A STUDY ON

TAXATION
PRACTICES WITH
REFERENCE TO
CBC &
ASSOCIATES
AN INTERNSHIP PROJECT REPORT SUBMITTED TO
SAMANTA CHANDRA SEKHAR (A) COLLEGE, PURI
Submitted By:
CHITARANJAN SWAIN
[Link] SECOND YEAR COMMERCE

(4TH SEMESTER)

CLASS ROLL NO- BC24-

022 EXAM ROLL NO-

20524040

Under The Guidance Of:

Dr. Pravat Sahoo,
Asst. Professor of Commerce
P.G. DEPARTMENT OF COMMERCE

POST GRADUATE DEPARTMENT OF COMMERCE

SAMANTA CHANDRA SEKHAR(A) COLLAGE

NAAC ACCREDITED GRADE-A, PIN-752001, ODISHA

ACADEMIC SESSION: 2024-27
 DECLARATION

I do hereby declare that the Internship Project Report titled “A STUDY ON TAXATION
PRACTICES WITH REFERENCE TO CBC & ASSOCIATES” submitted by me the
Department of Commerce of S.C.S. (A) College, Puri in fulfilment of the academic
requirement of U.G. 4th Semester [Link]. is my original work. I have neither copied it
from others nor has it been submitted to any other institution including S.C.S. (A) College
or published at any time before.

CHITARANJAN SWAIN
[Link] 2ND YEAR COMMERCE
COLLEGE ROLL NO.: BC24-022
EXAM ROLL NO.: 20524040
 ACKNOWLEDGEMENT

My Internship Project Report entitled “A STUDY ON TAXATION PRACTICES WITH

REFERENCE TO CBC & ASSOCIATES” would not have been possible without the co-
operation and valuable guidance given by my guide Dr. Pravat Sahoo, Assistant
Professor of Commerce, S.C.S. (A) College, Puri. I take this opportunity to convey my
gratitude and obligation to him.

While preparing this Internship Project Report, I have tried my best to maintain
precision and objectivity. Up-to-date data and recent findings of eminent scholars
have been included by referring to learned journals and periodicals. I express my
sincere gratitude to all the authorities concerned in this respect.

I acknowledge my thanks to my parents without whose co-operation and financial

provisions, this Internship Project Report would not have been possible.

CHITARANJAN SWAIN
[Link] 2ND YEAR COMMERCE
COLLEGE ROLL NO.: BC24-022
EXAM ROLL NO.: 20524040
CHAPTER-1 INTRODUCTION

Background of the Activity:

The internship was undertaken at a Chartered Accountant firm with the
objective of gaining practical exposure to accounting, auditing, taxation, and
financial compliance activities carried out in a professional environment. The
training aimed to bridge the gap between theoretical knowledge acquired
through academic studies and its practical application in real-world business
scenarios.

During the internship period, various activities were observed and performed
under the guidance of experienced professionals. These activities included
preparation and verification of financial statements, maintenance of accounting
records, GST and income tax compliance work, bank reconciliation, vouching,
documentation, and assisting in audit procedures.

The internship provided an understanding of the functioning of a CA firm,

client handling procedures, statutory requirements, and professional ethics
followed in the accounting and finance industry. Exposure to accounting
software, taxation portals, and financial reporting systems also enhanced
technical and analytical skills.

The overall activity contributed to developing professional competence,

communication skills, teamwork, and practical knowledge necessary for a
career in finance, accounting, and taxation
Purpose of Internship Engagement in a CA Firm:
 To gain practical exposure to accounting, auditing, and taxation activities.

 To understand the working environment and professional

practices followed in a Chartered Accountant firm.

 To bridge the gap between theoretical academic knowledge and

practical implementation.

 To develop knowledge of financial statement preparation and analysis.

 To learn statutory compliance procedures related to GST, Income

Tax, TDS, and other regulations.

 To acquire hands-on experience in auditing procedures such as

vouching, verification, and documentation.

 To prepare for future professional roles in finance, taxation, auditing,

and consultancy services.

Objectives of Work:
 To understand the practical application of accounting principles
and standards.

 To gain knowledge of auditing procedures and verification techniques.

 To learn preparation and maintenance of books of accounts and

financial statements.

 To understand taxation systems including GST, Income Tax, and

TDS compliance.

 To develop skills in bank reconciliation, ledger scrutiny, and

account finalization.
 To gain exposure to statutory compliance and regulatory requirements
of businesses.

 To learn the use of accounting and taxation software in professional work.

 To understand client handling, professional communication,

and documentation procedures.

 To improve analytical and problem-solving skills related to financial data.

 To develop professional ethics, discipline, and responsibility in

workplace activities.
 CHAPTER-2 PROFILE OF THE ORGANISATION

Introduction to CA firm structure, roles of partners, articles, and staff:

This section outlines the profile and services offered by a typical Chartered
Accountancy firm, using CBC & ASSOCIATES as a case study.
 Firm Profile:
 Name of the firm: CBC & ASSOCIATES
 Year of Formation: 2004
 Registration No.: 325794E
 Number of Partners: 3
 Kedarnath Chaudhary
 Chinmay Prasad Biswal
 Ramesh Kumar Chaurasia
 Registered Office: Krishnananda Dham, Goudabad Sahi, Puri –
752001
 Number of Articles: 3
 Number of Staff: 20
 Branch Office Address:
 CRP Square, Bhubaneswar
 Howrah, Kolkata

Overview of Taxation, Audit, Accounting, and Compliance services offered:

The firm offers a comprehensive suite of financial and compliance services.
They are:-
 Accounting and Book-keeping
 Filing of Income Tax Returns (ITR)
 Filing of GST Returns
 Filing of ROC (Registrar of Companies) compliance documents
 Project Finance
 Handing appeals related to Income Tax & GST
 Tax Audits
 Statutory Audits
 Filing of TDS (Tax Deduction at source) Returns
 CHAPTER-3 METHODOLOGY OF THE STUDY

The study is based on practical training and observation carried out during the
internship period in the C.A. firm. Both primary and secondary sources of data
were used for completing the study and understanding the professional
activiti- es performed in the firm.

Primary Data:
Primary data was collected through:
 Direct observation of accounting, auditing, and taxation activities.
 Interaction with Chartered Accountants, staff members, and clients.
 Participation in day-to-day office work and practical assignments.
 Practical exposure to the preparation of financial records and
compliance documents.

Secondary Data:
Secondary data was collected through:
 Financial statements and Accounting records maintained by the firm.
 GST, Income Tax, and Audit-related documents.
 Reference from textbooks, government portals, and
professional guidelines.

Method Adopted:
The methodology adopted during the internship includes:
 Observation of office procedures and professional practices.
 Analysis of accounting and taxation processes.
 Verification and documentation of financial records.
 Learning through practical assignments and guidance from
staff members.
 Preparation of reports based on collected information and
practical experience.
 Tools and Techniques Used:
 Accounting software and MS Excel.
 Financial statement analysis.
 Audit and verification procedures.
 Tax compliance and documentation techniques.

Duration of Study:
The study was conducted during the internship period prescribed by S.C.S.
(Autonomous) College and carried out at CBC & Associates.

Scope of the Study:

The study mainly focuses on accounting, auditing, taxation, compliance
procedures, and overall functioning of the Chartered Accountant firm.
CHAPTER-4 DESCRIPTION OF WORK UNDERTAKEN

During my summer internship at a Chartered Accountant firm (CBC &

ASSOCIATES), I was assigned various tasks related to taxation and accounting. The
work undertaken during the internship is summarized below:

 Assisted in collecting and organizing financial documents required for

tax return preparation.
 Verified client information and supporting documents such as Form 16,
bank statements, investment proofs, and rent receipts.
 Assisted in the computation of taxable income under different heads of
income and compared tax liability under the old and new tax regimes.
 Observed and assisted in the preparation and filing of Income Tax
Returns (ITRs) for individual taxpayers.
 Assisted in the preparation and review of GST returns and related
working papers.
 Performed basic accounting and bookkeeping work, including
recording transactions and maintaining financial records.
 Participated in the preparation of financial statements and reconciliation
of accounts.
 Conducted basic research on provisions of the Income Tax Act, 1961, and GST
laws for practical assignments.
 Assisted in data entry, document management, and maintenance of
client records.
 Attended discussions with junior staff regarding taxation,
compliance requirements, and client service procedures.

The internship provided practical exposure to accounting, taxation, and compliance-

related activities. It enhanced my understanding of tax laws, financial record keeping,
and professional practices followed in a Chartered Accountant firm.
CHAPTER-5 LEARNING OUTCOMES

Meaning of Tax:
Tax is a compulsory financial charge imposed by the government on individuals
or companies to fund public welfare and development. Derived from the Latin
word taxare (to estimate or value), taxes play a vital role in a country’s financial
and economic growth. Taxes are often calculated as a percentage of income,
wealth, or transactions, and non-payment or partial payment attracts penalties.
Features or Characteristics of Tax:
1. Legal Collection

Taxes are imposed through a legal framework. They cannot be arbitrary and
must follow the laws established by the government.
2. Personal Obligation

Tax payment is the personal responsibility of citizens or entities. Evasion of

taxes is illegal and punishable.
3. Compulsory Contribution

Taxes are mandatory payments. Citizens are obligated to contribute, and refusal
to pay taxes results in penalties or legal action.
4. Imposed Solely by the Government

Only central, state, or local governments have the authority to levy taxes,
ensuring legal and systematic imposition.
5. Source of Revenue Collection

Taxes serve as a major revenue source for governments, funding public services
and socio-economic development programs.
6. Benefit Without Direct Reciprocity

Taxpayers do not receive specific or direct benefits in exchange for paying

taxes; instead, the benefits are distributed among society.
7. Varied Types of Taxes

 Direct Taxes: Levied directly on income or wealth, such as income tax.

  Indirect Taxes: Levied on goods and services, like GST or customs duties.
8. Economic Regulation

 Taxes are tools for shaping economic behaviour.

 High taxes on harmful products discourage consumption.
 Tax incentives promote investment in strategic sectors.
9. Redistribution of Wealth

Progressive taxation ensures that higher-income groups pay more, facilitating wealth
redistribution through public welfare programs.
10. Public Good Funding

Taxes finance goods and services like defense, education, and healthcare,
benefiting society collectively.

Meaning of Direct Taxes:

 Direct taxes are taxes that are imposed directly on an individual,
organization, or entity based on their income, wealth, or property, and are
paid straight to the government by the person on whom they are levied. In
this form of taxation, the incidence (legal obligation to pay) and the
impact (actual burden of the tax) fall on the same person, meaning the tax
cannot be shifted to someone else.
 Examples of direct taxes include income tax, corporate tax, and wealth tax.
Meaning of Indirect Tax:
 An Indirect Tax is a type of tax that is levied on the production, sale, or
consumption of goods and services, and its burden is ultimately borne by
the consumer.
 It is collected by an intermediary (such as a seller, manufacturer, or
service provider) from the buyer and then paid to the government. In this
way, the incidence (legal liability) and impact (actual burden) of the tax
fall on different persons.
 Example: GST (Goods and Services Tax), Customs Duty, Excise Duty.
Meaning of Income Tax:
 Income Tax is a compulsory financial charge levied by the government
on the income of individuals, organizations, and other legal entities within
its jurisdiction to fund public expenditure and national development.
 In India, income tax is governed by the Income-tax Act, 1961, and is
administered by the Income Tax Department. The amount of tax payable
depends on the taxpayer’s income, applicable tax rates, deductions, and
exemptions.
Section 2(31) - Definition of “Person”:
Under the Income Tax Act, 1961, “person” includes:
1. Individual: A natural human being (e.g., minor, person of unsound mind).
2. Hindu Undivided Family (HUF): A family unit governed by Hindu
law, including the Karta and coparceners.
3. Company: Entities incorporated under the Companies Act or foreign
laws, including those declared as companies by the CBDT.
4. Firm: Partnership firms (registered/unregistered) and LLPs.
5. Association of Persons (AOP): A group of individuals/entities with a
common purpose (e.g., co-heirs, joint ventures).
6. Body of Individuals (BOI): A group of natural persons without a
specific intent to associate (e.g., co-executors).
7. Local Authority: Entities like municipalities, panchayats, or port trusts
managing local funds.
8. Artificial Juridical Person: Non-human entities recognized by law (e.g.,
deities, trusts, universities).
Assessee Section 2(7):
Assessee under Section 2(7) of the Income Tax Act, 1961 includes
 Ordinary Assessee:
A person involved in tax proceedings, liable to pay tax, interest, or penalty,
or entitled to a refund.
 Representative Assessee:
A person responsible for another’s tax liability (e.g., executor of a
deceased, guardian of a minor, or agent of a non-resident).
 Assessee-in-Default:
 A person who fails to deduct or deposit TDS (e.g., employer not deducting
TDS on salary).
Previous Year (PY) [Section 3]:
The Previous Year (PY) is the financial year (April 1 to March 31) during which
income is earned. This income is assessed and taxed in the Assessment Year
(AY) following the PY.
A. Key Points:
1. Uniform PY: Since AY 1989-90, all taxpayers follow the financial
year (April 1 to March 31) as the PY.
2. Continuing Business: PY is the financial year preceding the AY.
3. New Business/Profession: First PY may be shorter (from
commencement to March 31). Subsequent PYs are full financial years.
4. New Source of Income: PY starts from the date the source comes into
existence to March 31.
B. Exceptions:
Income is assessed in the same year it is earned in cases like:
 Non-resident ship-owners.
 Individuals leaving India permanently.
 AOPs/entities likely to dissolve.
 Persons transferring assets to evade tax.
 Discontinued businesses.
Assessment Year (AY):
The Assessment Year (AY) is the financial year (April 1 to March 31) following
the Previous Year (PY), during which:
1. The taxpayer files an Income Tax Return (ITR) for income earned in
the PY.
2. The Income Tax Department verifies the ITR details.
3. Tax liability is calculated, and adjustments are made if necessary.
4. The Department compares tax paid (via TDS, advance tax, etc.) with
the actual liability.
5. An Assessment Order is issued, which may result in a refund,
additional tax demand, or no change.
Heads of Income (Section 14):
The Income-tax Act, 1961, categorizes total income into five heads for
computation:
1. Income from Salaries (Sections 15-17):
Includes wages, pensions, allowances, and employment benefits.
2. Income from House Property (Sections 22-27):
 Income from owned property, minus deductions like property
taxes and mortgage interest.
3. Income from Profits and Gains of Business or Profession (Sections
28- 44):
 Profits or gains from a business or profession operated by the
taxpayer.
4. Income from Capital Gains (Sections 45-55):
 Gains from the transfer of capital assets, adjusted for allowable
expenses.
5. Income from Other Sources (Sections 56-59):
 Residual category for income not covered under other heads
(e.g., dividends, lottery winnings, gifts).
Gross Total Income (GTI) [Section 80B (5)]:
 Definition:
Gross Total Income (GTI) is the total income calculated by adding
income from all five heads (Salaries, House Property,
Business/Profession, Capital Gains, and Other Sources), including
clubbed income (if any), and after adjusting for current or past
losses. GTI is computed before applying any tax-saving deductions
under Sections 80C to 80U.
 Formula:
GTI = Salary Income + House Property Income +
Business/Profession Income + Capital Gains + Other Sources
Income + Clubbing of Income – Set-off of Losses
Total Income [Section 2(45)]:
 Definition:
“Total Income” refers to the income calculated as per Section 5 of
the Income-tax Act, after allowing deductions under Chapter
VI-
 A (Sections 80C to 80U) from the Gross Total Income (GTI).
Income tax is levied on this Total Income at the prescribed rates.
 Formula:
Total Income = Gross Total Income (GTI) – Deductions under
Chapter VI-A (Sections 80C to 80U)
Income Tax Slab Rates for the Financial Year – 2026-2027:
New Tax Regime Slab Rates:
Annual Taxable Income Tax Rate
Up to ₹4,00,000 Nil
₹4,00,001 – ₹8,00,000 5%
₹8,00,001 – ₹12,00,000 10%
₹12,00,001 – ₹16,00,000 15%
₹16,00,001 – ₹20,00,000 20%
₹20,00,001 – ₹24,00,000 25%
Above ₹24,00,000 30%

Old Tax Regime Slab Rates (For Individuals Below 60 Years & NRIs):
Annual Taxable Income Tax Rate
Up to ₹2,50,000 Nil
₹2,50,001 – ₹5,00,000 5%
₹5,00,001 – ₹10,00,000 20%
Above ₹10,00,000 30%

Old Tax Regime Slab Rates (For Senior Citizens):

Annual Taxable Income Tax Rate
Up to ₹3,00,000 Nil
₹3,00,001 – ₹5,00,000 5%
₹5,00,001 – ₹10,00,000 20%
Above ₹10,00,000 30%

Old Tax Regime Slab Rates (For Super Senior Citizens):

Annual Taxable Income Tax Rate
Up to ₹5,00,000 Nil
₹5,00,001 – ₹10,00,000 20%
Above ₹10,00,000 30%
Surcharge:
Surcharge is an additional tax levied on the amount of income tax
payable when a person’s income exceeds specified limits. It is not charged
on total income directly; it is charged as a percentage of the calculated
income tax.
Surcharge rate under both New Tax Regime and Old Tax Regime:
Total Income Surcharge Rate (New Surcharge Rate (Old
Tax Regime) Tax Regime)
Up to ₹50 lakh Nil Nil
Above ₹50 lakh up to ₹1 10% 10%
crore
Above ₹1 crore up to ₹2 15% 15%
crore
Above ₹2 crore up to ₹5 25% 25%
crore
Above ₹5 crore 25% 37%

Health and Education Cess:

 Meaning: Health and Education Cess (H&EC) is an additional
levy imposed by the Government of India on the amount of income
tax plus surcharge payable by a taxpayer. The proceeds are used to
fund health and education initiatives in the country.
 Formula:
Health and Education Cess = 4% × (Income Tax + Surcharge)

Tax Deducted at Source (TDS):

Tax Deducted at Source (TDS) is a tax collection mechanism under the
Income Tax Act where tax is deducted at the time of making specified
payments such as salary, interest, rent, commission, and professional fees. The
deducted amount is deposited with the government on the recipient's behalf,
ensuring timely tax collection and improved tax compliance.

 TDS is deducted at source on specified payments such as salary, interest,

rent, and professional fees.

 TDS deducted from your income can be claimed as a tax credit or refund
while filing your ITR.
  Form 26AS helps you track and verify TDS credits deposited against your
PAN.

TDS Due Dates:

TDS must be deposited to the government on or before the 7th of the following
month in which the tax is deducted.

 For example, TDS deducted in June must be deposited by 7th July.

 TDS deducted in March, however, can be deposited up to 31st May.
 In case the person fails to file TDS statement within the specified due date,
then the person will be liable to pay a Late fee of Rs. 200 per day, but not
exceeding the total TDS amount.

Quarter Due Date

April to June-Q₁ 31st July

July to September-Q₂ 31st Oct

October to December-Q₃ 31st Jan

January to March-Q₄ 31st May

Advance tax:
Advance Tax is income tax paid through multiple instalments before the end of
financial year, instead of a lump sum payment after the end of the financial
year. The taxpayer calculates the estimated total income at the beginning of the
financial year, thereby estimating his tax liability. The advance tax payments
have to be made in fixed percentage through four instalments as per the due
dates provided by the income tax department.
Who should pay Advance Tax?
 As per section 404 of the Income tax Act, any assessee whose estimated
Tax liability for the financial year exceeds Rs 10,000, he or she is required
to pay advance tax.
 If TDS is already deducted against a person, and still Rs 10,000 tax is
payable as per estimation, he/she also needs to pay advance tax.
  This provision applies to all taxpayers, salaried individuals,
Freelancers, and businesses.

Note:
 Senior citizens - People aged 60 years or more who do not have
income from any business or profession (PGBP) during the financial
year are exempt from paying advance tax.
 However, senior citizens (60 years or more) having business or
professional income (PGBP) must pay advance tax.

Advance Tax Rates and Due Dates:

Instalment Due Date Advance Tax

Payment Percentage

First Instalment- Q₁ On or before 15% of tax liability

15th June

Second Instalment- Q₂ On or before 45% of tax liability (-)

15th advance tax already
September paid

Third Instalment- Q₃ On or before 75% of tax liability (-)

15th advance tax already
December paid

Fourth Instalment- Q₄ On or before 100% of tax liability (-)

15th March advance tax already
paid

Income Tax Return (ITR):

The Income Tax Return or ITR is a form in which the taxpayers submit
information about their income and tax payments to the income tax
department. The ITR form applicable to a taxpayer depends on the type of
taxpayer, whether individuals, HUF, company, etc., and you choose the ITR
based on the nature and type of income and total income.
Types of ITR:
The department prescribes seven types of ITR forms based on the type of
taxpayer and income:

ITR Persons required to file

ITR-1 (Sahaj) Resident individuals having a total

income up to ₹50 Lakh from
Salary, one House Property, and
Other Sources.

ITR-2 Individuals and Hindu Undivided

Families (HUFs) having income
from Salary, more than two
House Property, Capital Gains,
and Other Sources.

ITR-3 Individuals and Hindu Undivided

Families (HUFs) having income
from Salary, House Property,
Business or Profession, Capital
Gains, and Other Sources.

ITR-4 (Sugam) Resident Individuals, Hindu

Undivided Families (HUFs), and
Partnership Firms (excluding
LLPs) having income from
Salary, House Property, Business
or Profession, Long-term Capital
Gains on certain equity shares
and mutual funds up to ₹1.25
Lakh, and Other Sources.

ITR-5 Limited Liability Partnerships

(LLPs), Partnership Firms,
Association of Persons (AOPs),
Body of Individuals (BOIs),
Artificial Juridical Persons
(AJP),
 and Trusts (that are not eligible to
file Form ITR-7)

ITR-6 Companies

ITR-7 Entities (including companies) that

generate income from charitable or
religious properties and claim tax
exemptions

Documents Required to File ITR:

The documents required to file ITR are
1. Bank Statements
2. Cash Book
3. PAN card
4. TDS Certificate
5. Interest Certificates
6. Proof of Tax Saving Investments
7. Form 16
8. Form 26AS
9. Health Insurance Receipts

How to File ITR?

ITR can be filed in the income tax portal by logging into the taxpayer’s
account. The following steps are recommended to be followed while filing
ITR.
Step 1: Login to the Income Tax portal using your PAN as the login ID and
password as encrypted.
Step 2: On the home page, go to 'e-File' tab > 'Income Tax Returns' > ‘File
Income Tax Return’.
Step 3: Select the correct Assessment Year. The assessment year for FY
2025- 26 is 2026-27.
Step 4: Select Filing Status - whether you are individual, HUF, or any other
kind of assessee. Mostly for salaried and freelancing taxpayers, 'Individuals
may be chosen.
Step 5: Select ITR Type, depending on your income level.
Step 6: Select Reason for filing ITR. You may file because of the taxable
income has crossed the exemption limit or on satisfaction of specified
conditions.
Step 7: Enter your personal details, bank account details, income earned,
deductions claimed and taxes paid. Cross verify the summary for accuracy
and proceed filing the return.
Step 8: On successful completion of e-filing, the last step is e-verification.

Due date for filing ITR:

A taxpayer should file an ITR on or before the due date specified. The
following table lists due dates for filing ITR to different types of assessees.

Category of Taxpayer Due Date for Tax Filing

(unless extended)

Individual / HUF/ AOP/ BOI 31st July

(books of accounts not required to
be audited)

Businesses (Requiring Audit) 31st October

Businesses requiring transfer 30th November

pricing reports (in case of
international/specified domestic
transactions)

Revised Return:
Revised return is a return filed under Section 139(5) to correct mistakes or
omissions made in the original return. Section 139(5) of the Income Tax
Act, 1961, allows you to file a revised return if you discover mistakes in
your initial filing. If you discover any errors or omissions in your original
ITR,
you can file revised returns and rectify such errors or omissions. The
following are the usual errors which can be rectified using revised returns:
 Omitted, reduced, or exaggerated income.
 Omitted deductions or claimed excess deductions or exemptions.
 Miscalculations, or missed necessary disclosures.
 Chosen a wrong ITR form.
 Claimed less refund than eligible.

The Last Date to File a Revised Return:

The last date to file a Revised Return is 31st December of the relevant
assessment year, or before the completion of the assessment by the income
tax authorities, whichever is earlier.

Belated Return:
A belated return is an income tax return filed after the original deadline
has passed. Under Section 139(4) of the Income Tax Act, taxpayers who
miss their initial filing date can still submit their returns late, subject to late
fees and interest penalties.
 The Deadline:
A belated return can generally be filed up to December 31st of the
assessment year, or before the completion of the assessment,
whichever is earlier.
 Penalties:
o Late fees up to ₹5,000 are levied under Section 234F.
o If your total income is below ₹5 lakh, the penalty is reduced to
₹1,000.
o If your income is strictly below the taxable limit, no penalty
applies.
 Interest:
You may also owe 1% per month or part of a month in interest under
Section 234A on any outstanding tax liability.
Updated Return:
Updated Income Tax Return or ITR-U means a form that allows you to
rectify errors or omissions and update your previous ITR. It can be filed
within four years from the end of the relevant assessment year. You can
file ITR-U for preceding 4 assessment years (48 months).

Income Tax Challan:

An Income Tax Challan is an official form or digital document used by
taxpayers in India to deposit direct taxes (such as Income Tax, Advance
Tax, Self-Assessment Tax, or TDS) to the government. It acts as secure
proof that funds were successfully transferred from the taxpayer to the
Income Tax Department.
Why is it Important?
When you file your Income Tax Return (ITR), you must reference your
challan to prove that you paid your tax liability. A successfully processed
challan contains three key pieces of information needed for filing:
 BSR Code: A 7-digit code of the bank branch that processed the
payment.
 Date of Deposit: The exact date the payment was made.
 Challan Serial Number: A unique identifying number for your
specific payment.

Permanent Account Number (PAN):

A Permanent Account Number (PAN) is a unique 10-digit alphanumeric
code India’s Income Tax Department issued to identify taxpayers. This
number is a central database for an individual or entity's financial and tax-
related transactions. The PAN ensures that all tax activities, such as tax
payments, TDS (Tax Deducted at Source), TCS (Tax Collected at
Source), and income tax returns, are linked to a specific taxpayer, helping
the government monitor financial activities.
What is a PAN Card?
The PAN card is the physical representation of your Permanent Account
Number. It includes:
 PAN Number
 Your Name
 Date of Birth
 A Photograph
PAN Format Breakdown:
Example PAN: ABCTY1234D
 The first three characters (e.g., ABC) are random alphabets.
 The fourth character (e.g., T) identifies the PAN holder’s status (T
for Trust, P for Individual, C for Company, etc.).
 The fifth character (e.g., Y) is the first letter of the PAN holder’s
last name (surname).
 The following four characters are unique sequential numbers (0001
to 9999).
 The last character is an alphabetic check digit.
Procedures for applying PAN card:
1. Visit the Portal: Go to the Protean Online PAN Application
or UTIITSL Portal.
2. Select the Form: Under Application Type, select Form No. 93
(Indian Citizen). Choose your category (e.g., Individual) and fill in
your details.
3. Generate Token: Submit the form to receive a Token Number on
your email.
4. Fill Out the Application: Continue to the application form. You will
need to provide basic details (like your parents' names) and your AO
code (Assessing Officer Code).
5. Upload Documents & Photo: Upload your scanned photograph,
signature, and identity/address proofs (like your Aadhaar Card,
Passport, or Voter ID).
6. Make the Payment: The application fee is ₹107 (inclusive of 18%
GST) for an Indian communication address. Payment can be made
via debit card, credit card, or net banking.
 7. Complete e-Verify: You can complete the process digitally using
an Aadhaar-based OTP or e-sign.

Tax Deduction Account Number (TAN):

Tax Deduction Account Number (TAN) is a ten-digit alphanumeric
number issued by the Income Tax (IT) department to all persons
responsible for collecting or deducting tax. Under Section 203A of the
Income Tax Act, 1961, it is compulsory to quote TAN on all TDS or TCS
returns.
Who Should Apply for TAN?
TAN should be obtained by every person responsible for Tax Deduction at
Source (TDS) or Tax Collection at Source (TCS). It is mandatory to quote
TAN in all TCS or TDS transactions, including any e-TCS/TDS return,
TDS/TCS payment challan and TDS/TCS certificates.
Structure of TAN:
The TAN, being a ten-digit alphanumeric number, has a unique structure. The
structure of TAN is as follows:
 The first four digits are letters – First three letters represent the
jurisdiction where the TAN is issued. The fourth letter is initial of the
entity or individual applying for the TAN.
 The next five digits are numerical – The numerical in the middle are
unique numbers generated by the system.
 The last digit is a letter at the end – The last one letter is a unique letter
generated by the system.
Procedures for applying TAN:
Applying for a Tax Deduction Account Number (TAN) under the Income
Tax Act is done online via Protean (formerly NSDL) or the Income Tax e-
filing portal. The process requires submitting an online application, paying a
nominal fee of ₹77, and mailing the signed physical acknowledgment.
1. Access the Application Portal: Visit the Income Tax Department Apply
for TAN Online page and follow the link to the Protean (TIN-NSDL)
website.
2. Fill out Form 134/135 (formerly Form 49B): Select your deductor
category (e.g., Company, Individual, Firm, or Branch). Fill out the
 designated form (Form 134 for Government entities, Form 135 for Non-
Government).
 Ensure you have your Assessing Officer (AO) details ready
(Area Code, Range Code, AO Type, and AO Number).
 Ensure the email and mobile number provided belong to the
person responsible for tax deduction.
3. Submit and Verify: Review all the details on the confirmation screen.
If any information needs correcting, use the edit option; otherwise,
click confirm.
4. Pay the Fee: The application processing fee is ₹77 ( ₹65 base charge +
18% GST). You can pay this online via Net Banking, Credit/Debit
Card, or offline via Demand Draft.
5. Print and Mail the Acknowledgement: After successful payment, a 14-
digit acknowledgment slip will appear on the screen.
 Save, download, and print this slip.
 Sign the form (For non-Individuals, this must be signed by an
authorized signatory with their official seal/stamp).
 Mail this physical document to the following address:
Protean eGov Technologies Limited
4th floor, Sapphire Chambers, Baner Road, Baner,
Pune – 411015
 Note: The acknowledgment must reach the office within 15 days
of your online application.
6. Track Status: Once the office receives your signed acknowledgment
and verifies the payment, they will process the application and issue
your TAN. You can check your application status by sending an SMS
in the format PTNTAN <Acknowledgment No.> to 57575.

How to file ITR-1?

Filing ITR-1 is primarily for resident individuals with a total income up to ₹50
lakh from salary, one house property, and other sources.
Prerequisites
Keep these handy before you begin:
1. PAN & Aadhaar
2. Form 16 (from your employer)
 3. Form 26AS & AIS (downloadable from the e-filing portal)
4. Bank statements & Interest certificates

Step 1: Log In and Access the Portal:

1. Go to the official Income Tax e-Filing Portal.
2. Click on Login using your PAN (User ID) and password.

Step 2: Navigate to the ITR Form:

1. On your Dashboard, click on e-File > Income Tax Returns >
File Income Tax Return.
2. Select the relevant Assessment Year.
3. Select the mode of filing as Online and click Continue.
4. Choose Status as Individual and click Let's Get Started.

Step 3: Select the Reason and ITR Type:

1. Select the reason you are filing ITR (e.g., taxable income is above the
basic exemption limit) and click Continue.
2. Select ITR-1 from the available forms and click Proceed.

Step 4: Validate Pre-filled Data:

1. Read the instructions and carefully review your personal information,
contact details, and bank accounts.
2. Add any missing bank accounts and ensure you pre-validate at least
one account to receive refunds.

Step 5: Fill in Income and Deductions:

1. Go to the Gross Total Income tab. Review the pre-filled salary, house
property, and other sources of income. Cross-check this with your Form
26AS and AIS.
2. Go to the Total Deductions tab to claim deductions (e.g., Section 80C,
80D, etc.). Note that the New Tax Regime is the default, so only specific
deductions are available unless you opted for the Old Tax Regime.

Step 6: Review Tax Liability:

1. Move to the Total Tax Liability section. The portal will compute your
tax based on the regime and data provided.
2. If any tax is due (payable), select Pay Now or Pay Later.

Step 7: Preview and Submit:

1. Click on Preview Return and review all details for accuracy.
2. Check the declaration box and click Proceed to Validation.
 3. Once successfully validated, click Proceed to Verification.

Step 8: E-Verify Your Return (Crucial Step):

Your return is incomplete without verification.
 Choose to e-verify instantly using Aadhaar OTP, Net Banking,
or Bank Account.
 Alternatively, you can verify later by sending the signed physical
ITR- V to CPC, Bengaluru within 30 days.

How to file ITR-2?

Form ITR-2 is for individuals and HUFs who have income from salary, house
property, capital gains, or other sources, but no business or professional
income. Follow this step-by-step guide to file your ITR-2 seamlessly on the
official income tax portal.
Phase 1: Gather Documents & Pre-Requisites
Before filing, ensure you have these documents ready:
 PAN & Aadhaar: Must be linked.
 Income Proofs: Form 16 (for salary) and rent receipts.
 Tax Statements: Download Form 26AS and your AIS (Annual
Information Statement) from the portal.
 Capital Gains Statement: Brokerage/mutual fund reports for short-term
and long-term gains.

Phase 2: Log in and File

1. Log in: Go to the Income Tax India e-Filing Portal using your
PAN/Aadhaar and password.
2. Navigate to ITR: Go to the e-File menu → Income Tax Returns → File
Income Tax Return.
3. Select Assessment Year: Choose the current Assessment Year (e.g., AY
2026-27) and filing mode as Online.
4. Choose Status & Form: Click Start New Filing, select Individual, and
choose ITR-2 from the dropdown menu.
5. Select Schedules: Review the list of documents and check all the
schedules that apply to your specific income sources (e.g., Schedule S for
Salary, Schedule CG for Capital Gains).
Phase 3: Fill the Schedules
1. General Information: Verify your personal info, contact details, and
bank accounts. Choose your tax regime (Old or New).
2. Schedule S & HP: Enter details for Salary (from Form 16) and House
Property (rental income or home loan interest).
3. Schedule CG: Report capital gains from shares, mutual funds, or
property. Input full value of consideration, cost of acquisition, and
eligible expenses.
4. Schedule OS: Enter 'Income from other sources' such as savings bank
interest, FD interest, or dividends.
5. Tax Details: Verify all your TDS, TCS, and advance tax payments
against Form 26AS.

Phase 4: Compute, Preview, and Verify

1. Confirm Tax Liability: Navigate to Part B - TTI to check your total
taxable income and final tax liability. If you have tax due, pay it via the
portal and enter the challan details.
2. Validate & Preview: Click Proceed to Validation to check for errors.
3. Submit & E-Verify: Once successfully validated, submit the form. E-
verify your return immediately using an Aadhaar OTP or Net Banking
for the filing to be legally complete.

A Case Study on Income Tax Calculation under both Old Tax Regime and
New Tax Regime:

Question
Mr. Rohan (Age: 35 years, Resident) provides the following financial details for
the financial year. Find his net tax payable under both regimes and also suggest
which regime is beneficial for the assessee.

1. Income from Salary: Gross Salary of ₹18,00,000.

2. Income from House Property: He owns a residential house that is let out
for a monthly rent of ₹30,000. He paid Municipal Taxes of ₹20,000. He
is also paying an EMI on a home loan for this let-out property; the
interest component for the year is ₹2,20,000.
3. Profits and Gains of Business or Profession (PGBP): He runs a side
consultancy firm. His gross receipts are ₹5,00,000, and allowable
business expenses are ₹1,80,000.
4. Capital Gains:
 Short-Term Capital Gains (STCG) on sale of listed equity shares
(Section 111A): ₹60,000.
 Long-Term Capital Gains (LTCG) on sale of land: ₹1,50,000.
 5. Income from Other Sources:
 Interest on Savings Bank Account: ₹15,000.
 Interest on Fixed Deposits: ₹45,000.
6. Investments & Payments (For Deductions)
 Contribution to Public Provident Fund (PPF): ₹1,50,000.
 Life Insurance Premium paid: ₹25,000.
 Health Insurance Premium paid (Section 80D): ₹28,000.
 Employee's contribution to NPS (Section 80CCD(1B)): ₹50,000.

Solution
Calculation of Net Taxable Income of Mr. Rohan under Old Tax Regime

Particulars of Income / Details Amount

Deductions
Gross Salary 18,00,000
Less: Standard Deduction (50,000)

Net Salary Income 17,50,000

Gross Annual Value 3,60,000
(Rent Received)
Less: Municipal Taxes (20,000)
Paid
Net Annual Value 3,40,000
(NAV)
Less: Statutory Standard (1,02,000)
Deduction u/s 24(a)
Less: Home Loan (2,20,000)
Interest u/s 24(b)
Net House Property 18,000
Income
Profits and Gains of 3,20,000
Business (PGBP)
Short-Term Capital Gains 60,000
(STCG u/s 111A)
Long-Term Capital Gains 1,50,000
(LTCG)
Net Capital Gains 2,10,000
Income
Savings Bank Account 15,000
Interest
Fixed Deposit (FD) 45,000
Interest
Net Other Sources 60,000
Income
GROSS 23,58,000
TOTAL
INCOME (GTI)
Deductions under
Chapter VI-A
Section 80C (PPF / (1,50,000)
Life Insurance)
Section 80D (Health (25,000)
Insurance Premium)
Section 80CCD(1B) (50,000)
(NPS Contribution)
Section 80TTA (10,000)
(Savings Interest
Deduction)
Less: TOTAL (2,35,000)
ALLOWABLE
DEDUCTIONS
NET TAXABLE 21,23,000
INCOME

Calculation of Total Tax Liability of Mr. Rohan under Old Tax Regime

Particulars Details Amount

Tax on Normal Income

(₹19,13,000)
Income Up to ₹2,50,000 Nil

₹2,50,001 to ₹5,00,000 12,500

(2,50,000 × 5%)
₹5,00,001 to ₹10,00,000 1,00,000
(5,00,000 × 20%)
Above ₹10,00,000 2,73,900
[(19,13,000 −
10,00,000) × 30%]
Total Slab Tax 3,86,400
Tax on Special Income
(60,000+1,50,000)

Short Term Capital 9,000

Gain u/s 111A
(60,000×15%)
Long Term Capital 30,000
Gain (1,50,000×20%)
Total Tax Base (Before 4,25,400
Cess)
Add: Health & 17,016
Education Cess
(4%)
Total Tax Liability 4,42,416

Calculation of Net Taxable Income of Mr. Rohan under New Tax Regime

Particulars of Income / Details Amount

Deductions
Gross Salary 18,00,000
Less: Standard (75,000)
Deduction
Net Salary Income 17,25,000
Gross Annual 3,60,000
Value (Rent
Received)
Less: Municipal Taxes (20,000)
Paid
Net Annual 3,40,000
Value (NAV)
Less: Statutory (1,02,000)
Standard Deduction u/s
24(a)
Less: Home (2,20,000)
Loan Interest u/s
24(b)
Net House Property 18,000
Income
Profits and Gains of 3,20,000
Business (PGBP)
Short-Term Capital 60,000
Gains (STCG u/s 111A)
Long-Term Capital 1,50,000
Gains (LTCG)
Net Capital Gains 2,10,000
Income

Savings Bank Account 15,000

Interest
Fixed Deposit 45,000
(FD) Interest
Net Other Sources 60,000
Income
GROSS 23,33,000
TOTAL
INCOME (GTI)
Deductions under
Chapter VI-A
Section 80C (PPF / Nil
Life Insurance)
Section 80D Nil
(Health Insurance
Premium)
Section 80CCD(1B) Nil
(NPS Contribution)
Section 80TTA (Savings Nil
Interest Deduction)
Less: TOTAL Nil
ALLOWABLE
DEDUCTIONS
NET 23,33,000
TAXABLE
INCOME

Calculation of Total Tax Liability of Mr. Rohan under New Tax Regime

Particulars Details Amount

Tax on Normal Income
(₹21,23,000)
 Income Up to ₹4,00,000 Nil

₹4,00,001 to ₹8,00,000 20,000

(4,00,000 × 5%)
₹8,00,001 to ₹12,00,000 40,000
(4,00,000 × 10%)
₹12,00,001 to 60,000
₹16,00,000 (4,00,000 ×
15%)

₹16,00,001 to 80,000
₹20,00,000 (4,00,000 ×
20%)
Above ₹20,00,000 30,750
[(21,23,000 −
20,00,000) × 25%]
Total Slab Tax 2,30,750
Tax on Special Income
(60,000+1,50,000)
Short Term Capital 9,000
Gain u/s 111A
(60,000×15%)
Long Term Capital 30,000
Gain (1,50,000×20%)
Total Tax Base (Before 2,69,750
Cess)
Add: Health & 10,790
Education Cess (4%)
Total Tax Liability 2,80,540

Conclusion:

Based on the comprehensive quantitative analysis of Mr. Rohan’s multi-head

revenue profile, it is explicitly recommended that the assessee opt for the New
Tax Regime. Choosing the New Tax Regime reduces the total tax outflow from
₹4,42,416 to ₹2,80,540, resulting in an absolute cash-flow saving of
₹1,61,876. Adopting this regime eliminates the need to lock liquidity into
restrictive tax- saving instruments while simultaneously maximizing the
assessee’s net disposable income for the financial year.
Goods and Services Tax (GST):

The Goods and Services Tax (GST), introduced in India on July 1, 2017, is a
comprehensive, multi-stage, destination-based indirect tax levied on the
supply of goods and services. It replaced a complex network of indirect taxes
such as excise duty, service tax, VAT, and others, with a single unified tax
system applicable across the country.
GST is applied at every stage of the supply chain — from manufacturing to
final consumption — but is charged only on the value added at each stage. This
is made possible through the Input Tax Credit (ITC) mechanism, which allows
businesses to set off the tax paid on their purchases against the tax they collect
on their sales. This system eliminates the cascading effect of taxes (“tax on tax”)
and promotes efficiency in the tax structure.

SALIENT FEATURES OF GST IN INDIA:

 Unified National Market – “One Nation, One Tax”

GST eliminates the cascading effect of taxes (tax on tax), ensures
uniformity in rates and procedures, and creates a common national
market that facilitates ease of doing business.
 Dual GST Structure
India follows a dual GST model where both the Centre and States levy
tax on the same supply. Central GST (CGST) and State GST (SGST)
apply to intra-state transactions, while Integrated GST (IGST) applies
to inter-state transactions and imports.
 Destination-Based Taxation
GST is a destination-based consumption tax, meaning revenue accrues to
the state where goods or services are consumed, not produced.
 Taxable Event – Supply
The taxable event under GST is the “supply” of goods or services,
covering sale, transfer, barter, exchange, lease, rental, or disposal for
consideration.
 Coverage with Specific Exclusions
GST applies to most goods and services, except specific exclusions.
Alcohol for human consumption is outside GST and remains under state
taxes. Petroleum products (crude oil, petrol, diesel, natural gas, and
aviation turbine fuel) are currently excluded but may be included later.
Tobacco products are under GST but also attract central excise duty on
manufacture.
 GST Rates
GST operates on a multi-rate system with slabs of 0%, 5%, 12%, 18%, and
28%, based on the nature of goods or services.
 Threshold Exemption and Composition Scheme
Businesses with an annual turnover below ₹40 lakh for goods (₹20 lakh
for services, ₹10 lakh for special category states) are exempt from GST
registration. Small taxpayers with turnover up to ₹1.5 crore ( ₹75 lakh for
special category states) can opt for the Composition Scheme, paying a
fixed tax rate with simplified compliance but without input tax credit
benefits.
 Input Tax Credit (ITC)
GST’s core feature is seamless ITC, allowing taxes paid on inputs to
be set off against taxes on outputs, ensuring tax is levied only on value
addition.
 Technology-Driven Compliance (GSTN)
The Goods and Services Tax Network (GSTN) is an online platform for
registration, return filing, tax payments, and refund claims. It enables
invoice matching, real-time transaction tracking, and enhances
transparency in tax administration.
 E-Way Bill and TDS/TCS Provisions
An e-way bill is mandatory for goods valued over ₹50,000 in transit to
ensure tracking and verification. GST includes Tax Deducted at Source
(TDS) at 2% (1% CGST + 1% SGST / 2% IGST) for specified
transactions and Tax Collected at Source (TCS) at up to 2% for e-
commerce operators.
 Zero-Rated Supplies
Exports and supplies to Special Economic Zones (SEZs) are zero-rated,
meaning no GST is charged, and input tax credit is refundable, promoting
export competitiveness and supporting the SEZ ecosystem.
 Prevents Tax Cascading
Seamless ITC ensures tax is levied only on value addition at each stage,
eliminating the cascading effect of earlier indirect taxes.
 Constitutional Backing
GST is empowered by the 101st Constitutional Amendment Act,
2016, which introduced Articles 246A, 269A, and 279A, and
established the GST Council for policy coordination between the
Centre and States.
 GST Council
The GST Council, a constitutional body under Article 279A, comprises the
Union Finance Minister and state finance ministers. It makes
recommendations on tax rates, exemptions, thresholds, and other GST-
related policies, ensuring cooperative federalism.
 Refund Mechanism
GST offers online refund processing for excess tax paid or unutilized ITC,
with time-bound procedures to ensure business liquidity and minimize
working capital blockage.
 Harmonization Across States
GST ensures uniform tax structures, rates, and procedures across states,
simplifying inter-state trade and strengthening the unified national market.
 Eco-Friendly Tax Incentives
GST offers reduced tax rates for eco-friendly goods and services (e.g.,
electric vehicles at 5%) to promote sustainability and align with
environmental goals.
Key Constitutional Provisions:

 Article 246A: Grants concurrent power to Parliament and

State Legislatures to levy GST.
 Article 269A: Governs IGST (inter-State supply); collected by
Centre and shared with States.
 Article 279A: Establishes the GST Council to recommend tax
rates, exemptions, and policies.
 Article 286: Restricts States from taxing inter-State or
import/export supplies.
 Article 366(12A): Defines GST as tax on supply of
goods/services, excluding alcohol.

Types of GST:

1. Central Goods and Services Tax (CGST):

 Meaning: Levied by the Central Government on intrastate
supplies (within a state).
 Revenue: Goes to the Central Government.
 Concerned Act:
Central Goods and Services Tax Act, 2017

 Key Features:
a. Applies to goods/services sold within a state.
b. Input Tax Credit (ITC): Can offset CGST and IGST liabilities,
not SGST/UTGST.
c. Tax rate: Half of the total GST rate (e.g., 9% for 18% GST).

2. State Goods and Services Tax (SGST):

 Meaning: Levied by the State Government on intrastate supplies.
 Revenue: Goes to the respective State Government.
 Concerned Act:
[State] Goods and Services Tax Act, 2017 (each state has its own
SGST Act, e.g., Maharashtra Goods and Services Tax Act, 2017)

 Key Features:
a. Applies to goods/services sold within a state.
b. ITC: Can offset SGST and IGST liabilities, not CGST/UTGST.
c. Tax rate: Half of the total GST rate (e.g., 9% for 18% GST).

3. Union Territory Goods and Services Tax (UTGST):

 Meaning: Levied by Union Territories on intrastate supplies.
 Revenue: Goes to the respective Union Territory Government.
  Concerned Act:

Union Territory Goods and Services Tax Act, 2017

 Key Features:
a. Applies to goods/services within a Union Territory.
b. ITC: Can offset UTGST and IGST liabilities, not CGST/SGST.
c. Tax rate: Half of the total GST rate (e.g., 9% for 18% GST).

4. Integrated Goods and Services Tax (IGST):

 Meaning: Levied by the Central Government on interstate
supplies, imports, and exports.
 Revenue: Goes to the Central Government.
 Concerned Act:
Integrated Goods and Services Tax Act, 2017

 Key Features:
a. Applies to goods/services supplied between states/UTs,
imports, and exports.
b. ITC: Can offset IGST, CGST, and SGST/UTGST liabilities.
c. Tax rate: Single rate set by the GST Council for
interstate transactions.

Supply:

 The term “supply” under GST refers to any transaction involving goods
or services or both, carried out for a consideration and in the course or
furtherance of business.
 Supply includes activities such as sale, transfer, barter, exchange,
licence, rental, lease, and disposal, when done with consideration.
Example: Selling a refrigerator to a customer for money is a
supply.
 Import of services for consideration is also treated as supply, even if it is
for personal use.
 Certain activities are treated as supply even without consideration when
they fall under Schedule I.

GST Registration:

GST registration is the formal process of enrolling a business under India’s Goods
and Services Tax (GST) system. Successful registration assigns the business a
unique, 15-digit GSTIN. This legal requirement allows companies to
officially collect tax from clients, claim Input Tax Credit (ITC), and operate
without penalty.

Eligibility & Turnover Thresholds:

Registration is state-specific and mandatory for businesses once their aggregate

turnover crosses certain limits:

 For Goods: Mandatory if annual turnover exceeds ₹40 Lakhs (₹20

Lakhs for special category states).
 For Services: Mandatory if annual turnover exceeds ₹20 Lakhs (₹10
Lakhs for special category states).
 Compulsory Registration: Regardless of turnover, businesses involved
in inter-state supply, e-commerce selling, or reverse-charge mechanisms
must register.

Key Benefits:

 Input Tax Credit (ITC): Claim credit for the GST paid on raw
materials and business inputs, which reduces overall tax liability.
 Legal Recognition: Allows your business to officially collect tax
from customers and issue valid tax invoices.
 Business Growth: Unlocks the ability to participate in B2B corporate
contracts, government tenders, and sell on major e-commerce
platforms.

Documents required for Registration:

1. PAN card of the business or individual

2. Proof of business registration (e.g., Partnership deed, Certificate
of Incorporation)
3. Address proof of the business place (e.g., Electricity bill, rent agreement)
4. Bank account details (recently mandated to be submitted shortly
after registration)
5. Digital Signature Certificate (DSC) or Aadhaar authentication

Process for GST Registration:

Registering for GST in India is a free and completely online process that takes
about 15–30 minutes. You must complete it on the Official GST Portal by
filling out Form GST REG-01, which is divided into Basic Details (Part A) and
Detailed Information.
Step 1: Generate TRN (Part A):

1. Go to the Official GST Portal.

2. Navigate to Services > Registration > New Registration.
3. Fill in the required basic details, including your PAN, legal
business name, state, email, and mobile number.
4. Verify your details with the OTPs sent to your phone and email.
5. The portal will generate a 15-digit Temporary Reference
Number (TRN). Note it down (it is valid for 15 days).

Step 2: Fill Business Details (Part B):

1. Return to the Official GST Portal and select Services > Registration
> New Registration.
2. Choose Temporary Reference Number (TRN), enter your TRN,
and complete the final OTP verification.
3. Log in to fill out Part B of the form. You will need to submit:
a. Business promoters/directors: Names, PAN, Aadhar, and photos.
b. Authorized Signatory: Details of who will sign the returns.
c. Principal/Additional Place of Business: Address and nature
of possession.
d. Goods and Services: HSN codes for goods or SAC codes
for services.
e. Bank details: Add all your active bank

accounts. Step 3: Document Upload & Submission:

1. Upload all supporting documents in PDF or JPEG format (maximum

size 1 MB per file).
2. You can opt for Aadhaar Authentication to speed up the process.
3. Sign the application using a Digital Signature Certificate (DSC), an
E- Sign, or an Electronic Verification Code (EVC via registered
mobile OTP).
4. Upon successful submission, an Application Reference Number
(ARN) will be generated and sent to your email and phone.

Step 4: Receive GSTIN:

The tax officer will review your application. If all documents are correct, you
will receive your registration certificate and 15-digit Goods and Services
Taxpayer Identification Number (GSTIN) within 7 working days.
 Goods and Services Tax Returns (GSTR):

Goods and Services Tax (GST) returns are a mandatory compliance that
registered taxpayers must file periodically, and report their business
transactions, Input Tax Credits (ITC), and tax liabilities. The number and
types of GST return that a business/professional must file is based on the type of
taxpayer registered.

These types include regular taxpayer, composition taxable persons, e-

commerce operators, TDS deductor, non-resident taxpayer, Input Service
Distributor(ISD), casual taxable persons etc.

Further, the frequency of filing some GST returns may differ among the GSTR-
1 and GSTR-3B filers, if they opt into the QRMP scheme.

The most common GSTR Forms and their Due Dates:

GST Return Type Frequency Due Date

GSTR-1 Monthly/Quarterly  Monthly filers - 11th
of the following
month
 Quarterly filers -
13th of the month
following the
quarter
GSTR-3B Monthly/Quarterly  Monthly filers - 20th
of the following
month
 Quarterly filers -
22nd or 24th of the
month following the
quarter
GSTR-9 Annually  31st December of the
following year

GSTR-1:
 GSTR-1 is the return to be furnished for reporting details of all outward
supplies of goods and services made.
 It contains the invoices and debit-credit notes raised on the sales
transactions for a tax period.
 GSTR-1 is to be filed by all normal taxpayers who are registered under
GST, including casual taxable persons.
  Any amendments to sales invoices made, even pertaining to previous tax
periods, must be reported in the GSTR-1 return by all the suppliers or sellers
registered under GST.

How to File GSTR-1?

Filing GSTR-1 is the process of declaring all your outward supplies (sales) for a
given month or quarter on the GST Portal. It must be filed by all regular registered
taxpayers, even for periods with zero transactions (Nil return).

Step 1:- Log In:

Go to the official GST Portal and log in using your valid credentials.

Step 2:- Navigate to Returns Dashboard:

Go to Services > Returns > Returns Dashboard.

Step 3:- Select Period:

Select the Financial Year and the relevant Month/Quarter you are filing for, then
click Search.

Step 4:- Choose Preparation Mode:

Click on the GSTR-1 tile. You will see two options:
 Prepare Online: To enter your invoice details directly into the tables on
the portal.
 Prepare Offline / Upload JSON: To upload invoice data using the Returns
Offline Tool or directly from third-party accounting software.

Step 5:- Fill in the Details:

Enter your transaction data into the relevant tables:
 B2B: Invoices for supplies to registered businesses.
 B2C: Consolidated details of supplies to unregistered consumers.
 CDNR: Debit and Credit notes.
 Nil Return: If you made no sales, simply check the “File Nil GSTR-1” box.

Step 6:- Generate Summary:

Once all data is entered, click Generate Summary. Review the consolidated figures to
ensure they match your accounting books.

Step 7:- Submit and File:

Click Proceed to File, preview the return, and file it using a Digital Signature
Certificate (DSC) or an Electronic Verification Code (EVC – OTP) sent to your
registered mobile number.
GSTR-3B:
 GSTR-3B is a monthly self-declaration to be filed, for furnishing summarised
details of all outward supplies made, input tax credit claimed, tax liability
ascertained and taxes paid.
 GSTR-3B is to be filed by all normal taxpayers registered under GST. The
sales and input tax credit details must be reconciled with GSTR-1 and GSTR-
2B every tax period before filing GSTR-3B.
 GST reconciliation is crucial to identify mismatches in data, that may lead
to GST notices in future or suspension of GST registration as well.

How to File GSTR-3B:

Filing GSTR-3B is a monthly (or quarterly for QRMP schemes) summary of your
outward supplies and input tax credit (ITC). You must file this sequentially,
meaning your GSTR-1 must be filed first.

Step 1:- Log In and Navigate to Dashboard:

Go to the GST Portal and log in with your valid credentials. Navigate to Services >
Returns > Returns Dashboard.

Step 2:- Select the Tax Period:

Select your Financial Year, Quarter, and Return Filing Period (Month) from the
drop-down lists and click Search.

Step 3:- Select “Prepare Online”:

Find the “Monthly Return GSTR-3B” tile and click Prepare Online.

Step 4:- Answer the Questionnaire:

A brief questionnaire will pop up asking about your transactions. For example, if you
had zero transactions for the month, select “Yes” for filing a Nil return. Otherwise,
answer “Yes” to the relevant applicable sections to populate the correct forms.

Step 5:- Enter Details in the Relevant Sections:

Fill out the data systematically.
 Section 3.1 & 3.2: Enter your details of outward supplies (sales), and any
inward supplies that attract reverse charges.
 Section 4: Provide details of your Eligible Input Tax Credit (ITC). Ensure
you cross-verify this with your auto-drafted GSTR-2B.
 Section 5: Enter details of any exempt, Nil-rated, or Non-GST inward
supplies, as well as any late fees or interest if filing past the due date.

Step 6:- Save GSTR-3B:

After entering all the data, click Save GSTR-3B to record your entries.
Step 7:- Preview Draft Return:
Click Preview Draft GSTR-3B to download and review a summary PDF of your
return. Double-check all figures before moving forward.

Step 8:- Process Payment of Tax:

Once submitted, the payment section is enabled. Check your balances and use your
available ITC or cash to offset your liabilities. If you have a cash shortfall, Create
Challan, make the payment, and then click Make Payment / Offset Liability.

Step 9:- Submit and File:

After offsetting the liability, click Proceed to File. Check the declaration box, select
your Authorized Signatory from the drop-down list, and click File GSTR-3B with
DSC (Digital Signature Certificate) or File GSTR-3B with EVC (Electronic
Verification Code/OTP sent to registered mobile/email).

Step 10:- Save Acknowledgement:

Once the filing is successful, note down the Acknowledgment Reference Number
(ARN) displayed on the screen for future tracking.

GSTR-9:
 GSTR-9 is the annual return to be filed by taxpayers registered under GST.
It is due by 31st December of the year following the relevant financial year, as
per the GST law.
 GSTR-9 contains the details of all outward supplies made, inward supplies
received during the relevant financial year under different tax heads i.e.
CGST, SGST & IGST and a summary value of supplies reported under every
HSN code, along with details of taxes payable and paid.
 GSTR-9 is a consolidation of all the monthly or quarterly returns (GSTR-1,
GSTR-2A, GSTR-3B) filed during that financial year. GSTR-9 is required to
be filed by all taxpayers registered under GST.
 However, there are few exceptions such as taxpayers who have opted for
the composition scheme, casual taxable persons, input service distributors,
non- resident taxable persons and persons paying TDS under section 51 of
the CGST Act.