This word file contain all information regarding taxation in india, income tax returns, types of income tax , direct tax, indirect tax, wealth tax, income tax ,excise duty , which helps you to gain knowledge about taxation in brief, and also helps you in making internship report on taxation or income tax.

1. Summer Training Project Report
on
“Taxation In India”
Taxway- E-return intermediary of Income Tax
Ajmer
Submitted By-
Vinay Motiani
For Partial Fulfillment of B.B.A Degree
Aryan college Ajmer,
Affiliated to-
Maharshi Dayanand Saraswati University ,
Ajmer 2019-2022

3. DECLARATION
I am Vinay Motiani student of ARYAN COLLEGE batch 2019-2022 declare that every part of the project
report on “TAXATION”. The information has been collected from TAXWAY COMPANY.
The project work is done under the guidance of our HOD Mr. KAMAL SANKHLA.
The work has been done submitted in the partial fulfillment of
the required degree BBA.
Date of submission of project:………………
Place of submission of project:……………..

4. ACKNOWLEDGEMENT
I am sincerely thankful to my Faculty supervisor Prof. NITIN GANGWANI, ADVANCE TAXWAY
SERVICES LIMITED who spared his Valuable time and effort to guide me in the completion of project
report.
Last but not least I would like to thank all my friends who stood by my Side through times and helped me tide
over many obstacles during the Completion of this project.

5. TABLE OF CONTENTS
Sr. No. Particulars Page No.
1 Executive Summary 1
2 Introduction ( Taxation In India ) 2 & 3
3 SectorInformation ( Income Tax ) 4 -22
4 Learnings ( Form 26AS, Form 16) 23 - 29
5 Company Profile (About Company, History, Board
Members, Other Organisations Of Company)
30 - 34
6 Conclusion 35
7 Biblography 36

6. [1]
EXECUTIVE SUMMARY
For any research assignment, a proper planning is required and the same holds true in case of present study.
This project is titled as “Service tax & Excise Duty”. The reasons behind choosing this project is that I find
there is very interesting topic because it is the biggest source of the finance for the government and also I have
done my summer internship in the company which is related to the taxation that is ADVANCE TAXWAY
SERVICES LIMITED
Service Tax :
Service means any activity carried out by a person for another person for consideration and includes a declared
service.
But 1) It must be activity.
2) It must be done by a person for another person.
3) There must be a consideration for provision of service.
4) Includes a declared service.
Excise Duty :
An excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties,
charged on goods from outside the country).
Source of revenue for government to provide public service. For the liability of duty of central excise to arise,
the item in question should not only be goods it should also be excisable goods.
 Goods become excisable if and only if it is mentioned in the Central Excise Tariff Act 1985.
 Goods must be movable. Duty cannot be levied on immovable property .Central excise duty cannot
imposed on plant and machinery.
 Goods must be marketable .The goods must be known in the market and must be capable of being
bought or sold.

7. [2]
INTRODUCTION
( Taxation In India )
Taxation is the imposition of financial charges or other levies, upon a taxpayer (an individual or legal entity)
by Central and a state such that failure to pay is punishable by law. It is the most pervasive and the strongest
of all the powers of the government. Taxes are the lifeblood of the government, without which, it cannot
subsist.
Central Government levies taxes on income (except tax on agricultural income), customs duties, central excise
and service tax. Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty,
State Excise, land revenue and tax on professions are levied by the State Governments. Local bodies are
empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc. Since April 01,
2005, most of the State Governments in India have replaced sales tax with VAT.
The main purpose of taxation is to accumulate funds for the functioning of the government machineries. No
government in the world can run its administrative office without funds and it has no such system incorporated
in itself to generate profit from its functioning. The government’s ability to serve the people depends upon the
taxes that are collected. Taxes are indispensable in the government operation and without it, the government
will be paralyzed. Taxation has four main purposes or effects:
Revenue: - The taxes raise money to spend on armies, roads, schools and hospitals, and on more indirect
government functions like market regulation or legal systems.
Redistribution: - This refers to the transferring wealth from the richer sections of society to poorer sections.
Repricing: - Taxes are levied to address externalities; for example, tobacco is taxed to discourage smoking,
and a carbon tax discourages use of carbon-based fuels.
Representation: - As what goes with the slogan "no taxation without representation”, it implies that: ruler’s
tax citizens and citizens demand accountability from their rulers as the other part of this bargain.

8. [3]
DIRECT TAX
Direct tax is referred to as the tax, which is paid by the person to the government to whom it is levied
and charged on the income and wealth of persons and any levy that is both imposed and collected
on a specific group of people or organizations. The person on whom it is levied bears its burden i.e.
it increases with an increase in income or wealth and vice versa. It levies according to the paying
capacity of the person, i.e. the tax is collected more from the rich and less from the poor. The burden
of tax cannot be shifted.
Direct tax helps in reducing inflation. The tax progressive in nature. Tax evasion is possible.
Direct taxation would be income taxes that are collected from the people who actually earn their
income.The tax is levied and collected either by the Central government or State government or
local bodies. The plans and policies of the Direct Taxes are being recommended by the Central Board
of Direct Taxes (CBDT) which is under the Ministry of Finance, Government of India.
INDIRECT TAX
Indirect Tax is referred to as the tax, which is paid by the taxpayer to the government indirectly, charged
on goods and services. Indirect taxes are collected from someone or some organization other than the
person or entity that would normally be responsible for the taxes. The burden of tax can be shifted to
another person. Indirect tax regressive in nature. Tax evasion is hardly possible because it is included
in the price of goods and services.
Indirect Tax is referred to as a tax which is paid by the taxpayer indirectly to the government, the
burden of which can be easily shifted to another person. The tax is regressive in nature, i.e. as the
amount of tax increases the demand for the goods and services decreases and vice versa. It levies on
every person equally whether he is rich or poor. The administration of tax is done either by the Central
government or State government.

9. [4]
SECTOR INFO
( Income Tax )
The government of India imposes an income tax on taxable income of individuals, Hindu Undivided
Families (HUFs), companies, firms, co-operative societies and trusts (identified as body of individuals and
association of persons) and any other artificial person. Levy of tax is separate on each of the persons. The levy
is governed by the Indian Income Tax Act, 1961. The Departments governed by the Central Board for Direct
Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Govt. of India.
An income tax is a tax levied on the income of individuals or businesses (corporations or other legal entities).
Various income tax systems exist, with varying degrees of tax incidence. Income taxation can
be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often
called corporate, corporate income tax, or profit tax. Individual income taxes often tax the total income of the
individual (with some deductions permitted), while corporate income taxes often tax net income (the difference
between gross receipts, expenses, and additional write-offs). Various systems define income differently, and
often allow notional reductions of income (such as a reduction based on number of children supported).
Charge to Income-tax:
Every Person whose total income exceeds the maximum amount which is not chargeable to the income tax is
an assesse, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for
the relevant assessment year, shall be determined on basis of his residential status.
Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every Assessment Year,
on the Total Income earned in the Previous Year by every Person.
The changeability is based on nature of income, i.e., whether it is revenue or capital. The principles of taxation
of income are:-
Some people have lots of confusion in mind about income tax rates/slabs like which income
tax slab applicable to this assessment year, financial year etc. Majority of peoples are confused to
applicable income tax rates/slabs on particular assessment year. So this is the static page of income
tax slab/rates applicable in India for current and last 3 years.
Income Tax Rates for Individual, HUF, AOP, BOI

10. [5]
Surcharge @ 12% if total income exceeds 1 Crore | Cess @3%
Residential Status:
Basic Conditions:
1)Person must be living in India at least 182 days during previous year.
2) Must be present in India for period of 60 days or more during the previous year and 365 days or
more during the 4 years immediately preceding to that financial year.
Additional Conditions:
1) The person is resident in at least 2 out of 10 previous years preceding the
relevant previous year,
2) His stay in India in the last 7 years preceding the relevant previous year is 730 days or more.
Resident and Ordinarily
Resident
Resident but not ordinarily resident Non-resident
Must satisfy at least one of the basic
conditions and both the additional
conditions.
Must satisfy at least one of the basic
conditions and one or none of the
additional conditions.
Must not satisfy either of the basic
conditions.
HEAD OF INCOMES
Income tax is payable by an assesse on his total income from all the source of income. Each source has its own
unique features and requires specific treatment for correct computation of income from that particular source.
RESIDENCE IN
INDIA
RESIDENT AND
ORDINARILY
RESIDENT
RESIDENT BUT
NOT ORDINARILY
RESIDENT
NON - RESIDENT

11. [6]
Naturally, rules and method for computation of income from each such source are different according to the
nature of the source.
CLASSIFICATION OF INCOMES
Section 14 of the Income Tax Act, 1961 deals with the classification of income under five heads of income.
The five heads of income listed in S 14 are:
I. Income From Salary
Among the five heads of income listed by S.14, “Salaries” is the first and most important head of income.
The concept of “Salaries” is very wide and includes not only the salary in common parlance but also
various other receipts, gifts, perquisites and benefits.
The lesson is divided into various sections dealing with the concept of salary income and its characteristics,
which define as to what constitutes “salaries” followed by the incomes falling under this head the
computation of basic salary, types of allowances and perquisites, valuation of the perquisites, various
income tax provisions for computing taxable value of allowances etc. and their detailed descriptions along
with the applicable legal provisions of income tax.
Essential Characteristics of Salaries
 Employer-Employee Relationship:
Assesse should receive the income from his employer only. Any income which is received by
assesse (employee) from his employer should be taxable under section. If income not received
from his employer then such employer is not taxable under this head.
 Salary to partner by firm:
If partner received salary from the firm this salary is not taxable under this head but taxable
head from business.
 Received salary form two or more employer:

12. [7]
If an assesse received salary from two or more employer then income received from all employer is
taxable under this head.
 Real intention to pay:
Salary income must be real and not fictitious. There must exist an intention obligation to pay and
receive salary.
 Salary or Bonus to Director:
If director received any salary / bonus / commission as an employee is taxable under this head.
 Salary received by individuals only:
Salary is a compensation for personalized services, which can obviously be rendered by a normal
human being and not a body corporate. Salary income is taxable in the hands of individuals only. No
other type of person such as a firm or HUF, companies can earn salary income.
 Pension - Section 10(10A) :
On retirement of an employer, the employer makes a regular payment to the employee as a reward for
his past services. The regular payment so made at monthly or annual intervals is called pension. Some
employers allow an employee to forgo a portion of pension in lieu of lump sum amount. This is known
as commutation of pension.

13. [8]
 Encashment of Leave Salary - Section 10(10AA):
When an employee, instead of enjoying leave at his credit, gets the same encashed following tax
treatment will be given:-
a) Amount received on encashment of leave during the continuity of employment by all the employees,
will be taxable in the year of receipt. However, the employee will be entitled to relief u/s 89.
b) Amount received on encashment of leave at the time of retirement by way of superannuation or
otherwise, by
1. An employee of the Central or State Government will be fully exempt.
2. Any other employees including employees of a local authority or a statutory corporation
would be exempt at the lowest of the following and only the balance will be taxable:-
i) Actual amount received.
ii) Notified Amount currently Rs 3,00,000/-
iii) 10 months average salary.
iv) Cash equivalent of leave to be encashed.
i.e. (Leave Entitlement - Leave Availed) X Average Salary
 House Rent Allowance (Section 10-13A)
House Rent Allowance or HRA paid by the employer to the employee to meet the housing expenses of the
employee, is exempt from tax U/s 10(13A) being the least of the following:
i) HRA actually received.
ii) Rent paid by employee in excess of 10 per cent of salary during the
previous year.
iii) 50% of salary, if employee is residing in the Four metro cities of Mumbai, Delhi,
Chennai or Kolkata and 40% of salary, if the employee is residing at any other place.
 Wholly or partly tax-free Allowances:
Following allowance are wholly or partly tax -free. Some of the exemptions are conditional. Most of
the conditions and monetary limits, though prescribed in rules are incorporated in brief to make the
subject comprehensive. Brief description of these allowances is as follows:

14. [9]
a) Fixed Medical Allowances
Fixed Medical Expenses are taxable but reimbursement of medical expenses is however exempt upto
Rs 25,000
b) Transport Allowance- Sec. 10(14)
Any allowance or benefit given to meet the expense wholly and necessarily in the course of
employment is fully exempt u/10(14) subject to the assesse presenting the proof in this regard.
Under Rule 2BB, Transport or conveyance allowance paid to meet conveyance expenses of the e
employee from place of residence to place of work and back is exempt upto Rs 1600 per month.
c) Education Allowance:
Education Allowance given to meet the education expenses of the employee’s is taxable in hands of
employee. However, under rule 2BB a sum of Rs100 per month per child subject to maximum of 2
children is allowed as exemption from total education allowance received by the employee in a given
year. If the children of the employee are residing in a hostel, an additional exemption of Rs 300 per
month per child subject to maximum of 2children is made available to the employee. Therefore if the
employee has 2 children and who are residing in a hostel and the employee is giving total education
allowance of Rs 1000 per month, the taxable amount will be (1000-800) i.e. Rs 200 per month only.
d) Other allowances for official purposes-S 10(14)
e) Tiffin / Lunch Allowance
f) Out station allowance
 Perquisites (Section 17)
A) Meaning of Perquisites:
Section 17(2), Any benefits given by employer to employee in addition to his salary. E.g. free
accommodation facility, Lunch and Diner facility

15. [10]
B) Taxable perquisites in case of all tax:
1) Value of Rent free accommodation
2) Value of concession in Rent.
3) Provident fund paid by employer on behalf of employee.
C) Perquisites taxable in case of specified employee:
i) Meaning: Specified employee means a director who is an employee of a company, an
employee having substantial interest in the company by share more than 20% paid up capital.
ii) For him following perquisites are taxable
- Free domestic servant (Sleeper, Watchman, and Gardner)
- Free education facility for his family
- Gas, electricity and water supply free of cost
 Deductions from Salaries Sec.-16
Aggregate of taxable amount in respect of salary, various allowances and perquisites is called the Gross
Salary. From the Gross Salary so arrived, Deductions are allowed u/s 16. Other than that, no further
deductions are allowed under this head. The following are the deduction available to the employee U/s
16:
1. Entertainment Allowance- Sec. 16(ii)
Entertainment allowance as per Section 16(ii) is first included in salary income under the head
“Salaries” .
Deduction in respect of entertainment allowance is allowed only to the Government Servants.
Employees working in private institutions are not entitled to this deduction.
2. Profession Tax- Sec. 16(iii)
The Profession Tax, paid by an employee in a given previous year, will be deducted from the gross
salary in order to get the taxable amount of salary. Profession Tax is levied by state government
on employment.

16. [11]
II. INCOME FROM HOUSE PROPERTY:
Income from house Property” is significantly different than the other heads of income unlike the other
heads as it covers not only the actual income but also the notional income.
 Basis of Charges – (Sec. 22)
The owner of the house property is taxed on the income from the house property. Income from the house
property is ascertained on the basis of annual value. According to section 22, the annual value of property
consisting of any buildings or lands appurtenant thereto, of which assesse is the owner, other than such
portions of such property as he may occupy for the purpose of any nosiness or profession, shall be
chargeable to tax under this head, following conditions are satisfied namely
a) Income chargeable to tax is ascertained on the basis of annual value of property consisting of Buildings
and Lands attached thereto of which assesse is the owner. This means any income from vacant land or
open plot is not to be charges under the head Income form House Property.
b) The legal owner of the house property is charged to tax in respect of income from House Property.
c) Property may be either let out or occupied by the assesse himself i.e. Self-occupied. Property may be
partly self-occupied or partly let out. In both the circumstance, income is ascertaining on the basis of
annual value. However, the mode of ascertaining the income from house property is different in case
of property which is either let out or self-occupied.
d) Certain deductions, as discussed hereinafter under this topic, are allowed form annual value in order
to arrive at the taxable income under this head. If such deductions are in excess of the annual value,
the resultant figure is termed as loss from house property. Such loss can be set off against the income
under other heads.
 Annual Value of House Property( Sec. 23)
Since, there is no definitive meaning of the term annual value defined in Sec 2(22) “as the annual value
determined under Sec. 23, meaning of annual value has to be seen in common parlance.
‘Annual value’ may be defined as the inherent capacity of a property to earn income or the amount for
which the property may reasonably be expected to be let out from year to year. It is not the actual rent
but the capacity to fetch rent that is important. It implies that a property need not necessarily be let out.
The annual value of a property will, therefore, depend upon the use of the property- self occupied, let
out or partly vacant etc.
we can divide the computation of taxable income into two groups, i.e.:

17. [12]
A. Income from House Property Let Out :
1. Income from house property is to be ascertained on the basis of annual value as discussed above. Thus,
the annual value which is being ascertained we will be calling it as Grass Annual Value (GAV) for
the sake of convenience.
2. From the gross annual value determined in the manner indicated above, a deduction is to be made
under the first proviso to section 23(1), on account of local taxes actually paid and borne by the owner
during the previous year. After deducting such amount of local taxes actually paid during the previous
year from the gross annual value, we will be arriving at Net Annual Value.
Computation of Income from House Property Let Out
1. Gross Annual Value xxx
Less: Municipal Taxes actually paid by the
assesse during previous year [Sec. 23(1)] xxx
2. Net Annual Value xxx
Less: Deduction U/s. 24
i)30% of Net Annual Value xxx
ii) Interest on loan borrowed from construction xxx xxx
Income from Late out Property xxx

18. [13]
B. Income from Self-occupied Property:
1. When a property is occupied by the owner himself that property is called
Self-occupied house property. Where the property consists of only one house or a part of house
which is occupied by the owner for his own residence, the annual value of such a house shall be
taken as NIL. However, the following two conditions must be satisfied:
a) The property or part thereof is not let out actually during any part of the previous year, and
b) No other benefit is derived from such property.
2. The limit for deduction is Rs. 2,00,000/- .
If the all following conditions are satisfied, then the limit in respect of Interest on borrowed
capital will be Rs. 2,00,000/-
a) Capital is borrowed on or after 1st April 1999
b) Capital is borrowed for the purpose of acquisition or construction (i.e. not for repair, renewal,
reconstruction)
c) Acquisition or construction is complete within 3 years from the end of the financial year in which
capital was borrowed.
If any of the above condition not satisfied, then limit will be reduced Rs. 30,000/-
Computation of Income from House Property Self-Occupied
Net Annual Value NIL
Less: Deduction U/s. 24
iii) 30% of Net Annual Value xxx
iv) Interest on loan borrowed from construction xxx xxx
Loss from Self-Occupied Property xxx

19. [14]
III. INCOME FROM BUSINESS AND SALARY
This is one of the most important heads of Income. Under this head we are required to take into
consideration the profits and gains of a business or profession including vocation carried on by the
assesse.
The term business is defined in section 2 (13) “includes ay trade, commerce or manufacture or any
adventure in the nature of trade, commerce or manufacture.” Though the definition is not exhaustive,
it covers all types of occupation carried on by a person with a view to earn profit. Production of goods
from raw material, buying and selling of goods with the intention to make profit and providing services
to others are different forms of business. The profit earned from these is chargeable to tax under the
head. “Profits and Gains of Business or Profession”. In simple words, any activity carried on with a
view to earn profit is called as business. It is not necessary to carry on business continuously. Even a
single transaction conducted during the year, with a view to earn profit is business.
Profession means an occupation requiring using intellectual skill or manual skill or both, e.g. a
chartered accountant, a lawyer, an engineer, a doctor. It may be noted that if these persons are employed
by any association and they receive monthly remuneration by way of salary. It is taxed under the head
‘Income from salary’ and not as income from business or profession.
INCOME CHARGEABLE UNDER BUSINESS/PROFESSION
The following are few examples of incomes which are chargeable under this head:-
1. Normal Profit from general activities as per profit and loss account of business entity.
2. Profit from speculation business should be kept separate from business income and shown
separately.
3. Any profit other than regular activities of a business should be shown as casual income and
will be shown under “income from other sources” head.

20. [15]
4. Profit earned on sale of REP License/Exim scrip, cash assistance against export or duty
drawback of custom or excise.
5. The value of any benefits whether convertible into money or no from business/profession
activities.
EXPENSES DEDUCTIBLE FROM INCOME FROM BUSINESS / PROFESSION
All the expenses relating to business and profession are allowed against income. Following are few
examples of expenditures which are allowed against income:-
 Rent rates and insurance of building.
 Payment for know-how, patents, copy rights, trade mark, licenses.
 Depreciation on fixed assets.
 Payment for professional services.
 Expenditures on scientific research for business purposes.
 Preliminary Expenses in case of Limited companies.
 Salary, bonus, commission to employees.
 Salary, interest and remuneration to working partners subject to certain conditions.
 Communication expenses.
 Traveling and conveyance expenses.
 Membership fees etc.
 Advertisement expenses in respect of promotion of business products.
 Discount allowed to customers.
 Interest on loans (Whether Private of Institutional).
 Bank Charges/Bank Commission expenses.
 Entertainment/Business Promotion expenses
 Staff Welfare expenses.
 Festival Expenses.
 Printing and stationery expenses
 Postage expenses.
 All other expenses relating to business/profession
Note: The above expenditures are allowed on the basis of actual payment as well as on
accrual basis at the date of finalization accounts.
EXPENSES WHICH ARE DEDUCTIBLE ON ACTUAL PAYMENT ONLY

21. [16]
Following expenses will be allowed if these expenses have been paid before or on due date or before
filing of income tax return:-
1. Any tax, duty, cess or fees by whatever name called.
2. Contribution to provident fund, ESI premium, gratuity fund or other funds for welfare of
employees.
3. Bonus or commission or leave encashment payable to employees.
4. Interest on loan from public financial institutions, state financial corporation or from scheduled
bank.
EXPENSES NOT DEDUCTIBLE FROM BUSINESS/PROFESSION INCOME
1. Expenditure on any type of advertisement of political party.
2. Any interest, royalty, fees for technical services or other sums chargeable under this act, which
is payable outside India or in India to non-resident or a foreign company on which tax has not
been deducted or after deduction, not deposited in prescribed time.
3. Any interest, commission, rent, royalty, professional or technical fees paid or payable to any
resident of India or payment to contractor or sub-contractor on which TDS is not deducted, or
if deducted then not deposited before the due date of filing the return.
4. Any tax calculated on the basis of profit of business.
5. Any amount of Wealth Tax paid.
6. Any payment of salaries payable outside India or to a non-resident on which tax is not deducted.
7. Any tax actually paid by an employer on any income by way of perquisites, on behalf of the
employee.
8. Any remuneration paid to non-working partner.
9. Any remuneration paid to working partner other than specified in agreement or as per the
specified limits by income tax act.
10. Any interest to partner if not specified in agreement and not more than 12%.
11. Any payment in cash exceeding Rs.20000/=. (Rs.35000/= in case of payment made for plying,
hiring or leasing goods carriages) except when payments are made under circumstance specified
in Rule 6DD of Indian income tax act.

22. [17]
IV. INCOME FROM CAPITAL GAIN
Capital Gain is a part of the Taxable income. It is not an income in general sense as Capital Gains is
the profit earned on sale of capital asset or an investment. Capital Gain in fact is brought to tax net by
the deeming fiction created u/s 2(24)(vi) while defining the term Income. Thus in order to invoke the
provisions of Capital Gains the following ingredients should be present-
1. The existence of Capital Asset
2. The transfer of such asset and
3. Profit and Gains from Transfer of such asset.
Capital asset is property of any kind held by an assesse, whether fixed or circulating, movable or
immovable, tangible or intangible. Following assets are excluded from the definition of capital assets
and hence, these are not to be considered as capital assets.
1. Any stock in trade consumable stores or raw materials held for the purposes of business or
profession.
2. Personal effects of the assesse. It includes movable property including wearing apparel and
furniture held by the assesse, for personal use of the assesse and for the members of his family
dependent on him.
3. Agriculture land in India provided it is not situated within the specified are.
4. Kinds of capital gains are:

23. [18]
V. INCOME FROM OTHER SOURCE
Where any income, profit or gains includible in the total income of an assesse, cannot be included
under any of the other heads, it would be chargeable under the head Income from other sources. Hence,
this head is the residuary head of income [Section 56(1)].The nature of income earned will decide
whether income has to be shown under this head. However, there are some standard inclusions as
outlined below.
 Dividends: Income by way of dividend is shown under this head. Deemed dividend as under
section 2(22)(e) is fully taxable as is dividend from co-operative societies and foreign companies.
Dividend not chargeable to tax includes dividends exempt U/S 10(34) i.e. dividend from Indian
companies, dividend liable to corporate dividend tax, income on mutual fund units or income
from UTI unit holder.
 Winnings: This includes winnings over Rs.10,000 from lotteries, puzzles, races, games and all
forms of gambling and betting. E.g. card games, horse races, game shows etc.
 Interest received: All interest income earned in the previous year (on compensation/enhanced
compensation) is taxable. However, 50% of this income can be claimed as deduction.
 Incomes not declared under the head ‘Profits and Gains of Business or Profession’: This
includes contributions made to an employer’s employee welfare fund, interest earned on
securities, rental income from furniture, plant and machinery (including building where it cannot
be let out separately), keyman insurance policy proceeds.
 Gifts: Taxable gifts are declared under this head by individuals and HUFs. This includes
monetary or non-monetary items received without any consideration or without adequate
consideration. Non-monetary gifts include all immovable property and certain movable property.
Gifts include -
1. Monetary gifts - sums of money received without any consideration or without adequate
consideration.

24. [19]
2. Immovable property as gifts - Property value will be the stamp duty value. Inadequate
consideration will be if the property value is lower than stamp duty value.
3. Specific movable property - Property here are shares, jewellery, securities, paintings,
archaeological collections, sculptures and drawings and other artwork. As of 1st June 2010,
bullion also forms a part of this list. Property value will be the fair market value. Inadequate
consideration is when property value is below fair market value.
 CLUBBING INCOME
Generally an assesse is tax in respect of his own income. But as per section 64 the income legally
belonging to other person. Spouse or minor child also including in the income of assesse it is called as
clubbing income.
These following incomes are clubbed.
1. Remuneration of spouse
2. Income from asset gifted to spouse.
3. Income from asset gifted to son’s wife.
4. Income from assets transfer for the benefit of spouse
5. Income from asset transfer for the benefit of son’s wife.
6. Income from transfer of asset from games like Kon Banega Crorepati

25. [20]
DEDUCTION FROM GROSS TOTAL INCOME
Deduction-
An act of taking away deduction of legitimate business expenses. b : something that is or may be
subtracted deductions from his taxable income
The Aggregate income from all the heads of income is known as Gross Total Income. In computing
the total taxable income on an assesse, certain deductions under section 80C to 80 U are allowed from
his Gross Total Income. It means, firstly that the income of the assesse shall be calculated under 5
specific Heads of income and incomes from all heads are put together and then from this total, certain
deductions are made and after making deductions whatever remains shall be the total income or total
taxable income.The following essential rules have to be kept in mind while calculating deductions
under sec. 80C to 80U. :
1. The aggregate amount of the deductions under this Chapter shall not, in any case, exceed
the gross total income of the assesse.
2. No such deduction shall be allowed to him unless he furnishes a return of his income for
such assessment year on or before the due date
These Deductions are divided into 2 categories:
1. Deductions in respect of certain PAYMENTS.
2. Deductions in respect of certain INCOMES.

26. [21]
DEDUCTION IN RESPECT OF PAYAMENTS
DEDUCTION IN RESPECT OF 'PAYMENTS'
Section Nature of Payment Who can Claim
80C LIfe Insurance Premia, Provident Fund Contribution (Maximum : Rs.
1,50,000)
Individuals
80CCC Pension Fund [ Maximum : Rs. 1,50,000 Individuals
80CCD(1) Deduction available in respect of Employee’s / Assessee’s
Contribution to National Pension Scheme (NPS) [Section 80CCD(1)]
Individuals
80CCD(1B) Additional Deduction of Rs. 50,000 is available in respect of
Employee’s / Assessee’s Contribution to National Pension Scheme
(NPS) [Section 80CCD(1B)]
Individuals
80CCD(2) Deduction available in respect of Eemployer’s Contribution to
National Pension Scheme (NPS) [Section 80CCD(2)]
Employees
80D Deduction in respect of Health or Medical Insurance Premium Individual/HUF
80DD Deduction in respect of Maintenance Including Medical Treatment of
a Dependent who is a Person with Disability
Resident Individual/
Resident HUF
80DDB Deduction in respect of Medical Treatment , etc. Resident Individual/
Resident HUF
80E Payment of interest of Loan taken for higher studies Individual
80EE Deduction in respect of Interest on Loan taken for Residential House
Property
Individual
80G Deduction in respect of Donations to certain Funds, Charitable
Institutions , etc. [Section 80G]
All Assessee
80GG Deduction in respect of Rents Paid [Section 80GG] Individual
80GGA Deduction in respect of certain Donations for Scientfic Research or
Rural Development [Section 80GGA]
All assessees not
having any income
chargeable under the
head 'Profits and
gains of business or
profession'
80GGB/GGC Contribution to Political Parties

27. [22]
DEDUCTION IN RESPECTOF INCOMES
DEDUCTION IN RESPECT OF 'CERTAIN INCOMES'
Section Nature of Incomes Who can Claim
80-IA Deduction in respect of Profit and Gains from Industrial Undertaking
or Enterprises engaged in infrastructure Development [Section 80IA]
All Assessee
80-IAB Deduction in respect of profits and gains by an undertaking or an
enterprise engaged in development of Special Economic Zone (SEZ)
Developers
80-IAC Special Provision in respect of Eligible Business of Eligible Start Up
[Section 80-IAC] [W.e.f. A.Y. 2021-22]
Companies / LLPs
80-IB Deduction in respect of Profit & Gain from certain Industrial
Undertaking other than Infrastructure Development Undertaking
[Section 80-IB]
All Assessee
80-IBA Deduction in respect of Profits and Gains from Housing Projects
[Section 80-IBA]
All Assessee
80-IC Deduction in respect of Profits and Gains of Certain Undertaking or
Enterprises in certain Special Category States. [Section 80-IC]
All Assessee
80-ID Deduction in respect of Profits and Gains from Business of Hotels and
Convention center in NCR
All Assessee
80-IE Deduction in respect of certain undertaking in North-Eastern States All Assessee
80-JJA Deduction In Respect Of Profit And Gains From Business Of
Collecting And Processing Of Bio-Degradable Waste
All Assessee
80-JJAA Deduction In Respect Of Employment Of New Employees [Section
80-JJAA] w.e.f. A.Y. 2021-22
All Assessee
80LA Deduction in respect of certain incomes of Offshore Banking Units
and International Financial Services Centre
Scheduled Banks
80P Deduction in respect of income of Co-operative Societies Co-operatives
Societies
80PA Deduction in respect of income of Farm Producer Companies [W.e.f.
A.Y. 2021-22]
Producers Companies
80QQB Deduction in respect of royalty income, etc., of authors of certain
books other than text books [ Maximum Rs. 3,00,000]
Resident Individuals
80RRB Deduction in respect of royalty on patents [ Maximum Rs. 3,00,000] Resident Individuals
80TTA Deduction in respect of interest on deposits in savings accounts to the
maximum extent of Rs. 10,000
Individuals / HUF
80TTB Senior citizen to be allowed a deduction of Rs. 50,000 on account of
interest on deposits with Banks / co-operative bank / post office.
[W.e.f. A.Y. 2019-20]
Senior Citizens

28. [23]
80U Deduction in case of a person with disability [ Maximum :
Rs.1,25,000]
Resident Individuals
LEARNINGS
( INCOME TAX RETURNS )
What is income tax return?
ITR (Income Tax Return) is a form in which the taxpayers file information about his income earned and tax
applicable to the income tax department. The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR
3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. Every taxpayer should file his ITR on or before the specified due
date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount
of the income earned and the category the taxpayer belongs to like individuals, HUF, company, etc.
Which Income Tax Return to file?
 ITR-1 (SAHAJ)
This Return Form is for a resident individual whose total income for the AY 2021-22 includes:
 Income from Salary/ Pension; or
 Income from One House Property (excluding cases where loss is brought forward
from previous years); or
 Income from Other Sources (excluding Winning from Lottery and Income from Race
Horses)
 Agricultural income up to Rs.5000.
Who cannot use ITR 1 Form?
 Total income exceeding Rs.50 lakh

29. [24]
 Agricultural income exceeding Rs 5000
 If you have taxable capital gains
 If you have income from business or profession
 Having income from more than one house property
 If you are a Director in a company
 If you have had investments in unlisted equity shares at any time during the financial year
 ITR-2
ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY
2021-22 includes:
 Income from Salary/Pension
 Income from House Property
 Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
(Total income from the above should be more than Rs 50 Lakhs)
 If you are an Individual Director in a company
 If you have had investments in unlisted equity shares at any time during the financial year
 Being a resident not ordinarily resident (RNOR) and non-resident
Who cannot file ITR 2?
 Individual or HUF accruing income from business or profession
 Partner of a partnership firm having income from partnership
 ITR-3
The Current ITR3 Form is to be used by an individual or a Hindu Undivided Family who have income
from proprietary business or are carrying on profession. The persons having income from the following
sources are eligible to file ITR 3 :
 Carrying on a business or profession.
 If you are an Individual Director in a company.
 If you have had investments in unlisted equity shares at any time during the financial year.
 Return may include income from House property, Salary and Income from other sources.
 Income of a person as a partner in the firm.
Who cannot file ITR 3?
 Companies

30. [25]
 Trusts
 Co-operative Society
 Local Authority
 Artificial Juridical Person
 ITR-4 SUGAM
The current ITR 4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are
residents and whose total income include:
 Business income according to the presumptive income scheme under section 44AD or 44AE
 Professional income according to presumptive income scheme under section 44ADA
 Income from salary or pension up to Rs.50 lakh
 Income from one house property, not more than Rs.50 lakh (excluding the amount of brought
forward loss or loss to be carried forward)
 Income from other sources having income not more than Rs.50 Lakh (excluding income from
lottery and race-horses )
Who cannot file ITR 4(SUGAM)?
 Income earned through capital gains.
 If you own more than one house property whether let out or self occupied
 A person having Agricultural income in excess of Rs 5,000.
 Person who is a Director in a company
 Person has held any unlisted equity shares at any time during the previous year
 Person claiming relief u/s 90/90A/91 for taxes paid in foreign country.
 Loss under income from other sources
What is Form 26AS?
Form 26AS (Tax Credit Statement) is the annual statement in which the details of tax credit are
maintained for each taxpayer as per the database of Income-tax Department. Form 26AS will reflect
the tax credit against the PAN of the taxpayer.
Perform the following steps to view or download the Form-26AS from e-Filing portal:
STEP1- Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
STEP-2 Go to the 'My Account' menu, click 'View Form 26AS (Tax Credit)' link.
STEP-3 Read the disclaimer, click 'Confirm' and the user will be redirected to TDS portal.
STEP-4 In the TDS-CPC Portal, Agree the acceptance of usage. Click 'Proceed'.
STEP-5 Click ‘View Tax Credit (Form 26AS)’
STEP-6 Select the ‘Assessment Year’ and ‘View type’ (HTML, Text or PDF)

31. [26]
STEP-7 Click ‘View / Download

32. [27]

33. [28]
FORM 26AS :
FORM 26 AS CONTAINS:
 Details of tax deducted on your income by deductors(TDS).
 Details of tax collected by collectors(TCS).
 Advance tax paid by the taxpayer.
 Self-assessment tax payments.
 Regular assessment tax deposited by the taxpayers (PAN holders).
 Details of refund received by you during the financial year.
 Details of the High value Transactions in respect of shares, mutual fund etc.
 Interest received from bank & others without deducting any TDS as declaration is
provided such as Form 15G / H in respect of low/no deduction.

34. [29]
WHAT IS FORM 16 ?
Form 16 is a certificate (issued under section 203 of the Income Tax deducted at source (TDS) by the
employer and submitted by him/her to Income Tax Department (IT Department). It has details of how much
tax did the employer deduct and when was it submitted to the IT department.

35. [30]
COMPANY’S PROFILE
Taxway was Conceived in the year 2002 with an objective to simplify the tax by making it customer friendly
and easy. Taxation Laws & regulation are very complex and confusing not only for a layman but sometimes
it becomes tedious for the more informed citizens as well. The Founder of Taxway, Mr.Niranjan Mahawar
Identified this very gap in the process and thought of creating which will help and guide individual , companies
or anyone seeking help in matters of taxation.
To make the Taxation system easy and more customer oriented Mr. Niranjan Mahawar emphasized on
spreading Tax awareness among the citizen of India Efforts were made to be available to every possible help
seeker in the country to resolve his/her tax related queries. Infusion of technology into the tax filling process
was another main area that Taxway Focusses on. The use of software an making the entire process digitized
so that it becomes easy to use and quick Taxway in its very first year exhibited that it has a bright future by
giving the best services in town Taxway wielded strong impact in the market by giving exceptional services
.Taxway has been commendable and always appreciated for its efforts.
Taxway not only providers the finest of services, but it also offers excellent career opportunities. Taxway
provides a strong & leading platform in providing solution of all tax related problems in the whole country.
The Efforts of expanding the company in a very simple and customer friendly way has paid off and today
Taxway has more than 1800 branches across the country. Taxway has a very impressive presence in the rural
areas as well as it believes that to make a meaningful contribution in the field of taxation, it has to touch each
and every corner of India.

36. [31]
Taxway group is playing an important role in generating revenue for the government of India. Slowly and
steadily the reach and customer base of Taxway has increased and the need was felt to provide Additional
support to its customers, both internal and external . More and more research was felt to provide additional
support to its customers, both internal and external. More the research, less the dependency on external and
uncontrollable Factors, in providing services to its customers.
In an efforts to become self-reliant and more customer oriented, multiple services were added to the taxway
group to support its endeavor simply to the industry and today taxway group has more than 20 companies
under its umbrella.
 Vision :-Simplification of the taxation process for the citizens of India being a firm bridge between
them and the government with and being recognized as a professional organization, collecting
resources efficiently, considerate towards its clients, adapting, improving and promoting voluntar y
compliance and growing internationally.
 Mission:-By 2020 - Spreading awareness in every town and city with more than 10 thousand branches
and more than 25 lakhs beneficiaries acting as resilient support system.
 Value :-
1. Coaching : - We are an organization with strong belief in spreading tax awareness in the
society.
2. Credibility : -Demonstrate knowledge and create trust in others and create trust in others
through continuous research, innovation & creativity.
3. Collaboration : -Committed to enabling everyone in understanding and realizing their true
potential through various platforms for growth.
4. Excellence : -Pursue highest quality in providing services excellence.
WHO THEY ARE:

37. [32]
Taxway has set new standards in the field of tax consultancy, at present taxway is providing with the most
basic products such as pan card, itr return, T.D.S refund & submission, GST, tax-free investment advice etc
are being provided by the professionals at the minimal cost and not only by providing the best services ,
Taxway is providing excellent job opportunities . In Taxway's success more than 200000 people and 10000+
branches have given their contribution.
WHAT THEY WORK:
 Pan card
 Income Tax Return
 Goods and service tax
 TDS Return & Deposits
 Trade & Business Registration
 All Types Of Tax Consultancy
BOARD MEMBERS:
Other Organisations Of Taxway Are:

38. [33]

39. [34]

40. [35]
CONCLUSION
It is mandatory to file the income tax returns online for all the registered taxpayers whose taxable income.
However, paper returns can be filed by those who are above 80 years of age and do not have any income from
regular business or profession.
The purpose of taxes is to provide the government with funds for spending without inflation. Taxes are used
by the government for a variety of purposes, some of which are: Funding of public infrastructure. Development
and welfare projects.
If higher taxes lead people to change their behavior to supply less labor, these changes can offset the gains
from tax increases and there might be a natural limit to the revenue that can be raised by income taxation.
Most studies show that tax rates have little impact on the labor supply of primary earners but a more substantial
impact on secondary earners.

41. [36]
BIBLIOGRAPHY
www.google.com
https://incometaxindia.gov.in
https://onlinetaxwayindia.com
https://www.etaxwayservices.com
www.incometaxmanagement.com
www.taxguru.in