SUMMER INTERNSHIP

PROJECT
A report submitted in the partial fulfillment of the Requirement
for the Award of Degree of

BACHELOR OF COMMERCE
FROM

ISABELLA THOBURN COLLEGE

“TAXATION AND ACOUNTING”
DURATION (FROM 18TH JUNE 2025 TO 22ND JULY 2025)
SUBMITTED BY:
NAME: NISHTHA
RASTOGI
UNIVERSITY ROLL NO: 2310382010162
5TH Semester, [Link] (NEP)

1
CERTIFICATE

2
 DECLARATION

This is to certify that the present Internship Report entitled

“TAXATION AND ACCOUNTING” has been prepared by me. I
confirm that the report is only prepared for my academic requirement
and not any other purpose. I also declare that this internship report
towards the partial fulfillment of the university regulations for the award
of the degree of “BACHELOR OF COMMERCE”.

NISHTHA RASTOGI
Roll No.: 2310382010162
[Link] V Semester

3
 ACKNOWLEDGEMENT
It is a matter of pride and privilege for me to have done summer
internship project in “ARUN K. RASTOGI & CO.” and I am sincerely
thankful to them for providing this opportunity to me. I am thankful to
Mr. ARUN KUMAR RASTOGI for guiding me through this project and
continuously encouraging me. It would not have been possible to
complete this project without his support.

I am also thankful to all the faculty members of the Department of

Commerce, Isabella Thoburn College who were always available to
answer my questions and provide assistance.

I am grateful to my family for their unending support.

NISHTHA RASTOGI
Roll No.: 2310382010162
[Link] V Semester

4
 INDEX
S. No. Topic Page Nos.
1. Company Profile 6

2. Introduction 7-8

3. Income Tax 9-15

4. Income Tax Slabs 16-20

5. Deductions 21-25

6. Income Tax Return E-filing 26-41

7. Consequences of Missing the Income Tax 42-46

Return Filing Due Date

8. Benefits of Filing Income Tax Return on Time 47-52

9. Conclusion 52

10. Learning Experience 53-54

11. References 55

5
 COMPANY PROFILE

Name of Firm: ARUN K. RASTOGI & CO.

Work profile of firm: Legal and Auditing

CA ARUN KUMAR RASTOGI

Phone number: 9839010925

Email id: akrastogi1993@[Link]

Registered office: G- 2-3, Murli Bhavan, 10 A, Ashok Marg, Lucknow,

226001.

6
 INTRODUCTION
Tax is the compulsory levy by the government on income, commodity,
services, activities or transaction. The word ‘tax’ derived from the Latin
word ‘Taxo’. Taxes are the basic source of revenue for the government
which are utilized for the welfare of the people of the country through
government policies provisions and practices.

In a welfare state, the government takes primary responsibility for the

welfare of its citizens, as in matters of health care, education,
employment, infrastructure, social security and other development
needs. To facilitate these, Government needs revenue. Taxation is the
primary source of revenue to the Government for incurring such public
welfare expenditure. In other words, Government is taking taxes from
the public through its one hand and through another hand; it incurs
welfare expenditure for public at large. However, no one enjoys handing
over his hard- earned money to the government to pay taxes. Thus, taxes
are compulsory or enforced contribution to the government revenue by
public. The government may levy by taxes on income, business profits
or wealth or add it to the cost of some goods, services and transactions.

7
Be it an individual or any business/organization, all have to pay the
respective taxes in various forms. These taxes are further subcategorized
into direct and indirect taxes depending on the manner in which they are
paid to the taxation authorities.

Direct Tax
 The definition of direct taxation is hidden in its name which
implies that this tax is paid directly to the government by the
taxpayer.
 A taxpayer cannot transfer this liability to another entity or person.
 Examples of this type of tax are income tax.
 Incidents and impact fall on the same person.

Indirect Tax
 These taxes are consumption based that are applied to goods or
services when they are bought and sold.
 An individual pays indirect tax to the government but through an
intermediary. This intermediary then passes it on to the
government.
 Some examples of indirect tax include goods and services tax
(GST), Value added tax (VAT), custom duty, etc.
 Incidence and impact fall on two different persons.

8
 INCOME TAX
Income tax is a type of tax Government impose on income generated by
businesses and individuals within their jurisdiction. Income tax is levied
on the total income of the previous year of every person, subject to
residential status of that person further, few of the income of the person
are not subject to income tax, these incomes are termed as exempted
income.

Income tax in India is governed by Income Tax Act 1961. This law
provides for determination of taxable income, tax liability, procedure for
assessment, appeal, penalties and prosecutions.

The administration of Direct Taxes is with Central Board of Direct Taxes

(CBDT). The Income Tax Act 1961 empowers CBDT to frame rules
from time to time to carry out the purpose and proper administration of
the Act. The Act also empowers CBDT to issue circulars, notifications
from time to time. These releases clarify the doubts regarding the scope,
object and meaning of various provisions of Act. The circulars are
binding on Assessing Officers but not on Assessee and Courts.

9
Heads of Income
The income tax computation is an important part and has to be
calculated according to the income of a person. A person may generate
income from various sources. However, for the purpose of taxation, he is
required to classify his income from various sources into five heads of
income. Each head of income has separate code for computing income
under respective head. Thus, classification of income into different
heads of income is required to be done carefully. Further in few
instances, rates of tax may also vary.

10
All income of a person shall be classified under the following five heads:
1. Income from Salary

Any income that you receive in terms of the service you provide on a
contract of employment is applicable for taxation under this head.

The following section governs the Income from the Salary:

 Section 15 describes the taxability of income from Salary.

 Section 16 explains about deduction available under salaries.

 Section 17 explains the components of the Salary like Monetary

compensation, Perquisites etc.

The income under the salary head involves an employee’s basic wages,
pension, perquisites, gratuity, commission, annual bonus and any salary
paid in advance. Upon adding the various components under this head,
one can get their gross income.

The following are some allowances for which you can claim tax
deductions:

 House Rent Allowance (HRA): It is an allowance that employees

receive to pay their house rent, for which he can claim for partial
or complete tax exemptions. Minimum of the following is
exempted from tax:

11
  Actual HRA received.
 An amount equal to 50% of salary if you live in a metro city
or 40% if you live in a non-metro city.
 Actual rent paid per month minus 10% of your annual salary.

 Transport Allowance: This is an allowance that employers

generally pay to compensate for the cost of travel between your
home and workplace. In case of blind/deaf and dumb/
orthopedically handicapped employees, you can claim a maximum
tax exemption of ₹1,600 per month.

 Leave Travel Concession (LTA): If an employee goes on travel (on

leave) with his family and travelling cost is reimbursed by the
employer, then such reimbursement is fully exempted. However,
note that subject to certain conditions and limits, you can claim tax
benefits against LTA for up to 2 leisure trips in a block of 4
calendar years.

2. Income from House Property

An individual’s income from his or her house property or land

appurtenant such property is taxable under the head of income from

12
 house property. Income from House Property has three sub-

classifications:

 Self-Occupied Property

 Let out Property

 Deemed Let out Property

In case you own more than two self-occupied houses, then only two

of such houses is considered to be self-occupied and the rest are

considered to be deemed let out. This is a head under which tax is

calculated on the basis of assumption. Moreover, tax is levied both on

income earned from house property and commercial property. The

different deductions that come under this head of income are standard

deduction, deductions for home loan interest payment, and deduction for

municipal tax.

Here are a few conditions that must be fulfilled for the income to be
taxable under this head:

 The assessee should be the house property owner.

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  House property can include a building, a land appurtenant, or a
bungalow.
 Individuals must not use their property for any other purposes than
residency.

3. Income from Capital Gains

If any profit/gain arises from the transfer or sale of a capital asset held
as an investment, it is taxable under capital gains. A large number
of assets, like gold, bonds, mutual funds, real estate, stocks, etc.,
fall under capital assets. Capital gains are generally classified as:

 Short term Capital Gains, and

 Long term Capital Gains.

However, this income is eligible for an exemption under Sections 54,

54B, 54EC, 54F, 54D, 54ED, 54GA, or 54G.

4. Income from Profit and Gains from Business or Profession

The profits that you earn from any kind of business or profession are
taxable under this head. You can subtract your expenses from the
total income in order to determine the amount on which tax is

14
 chargeable. Some types of income that are chargeable under this
head are:
 Gains earned by an individual during an assessment year.
 The profits that an organization makes on its income.
 The benefits that a business receives.
 Gains, bonuses or salary that an individual receives due to a
partnership with a firm.

5. Income from Other Sources

For the earnings that do not belong to any of the heads of income
mentioned above, it will fall under the 5th category called income
from other sources. They fall under Section 56 sub-section (2) of
the Income-tax Act and include income from dividends, interest,
rent on plant and machinery, lottery, bank deposits, gambling, card
games, sports rewards, etc.

There are only five heads of income as per Section 14 of the Act,
but the assessee may generate the income from various sources.
Income from various sources is required to be classified into given
heads (i.e.,5 heads) of income. Each head of income contains a
method of computation of income under the respective head.

15
 INCOME TAX SLABS

In India, the Income Tax applies to individuals based on a slab

system, where different tax rates are assigned to different income
ranges. The income tax is a direct tax which follows a progressive
slab rate, where the rate of tax increases as the taxpayer's income
rises. The Income tax Act, 1961 provides for two tax regimes: the
old regime, which allows various deductions and exemptions, and
the new regime, which offers lower tax rates without exemptions.
The income tax slabs are revised periodically, typically during
each budget.

Income Tax Slabs for FY 2024-25 (AY 2025-26) Under

New Regime

Income tax rate

Income tax slabs (Rs) (%)
From 0 to 3,00,000 0
From 3,00,001 to 7,00,000 5
From 7,00,001 to 10,00,000 10

16
 From 10,00,001 to 12,00,000 15

From 12,00,001 to 15,00,000 20

From 15,00,001 and above 30

Note:
1. Hike of standard deduction limit to Rs 75,000 from Rs 50,000 -
an increase of Rs 25,000. This standard deduction is available to
those individual taxpayers who are having income from salary
or pension.
2. Basic exemption limit of Rs 3 lakh for all individual taxpayers
irrespective of their age.
3. Tax rebate under Section 87A makes zero tax payable for
taxable incomes up to Rs 7 lakh.

17
 Income Tax Slabs for FY 2024-25 (AY 2025-26) Under
Old Regime
There were no changes made to the tax slabs under the old regime in the
budget 2024. The tax slabs under the old regime are as follows:

Individuals aged below 60 years & HUF

Income Slabs Tax rate

Up to Rs 2,50,000 NIL

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

Rs 5,00,001 to Rs 10,00,000 20%

Rs 10,00,001 and above 30%

Individuals aged 60 years to 80 years

Income Slabs Tax Rate

Up to Rs 3,00,000 NIL

Rs 3,00,001 - Rs 5,00,000 5%

18
Rs 5,00,001 to Rs 10,00,000 20%

Rs 10,00,001 and above 30%

Individuals aged above 80 years

Income Slabs Tax Rate

Up to Rs 5,00,000 NIL

Rs 5,00,001 to Rs 10,00,000 20%

Rs 10,00,001 and above 30%

Note:
1. Standard deduction is Rs. 50000. This standard deduction is
available to those individual taxpayers who are having income
from salary or pension.
2. Basic exemption limit of Rs 3 lakh for all individual taxpayers
irrespective of their age.
3. Tax rebate under Section 87A makes zero tax payable for
taxable incomes up to Rs 5 lakh.
4. Surcharge and cess will be applicable.

19
 Default Regime

From FY 2023-24 the new tax regime is the default regime. If you
want to file your ITR under the old regime then you have to Form
10-IEA.

The new tax regime can largely benefit middle-class taxpayers who
have a taxable income of up to Rs 15 lakh. The old regime is a
better option for high-income earners.
The new income tax regime is beneficial for people who make low
investments. As the new regime offers six lower-income tax slabs,
anyone paying taxes without claiming tax deductions can benefit
from paying a lower rate of tax under the new tax regime.

But, if you already have in place a financial plan for wealth creation
by making investments in tax-saving instruments; medical claims
and life insurance; making payments of children’s tuition fees;
payment of EMIs on education loan; buying a house with a home
loan; and so on, the old regime helps you with higher tax
deductions and lower tax outgo.
Hence, it is advisable to do a comparative evaluation and analysis
under both regimes and then choose the most beneficial one, as it
may vary from person to person.

20
 DEDUCTIONS
The Income Tax Department, recognizing the significance of
fostering savings and investments, has incorporated a
comprehensive set of income tax deductions under Chapter VI A
of the Income Tax Act. While deduction under 80C stands out as a
widely known provision, several other deductions exist, providing
taxpayers with opportunities to strategically reduce their tax
liabilities. These deductions under section 80C to 80U serve as
powerful incentives, allowing individuals to optimize their
financial planning and contribute to the nation's economic growth.

Income tax deduction needs to be claimed at the time of filling

your Income Tax Return, and no separate disclosure compliances
are required for claiming such deductions. The number of
deductions should be reduced from the gross income to reach the
taxable amount.

Let us understand these deductions:

21
Sections Information about Sections

80C Amount paid or deposited towards life

insurance, contribution to Provident Fund set
up by the Government, recognized Provident
Fund, contribution by the assessee to an
approved superannuation fund, subscription
to National Savings Certificates, tuition fees,
payment/ repayment for purposes of
purchase or construction of a residential
house and many other investments. For full
list, please refer to section 80C of the
Income-tax Act. (The aggregate amount of
deduction under section 80C, 80CCC and
80CCD (1) shall not exceed Rs. 1,50,000/-)

80CCC Deduction in respect of Payment of premium

for annuity plan of LIC or any other insurer.
Deduction is available up to a maximum of
Rs. 150,000/-. The premium must be
deposited to keep in force a contract for an
annuity plan of the LIC or any other insurer
for receiving pension from the fund.

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80CCD (1) Deduction for contribution in pension
scheme notified by the Government to the
extent of 10% of salary in case of employees
and 10% of total income in case of others.

80CCD(1B) Maximum Deduction of Rs. 50,000/- for

contribution in National Pension Scheme.
The deduction is in addition to the maximum
deduction of Rs. 1,50,000/- available under
80C, 80CCC and 80CCD (1).

80CCD (2) Contribution by employer in pension scheme

notified by the Government to the extent of
10% of salary

80D Deduction in respect of Medical Insurance

Premium for Self and family members.
(Maximum Deduction available Rs. 30,000/-
for Senior Citizens and Rs. 25,000/- for
others.) Deduction in respect of Medical
Insurance Premium for Parents (Father or
mother or both). (Maximum Deduction

23
 available Rs. 30,000/- for Senior Citizens
parents and Rs. 25,000/- in other cases.)

80DD Deduction in respect of maintenance

including medical treatment of dependent
who is a person with disability. (Maximum
deduction Rs. 100,000/- in case of severe
disability (more than 80%) and Rs. 50,000/-
in other cases. )

80DDB Deduction to the extent of Rs. 40,000/- or the

amount actually paid, whichever is less for
expenditure actually incurred on self or
dependent relative for medical treatment of
specified disease or ailment.

80E Deduction in respect of interest on loan

taken for pursuing higher education. The
deduction is also available for the purpose of
higher education of a relative.

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 80G Deduction in respect of donations to certain
funds, charitable institutions, etc. The
various donations specified in Sec. 80G are
eligible for deduction up to either 100% or
50% with or without restriction as provided
in Sec. 80G.

80GG Deduction in respect of House Rent Paid.

(Maximum Deduction Rs. 24000/-)

80GGA Deduction in respect of certain donations for

scientific research or rural development.

80GGC Deduction in respect of contributions given

by any person to political parties.

80U Deduction in case of a person with disability.

(Maximum Deduction: General disability -
Rs. 88 50,000/-, Severe disability -
Rs.1,00,000/-)

25
INCOME TAX RETURN
E-FILING
An Income Tax Return (ITR) is a form that enables a taxpayer to
declare his income, expenses, tax deductions, investments, taxes,
etc. The Income-tax Act, 1961 makes it mandatory for a taxpayer
to file an income tax return under various scenarios.

However, there may be various other reasons to file an income tax

return even in the absence of requisite income, like carrying
forward losses, claiming an income tax refund, loan from banking
institutions, term Insurance, etc.

E-filing refers to the process of filing an Income Tax Return (ITR)

online, using the Internet. By accessing the income tax portal using
PAN-based login credentials, individuals can take advantage of a
range of features that simplify the tax filing process. E-Filing
offers speed, security, and convenience to taxpayers. It also
reduces the income tax department’s burden and provides a
sophisticated alternative to traditional paper filing.

26
All taxpayers are responsible for filing an Income Tax Return
(ITR) every year if the total income is above specified threshold or
said person fall in category of person who are mandatorily required
to file their Income tax returns.

All taxpayers are mandated to submit an Income Tax Return (ITR)

every year by respective due dates as per the law to report their
income and claim a tax refund, if applicable. Taxpayers who fail to
file their return will have to pay fees of ₹ 5,000 (₹ 1,000 if the
total income is less than ₹ 5 lakh) under Section 234F.

27
TYPES OF INCOME TAX RETURN

 ITR 1

Individuals residing in India with a total income of up to Rs

50 lakh are eligible. ITR-1 may be filed by someone who
earns money from a job, a home, or other outlets. An NRI is
unable to file an ITR-1. ITRs may be filed using Form 16 by
salaried taxpayers.

 ITR 2

Individuals and HUF for revenue from sources other than

their enterprise or occupation. Individuals and NRIs who earn
money from a job, a home, capital gains, or other sources
may file Form ITR-2.

 ITR 3

Individuals are required to disclose their earnings from a

company or occupation. Salaried people who earn money
from the intraday stock exchange or futures and options
trading should file Form ITR-3.

28
 Individuals may use ITR-3 to record revenue from jobs, real
estate, capital gains, company or trade (including
presumptive income), and other sources.

 ITR 4

Individuals, HUFs, and partnership companies are subject to

a presumptive taxation system on their earnings. ITR-4 is
used to report revenue from a company with a turnover of up
to Rs 2 crore that is subject to section 44AD taxation.

 ITR 5

LLP, AOP, and BOI are both acronyms for alliance

companies. LLPs, partnership companies, AOPs, and BOIs
will file ITR- 5s to disclose profits from their businesses and
professions, as well as some other sources of income.

 ITR 6

It is an income tax return form used by businesses to report

revenue from industry or occupation, as well as all other
forms of income.

29
  ITR 7

It is the federal tax return for businesses, partnerships, and

trusts that continue to be excluded from paying income tax.

DOCUMENTS REQUIRED FOR E-FILING

The following documents/information are required for e-filing their ITR:

 PAN and Aadhaar

 Bank Statements
 Donation receipts
 Form 16
 Insurance policy paid receipts related to life and health
 Bank information linked to PAN
 Aadhaar registered mobile number for e-verifying the return
 Interest certificates

30
 PROCESS OF E-FILING
Following are the steps on how to E-file ITR on the Income Tax Portal:

Step 1: Login

 Visit the official Income Tax e-filing website and click on ‘Login’
 Enter your PAN in the User ID section
 Click on ‘Continue’
 Check the security message in the checkbox
 Enter your password
 ‘Continue’

31
Step 2: Go To ‘File Income Tax Return’

 Click on the ‘e-file’ tab > ‘Income Tax Returns’ > ‘File Income
Tax Return’.

32
Step 3: Select The Right ‘Assessment Year’

Select ‘Assessment Year’ as ‘AY 2024-25’ if you file for FY 2023-

24. Similarly, select ‘AY 2023-24’ if you are filing for FY 2022-23
and use the mode of filing as ‘Online’. Select the filing type
correctly as original return or revised return.

33
Step 4: Select The Status

Select your applicable filing status: Individual, HUF, or Others.

34
Step 5: Select ITR Type

Now, select ITR type. The taxpayer must first ascertain which ITR form
they must fill out before filing returns. There is a total of 7 ITR forms
available, of which ITR 1 to 4 is applicable for Individuals and HUFs.

35
Step 6: Choose the Reason for Filing ITR

In the following step, you will be prompted to specify the reason for
filing your returns. Select the appropriate option that is applicable to
your situation:

 Taxable income is more than the basic exemption limit.

 Meets specific criteria and is mandatorily required to file ITR.
 Others.

36
Step 7: Validate Pre-filled Information

Most of the details, such as your PAN, Aadhaar, Name, Date of birth,
contact information, and bank details will be pre-filled. Validate these
details carefully before you proceed further. Also, provide your bank
account information. If you have already provided these details, ensure
they are pre-validated.

As you proceed step by step, ensure to disclose all relevant income,

exemptions, and deduction details. Most of your information will be pre-
filled based on the data provided by your employer, bank, etc. Review
the information carefully to ensure it is correct. Confirm the summary of
your returns, validate the details and make the payment of balance taxes,
if any.

37
Step 8: E- verify ITR

The last and crucial step is to verify your return within the time limit (30
days). Failing to verify your return is equivalent to not filing it at all.
You have the option to e- verify your return using different met such as
Aadhaar OTP, electronic verification code (EVC), Net Banking, or by
sending a physical copy of ITR-V to CPC, Bengaluru.

38
You can E- verify your returns online using:

 OTP on mobile number registered with Aadhaar, or

 Electronic Verification Code generated through your pre-
validated bank account, or
 Electronic Verification Code generated through your pre-
validated demat account, or
 Electronic Verification Code through ATM (offline
method), or
 Net Banking, or
 Through Email ID and Mobile No.

39
ITR Filing Last Date FY 2023-24 (AY 2024-25)
Filing your Income Tax Return (ITR) is an essential part of managing
your tax obligations, and it’s important to stay updated with the
latest deadlines and requirements.

It is essential for individuals, businesses, and even various different

entities to file their Income Tax Returns within the stipulated
timelines. Filing on time saves the unnecessary penalty that may
incur on failure or delayed payment of taxes.

The Income Tax Return (ITR) e-filing for FY 2023-24 (AY 2024-25)
has started from 1st April 2024. The due date depends on the
taxpayer. The last date to file ITR for FY 2023-24 is discussed
below:

Due Date for Tax Filing - FY

Category of Taxpayer 2023-24
*(unless extended)

Individual / HUF/ AOP/ BOI (books

of accounts not required to be 31st July 2024
audited)

40
Businesses (Requiring Audit) 15th November 2024

40
Businesses requiring transfer
pricing reports
30th November 2024
(in case of international/specified
domestic transactions)

31st December 2024 - Others

Revised return 15th January 2025 - Resident
Individuals

31st December 2024 - Others

Belated/late return 15th January 2025 - Resident
Individuals

31 March 2027 (2 years from the

Updated return end of the relevant Assessment
Year)

41
 CONSEQUENCES OF
MISSING THE ITR
FILING DUE DATE

If someone misses the last date to file ITR for FY 2023-24, the
following are some consequences for the same:

 Late Fee
In case of late filing, Section 234F imposes a late fee of
Rs.5,000, which shall be reduced to Rs.1,000 if your total
income is below Rs.5 lakh.

 Interest
If you submit your return after the deadline, you will be liable
to pay interest at a rate of 1% per month or part month on the
unpaid tax amount as per Section 234A.

42
  Loss Adjustment
In case you have incurred losses from sources like the stock
market, mutual funds, properties, or any of your businesses,
you have the option to carry them forward and offset them
against your income in the subsequent year. This provision
substantially reduces your tax liability in future years.
However, you will not be allowed to carry forward these losses
if you miss filing your ITR before the deadline.

BELATED RETURN

If you miss the ITR filing due date, you can file a return after the
due date, called a belated return. However, you will still have to
pay the late fee and interest charges, and you will not be allowed to
carry forward any losses for future adjustments. The last date for
filing a belated return is 31st December of the assessment year
(unless extended by the government).

43
UPDATED INCOME TAX RETURN

ITR-U or Updated Income Tax Return, is a form that allows

taxpayers to update their ITRs by correcting errors or omissions or
allows a taxpayer to file ITR if they have not filed ITR within the
due date and also missed to file the belated return, within two years
from the end of the relevant assessment year.

E-Filing is Compulsory under following

circumstances:

As per the Income Tax Act of India, individuals are required to file
an ITR only if their annual income exceeds the basic exemption
limit. However, there are certain conditions in which you might be
required to file an ITR even if your income falls within the basic
exemption limit, which are as follows:

44
 Bank Deposits of more than Rs. 50 lakhs- If the annual
savings bank deposit of an individual in one or more accounts
exceeds Rs.50 lakhs, then, such individual must file ITR.

 Current Account Deposits of more than Rs.1 crore- If

an individual deposits Rs.1 crore or more in one or more
current accounts during the financial year, then he/she must
file an ITR.

 Annual Sales Turnover above Rs. 60 lakhs- Individuals

having an annual sales turnover of more than Rs.60 lakh are
required to file an ITR.

 Professional income above Rs. 10 lakhs- If the

professional income exceeds Rs.10 lakhs during a financial
year, then he/she has to file an ITR.

 Electricity Bill exceeding Rs. 1 lakh- If an individual’s

electricity bill during the year exceeds Rs.1 lakhs, he/she is
required to file an ITR.

45
 TDS/TCS exceeding Rs. 25,000- If the TDS/TCS of a
person is more than Rs.25,000, ITR filing is mandatory.
However, this threshold is Rs.50,000 for senior citizens.

 Income from foreign assets- If an individual has an asset

in a foreign country or is a beneficiary of an asset in a foreign
country, he/she must file an ITR.

 Expenses on foreign travel- If an individual spends Rs.2

lakh or more on foreign travel for himself or for another person
during the financial year, then such an individual has to file an
ITR.

 Resident taxpayers with overseas assets or signing

authority- In India, if you're considered a resident for tax
purposes and have any overseas assets or interests, filing an
ITR becomes mandatory. This includes assets you directly own
or those you benefit from as a beneficiary owner.

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 BENEFITS OF FILING
INCOME TAX RETURN
ON TIME
An Income Tax Return is a document that taxpayers use to declare the
specifics of their income, the tax due on that income, exemptions,
and deductions for a specific fiscal year. The benefits of ITR Filing
are mentioned as follows:

1. Easy Loan Approval

The bank or private financers require numerous documents while

processing the loan application request. The loan application
may be for the purchase of vehicles, home loans or personal
loans for some commitments etc.

Before they sanction, ascertaining the capability to pay-off the

loan is very much necessary, it will be done based on your
income earnings, income tax return acts as proof of your
consistent income earning over the past periods.

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2. Excess TDS Claim

Tax can be deducted from your interest on Fixed Deposits,

Rental income, Consultancy income or Salary income. There
may be instances where tax has been deducted (TDS) is more
than the tax due on your total income or you have no tax
liability for that year. In such cases, you must file an Income
Tax Return to claim a refund of the TDS.

3. Income & Address Proof

Your Income Tax Return can serve as proof of your income

and address. Aadhar Cards, licenses, passports, and other
documents like those are all required to have address proofs.

4. Quick VISA Processing

When applying for a visa, most embassies and consultants

require copies of your tax returns from the past couple of
years. These documents are among the mandatory
requirements as

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 they illustrate the person's civic responsibility. Therefore, it is
advisable to file your ITR in a timely manner.

5. Carry Forward Your Losses

One might have losses from the stock market, by doing

business, loss from rental income of house property. These
losses can be offset against the income of future years, thereby
reducing your tax liability. Only by filing your return within
the original due date, you can carry forward losses to
subsequent years. Without filing an income tax return, this
benefit would not be possible.

6. Obtaining Government Tenders

For contractors, these returns must be filed on time, extremely

accurately, and audited (if necessary). This is especially
essential when trying to obtain a government tender. The
tender scrutiny committee may occasionally inspect this work,
and it is a common practice to check the ITR for the last 3 to 5
years.

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7. For Buying Term Insurance

To approve term insurance plans, insurance providers often

require applicants to submit their Income Tax Return (ITR)
records as proof of their annual income. The coverage amount is
determined based on the individual's earnings, and presenting
the ITR helps insurance providers assess a person's higher
income level.

8. Funding for Startup Ventures

When planning to launch a new company or grow an existing

one, you might require funding from outside sources like
venture capitalists or seed investors. These investors might
inquire about the specifics of your ITR in order to evaluate the
business's financial stability and profitability. They could cross-
check the data in the audited report using your ITR forms as
well.

9. Scholarship Advantages

Various authorities view an ITR as a source of income

documentation (both government and private). For instance, you
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 can submit an ITR to claim specific institute and/or university
scholarships. The ITR aids in establishing the prospective
student's ability to prove their income, and insurance companies
also accept them as acceptable documentation.

10. Financial Transparency

Your ITR gives a detailed account of your financial situation,

offering embassies a clear picture of your economic stability.

11. Benefits for Independent Contractor &

Professionals

Self-employed or independent contractors do not receive Form

16. Their ITR is frequently the only record that demonstrates
they have filed income taxes. Without this evidence, they might
run into funding problems and transactional issues.

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 CONCLUSION

Many people appear to believe that filing tax returns is optional,

so they disregard it as pointless and burdensome. This is not a
very wholesome way to view tax filing.

Every year, filing tax returns is viewed as a moral and social

obligation of each and every responsible citizen of the nation.
It serves as the basis on which the government calculates the
amount and means of citizen expenditures and offers the
assessee a platform to occasionally request refunds in addition
to other forms of relief.

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LEARNING EXPERIENCE

 Summer Internship in ARUN K. RASTOGI & CO. was very

helpful in acquiring practical knowledge about taxation,
enhancing my communication skills and technical skills.

 During the internship program, I gained knowledge about the

following things:

 Preparing Notes to Accounts and Management

Letter.

 Drafting of financial statements such as Trading

and Profit and loss account, Balance sheet and
Depreciation chart (clause 44).

 Understanding accounting principles and standards.

 Basics of Income Tax and Income Tax return filings.

 Using accounting software TALLY.

 Learning about new tax regime and old tax regime

and their applicability.

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  Preparing Tax Audit reports and filling Form 3CB-
3CD on Income Tax offline e-filing utility.

 This internship experience will help me to become a more

informed citizen and has provided me with the foundation for a
successful career in accounting, finance and related domains.

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 BIBLIOGRAPHY

I have taken help from the following sources:

 Reference book:

Direct Taxation, The Institute of Cost Accountants of India.

 Web reference:

 [Link]
 [Link]
 [Link]
 [Link]

 Self-notes made while working in the firm.

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