Index

1. Introduction
2. Industry/ Sector Profile
3. Company and Product Profile
4. Literature Survey.
5. Objectives and Scope of the project
6. Research Methodology
7. Data Analysis and Interpretation
8. Observations and findings
9. Conclusions
10. Suggestions/ Recommendations
References
Annexure – Questionnaire

1
INTRODUCTION

2
 INTRODUCTION

Income Tax

This article provides an overview of filing Income Tax Returns. The filing of income tax
return is a legal obligation of every person whose total income and wealth tax during the
previous year exceeds the maximum amount which is not chargeable to income taxunder the
provisions of I.T. Act, 1961. Under the Income tax Act every person has the responsibility to
correctly compute and pay his due taxes.The return should be furnished in the prescribed form
on or before the due date(s).

Income tax assessment comprises of following stages:

 Computation of total income.

 Deducting valid deductions.
 Determination of the tax payable thereon.
 Paying the tax.
 Filling Income Tax Return Form.

The income tax returns need to filed every year. Each year there are some modifications. The
financial year is not the same as calendar year. So let’s start with some definition of Financial
Year , Previous Year, Assessment Year

Financial Year , Previous Year, Assessment Year

Calendar year starts on January 1 and ends on December 31 but a Financial year (FY) is from
April 1 to March 31. As per the Income Tax Act, income earned in a financial year (FY) is
taxed in the next Financial Year. FY to which the income belongs is called the Previous year
(PY) and the FY in which the income is taxed is called the Assessment year (AY).

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Important Tax Dates For Individual

Date What to do
31st July Submission of return of income for individuals for PV
15th Sept 1st installment of advance tax for individuals for current FY

15th Dec 2nd installment of advance tax for individuals for current FY
15th March 3rd installment of advance tax for individuals for current FY
If you miss the 31 July deadline, you have two options.

 If there is no pending tax to be paid, you may file your return without paying any
penalty by 31 March of that Assessment Year.
 But if you still have a tax liability, you will have to pay a monthly penal interest on the
tax due if you file your return by 31 March of Assessment Year.

If you miss that deadline too, you will have to pay a penalty of Rs. 5,000, along with the
monthly penal interest on the tax due. If you are entitled to a refund, interest on it will be
given to you only from the date of filing the return.
Advantage of filing return on time:

 You can revise your form to correct any mistake or deletions, by 31 March of
Assessment Year.
 If you have incurred losses on shares during the year, you will be able to carry forward
the losses for future tax set-off only if you file the return within the deadline.

Tax Rates
For Financial year 2011-12 or Assessment Year 2012-13
SENIOR Very Senior
TAX MEN WOMEN CITIZEN(60 –Citizens(Above
80 yrs) 80 years)

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Basic Exemption 180000 190000 250000 500000
10% tax 180001 to 500000 190001 to 500000 250001 to 500000 -
20% tax 500001 to 800000 500001 to 800000 500001 to 800000 500001 to 800000
30% tax above 800000 above 800000 above 800000 above 800000
here is no surcharge in the case of every individual, Hindu undivided
Surcharge
family, Association of persons and body of individuals
Education Cess 3% on Income-tax

For income tax rates of earlier years checkout our Income Tax rates Since AY 1992-1993

Total Income:

The gross total income is the sum of all sources of income that an individual has or the total
income he earns in a financial year. It can fall into one of the five heads:
1. Income from Salary
2. Income from House Property
3. Income from Profits and Gains of Business or Profession
4. Income from Capital Gains
5. Income from other Sources

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 Rationale of the study
Investment = Cost Of Capital, like buying securities or other monetary or paper (financial)
assets in the money markets or capital markets, liquid real assets, such as gold, real estate,
or collectibles. Types of financial investments include shares, other equity investment, and
bonds. These financial assets are then expected to provide income or positive future cash
flows, and may increase or decrease in value giving the investor capital gains or losses.
People usually invest when they have good amount of ideal money to spend. The main
objective is to save money for future uncertainties, capital appreciation, more income and
most of all tax savings.
Sector profile in brief
Investing is not guesswork or prediction. It takes more than just a ‘tip’; it needs
training to plan, instinct to pick and sheer intellect to make it work for the investor. Human
nature is fickle, his wants keep changing.
An investment can be described as perfect if it satisfies all the needs of all investors.
So, the starting point in searching for the perfect investment would be to examine investor
needs. If all those needs are met by the investment, then that investment can be termed the
perfect investment.