1: login to the e-filing portal using your pan and password. step 2:click on the tab
profile settings & select the option Register DSC nd download the DSC utility step 03:Extract the DSC
utility and run the program as per the instruction. step 4: Again login to your account and upload the
generated digital signature file while filing the return. Your return will be now e-verified.
ELECTRONIC VERIFICATION CODE an EVC is a 10 digit alphanumeric code that is sent to the
registered mobile number of the tax filer while filing the returns online it helps to verify the identity of
the tax filer, The following are the methods of e-verification through EVC 1. EVC through net
banking: only a handful of banks in the country offer the service one can login to the net banking
account and look for the E verified option from there you can generate the 10 digit alphanumeric
number or EVC to confirm the verify process 2.EVC through email id and mobile number: Step 1:
from the top menu in the e-filing dashboard select generate EVC under the section my account 2:now
go to my account-> e-verify return 3: click on option '1' to enter the EVC receipt and e-verify the return
4:you will get a confirmation message 3. EVC Through Demat Account: this method is bit similar to
verification through bank account 1:go to e-filing portal->pre validate your Demat account number
2:validate your Demat account number and click on e verified link 3: select the option to verify using
Demat account details and generate OTP 4: enter EVC in e filing portal to verify the return
4.EVC through ATM the income tax department has provided permission to a few banks to offer such
services one can visit the ATM and use "pin for e-filing option'' an EVC will be generated and received
in the registered mobile number in the e-filing portal select the option to e verify return using Bank
ATM and enter the EVC to get the return verified 5.Verify through bank account 1: login to the e-
filing portal and pre validate the bank account 2: after the bank account details are validated
successfully click on e verify link 3:select the option "e-verify using bank account details by generating
OTP'' 4: an EVC will be received on the registered mobile number enter your EVC on the portal to get
the return verified Note: The e- verification should be done within a time limit of 120 days else the ITR will be invalid