“INCOME TAX; WORKING AND THEIR IMPACT ON ASSESSEE THE FOLLOWING AGE

GROUP (30-40)”

A project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Banking and insurance)

Under the Faculty of Commerce

By

RUSHIKESH

Under the guidance of

Dr. MAMTA

MUMBAI PRADESH ARYA VIDYA S ABHA’S

GURUKUL COLLEGE OF COMMERCE

(NAAC ACCREDITED ‘B’ GRADE )

GURUKUL EDUCATIONAL INSTITUTIONS , TILAK ROAD,

GHATKOPAR EAST , MUMBAI – 400 077

M ARCH

2023-24
 DECLARATION BY LEARNER

I the undersigned Miss. Ashwini Ramdas Pawar here by, declare that the work

embodied in this project work titled “INCOME TAX; WORKING AND IMPACT ON ASSESEE
THE FOLLOWING AGE GROUP (25-35).” forms my own contribution to the research work
carried out under the

guidance of Rushikesh sir is a result of my own research work and has not

been previously submitted to any other university for any other Degree/Diploma to

this or any other University.

Wherever reference has been made to previous works of others, it has been clearly

indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained

and presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Ashwini Ramdas Pawar

 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels ad fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr. Mamta Mam for providing the necessary facilities
required for the completion of this project.

I take this opportunity to thank our Coordinator Rushikesh Sir for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Rushikesh Sir
whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project especially my parents and peers who supported me
throughout my project.

Ashwini Ramdas Pawar

TABLE OF THE CONTENT

Sr.no Title of the chapter Page no.

Chapter 1 Introduction
Objective for income taxes
The Basic Principles Income Taxes
An extract from income tax act, 1961
Computation of total income
Deduction from Taxable Income
Income Tax Slabs
1.1 Industry Profile
Duties and Responsibilities of Chartered
Accountants (CAs)
1.2 Company Profile
CA Profile
Introduction work of organisation
Organization its founders
Vision & Mission
1.3 Assesses
Categories of Assesses
Roles/Responsibilities and Duties of an
Assessee
Chapter 2 Research Methodology
2.1 Data Collection
2.3 Objective of Study
2.4 Need for Study
2.5 Scope & Limitation
2.6 Tools of analysis
 CHAPTER 1

INTRODUCTION
Introduction

Income tax is a financial and legal obligation in India. All individuals earning above a certain
amount are required to pay income tax on their earned income. The income tax rates, income
slabs, and rules are regulated by the government and are subject to change from time to time.
However, all taxpayers are responsible for accurately reporting their income and filing their
taxes on time. Failure to do so can result in penalties and fines.

Definition of Income Tax

Income tax is a tax charged on the annual income of an individual or business earned in a
financial year. The Income Tax system in India is governed by The Income Tax Act, 1961,
which lays out the rules and regulations for income tax calculation, assessment, and
collection. All taxpayers are mandated to submit an Income Tax Return (ITR) every year by
respective due dates as per the law to report their income and claim a tax refund if applicable.
An income tax return can be filed online or offline on the Income Tax Department's official
website or through verified third-party websites.
The Indian Income Tax system also includes various deductions and exemptions that can be
used to lower the tax liability for a given financial year.
1.1 Objective for Income Taxes

The main objectives of the Income Tax Act 1961 are as follows:

 Price Stability

The IT Act maintains price stability in the economy by laying out regulations for direct taxes. It
serves as a measure to control private spending, thereby keeping a check on the inflation of
commodity prices.

 Full Employment

This Act reduces the income tax rates in order to promote higher demand for goods and
services. This, in turn, leads to increased employment opportunities, thus fulfilling the
objective of full employment.

 Non-Revenue Objective

A higher tax rate is applicable for wealthy people compared to the poor. In this way, the
Income Tax Act encourages a progressive taxation system that addresses the inequality in
wealth among its citizens, carrying out its non-revenue objective.

 Cyclical Fluctuations Control

When there is an economic boom, the income tax rates are increased, while in times of
recession, it is reduced. In this way, the Act maintains control over cyclical fluctuations in the
value of money.

 Reducing Balance of Payment Issues

The Income Tax Act imposes customs duties on the import of certain goods. This helps
encourage the domestic production of goods, thereby reducing the balance of payment
difficulties for the authorities.

1.2 The Basic Principles Income Taxes

To implement that objective, all of the following basic principles are applied: While tax rules
vary widely, there are certain basic principles common to most income tax systems. Tax
systems in Canada, China, Germany , Singapore, the United Kingdom, and the United States,
among others; follow most of the principles outlined below. Some tax systems, such as India,
may have significant differences from the principles outlined below. Most references below are
examples; see specific articles by jurisdiction

Taxpayers and rates --------------Residents and nonresidents

Defining income -------------------------Deductions allowed

Business profits ---------------------------------------- Credits

Alternative taxes --------------------------------------Administration

State, provincial, and local -------------------------- Wage based taxes

1.3 An extract from income tax act, 1961

Enacted in the year 1961, the Income Tax Act is the charging statute of Income Tax,
extending to the whole of India. The Act provides for imposition, collection, administration and
recovery of income tax. The government introduced a draft statute, referred to as "Direct
Taxes Code", for the purpose of replacing the Income Tax Act, 1961, and the Wealth Tax Act,
1957. However, this was later dismissed on account of Wealth Tax Act being revoked.
The intention behind levying income tax is to finance the government’s different operations,
like funding various developmental activities, building infrastructure and for defense purposes.
According to the Indian Income Tax Act, 1961, the parties that are liable to pay the income tax
(provided their annual income falls into one of the income slabs as prescribed in the Act) are
individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body
of individuals and local authority. Income tax is levied annually, at the end of every financial
year (April – March).
Where a person includes:-

 Individual
 Hindu Undivided Family (HUF)
 Association of persons (AOP)
 Body of Individual (BOI)
 Company
 Firm
 A local authority and
 Every artificial judicial person not falling within any of the preceding categories.

Income tax is an annual tax imposed separately for each assessment year (also called the tax
year). Assessment year commence from 1st April and ends on the next 31st March.

The total income of an individual is determined on the basis of his residential status in India.
For tax purposes, an individual may be resident, nonresident or not ordinarily resident.
Types of Residents

ALL
ASSESSEES

Non
Resident
Resident

Only Individual
& HUF

Resident & Resident But

Ordinary Not Ordinary
Resident Resident

Scope Of Total of Income

The scope of total income in terms of the residential status of the assessee because the
incidence of tax on any person depends upon his residential status in India. The scope of total
income of an assessee depends upon the following three important considerations:

 the residential status of the assessee;

 the place of accrual or receipt of income, whether actual or deemed; and
 the point of time at which the income had accrued to or was received by or on behalf of
the assessee.

The ambit of total income of the three classes of assessees would be as follows:

(1) Resident and ordinarily resident (ROR)

The total income of an ROR would, under section 5(1), consist of:

 income received or deemed to be received in India during the previous year;

 income which accrues or arises or is deemed to accrue or arise in India during the
previous year; and
 income which accrues or arises outside India even if it is not received or brought into
India during the previous year.

In simpler terms, an ROR has to pay tax on the total income accrued or deemed to accrue,
received or deemed to be received in or outside India during the relevant previous year.

(2) Resident but not ordinarily resident (RNOR)

Under section 5(1), the total income of an RNOR would consist of –
  income received or deemed to be received in India during the previous year;
 income which accrues or arises or is deemed to accrue or arise in India during the
previous year; and
 income derived from a business controlled in or profession set up in India, even though
it accrues or arises outside India.

Note – All other income accruing or arising outside India which is not received or deemed to
be received or deemed to accrue or arise in India would not be included in his total income.

(3) Non-resident
A non-resident’s total income under section 5(2) includes:

 income received or deemed to be received in India in the previous year; and

 income which accrues or arises or is deemed to accrue or arise in India during the
previous year.

Note: All assessees, whether resident or not, are chargeable to tax in respect of their income
accrued, arisen, received or deemed to accrue, arise or to be received in India whereas a
resident alone (resident and ordinarily resident in the case of individuals and HUF) is
chargeable to tax in respect of income which accrues or arises outside India.

Clarification regarding liability to income-tax in India of a non-resident seafarer

receiving remuneration in NRE (Non-Resident External) account maintained with an
Indian Bank [Circular No.13/2017, dated 11.04.2017 and Circular No.17/2017, dated
26.04.2017]

Income by way of salary, received by non-resident seafarers, for services rendered outside
India on a foreign going ship (with Indian flag or foreign flag) and received into the NRE bank
account maintained with an Indian bank shall not be included in the total income

Residential Status and Scope of Total Income: Whether the following incomes are to be
included in Total Income?

Resident and Resident but not

Non-
Scope of total Income Ordinarily Resident Ordinarily Resident
Resident
(ROR) (RNOR)
Income received or deemed to be
received in India during the previous Yes Yes Yes
year
Income accruing or arising or
deeming to accrue or arise in India Yes Yes Yes
during the previous year
Yes, even if such Yes, but only if such
income is not income is derived from
Income accruing or arising outside
received or brought a business controlled in No
India during the previous year
into India during the or profession set up in
previous year India; Otherwise, No.
1.4 COMPUTATION OF TOTAL INCOME

Ordinary Special
Sources sources

Head 1 – Income
from Salary

Head 1

Head 2 – Income
from house
property Head 2

Head 3 – Income
from Business

Head – 4 Capital
Gain

Head 5 – Income
from residency
sources

Head 1 – Income from Salary

Salary Income is the paycheque you get every month from your employer. An amount
received from your employer in the form of bonus, allowance, perquisites, etc. is a part of your
Salary Income only.

Pension received by you after your retirement (not family pension) is also a part of the head
Salary Income.
Below are the components of salary income:

 Wages
 Annuity or Pension
 Gratuity
 Fees, Commission, allowances, perquisites or profits in lieu of salary
 Advance of Salary
 Amount transferred from unrecognized provident fund to recognized provident fund
 Contribution of the employer to a Recognised Provident Fund in excess of the prescribed
limit
 Leave Encashment
 Compensation as a result of variation in Service contract etc.

Moreover, this is an inclusive and not an exhaustive list.

A salaried individual can file ITR 1, ITR 2, ITR 3, and ITR 4. Of course, the applicability of ITR
depends upon all the sources of income but salary income can be filed in all these ITRs.

Head 2 – Income from House Property

On Owning a house one day – everybody dreams of this, saves towards this and hopes to
achieve this one day. However, owning a house property is not without responsibilities. Paying
house property taxes annually is one of them. If you want to learn how to save tax on home
loan interest, this guide is for you. It also talks about how to report home ownership in your
income tax return.

A house property could be your home, an office, a shop, a building or some land attached to
the building like a parking lot. The Income Tax Act does not differentiate between commercial
and residential property. All types of properties are taxed under the head ‘income from house
property’ in the income tax return. An owner for the purpose of income tax is its legal owner,
someone who can exercise the rights of the owner in his own right and not on someone else’s
behalf.

When a property is used for the purpose of business or profession or for carrying out
freelancing work – it is taxed under the ‘income from business and profession’
head. Expenses on its repair and maintenance are allowed as business expenditure.

a. Self – occupied House Property

A self-occupied house property is used for one’s own residential purposes. This may
be occupied by the taxpayer’s family – parents and/or spouse and children. A vacant house
property is considered as self-occupied for the purpose of Income Tax.

Prior to FY 2019-20, if more than one self-occupied house property is owned by the taxpayer,
only one is considered and treated as a self-occupied property and the remaining are
assumed to be let out. The choice of which property to choose as self-occupied is up to the
taxpayer.

For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has
been extended to 2 houses. Now, a homeowner can claim his 2 properties as self-occupied
and remaining house as let out for Income tax purposes.
 b. Let Out House Property

A house property which is rented for the whole or a part of the year is considered a let out
house property for income tax purposes

c. Inherited Property

An inherited property i.e. one bequeathed from parents, grandparents, etc. again, can either
be a self-occupied one or a let-out one based on its usage as discussed above.

Head 3 – Income from Business

Income from business or profession is chargeable to tax only if the business or profession is
carried on by a taxpayer at any time during the previous year. Let us first understand what is
Business:

Business, in simple words, means an occupation carried on by a person with a view to earn a
profit. Business does not include income from the Profession or partnership firm. The business
includes any –

 Trade,
 Commerce,
 Manufacturing,
 Even rendering services to others is considered as business.

For example: Owning a shop, running a hotel, transportation, travel agency, share broking,
etc.

 Profession may be defined as a vocation, or a job requiring some thought, skill, and
special knowledge. So profession refers to those activities where the livelihood is earned by
the persons through their intellectual or manual skill like: Legal
 Medical
 Engineering
 Chartered Accountant
 Architectural etc.

Any income generated from the above-mentioned activities will be taxed under the
head “Income from Business and Profession”.

Head 4 – Capital Gain

A capital gain refers to the increase in the value of a capital asset when it is sold. Put simply,
a capital gain occurs when you sell an asset for more than what you originally paid for it.

Almost any type of asset you own is a capital asset. This can include a type of investment
(like a stock, bond, or real estate) or something purchased for personal use (like furniture or a
boat).

Capital gains are realized when you sell an asset by subtracting the original purchase price
from the sale price. The Internal Revenue Service (IRS) taxes individuals on capital gains in
certain circumstances.

Head 5 – Income from Other Sources

 Income from Other Sources plays a vital role in India's taxation system. It refers to the income
that does not fall under the other four heads of income, namely Salary, House Property,
Business/Profession, and Capital Gains. Such income is taxed as per the provisions of the
Income Tax Act, 1961.

According to section 56 of the I-T Act, any income, profits, or gains included in the total
income of an assessee but doesn’t fall under any other head of income is chargeable under
the head “Income from Other Sources”. Thus, this head of the income is a residuary head that
brings within its scope all the taxable income, profits, or gains of an assessee that fall outside
the scope of any other head.

The following requirements should be met as per Section 56 of the Income Tax Act for an
income to fall under the head “Income from Other Sources“:
 You earn taxable income during a financial year.
 The taxable income cannot be categorised under any other head of income, such as Salaries,
Income from House Property, Profits and gains of business or profession, and Capital gains.

Incomes Chargeable under the head ‘Income from Other Sources.’

1. Dividend Income
Dividend income includes the dividend received from any company, deemed dividend under
section 2(22) (a)/(b)/(c)/(d)/(e), and interim dividend.

2. Casual Income
Casual income includes winnings from lotteries, crossword puzzles, races including horse
races, card games and other games of any sort, gambling, betting, etc.
3. Interest in compensation or enhanced compensation
Any income earned by the assessee as interest received on compensation or enhanced
compensation shall be taxable in the year it is received under the head “Income from other
sources”

1.5 Deduction from Taxable Income

Income tax department with a view to encourage savings and investments amongst
the taxpayers have provided various deductions from the taxable income under chapter VI A
deductions. 80C being the most famous, there are other deductions which are beneficial for
the taxpayers to reduce their tax liability.

Deduction limits under Section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)

 Sections Eligible investments for tax deductions Maximum Deduction

Investment made in Equity Linked Saving

Schemes, PPF/SPF/RPF, payments made
80C Rs 1,50,000
towards Life Insurance Premiums, principal
sum of a home loan, SSY, NSC, SCSS, etc.

80CCC Payment made towards pension funds Rs 1,50,000

Employed: 10% of
Payments made towards Atal Pension Yojana
basic salary + DA
80CCD(1) or other pension schemes notified by
Self-employed: 20% of
government
gross total income

Total deduction under Section 80C, 80CCC,

80CCE Rs 1,50,000
80CCD(1)

Investments in NPS (outside Rs 1,50,000 limit

80CCD(1B) Rs 50,000
under Section 80CCE)

Central government
employer: 14% of basic
Employer’s contribution towards NPS (outside
80CCD(2) salary +DA
Rs 1,50,000 limit under Section 80CCE)
Others: 10% of basic
salary +DA

Tax deduction refers to claims made to reduce your taxable income, arising from various
investments and expenses incurred by a taxpayer. Thus, income tax deduction reduces your
overall tax liability. It is a kind of tax benefit which helps you save tax. However, the amount of
tax you can save depends on the type of tax benefit you claim.

Tax deduction refers to claims made to reduce your taxable income, arising from various
investments and expenses incurred by a taxpayer. Thus, income tax deduction reduces your
overall tax liability. It is a kind of tax benefit which helps you save tax. However, the amount of
tax you can save depends on the type of tax benefit you claim.
Union Budget 2024-25 updates regarding Sections 80C, 80CCC, 80CCD, & 80D

The Union Budget for the financial year 2024-25 will only be announced after the general
elections (which will be held between April and May 2024) and after the new government is
formed. This announcement is expected to happen in July 2024. Meanwhile, the Interim Union
Budget 2024-25 was announced by the Minister of Finance on 1 February 2024. There are no
updates regarding any of the sections listed on this page in this Interim Budget.

Provident Fund

 Provident Fund is a type of retirement investment that is automatically subtracted from

your monthly salary.
 An employee and his/her employer both contribute towards PF.
 While the contribution made by the employer is exempt from tax, the contribution made
by the employee is eligible for deductions under Section 80C.
 Employees are also allowed to make voluntary contributions towards the Provident Fund
Account. Voluntary Provident Fund or VPF as it is called, is also eligible for tax
deductions under Section 80C of the Income Tax Act.

Public Provident Fund

 Public Provident Fund is a popular long-term investment instrument as it offers assured

returns.
 Interest is compounded on an annual basis and the maturity period of the scheme is 15
years.
 The least that you can contribute towards PPF is Rs.500 and the maximum contribution
allowed is Rs.1.5 lakh.
 The amount you contribute towards PPF is eligible for tax deductions under Section 80C
of the Income Tax Act.
Income Tax Slabs
Special Tax Rates for Individuals & HUFs for FY 2023-24/AY 24-25
Individuals and HUF get an option for payment of taxes at the given concessional rates
as per the Finance Act, 2020 from Assessment Year 2024-25 and onwards:

Total Income Income Tax Rate

Up to Rs 3,00,000 Nill

Rs 3,00,001 – Rs 6,00,000 5%

Rs 6,00,001 - Rs 9,00,000 10%

Rs 9,00,001 - Rs 12,00,000 15%

Rs 12,00,001 - Rs 15,00,000 20%

Above Rs 15,00,000 30%

Difference of Tax Slab Rates between New Tax Regime and Old Tax Regime
for FY 21-22 & AY 22-23

Income Tax Slab Tax Rates as per New Regime Tax Rates as per Old Regime

Rs 0 - Rs Nil Nil
3,00,000

Rs 3,00,001 - Rs 5% 5% (only up to Rs 5 lakhs)

6,00,000

Rs 6,00,001 - Rs Rs 15,000 + 10% of total Rs 12,500 + 20% of total

9,00,000 income exceeding Rs 6,00,000 income exceeding Rs 5,00,000

Rs 9,00,001 - Rs Rs 45,000 + 15% of total ₹62,500 + 20% of total income

12,00,000 income exceeding Rs 9,00,000 exceeding ₹7,50,000

Rs 12,00,001 - Rs Rs 90,000 + 20% of total Rs 112,500 + 30% of total

15,00,000 income exceeding Rs income exceeding Rs 10,00,000
10,00,000

Above Rs Rs 150,000 + 30% of total Rs 2,62,500 + 30% of total

15,00,000 income exceeding Rs income exceeding Rs 15,00,000
15,00,000
Tax Slabs for Senior Citizens (60 to 80 Years) for AY 24-25/ FY 23-24

Old Tax Regime New Tax Regime u/s 115BAC

Income Tax Income Tax Rate Income Tax Income Tax Rate
Slab Slab

Up to Rs Nil Rs 0 - Rs Nil
3,00,000 3,00,000

Rs 3,00,001 - 5% above Rs Rs 3,00,001 - 5%

Rs 5,00,000 3,00,000 Rs 6,00,000

Rs 5,00,001 - Rs 10,000 + 20% Rs 6,00,001 - Rs 15,000 + 10% of total

Rs 10,00,000 above Rs 5,00,000 Rs 9,00,000 income exceeding Rs
6,00,000

Above Rs Rs 1,10,000 + 30% Rs 9,00,001 - Rs 45,000 + 15% of total

10,00,000 above ₹10,00,000 Rs 12,00,000 income exceeding Rs
9,00,000

Rs 12,00,001 - Rs 90,000 + 20% of total

Rs 15,00,000 income exceeding Rs
10,00,000

Above Rs Rs 150,000 + 30% of total

15,00,000 income exceeding Rs
15,00,000
Tax Slabs for Super Senior Citizens (Above 80 Years) for AY 24-25/ FY 23-24

Existing Tax Regime New Tax Regime u/s 115BAC

Income Tax Income Tax Rate Income Tax Income Tax Rate
Slab Slab

Up to Rs Nil Rs 0 - Rs Nil
5,00,000 3,00,000

Rs 5,00,001 - 20% above Rs Rs 3,00,001 - 5%

Rs 10,00,000 5,00,000 Rs 6,00,000

Above Rs Rs 1,00,000 + 30% Rs 6,00,001 - Rs 15,000 + 10% of total

10,00,000 above Rs 10,00,000 Rs 9,00,000 income exceeding Rs
6,00,000

Rs 9,00,001 - Rs 45,000 + 15% of total

Rs 12,00,000 income exceeding Rs
9,00,000

Rs 12,00,001 - Rs 90,000 + 20% of total

Rs 15,00,000 income exceeding Rs
10,00,000

Above Rs Rs 150,000 + 30% of total

15,00,000 income exceeding Rs
15,00,000

Income Tax Slab Rates for NRIs

Old Income Tax Slab Regime New Income Tax Slab Regime

Up to Rs 2,50,000 NIL Up to Rs 3,00,000 NIL

Rs 2,50,001 - Rs 5,00,000 5% Rs 3,00,001 - Rs 6,00,000 5%

Rs 5,00,001 - Rs 10,00,000 20% Rs 6,00,001 - Rs 9,00,000 10%

Above Rs 10,00,001 30% Rs 9,00,001 - Rs 12,00,000 15%

Rs 12,00,001 - Rs 15,00,000 20%

Above Rs 15,00,000 30%

INDUSTRY PROFILE
The Institute of Chartered Accountants of India (ICAI) is the national professional accounting
body of India. It was established on 1 July 1949 as a statutory body under the Chartered
Accountants Act, 1949 enacted by the Parliament to regulate the profession of Chartered
Accountancy in India. ICAI is the second largest professional Accounting & Finance body in
the world. ICAI is the only licensing cum regulating body of the financial audit and
accountancy profession in India. It recommends the accounting standards to be followed by
companies in India to National Advisory Committee on Accounting Standards (NACAS). and
sets the accounting standards to be followed by other types of organisations. ICAI is solely
responsible for setting the Standards on Auditing (SAs) to be followed in the audit of financial
statements in India. It also issues other technical standards like Standards on Internal Audit
(SIA), Corporate Affairs Standards (CAS) etc. to be followed by practicing Chartered
Accountants. It works closely with the Government of India, Reserve Bank of India and the
Securities and Exchange Board of India in formulating and enforcing such standards.
Members of the Institute are known as

Chartered Accountants.

A chartered accountant (CA) is a financial professional who is qualified to execute certain

accounting procedures. It also refers to an accounting designation granted internationally to
individuals aside from the United States. CAs work in four main areas, including applied
finance, financial accounting and reporting, management accounting, and taxation. Their
responsibilities may include filing taxes and auditing financial statements. This designation is
the same as the certified public accountant (CPA) designation in the United States.

 Chartered accountants are financial professionals who execute accounting procedures.

 The CA designation is granted to accounting professionals in many countries around
the world, aside from the United States.
 The equivalent to the CA designation in the U.S. is a chartered public accountant.
 CAs typically focus on one of the following areas: audit and assurance, financial
accounting and reporting, management accounting, and applied finance or taxation.
 Some chartered accountant institutions have reciprocity agreements with the U.S.,
whereby if they pass certain exams, they can work as CPAs.
Duties and Responsibilities of Chartered Accountants (CAs)
As noted above, a chartered accountant is a financial professional who works in the field of
accounting. The designation held by CAs is the international equivalent of a CPA in the
United States. CAs earn their designation based on the rules and regulations of the country in
which they work.

Chartered accountants work both in the private and public sectors for organizations,
businesses, governments, and individuals to help them meet their financial needs. They
generally focus on one of four areas:

 Applied finance
 Financial accounting and reporting
 Management accounting
 Taxation1

Depending on their area of focus, CAs may handle one aspect of a company's business, such
as auditing financial statements. Others may oversee all of a company's accounting needs or
they may work as freelancers who handle accounting matters for multiple clients. The CA
designation proves CAs are qualified to file a business's tax return, audit financial
statements and business practices, and offer advisory services to clients.
3.1 profile
The Abhijeet.s.Mahale & Pankaj Mahale and Associates, CHARTERD ACCOUNTANTS
Membership No : 136434, 153655

FRN139814W ,FRN139204W

Date : 01/12/2014

CHARTED ACCOUNTANTS

Email ID : mahale.abhijeetnsk@gamil.com

Address:101,Hill – view apartment, bachubahi furniture showroom, tidke colony, nashik

Tal – Nashik, Dist – Nashik

3.2 Introduction work of organisation

Introduction of Abhijeet .S. Mahaleand Associates.

Chartered Accountants work in a wide range of business sectors and in a board spectrum of
roles, from Chief Executives to Financial Controllers. Below are a few examples of the type of
positions that Chartered Accountants occupy.

 Managements Accountants
 Financial Accountants
 Tax Accountant
 Budget Analysts
 Auditor

3.3Organization its founders

The Abhijeet.S.Mahale and Associates, CHARTERD ACCOUNTANTS

His Membership No: 136434 – FRN139814W. On Dated 01/12/2014

Chartered Accountants profile In Nashik Tal – Nashik, Dist – Nashik.

3.4Vision & Mission

Vision Statement

We will become the Tax advisor of choice through the creation of an environment where we
want to give of our best

Mission Statement

Prime objective the provision of an integrated range of client focused services

that will exceed our client’s expectations and assist them to improve the and reduce and

maintain Tax Liability

We are committed to creating a client focused culture and supporting our staff to achieve the
prime objective.

Our professional and local communities are an integral part of our ability to deliver on this

mission
Assesses
4.1 Categories Of Assessee :
An assessee is any individual who is liable to pay taxes to the government against any kind of
income earned or any losses incurred by him for a particular assessment year. Each and
every person who has been taxed in the previous years for income earned by him is treated
as an Assessee under the Income Tax Act, 1961.

An Assessee may be any individual liable to pay taxes for himself or to pay tax on behalf of
somebody else. The Income Tax Act, 1961 has classified Assessee in different categories. An
Assessee may either be a normal Assessee, a Representative Assessee, a Deemed
Assessee or an Assessee in Default.

1. Normal Assessee:

A normal Assessee is an individual who is liable to pay taxes for the income earned by him for
a particular financial year. Each and every Individual who has paid taxes in preceding years
against the income earned or losses incurred by him is liable to make payments to the
government in the form of tax. Any individual who is supposed to make payments to the
government in the form of interest or penalty or anybody who is entitled to tax refund under
the IT Act is an Assessee. All such individuals are grouped under the category of Normal
Assessee.

2. Representative Assessee:

Many times, it so happens that an individual is liable to pay taxes for income or losses
incurred not only by him, but also for income or losses incurred by a third party. Such an
individual is known as Representative Assessee. Basically, he acts as a representative for
people who themselves are not in a position to file and pay their taxes themselves. Generally,
the people who need representatives are non-residents, minors or lunatics. And the people
representing them are either their agents or guardians. Such people are deemed to be
Representative Assesses

3. Deemed Assessee:

Deemed Assessee is an individual who is put in a position to pay taxes for some other person
by the legal authorities. Generally, the individuals who are treated as Deemed Assesses are:

The executors or the legal heir of the property of a deceased person, who in written has
passed on his property to the executor, is treated as a Deemed Assessee.

The eldest son or any other legal heir of a deceased individual (who has expired without
writing his will) is treated as a Deemed Assessee.

The guardian of a minor, a lunatic or an idiot is treated as a Deemed Assessee.

The agent of a Non-Resident Indian (having Income Sources in India) is treated as a deemed
Assessee.
 4. Assessee-in-default:

An Assessee-in-default is an individual who has failed to fulfill his legal duty of paying tax to
the government. An employer is deemed to be an Assessee in default if he fails to submit the
TDS deducted by him to the government. An employer is supposed to disburse salary to his
employees after deducting TDS from their salary and submit the same to the government.
However, if he fails to do so then he is treated as an Assessee-in-default.

4.2 Roles/Responsibilities and Duties of an Assessee

The Assesses must make sure to file their re

turns on time and pay taxes as and when due. However, many times an Assessee might fail to
file his return on time. In this case, he might receive a notice from the IT department or the
concerned Assessing Officer, asking for details as to why the return has not been filed for that
particular financial year. The Assessee in this case has to mandatorily send a reply to the
Assessing officer stating the reason behind his failure to file his returns on time and also file
the same as soon as he receives the notice.

Let us take a quick look at the various roles and responsibilities of an Assessee upon
receiving a notice:

The Assessee must make sure to file his tax returns for the evaded income for the particular
assessment year as soon as he receives the notice from the department.

Having filed the returns, he may request the assessing officer for a copy which clearly
indicates the reasons for which the notice has been issued by the officer to him.

If the Assessee feels that the reasons stated in the copy are not valid, and that he is not
satisfied with the reasons, he may choose to file an object and challenge the notice and its
validity.

The Assessee must also make sure that he has solid reasons to file the objection and that he
has rightfully decided to raise questions on the notice issued by the government to him.

The Assessee may also choose to put forward a request to the concerned Assessing Officer
and ask him to give other reasons, if the claims made by Assessee are dismissed by the
officer.

With the help of a writ petition filed with the respective High Court, the Assessee may choose
to challenge the legality of the notice much before the completion of the scheduled
assessment or re-assessment.

With the help of a writ petition filed with the respective High Court, the Assessee may also
choose to challenge the legality of the notice even after completion of the scheduled
assessment.
The Assessee has to mandatorily furnish details pertaining to his income returns within a
period of 30 days from the date of issuance of the notice and not from the date on which the
notice has been received by the Assessee. The details pertaining to the income for which tax
payment has been avoided and other related income details must be clearly furnished and
submitted to the concerned officer in order to avoid problems at a later stage.

The Assessee has to ascertain that :* He has put forward a request to the Assessing Officer
asking for reasons as to why the notice has been issued by him.

He has lodged an objection to the given notice and the reasons given to him by the Assessing
Officer as he finds them to be unsatisfactory.

He has knowingly challenged the validity of the issued notice.

 CHAPTER 5

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
A research methodlogy or involves specific techniques that are the adopted in research
process to collect, assemboe and evaluate data. It defines those tools that used to gather
relevant information in a specific research study surveys, questionnaries and interviews are
the common tools of research.

2.1 Data Collection

Primary Data :- Primary research entails the use of immediate data in determining the stable
all tax system. Primary data is more accommodating as it shows latest information. The site
ministry of finance, income tax reports data on quarterly/ monthly/ half yearly/ annually
respectively.

Secondary Data :- Whereas Secondary research is means to reprocess and reuse collected
information as an indication for betterment of service or product. In this data related to a past
period. As tax consultant I collected data of my project form work in chartered Accountants
office related to different department are handle like tax planning, auditing tax consultant, audit
report etc. List of customer for advisory, tax details, fee structure etc. Data is collected from
record means history. I collected the data for tax planning for the tax payers use for
questionair.

2.2 Objective of Study:

 To study taxation provisions of the Income Tax Act, 1961.

 To understand current tax system in india.
 To understand various tools and techniques for tax planning.
 To understand various investment avenues used by different assesse for tax planning.

2.3 Need for study

In last some years of my career and education, I have seen my colleagues and faculties
grappling with the taxation issue and complaining against the tax deducted by their emloyers
from monthly remuneration. Not equipped with proper knowledge of taxation and tax saving
avenues available to them, they mercy of the HR Admin departments which never bothered to
do even as little as take advise from some good tax consultant.
Need for computerization:

Reliable & efficient services to student.

To reduce the paperwork & manual mistakes.

To reduce the labour cost.

To manage the tax records efficiently & accurately

2.4 Scope & Limitations

Scope

 This project studies the tax planning for individuals assessed to Income Tax.
 The study relates to non-specific and generalized tax planning, eliminating the need of
sample/population analysis.
 This study may include comparative and analytical study of more than one tax saving
plans and instruments.
 This study covers individual income tax assesses only and does not hold good for
corporate taxpayers.
 The tax rates, insurance plans, and premium are all subject to FY 2018-2019

Limitation

1) The Project studies the tax planning for individual assessed to income Tax.
2) The Study relates to non-specific and generalized tax planning, eliminating the need of
sample/population analysis.
3) Basis methodology implemented in this study is subjected to various pros & cons and
diverse insurance plans.
4) This study may include comparative and analytical study of more than one tax saving
plans and instruments.
5) This study covers individual income tax assesse’s only and does not hold good for
corporate tax payers.
6) The tax rates, insurance plans, and premium are all subjected to FY 2019-2020.

2.5 Tools of Analysis

Tax Planning Tools

Following are the tax planning tools that simultaneously help the assesses maximize their
wealth too.
Here are some guidelines to help you wade through the various option and ensure the
following :

1. Tax is saved and that you claim the full benefit of your section 80C benefits
2. Product are chosen based on their long term merit and not like fire fighting options
undertaken just to reach that Rs 1 lakh investment mark Products are chosen in such a
manner that multiple life goals can be fulfilled and that they are in line with your future
goals and expectations
3. Product that you choose help you optimise returns while you save tax in the immediate
future.