A

PROJECT REPORT
ON
“A STUDY ON INCOME TAX RETURN FOR ZAWAR
SOMANI & CO.

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF REQUIREMEN T OF MASTER OF

BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
GAYATRI RAVINDRA KARANJKAR

UNDER THE GUIDANCE OF

Ass. Prof. SHRIYA GOKHALE

DEPARTMENT OF MANAGEMENT STUDIES

SANDIP FOUNDATION’S

SANDIP INSTITUTE OF TECHNOLOGY & RESEARCH CENTRE

NASHIK – 422213
2024-25
 STUDENT’S DECLARATION

I undersigned hereby declare that, the project entitled, “A project report on Income
Tax Return for Zawar somani & Co. ” is executed as per the course requirement of
two year full time MBA program of Savitribai Phule Pune University. This report has
not been submitted by me or any other person to any other University or Institution for
a degree or diploma course. This is my own and original work.

PLACE: Sign of Student

DATE: GAYATRI RAVINDRA KARANJKA
 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of this MBA project. I am thankful for their aspiring guidance,
invaluably constructive criticism and friendly advice during the project work I am
sincerely grateful to them for sharing their truthful and illuminating view on a number
of issues related to the project.

I express my warm thanks to CA NILESH ZAWAR for their support and guidance at
Zawar Somani & Co. Nashik. for having me and making my summer training period, a
great learning experience by giving their guidance, valuable time and encouragement
which acted as a continuous source of support for me during this internship period.

I would also like to thank Hon. Principle Prof. Dr. AMOL POTGANTWAR & Hon.
HOD Prof. Dr. SWAPNIL MACKASARE for their support and guidance.

I would also like to thank my Institute guide Ass. Prof SHRIYA GOKHA LE who
guided me, and provided all support in completing this project.

I also like to acknowledge and extend appreciation for help and support from my all
faculty, friends and family for the time-to-time support, motivation and encouragement
without any hesitation.

Sign of Student
THANK YOU GAYATRI RAVINDRA KARNJKAR
 CONTENTS

Chapter TITLE Page

No. No.

COLLEGE CERTIFICATE

COMPANY CERTIFICATE

STUDENT’S DECLARATION

ACKNOWLEDGEMENT

Executive Summary

01 Introduction 01-04

02 Review of Literature 05-07

03 Company Profile 08-11

04 Theoretical Background 12-20

05 Research Methodology 21-26

06 Data Analysis Interpretation 27-38

07 Findings 39-40

08 Suggestions/ Recommendations 41-42

09 Conclusions 43-44

BIBLIOGRAPHY 45

ANNEXURE 46-48
 EXECUTIVE SUMMARY

Every citizen of India has to pay tax on their income to the Government of India as per the
Income tax rules and regulations. Whether you are an individual, association or a firm, LLP,
local authority or a Hindu undivided family, your income for each financial year is taxed in
accordance with Income Tax laws. 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.

The Income Tax Act, 1961 (the Act) provides for tax exemptions to various entities,
including Government funded entities, engaged in objects which are charitable in
nature, in order to encourage and fulfil social objectives, in areas such as charity,
religion, medical, education etc. These entities receive donations, voluntary
contributions and have other incomes from activities which are charitable in nature. The
receipts of such entities are required to be applied for the objects for which these Trusts
and Institutions have been set up. The Income Tax Department (ITD) has the
responsibility of ensuring that incomes of genuine and eligible Trusts and Institutions
only are exempted from levy of income tax and that they pay the correct amount of tax.
 CHAPTER- I
01. INTRODUCTION

1
INTRODUCTION

1.1 Introduction to the project

The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file
returns with the Income Tax Department at the end of every financial year. These
returns should be filed before the specified due date. Every Income Tax Return Form is
applicable to a certain section of the Assesses. Only those Forms which are filed by the
eligible Assesses are processed by the Income Tax Department of India. It is therefore
imperative to know which particular form is appropriate in each case. Income Tax
Return Forms vary depending on the criteria of the source of income of the Assessee
and the category of the Assessee.

Article 366(28) of the Constitution of India defines the term "Taxation" as follows -
"Taxation includes the imposition of any tax or impost, whether general or local or
special, and tax shall be construed accordingly." Taxes are considered to be the "cost of
living in a society". Taxes are levied by the Governments to meet the common welfare
expenditure of the society. There are two types of taxes - direct taxes and indirect taxes.

Direct Taxes: If tax is levied directly on the income or wealth of a person, then, it is a
direct tax. The person who pays the tax to the Government cannot recover it from
somebody else i.e. the burden of a direct tax cannot be shifted. E.g..Income- tax.

Indirect Taxes: If tax is levied on the price of a good or service, then, it is an indirect
tax e.g. Goods and Services Tax (GST) or Custom Duty. In the case of indirect taxes,
the person paying the tax passes on the incidence to another person.

2
INCOME TAX RETURN

Income Tax Return" is a term which is often used when we talk about income tax. It is
a way by which we pay this tax. When total annual income of a person, including all
sources, is more than maximum unchangeable limitation (At present it is Rs. 2,50,000/-
) then that person is liable to pay income tax.

According to Income Tax Act 1961, every person, who is an assesses and whose total
income exceeds the maximum exemption limit, shall be chargeable to the income tax

An individual is treated as resident in a year if present in India

I. for 182 days during the year or

II. for 60 days during the year and 365 days during the preceding four years. Individuals
fulfilling neither of these conditions areat the rate or rates prescribed in the finance act.

1.2 Project title

A Project Report On Income Tax Return For Zawar Somani & Co.

1.3 Objective of the project

o To make the study of income tax segment

o To know the customer’s awareness about the income tax filling
o To know the process of income tax return filling
o To comprehend the meaning of tax and types of taxes discern the difference
between direct and indirect taxes.

1.4 Why you have chosen this company and this project

1. Interest in Taxation: If you have a keen interest in taxation, working on projects

related to ITR can provide you with specialized knowledge and skills that are highly
valued in the industry.

3
2. Skill Development: Projects that involve complex tax scenarios, audit work, or
consulting can help you develop critical thinking, problem-solving, and analytical
skills.

3. Client Interaction: Projects that involve direct client interaction can improve your
communication and interpersonal skills, which are essential for a successful career in
accounting and finance.

4 .Specialization in Taxation: The firm’s specialization in income tax returns (ITR)

provides a focused learning environment where you can gain in-depth knowledge and
practical experience in tax laws, compliance, and filing procedures.

1.5 Location
Zawar Somani & Co. is located at:
2nd Floor, ZS HOUSE, Plot No 3, Opp Wockhardt Hospital, Mumbai Agra, Samta
Nagar, Nashik, Maharashtra 422011

1.6 Duration of the project

The project report is based on 2 months practical experience at Zawar Somani &
Co.

1.7 Results in short

Zawar Somani & Co. Chartered Accountants provide comprehensive services for filing
income tax returns (ITR). They assist individuals and businesses in preparing and filing
their tax returns accurately and on time, ensuring compliance with all relevant
regulations and maximizing tax benefits. Their services likely include tax planning,
consultation, and representation in case of any tax-related issues.

4
 CHAPTER- II
REIEW OF LITERATURE

5
 Meenu Gupta, (2012), she analysed that the acceptance of E-filing of Tax Retis
much better than traditional system of paying Income tax. The benefits of E-filing
headsup the importance of technological advancement.
Brahmbhat Mamta, (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.

Mukesh Kumar and Mohammed Anees (2014), E-filing Creating New Revolution in
Taxation of India", in their offinion 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.

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

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.

Dr.Sujeet Kumar Sharma, Dr.Rajan Yadav, (2011), "An Empirical Study on Tax
Paver'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,

6
perceived credibility and computer awareness significantly influence the customer's
acceptance of E-filing

Geetha R. and Sekar M. (2012), E-filing of Income Tax: 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.

Dr.Samir Mazidbhai Vohra, (2015) "E-filing, New Revolution in Taxation of In

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.

7
 CHAPTER- III
COMPANY PROFILE

8
 COMPANY PROFILE

3.1 Name of the company

Zawar Somani & Co.

3.2.1 Mission
Our mission at ZS has been to provide superior client service on a consistent basis to
all our clients. It is our mission. to exceed the expectations of our clients by holding our
firm to a standard of integrity and achievement that exceeds the usual and aspires
towards excellence.

Exceeding the Expectations of our Clientsrequires providing expert taxation, financial

and consulting services that not only meet but surpass industry standards.

We at ZS believe that long-term value will never be created through short-sighted

decision- making.

3.2.2 Vision

ZS will be a highly visible taxation, auditing, accounting and business consulting firm
known for its highly skilled and expert professionals in the fields of accounting, tax,
and business consulting.

We will encourage the expansion of our consulting services to provide greater depth of
service to our clients.

We will devote significant efforts to increasing the efficiencies of our audit, accounting,
tax, and administrative functions in order to improve our overall efficiencies.

We will strive to increase the amount and type of value added services we provide for
clients.

9
3.2.3 Slogan and logo

3.3.1 Location

Zawar Somani & Co. is located at:

2nd Floor, ZS HOUSE, Plot No 3, Opp Wockhardt Hospital, Mumbai Agra, Samta Nagar,
Nashik, Maharashtra 422011

3.3.2 Services

Audit & Assurance

Audits are performed to ascertain the validity & reliability of information; which
provide an assessment of a system's control.

Business Consultancy

Profit maximization is the objective of any business. Today's business environment is

fast moving, complex and highly competitive.

Compliance

Compliance to the numerous government laws requires in-depth knowledge of various

tax laws, where tax laws are amended.

Funding

For any business to be successful, it should have adequate supply of finances. This is
especially true in case of growing countries like India.

10
Starting Business

This is the most common type of business entity. Sole proprietorship means that there
is a sole owner who funds & operates the business.

3.4 Directors of Zawar Somani & Co.

o Mr. Nilesh Ganesh Zawar
o Mr. Anand Ahoke Zawar
o Mr. Vivekanand Omprakash Somani
o Mr. Monish Ramesh Zawar

11
 CHAPTER- IV
THEROTICAL BACKGROUND

12
 THEORETCAL BACKGROUND

Income Tax in India: Guide, IT Returns, E-filing Process 2019

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 heen introduced, is a unified tax that has replaced all the indirect
taxes that business owners have to deal with.

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

13
accumulating a 4% interest. Even, winners of 'Kaun Banega Crorepati have to pay tax
on their prize money. For simpler classification, the Income Tax Department breaks
down income into five heads

Head of Income Name of Income covered

Income from Salary Income from salary and pension are covered under here

Income from Other Income from saving bank account interest, fixed deposits,
Sources winning KBC
Income from House This is rental income mostly
Property
Income from Capital Income from sale of a capital asset such as mutual funds,
Gains shares, house property
Income from Business This is when you are self-employed, work as a freelancer or
And Profession contractor, or you run a business. Life insurance agents,
chartered accountants, doctors and lawyers who have their own
practice, tuition teachers

Income from Salary

All income received as salary under Employer-Employee relationship is taxed under

this head. Employers must withhold tax compulsorily, if income exceeds minimum
exemption limit, as Tax Deducted at Source (TDS), and provide their employees with
a Form 16 which shows the tax deductions and net paid income. In addition, the Form
16 will contain any other deductions provided from salary such as:

1. Medical reimbursement: Up to Rs. 15,000 per year is tax free if supported by bills.
(Company pays Fringe Benefit Tax on this amount)

2. Conveyance allowance: Up to Rs. 800 per month (Rs. 9,600 per year) is tax free if
provided as conveyance allowance. No bills are required for this amount
14
3. Professional taxes: Most states tax employment on a per-professional basis, usually
a scabbed amount based on gross income. Such taxes paid are deductible from income
tax.

4. House rent allowance: the least of the following is available as deduction

 actual HRA received

 50%/40%(metro/non-metro) of 'salary'
 rent paid minus 10% of 'salary'. Salary for this purpose is basic+DA forming
part+commission on sale on fixed rate.

Income From House property

Income from House property is computed by taking what is called Annual Value. The
annual value (in the case of a let out property) is the maximum of the following:

 Rent received
 Municipal Valuation
 Fair Rent (as determined by the I-T department).

If a house is not let out and not self-occupied, annual value is assumed to have accrued
to the owner. Annual value in case of a self occupied house is to be taken as NIL.
(However if there is more than one self occupied house then the annual value of the
other house/s is taxable.) From this, deduct Municipal Tax paid and you get the Net
Annual Value. From this Net Annual Value, deduct:

 30% of Net value as repair cost (This is a mandatory deduction)

 Interest paid or payable on a housing loan against this house

15
In the case of a self occupied house interest paid or payable is subject to a maximum
limit of Rs, 1,50,000 (if loan is taken on or after 1 April 1999) and Rs.30,000 (if the
loan is taken before 1 April 1999). For all non self- occupied homes, all interest is
deductible, with no upper limits.

The balance is added to taxable income.

Income from Business or Profession

 carry forward of losses

An example.. An architect works out of home and co-ordinates work for his clients. All
the following expenses would be deductible from his professional fees.

 he uses a computer,
 he travels to sites in his car
 he has a peon to help him collect payments
 He has a maid who comes in daily
 part of the society maintenance bills
 entertainment expenses incurred..
 books and magazines for his professional practice.

The income referred to in section 28, i.e, the incomes chargeable as "Income from
Business or Profession" shall be computed in accordance with the provisions contained
in sections 30 to 43D.

The computation of income under the head "Profits and Gains of Business or
Profession" depends on the particulars and information available.

Income from Capital Gains

16
Transfer of capital assets results in capital gains. A Capital asset is defined under section
2(14) of the I.T. Act, 1961 as property of any kind held by an assessee such as real
estate, equity shares, bonds, jewellery, paintings, art etc. but does not include some
items like any stock-in-trade for businesses and personal effects. Transfer has been
defined under section 2(47) to include sale, exchange, relinquishment of asset,
extinguishment of rights in an asset, etc. Certain transactions are not regarded as
'Transfer' under section 47.

For tax purposes, there are two types of capital assets: Long term and short term. Long
term asset are held by a person for three years except in case of shares or mutual funds
which becomes long term just after one year of holding. Sale of such long term assets
gives rise to long term capital gains. There are different scheme of taxation of long term
capital gains. These are:

1. As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares or
securities or mutual funds on which Securities Transaction Tax (STT) has been
deducted and paid, no tax is payable. STT has been applied on all stock market
transactions since October 2004 but does not apply to off-market transactions and
company buybacks; therefore, the higher capital gains taxes will apply to such
transactions where STT is not paid.

2. In case of other shares and securities, person has an option to either index costs to
inflation and pay 20% of indexed gains, or pay 10% of non indexed gains. The
indexation rates are released by the I-T department each year.

3. In case of all other long term capital gains, indexation benefit is available and tax rate
is 20%

All capital gains that are not long term are short term capital gains, which are taxed as
such:

17
  Under section 111A, for shares or mutual funds where STT is paid, tax rate is
10% From Asst Yr 2005-06 as per Finance Act 2004. For Asst Yr 2009-10 the
tax rate is 15%.
 In all other cases, it is part of gross total income and normal tax rate is applicable.

For companies abroad, the tax liability is 20% of such gains suitably indexed (since
STT is not paid).

Income from Other Sources

This is a residual head, under this head income which does not meet criteria to go to
other heads is taxed. Also there are also some specific incomes which are to be taxed
under this head.

1. Income by way of Dividend

Documents required to file income tax

When filing your income tax online or physically, it is always a good idea to be
prepared. The below mentioned details serve as a checklist to help you get started with
the e-filing of tax returns.

General details that would be required

 Bank account details

 PAN Number

Reporting salary income required

 Rent receipts for claiming HRA.

 Form 16
 Pay slips

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Reporting House Property income required

 Address of the house property

 Details of the co-owners along with their share in the mentioned property and
PAN details
 Certificate for home loan interest
 The date when construction was completed, in case an under-construction
property was purchased
 Name and the rental income of the tenant, if the property is rented

Reporting capital gains required

 There is a requirement of a stock trading statement with purchase details, in case

there are capital gains from selling the shares
 If a house or property is sold, you must sought sale price, purchase price, details
of registration and capital gain details

 Mutual fund statement details, purchase and sale of equity funds, debt funds,
SIPs and ELSS

Reporting other income required

 The income from interest is reported. In case of interest accumulated in savings

account, bank account statements are required
 Interest income from tax saving bonds and corporate bonds must be reported
 The income details earned from post office deposit must be reported

Deadline for E-Filing Tax Returns:

The last date for e-filing income tax returns for FY 2018-19 is 31st July 2019. You can
e-file your tax returns any time before then, but it is always better to e-file carly to avoid
the rush and heavy website traffic in the last month.

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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. Also, the penalty for late filing
income tax return on time has been increased recently. The penalty for late filing income
tax return is now as follows:

 Late Filing between 1st August and 31st December - Rs.5000

 Late Filing After 31st December - Rs. 10,000
 Penalty if taxable income is less than Rs.5 lakhs-Rs.1000

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 CHAPTER-V
RESEARCH METHODOLOGY

21
1 Introduction of Research:

Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation.

The advanced learner's dictionary of current English lays down the meaning of
research as "a careful investigation or enquiry specially through search for new facts in any
branch of knowledge"

Redman and Mory define research as a "systematized effort to gain new knowledge."

Some people consider research as a movement, a movement from the known to the
unknown. It is actually a voyage of discovery. We all possess the vital instinct of
inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes
us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the
mother of all knowledge and the method, which man employs for obtaining the knowledge of
whatever the unknown can be termed as research.

Meaning of Research:

Research is an academic activity and as such the term should be used in a technical
sense. According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions to determine whether they fit the formulating
hypothesis.

Research is a process of systematic inquiry that entails collection of data;

documentation of critical information; and analysis and interpretation of that data/information,
in accordance with suitable methodologies set by specific professional fields and academic
disciplines.

Definition of Research:-

 According to Maylor and Blackmon (2005) “A process of finding out information and
investigating the unknown to solve a problem”.
 According to Grinnell in 1993 it is composed of two-syllable word Re and Search that
describe careful, systematic, patient study, investigation for facts or principles.

22
 Research is defined as the creation of new knowledge and/or the use of existing knowledge
in a new and creative way so as to generate new concepts, methodologies and understandings.
This could include synthesis and analysis of previous research to the extent that it leads to new
and creative outcomes.

Investigation or experimentation aimed at the discovery and interpretation of facts, revision

of accepted theories or laws in the light of new facts, or practical application of such new or
revised theories or laws.

Importance of research:

1. Convenient and flexible

E-filing has brought about increased flexibility in the filing of taxes and is a lot more convenient
since one’s taxes can now be filed from the comfort of their home or workspace at their own
time. They can do it whenever they wish to, as it no longer serves to be a 9 to 5 task.

2. Saves time and money

E-filing saves a huge amount of time and money. When taxes are e-filed, whether it be for
businesses, professions, or individuals, the data is directly transmitted online from the e-filer’s
servers to the tax agency’s servers. The process saves a lot of time and money from transferring
data from paper to online input and saves the agency from making transmission errors.

3. Increased accuracy

Since transmission errors and the like can be avoided through e-filing, it leads to increased data
records accuracy and the overall tax filing process.

4. Less room for manipulation of records and window dressing

E-filing leaves less room for manipulation of data records and window dressing. With e-filing,
online data availability and interconnectivity are much more profound, and linking or tracing
data back to a tax-paying unit is made much easier and faster with e-filing.

5. Increased authenticity and accountability

E-filing has also led to increased authenticity to the process of tax filing and increased
accountability on both the tax agency and the taxpayer. Paper filing is slightly more ambiguous
because there is high ambiguity on the receipt of tax papers and tax records.

23
Relevance of the study:

 Income Tax Return or ITR is a form used to show your gross taxable income for the
given fiscal year. The form is used by taxpayers to formally declare their income,
deductions claimed, exemptions and taxes paid. Therefore, it calculates your net income
tax liability in a fiscal year.
 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.

Need of the study:

1. It makes loan processing easier

Suppose you want to apply for a home loan or any other loan (other than mortgage). In
most cases, a lender will ask for income proof before sanctioning a loan. The process
will include submitting your income tax returns for the last two or three financial years.
2. It helps you claim any carried forward losses.
If you have incurred losses under the heads “Capital Gains” or “Profits and Gains from
Business or Profession” and want such losses to be carried forward to the next financial
year, you can do so only by filing your income tax return.
3. It allows you to claim TDS refunds.
If your employee deducts tax at source or you have a contractual agreement that invites
TDS, you can claim a deduction for the same by filing your income tax return for the
year within the deadline (July 31 or as declared of the succeeding year). In such cases,
the income tax department calculates your net tax liability after adjusting the TDS paid.
If you are not required to pay tax, you can claim a refund by filing your ITR. You can
track your refund by checking your income tax return status.
4. It contributes to nation-building.
Any amount you pay as tax helps in building your nation. It is one of the major
contributors to the government’s cash inflow. For FY19, the government collected ₹
9.45 Lakh crore as direct taxes. The government can use the amount for building
infrastructure or for other developmental activities.
5. It will help you with visa or credit card applications.

24
 If you are applying for a visa for an international trip or a credit card, the issuer will
demand income proof from you. In most cases, you are required to submit your income
tax returns for the last three years. It will help the other party ascertain if you are eligible
for a visa or a credit card. If you intend to visit countries like the USA, Canada, or any
part of Europe, you must submit your ITRs during the verification process.

Limitations of the Study

E-submitting is easy for people who can file one of the less difficult forms. Once
you upload on headaches like walking your own commercial enterprise or claiming hobby on
a domestic you own, matters get a bit more complicated. One of the risks of e-filing tax returns
is that the software you use may not be sufficient for inputting the statistics the manner you
need. The IRS continues a listing of known boundaries for its e-filed paperwork that permit
you to determine beforehand of time if you may need to bypass the electronic version and go
directly to paper.

Even if you may do the entirety you want to do electronically, though, you
can simply locate it's less difficult to have everything in the front of you. This is mainly true if
you have a complicated go back that requires a couple of worksheets where the data needs to
be transferred over. You can also know enough approximately tax laws that you could do a
more accurate process than any tax software could, making the selection to record a paper-
primarily based go back less complicated.

Sources and Method Used For Study

 Primary Data:

Primary data refers to the information collected directly from the first-hand experience. This is
the information that you gather for the purpose of a particular research project. Primary data is
original data that is collected directly from the source for a specific research purpose. It is
gathered first hand by researchers through methods such as surveys, interviews, observations,
experiments, or focus groups.

 Secondary Data:

Secondary data is the data that have been already collected for another purpose. The data is
collected by someone else instead of the researcher himself. Secondary data is data that has

25
been collected and compiled by someone other than the researcher for a purpose other than the
current research.

Sources of Collection of Secondary Data

This type of data has already been collected by someone else and has already passed through
statistical process. This type of data has been collected from the following resources:

 Internet

Questionnaire:
A structure questionnaire was administered to the respondent for the collection of
primary data. Questionnaire consists of 11 questions.

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

26
 CHAPTER-VI
DATA ANALYSIS & INTERPRIETATION

27
Q.1 What is your age group?

OPTIONS RESPONSES PERCENTAGE

18-25 30 30%
26-30 10 10%
36-45 0 0%
46-55 10 10%
56 and above 0 0%
TOTAL 50 100%

RESPONSES
56 and above
46-55

36-45

26-30 18-25

18-25 26-30 36-45 46-55 56 and above TOTAL

Interpretation-

30% of the respondents are in the 18-25 age group.

10% of the respondents are in the 26-30 and 46-55 age groups, respectively.

No respondents fall within the 36-45 or 56 and above categories.

28
Q.2 What is your annual income range?

OPTIONS RESPONSES PERCENTAGE

Below 2.5 Lakhs 0 0%
2.5 To 5 lakhs 19 38%
5 To 10 Lakhs 31 62%
10 To 20 Lakhs 0 0%
TOTAL 50 100%

RESPONSES
Below 2.5Lakhs
10 to 20 Lakhs

2.5 to 5 Lakhs

5 to 10 Lakhs

Below 2.5 Lakhs 2.5 to 5 Lakhs 5 to 10 Lakhs 10 to 20 Lakhs TOTAL

Interpretation-

The majority of respondents (62%) fall within the 5 to 10 Lakhs income range.

A significant proportion (38%) earn between 2.5 to 5 Lakhs.

None of the respondents earn below 2.5 Lakhs or between 10 to 20 Lakhs.

29
Q3 Who Does Your Tax Filing?

OPTIONS RESPONSES IN PERCENTAGE

Own 32 64%
Employer 2 4%
Tax Advisor 14 28%
Others 2 4%
TOTAL 50 100%

RESPONSE
Others, 2

Tax Advisor, 14

Own, 32
Employer, 2

Own Employer Tax Advisor Others Total

Interpretation-

From the survey conducted, the researcher has concluded that, 32 respondents will
prefer to pay their tax filing by their own, 14 respondents will prefer to pay through the
tax advisor, 2 respondents will prefer through their employer and the rest 2 will prefer
to pay their tax through others sources.

30
Q.4 How would you rate the income Tax department free e-filing
service?

OPTIONNS RESPONSE IN PERCENTAGE

Easy 23 46%
Difficult 8 16%
Can't say 5 10%
I don't use I -T department e - file 14 28%
TOTAL 50 100%

RESPONSE

I don't use I -T
department e - file

Easy

Can't say

Difficult

Easy Difficult Can't say I don't use I -T department e - file TOTAL

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 difficult or easy, and the rest 14 respondents don't
use I-T department e-file service.

31
Q5. How would you rate the paid e- filing service?

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%

RESPONSE

Easy

Difficult

I don't use paid e-

filing
Can't say

Easy Difficult Can't say I don't use paid e-filing TOTAL

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 say whether it is difficult or easy, and the rest 30 respondents don't
use I-T department e-file service.

32
Q6. Do you understand the tax calculation in your tax returns?

OPTIONS RESPONSE IN PERCENTAGE

Yes 42 84%

No 3 6%

Not sure 5 10%

TOTAL 1.2 100%

RESPONSE

Not sure, 5 TOTAL, 1.2

No, 3

Yes, 42
Yes No Not sure TOTAL

Interpretation-

From the survey conducted, the researcher has concluded that, 42 respondents
understand the tax calculations in their tax returns while, 3 respondents do not
understand the calculation in their returns and the rest 5 respondents are not sure
whether they understand or not.

33
Q7. How do you e-file?

OPTONS RESPONSE PERCENTAGE

I.T Department's free Website 40 80%
Paid e-filing site 6 12%
Others 4 8%
Total 50 100%

RESPONSE
4

40

I.T Department's free Wbsite Paid e-filing site Others Total

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.

34
Q8. Have you looked at previous year 26AS form before filing tax returns?

OPTIONS RESPONSE IN PERCENTAGE

Yes 40 80%

No 8 16%

Not sure 2 4%

TOTAL 50 100%

RESPONSE
Not sure
No

Yes

Yes No Not sure TOTAL

Interpretation-

From the survey conducted, the researcher has concluded that, 40 respondents looked
at Form 26AS before filing tax returns while, 8 respondents do not looked at Form 26AS
before filing tax returns and the rest 2 respondents are not sure about whether they
looked or not at the time of their tax returns

35
Q9. Have you used online or offline tax calculator to verify your tax computation?

OPTIONS RESPONSE IN PERCENTAGE

Yes 26 52%

No 19 38%

Sometimes 5 10%

TOTAL 50 100%

RESPONSE
Sometimes, 5

Yes, 26
No, 19

Yes No Sometimes TOTAL

Interpretation-

From the survey conducted, the researcher has conducted that, 26 respondents are
agreed with the statement that they used online or offline tax calculator to verify their
tax computation while 19 respondents do not use it to verify their tax computation and
the rest 5 respondents are sometimes use it or sometimes not to verify their tax
computation.

36
Q10. Do you easily get Form 16/16A from employer and bank?

OPTIONS RESPONSE IN PERENTAGE

Yes 39 78%

No 8 16%

Not Sure 3 6%

TOTAL 50 100%

RESPONSE
Not Sure
No

Yes

Yes No Not Sure TOTAL

Interpretation-

From the survey conducted, the researcher has conducted that, 39 respondents agreed
on the statement that they easily get Form 16/16A from employer and banks while, 8
respondents do not easily get Form 16/16A from employer and banks and the rest 3
respondents are not sure about whether they easily get it or not from employer and
banks.

37
Q11 If you had to make a tax payment, did you find e-tax payment easy?

OPTIONS RESPONES IN - PERCENTAGE

Yes 32 64%
No 3 6%
Not sure 5 10%
Not applicable 10 20%
TOTAL 50 100%

RESPONES

Notapplicable

Not sure

No Yes

Yes No Not sure Notapplicable TOTAL

Interpretation-

From the survey conducted, the researcher has concluded that, 32 respondents find e-
tax payment easy, while 3 respondents find it difficult, 5 respondents will not sure about
the e-tax payment, whether it is easy or difficult and the rest 10 respondents will not
applicable for the e-tax payment.

38
CHAPTER- VII
FINDINGS

39
E-Filing survey: 80% use I-T department's free facility for filing returns

Over 70% feel satisfied with free e-filing facility provided by the Income Tax
department. However, only half are using tax calculators 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-filing website.
 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, even though 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 reduce taxes. 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 interest for 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 tax refund even after six months delay.
Nearly eight out of 10 respondents who were required to pay taxes found e-tax

40
payment easy. It means you don't have to visit banks to pay taxes. Tax payers
are doing it online.

CHAPTER- VIII
SUGGESTION

41
 It is suggested that the income tax department can give information about e-filing
through media and Newspapers because only 4% of respondents know about e
filing through Media
 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 radio stations and local 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 and file their income tax returns easily by saving their cost and time
 The researcher also intends to suggest to the income tax department upgrade its
technologies in 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.
 Knowledge about convenience of e-filing should be given to those who do not
have any motivation towards e-filing
 Campaigns on e-filing should be taken up in certain places, so that all are aware
of its flexibility
 Awareness towards correct ITR forms should be given to the tax payers.

42
CHAPTER- IV
CONCLUSIONS

43
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 ie. 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 requested to 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 tax payer's perception towards e-filing of income
tax returns. One of the main challenges in e-filing is the risk 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.

44
 BIBLIOGRAPHY
1.Meenu Gupta (2012)

http://www.kuvempu.ac.in/eng/upload_file/M.Com%20Chapter%20-%2010.pdf

2. Brahmbhat Mamta (2012)

https://www.granthaalayahpublication.org/journals/granthaalayah/article/view/IJR
G17_A11_788

3. Mukesh Kumar and mohmmad anees (2014)

https://www.ripublication.com/gjfm-spl/gjfmv6n4_15.pdf

4. Dr. Samir Mazidbhai vohra, (2015)

https://www.worldwidejournals.com/international-journal-of-scientific-research-
(IJSR)/article/e-filing-new-revolution-in-taxation-of-india/Njg0Ng==/?is=1

5. Yi- shun wang (2002)

https://www.researchgate.net/publication/222577419_The_adoption_of_electronic
_tax_filing_systems_An_empirical_study_Government_Information_Quarterly_20
4_333-352

6. Dr. Sujeet kumar sharma and Dr. Rajan Yadav (2011)

https://www.academia.edu/122642034/An_Empirical_Study_on_Tax_Payers_Attit
ude_Towards_E_Return_Filing_in_India

7. Geeta R and shekar M (2012)

https://www.isca.in/IJMS/Archive/v1/i4/2.ISCA-RJMS-2012-031.pdf

8. Dr. Samir Mazidbhai vohra,

(2015)https://www.worldwidejournals.com/international-journal-of-scientific-
research-(IJSR)/article/e-filing-new-revolution-in-taxation-of-
india/Njg0Ng==/?is=1

45
 ANNEXURE
1. What is your age group?

a. 18-25

b. 26-30

c. 36-45

d. 46-55

e. 56 and above

2. What is your annual income range?

a. Below 2.5 lakhs

b. 2.5 to 5 lakhs

c. 5 to 10 lakhs

d. 10 to 20 lakhs

3. Who does your tax filing?

a. Own

b. Employer

c. Tax advisor

d. others

4. 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

46
5. How do you e-file?

a. I.T department's site-free website

b. Paid e-filing

c. Others

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

a. Easy

c. Can't say

b. Difficult

d. I don't use paid e-filing

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

a. Yes

b. No

c. Not Sure

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

a. Yes

b. No

c. Not Sure

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

a. Yes

b. No

c. Sometimes

10. Do you easily get Form 16/16A from employer and banks?

a. Yes

47
b. No

c. Not Sure

11. If you are eligible for refund, did you get it within six months of tax filing?

a. Yes

b. No

c. Not Sure

d. Not applicable

12. If you had to make tax payment, did you find e-tax payment easy?

a. Yes

b. No

c. Not Sure

d. Not applicable

48