AProject ReportOnA Study on Tax E-Filing of ReturnsAtMoney Plant ConsultingSubmitted ByTeena R. Borole

Under The Guidance OfProf. Vidhya HittalmaniIn Partial Fulfillment of Master Degree of Business AdministrationAffiliated to University of PuneInstitute of Industrial Computer Management and ResearchPradhikaran, Nigdi, Pune

Batch 2013 2015Declaration

It is hereby declared that all the facts and figures included in the Summer Internship Project is a result of my own research and investigations including formal analysis of the entire project work and the same has not been previously submitted to any examination of this University or any other University.This declaration will hold good and in my wise belief with full Consciousness.

Date:Place: Nigdi, Pune.

Name & Signature of the Student

ACKNOWLEDGEMENTI take this opportunity to express my profound gratitude and deep regards to my project guide (Prof.Vidhya Hittalmani) for his/her exemplary guidance, monitoring and constant encouragement throughout the course of this summer internship project. The blessing, help and guidance given by her/him time to time shall carry me a long way in the journey of life on which I am about to embark.I also take this opportunity to express a deep sense of gratitude to Company project guide (Abhay Mankar, Administrator, Money Plant Consultancy) for his/her cordial support, valuable information and guidance, which helped me in completing this task through various stages.I am obliged to staff members of (Money Plant Consultancy), for the valuable information provided by them in their respective fields. I am grateful for their cooperation during the period of my SIP.I would also like to thank our director Dr. Abhay Kulkarni and Head TLE Ms. Madhavi Deshpande whose wisdom & foresight, I continually benefit from.I also take immense pleasure to thank Mr. Arjun Kale, Placement Officer, for giving me an opportunity and placing me for the SIP.Lastly, I thank almighty, my parents, brother, sisters and friends for their constant encouragement without which this summer internship project would not be possible.

Name & Signature of the Student

Index

Sr. No.ContentPage No.

1Executive Summary

2Organization Profile

3Outline of the Problem / Task undertaken

4Research Methodology and Data Analysis

5Relevant activity charts, tables, graphs, diagrams, etc.

6Learning of the student through the project (Observation, Findings, Limitations)

7Contribution to the host organization

8References in appropriate referencing styles: APA style

9Annexure if any

CHAPTER 1EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

E-Filing of IT Returns is the process of electronically submitting your Income Tax Return to the Income Tax Department. This electronic submission can be done in one of the following ways:A. Manually:Where youtake the output of the software in XML or non-XML format, convert to XML in case of the latter and upload itto the Income Tax Website.B. Automatically:Providers that areAuthorized E-Return Intermediaries of ITDare integrated with the Income Tax Department and authorized to E-Fileyour Income Tax Return. Such providers allow you to E-File your return with a click of a button.XML uploadis tedious anduser may run into issuesfor incorrect format or validationerror. Money Plant Consulting is Pune's largest and the most trusted Service provider which offers Preparation and filing of individual Income Tax Returns (ITR) & Comprehensive Tax Planning round the year. It has grown to build the largest customer base in this market segment by sticking to its main ethos of outsourcing all tax worries of taxpayers. Title of the project is A study on Tax E-filing of returns at money plant consultancyObjectives:-

1. To understand e-filing tax returns procedure.

2. To understand documents required for e-filing i.e. PAN No., Form No.16A, Form No. 16,TAN No, Bank A/c No, Bank DetailsMICR code, Type of A/c. etc..

Scope:-

1. The study is related to e-filing tax return process for salaried individuals.

Findings:-The upload and download of e-filing is dependent on server but few hours in the morning the server was down so the process gets slower.Now the Tax filing process is also become easier because of the online process previously it was done manually.

Suggestions:- The firm needs to recruit more experts who can handle the preferred customers, because their client base is very huge & continuously increasing. Most of the clients are connected through dial and trade service due to which there is no direct connection i.e. seminars, get together etc. should be organized. Feedback should be taken by every customer regularly. Organize and make accessible database of customer information.

Conclusion:-To conclude, the electronic filing of income tax returns results in a lot of time, money and manpower being saved.

CHAPTER 2ORGANIZATION PROFILE

Organization Profile

Money plant Consulting Group facilitates outsourcing the non-core activities and provides knowledge-driven financial services. Money plant Consulting Group is a premier outsourcing & a financial services provider which aims to offer solutions for financial needs and queries of individuals. They are a leading wealth management, capital markets and advisory company with over 100 man years of consulting & investing experience.Money plant Consulting Group was promoted by Mr. Rishabh Parekh (Director). He holds a professional degree of CA from the Institute of Chartered Accountants of India. He started Money Plant Consulting with an aim to outsource the non-core activities of corporate clients and to offer personal income tax/ financial market related services to individual clients.Since its Inception they have been successful in providing seamless service and significant advantage for clients with their extremely competent team of qualified professionals comprising CA's, MBA's & CFPs having in house Knowledge pool of financial markets, instruments and products. Their aim is to ensure that clients benefit from the professional expertise, technical knowledge and experience. They have been recognized for expertise in the financial arena by highly reputed institutions and clients. They strive to provide transparent, ethical and research-based investments and wealth management services.

Vision and MissionWe aim to outsource all your Tax worries by providing timely tax advice & the way it's meant to be: i.e. Fast, secure & accurate and yet the most cost-effective. Our aim is to strive towardsmaking your dealing with Taxes a smooth and efficient experience.

Organization Hierarchy

The organization is headed by Rishabh Parekh who is the founder and director.

The organization has 3 departmental heads vis--vis HR & Admin

The Finance department is headed by the director himself.

The organization is 50 employee strong

Employees are from diverse backgrounds like CAs, MBAs and Software professionals

1) CORE FUNCTIONS OF MONEYPLANT CONSULTING GROUP

1. Fund management

1. Loan syndication & project Appraisal2. Deployment of surplus funds3. Decision on short/long term investment planning

2. Insurance:The firm has experience in Life & General Insurance advisory, which covers following types of risks:1. Online Health & Marine insurance2. Commercial & Liability insurance, etc3. Group gratuity & group term insurance

3. Taxation

1. Consultation on income tax & fringe benefit tax2. Assessment and Appellate proceedings3. Transfer pricing

4. Employees Taxation and Investments

1. Conducting seminar, orientation and induction program for the employees2. Preparation & Submission of income tax returns for corporate employees3. Tax & Financial planning

Individuals

5. Investment Advisory services:

The firm has rich experience in advising clients in:-

1. Mutual fund investments / Financial planning2. Deployment of surplus funds3. Decision on short/long term investments

6. PAN Cards proceedings

7. Taxation

1 Expert advice on tax planning and salary structuring2. Assessment and appellate cases3. Preparation & submission of Tax returns

8. Loans

Home loans / Personal loans / Car loans / Credit cards

9. Insurance (Life & General)

1. Health, travel & Car insurance2. Term insurance / Traditional plans/ ULIP / Pension Plans

10. Share Trading & Portfolio Management Services

2) Some of the Corporate Clients with whom Moneyplant Shares Professional Relationships with!!!

Chapter 3OUTLINE OF THE PROBLEM / TASK UNDERTAKEN

Task Undertaken: Tax E-filing of Returns at Money Plant Consultancy

Objective:-

1. To understand e-filing tax returns procedure.

2. To understand documents required for e-filing.

Scope:- The study is related to e-filing tax return process for salaried individuals.

INTRODUCTION TO TOPIC1) HISTORY OF TAX

The Income-Tax was introduced in India for the first time in 1860 by British rulers following the mutiny of 1857.The period between 1860-1886 was period of experiments in the context of Income-Tax. This period ended in 1886 when first income tax act came into existence. The pattern laid down in it for levying of tax continues to operate even to-day though in some changed form. In 1918 another Act-Income Tax act was, 1918 was passed but it was short lived and was replaced by income-tax Act, 1922 and remained in existence and operations till 31st March 1961.

2) PRESENT ACT

On the recommendation of the law commission and direct tax enquiry committee and in consultation with Law Ministry a bill was framed. This bill was referred to a select committee and finally passed in sep. 1961. This act came into force from 1st April 1962 in whole of the country. Income tax Act 1961 is a comprehensive Act and consists of 298 section, sub-section running into thousands, schedules, rules, etc. and is supported by other acts and rules. This act has been amended acts since 1961. The annual finance bill represented to Parliament along with budget make far-reaching amendments in this acts every year.

3) IMPORTANCE OF TAX

The taxes levied by government from the pool of resources to be used for the collective benefit of the public. The Taxation is an exercise in the collective solution of individual problems. The state takes upon itself the duty of solving the problem of the underprivileged and needs finances for this purpose. The government can mobilize resources by imposing taxes on the privileged ones.The taxation structure of the country can play a very important role in the working of our economy. Some time back the emphasis was on higher rates of tax and more incentives. But recently the emphasis has shifted to the decrease in the rates of tax and withdrawal of incentives. While designing the taxation structure it has to be seen that it is in conformity with our economic and social objectives. it should not impair the incentives to personal savings and investment flow and on the other hand it should not result into decrease in revenue to states.

In our present day economic structure income tax plays a vital role as a source ofRevenue and a measure of economic disparity. Our taxation structure provides for two types of taxes-direct and indirect: the income tax, wealth tax and gift tax are direct taxes whereas sales tax and excise tax are indirect taxes.

According to section 14 of Income-Tax Act 1961 provides for the computation of total income of an assessee which is divided into five heads of income. Each head of the income has its own method of computation. These five heads are:

1) Income From SALARIES;2) Income from HOUSE PROPERTY;3) Income From PROFITS AND GAINS OF BUSINESS AND PROFESSION;4) Income from PROFITS AND GAINS; and5) Income from OTHER SOURCES.

Tax Slabs

India Income tax slabs 2014-2015 for General tax payers and Women

Income tax slab (in Rs.)Tax

0 to 2,50,000No tax

2,50,001 to 5,00,00010%

5,00,001 to 10,00,00020%

Above 10,00,00030%

India Income tax slabs 2014-2015 for Senior citizens (Aged 60 years but less than 80 years)

Income tax slab (in Rs.)Tax

0 to 3,00,000No tax

3,00,001 to 5,00,00010%

5,00,001 to 10,00,00020%

Above 10,00,00030%

India Income tax slabs 2014-2014 for very senior citizens (Aged 80 and above)

Income tax slab (in Rs.)Tax

0 to 5,00,000No tax

5,00,001 to 10,00,00020%

Above 10,00,00030%

CHAPTER 4

RESEARCH METHODOLOGY & DATA ANANLYSIS

Research: - The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Research Process:-

Type of research: This project deals with historical research. The study on Tax E-filing of Returns deals in understanding the procedure & documents required for Tax E-filing with the utilization of documents already available through secondary sources.

Data collection

DataData is classified as follows-

Secondary DataPrimary Data

Primary data is collected through -- Discussions done with staff members. Discussions with clients of Money Plant Consultancy.

Secondary Data is collected through Websites of Income Tax Brochures Study

Duration of the Research:- Duration of Research was two months.

Data Analysis: Data analysis is done using flow diagram and tables.

CHAPTER 5RELEVANT ACTIVITY CHARTS, TABLES, GRAPHS & DIAGRAMS

Analysis of the data is done in four parts:

Part 1: E-filing processPart 2: Documents required for e-filingPart 3: Screen shots of e-filing pagesPart 4: Case analysis

Part 1: Process for Filing Tax ReturnsWhether you wish to go in for the quick e-filing process or manually file your income tax returns, here is a helpful guide to assist you in completing and submitting this vital document by yourself.1) Go to the website http://www.incometaxindia.gov.in/

2) Click the link e-file Income Tax Return at the top left corner of the home page3) Select the Correct Form - There are two income tax forms for salaried individuals. ITR-1 is for those who derive their income from salary, pension or interest while ITR-2 is for income from capital gains, house property and other sources. Those who wish to submit their tax returns manually may download the PDF forms - External website that opens in a new window from here. These forms need to be printed, filled by hand and signed before submitting to your local income tax office.

For Individuals, HUF (Hindu Undivided Families)

ITR-1ITR-2ITR-3ITR-4

IndividualIndividualIndividualIndividual

& HUF& HUF& HUF

1Income from Salary/Pension

2Income from Other Sources (only Interest income or Family Pension)

3Income/Loss from Other Sources

4Income/Loss from House Property

5Capital Gains/Loss on sale of investments/property

6Partner in a partnership Firm

7Income from Proprietary Business/Profession

For Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies, Trusts, Fringe Bsenefit Tax (FBT) Return

ITR-5ITR-6ITR-7ITR-8

Firms, AoP, BoI, LACompaniesTrustsOnly FBT

1Income/Loss from Other Sources

2Income/Loss from House Property

3Capital Gains/Loss on sale of investments/property

4Income/Loss from Business

5Fringe Benefit Tax

ITR-7 will not be available for e-Filing

WHO CAN USE WHICH FORMITR-1This Form can be used by an individual whose total income during the previous year i.e., financial year 2008-09 includes income chargeable to income-tax under the head salaries or income in the nature of family pension as defined in the Explanation to clause (ixia) of section 57 but does not include any other income except income by way of interest chargeable to income-tax under the head income from other sources. There should not be any exempt income other than agriculture income and interest income. It may please be noted that a person who is entitled to use this form shall not use Form ITR-2. Further, a person in whose income the income of other person like his/ her spouse, minor child, etc. is to be clubbed is also not entitled to use this form.

ITR-2This Form can be used by an individual or a Hindu Undivided family whose total income does not include any income chargeable to income-tax under he head Profits or gains of business or profession. It may please be noted that a person who is entitled to use Form ITR-1 shall not use this form. Further, a person who is partner in a firm is required to use Form ITR-3. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm shall not use Form ITR-2.

ITR-3This Form can be used a person being an individual or a Hindu Undivided family who is a partner in a firm and where income chargeable to income-tax under the head Profits or gains of business or profession does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm shall use this form only and not Form ITR-2.

ITR-4This Form can be used by a person being an individual or a Hindu Undivided family who is carrying out a proprietary business or profession.

ITR-5This Form can be used a person being a firm, AOP, BOI, artificial juridical person referred to in section 2(31) (vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4) (a) or 139(4) (a) or 139(4) (b) or 139(4) (c) or 139(4) (d) shall not use this form.ITR-6This Form can be used by a company, other than a company claiming exemption under section 11

ITR-7This Form can be used by persons including companies who are required to furnish return under section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D).ITR-8This Form is applicable in case of a person who is not required to furnish the return of income but is required to furnish the return of fringe benefits

4) Use of Return Preparation Software - Those citizens who wish to avail the e-filing system need to download the Return Preparation Software - External website that opens in a new window for each ITR form. This software is an excel file that requires one to type in personal details as well as financial information from TDS certificates, bank statements, deductions made and interest statements.5) Generating an XML file - After keying in the details, check once for accuracy. After you are satisfied, click the 'Generate' button to create your tax return in XML format. This format helps in sharing of structured data across different information systems. Save this XML file on your computer.6) Register - The next step requires you to register at the Income Tax website - External website that opens in a new window. Your registered Permanent Account Number (PAN card) has to be entered as your username.7) Login - After registering, enter your user id and password to login. Click on the relevant form on the left panel and select 'Submit Return'.

8) Upload XML - Browse to select the XML file, which you had generated and saved in Step 3. Click on the 'Upload' button to upload the file.9) Acknowledgement - After the file is successfully uploaded, acknowledgement details or the ITR-V Form will be displayed. Take a printout of this acknowledgement for your records.

10) Digital Signature - If your income tax return was digitally signed, then no further paperwork or visit to the income tax office is needed. Here is some information about how to get a digital signature - External website that opens in a new window.

Instructions for filling up FORM ITR-V1. Rule 12(3)(iii) of the Income-tax Rules, 1962 provides that any assessed can file a return of income electronically without the use of a digital signature. In such cases only an acknowledgement needs to be filed with the Department physically by the assessed.2. Once a return of income is filed electronically on successful transmission of the data, Form ITR-V duly filled shall be generated by the Income-tax Departments server to the assessed. This ITR-V will also contain the acknowledgement number of electronic transmission and the date of the transmission as an evidence of filing for the benefit of the assessed. Please down load a copy of such duly filled Form and verify under your signature in the space provided. In case the return was prepared by a Tax Return Preparer (TRP), the particulars of TRP be also filled and this verification form be countersigned by the TRP.3. This acknowledgement in Form ITR-V duly signed by the assessed needs to be filed physically (in duplicate) with the concerned Assessing Officer. One copy of this acknowledgement would be returned back to the assessed for his record.4. The codes for the form number and the status of the assessed shall be generated electronically by the Departments server.11) Verification - If your return is not digitally signed, then you need to print and fill up the verification part of the acknowledgement cum verification form (ITR-V). This has to be signed and submitted to the local Income Tax Office within 15 days to complete the e-filing process.12) Additional Assistance - In case you require any more help in filing the paper copy of the return, please contact the Public Relations Officer at your local Income Tax Office. One may also phone the Aayakar Sam Park Kendra (ASK) call center at 124-2438000 or email at ask@incometaxindia.gov.in.

Part 2: Documents required for e-filing

Form No. 16 (for Tax deducted by employers)

Form No. 16A

Account statements of bank accounts

Property details

Sale and purchase of investments / assets

Details of tax payments made

PAN card photo copy

Birth date

TAN number

Bank A/c no

Bank details MICR code, Type of A/c.

Part 3: Screen shots of e-filing pagesE-Filing PageE-Filing for Forms

E-filing Dashboard

E-filing Forms

E-filing Login

E-filing upload return

E-filing upload return menu

E-filing View

E-filing view return

Part 4: Case analysisCase 1:Name: - Nilesh Shaligram KaldateDate of Birth: - 11-05-1981Gender: - MaleEmail Id: - nskaldate@gmail.com

IncomeLoanTax amountTax paidDeductions under 80CDeductions under 80D

814424-1500004729147291808104045

Interpretation:- Client Nilesh S. Kaldate has an annual income of Rs.814424.41 Client has taken house loan for which Rs.150000 is being deducted from his annual incomes Under section 80C deduction of:1. EPF= Rs.268652. Payment towards LIC=Rs.472273. Repayment of self-occupied house loan=Rs.6718 is being deducted every month from the clients annual income. Under section 80D deduction of medical claim of Rs. 4045 every month is being deducted from the clients annual income. There is no investment done from the client. The client comes under slab 30%. The client has no refund from any of the source.Case 2:Name: - Rajesh Dataram BhosaleDate of Birth: - 09-07-1978Gender: - MaleEmail Id: - sanvatuvedu@gmail.com

IncomeLoanTax amountTax paidDeductions under 80CDeductions under 80D

1578819-2217562233652233651609364045

Interpretation:- Client Rajesh D. Bhosale has an annual income of Rs.1578819.14 Client has taken house loan for which Rs.221756 is being deducted from his annual income and also other deductions will be done. Under section 80C deduction of:4. EPF = Rs.493865. Payment towards LIC = Rs.70926. Repayment of let out house loan = Rs.104458 is being deducted every month from the clients annual income Under section 80D deduction of medical claim of Rs. 4045 every month is being deducted from the clients annual income There is no investment done from the client The client comes under slab 30%. The client has no refund from any of the source.

CHAPTER 6LEARNING OF THE PROJECT

ObservationsDuring the summer internship project at Money Plant Consultancy, I came across certain observation.Feedback was also not taken regularly from clients.Database of customer information was also not accessible.

People have following preferences regarding the investment options available.

1. The Most preferred investments are Insurance,Fixed deposit, Mutual fund.

2. Least preferred are Shares, Govt. securities.

3. Reasons for not investing in Mutual Fund, Shares, Insurance because Lack of knowledge, Lack of trust, Low income, Market conditions, No savings.

FindingsThe upload and download of e-filing is dependent on server but few hours in the morning the server was down so the process gets slower. Now the Tax filing process is also become easier because of the online process previously it was done manually. The required documents for filing the tax are Form 16, House property papers etc. so the documents was sufficient for the tax e-filing process.

Learnings through the project:Though the project the procedure for e-filing was clearly understood.

Chapter 7SUGGESTIONS

SUGGESTIONS

The firm needs to recruit more experts who can handle the preferred customers, because their client base is very huge & continuously increasing.

Most of the clients are connected through dial and trade service due to which there is no direct connection i.e. seminars, get together etc. should be organized.

Feedback should be taken by every customer regularly.

Organize and make accessible database of customer information.

CONCLUSION

To conclude, the electronic filing of income tax returns results in a lot of time, money and manpower being saved.Brief procedure of e-filing is as:1. Download the ITR-V Java Utility which pertains to your income Tax Form and furnish all details in the ITR Java Utility and also cross check the same with the figures as mentioned in your Form 16/Form 16A.2. After that you may create a xml file on the income tax return and then upload this file on the income tax website.3. After successful upload of your income tax return an Acknowledgement details would be displayed.4. While e-filing income tax return you didnt use digital signature on successful uploading of e-return, the ITR-V Form would be generated and sent to your registered email id.5. This ITR-V Acknowledgement form should be signed by the tax payer and sent to the Income Tax Office by post which is in Bangalore.

CHAPTER 8

BIBLIOGRAPHY

Bibliography

Web sites

www.moneycontrol.com

www.learntoinvest.com

www.valueresearchonline.com

Books Investment and Portfolio Analysis By: Prasana Chandra

Basic principles of Income Tax Laws

How to save your Tax

Basic Income Tax Tips

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