Beruflich Dokumente
Kultur Dokumente
TAXATION
Submitted By
PRADEEP N. PATIL
With Reference To
TAXATION
DECLARATION
(Pradeep N. Patil)
TAXATION
CERTIFICATE
TAXATION
ACKNOWLEDGEMENT
CONTENTS
Sr.
No.
Particulars
Page
No.
4
TAXATION
Company Profile
History of The Company
Company Structure
Organization Structure
My job profile
Direct Taxes
Income Tax
Form 16(A)
TDS (Tax Deduction At Source)
Wealth Tax
Corporate Tax
Professional Tax
Indirect Taxes
VAT
VAT form 231
Excise Duty
Custom Duty
Service Tax
Entertainment
Conclusion & suggestions
Bibliography
Webliography
10
EXECUTIVE SUMMARY
For any research assignment, a proper planning is required and the
same holds true in case of present study. This project is titled as Service tax
& Excise Duty. The reasons behind choosing this project is that I find there
is very interesting topic because it is the biggest source of the finance for the
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
TAXATION
TAXATION
COMPANY PROFILE
History of Company
TAXATION
On June 20, 1911, Idemitsu Shokai, the predecessor of Idemitsu Kosan, took
its first steps in the oil sales business at the trading port of Moji in Kitakyushu,
Japan. In 1940 Idemitsu Kosan Co., Ltd. Incorporated.
Manufacture and Sale of Lubricants from Idemitsu Group Plant in India
Begins - Independent Distribution and Sales Network of Genuine Oil served by
Idemitsu Group Plant Developed for Motorcycle and Automobile Dealers.
On dated 30th Oct., 2013 Idemitsu Kosan Co., Ltd. (Head office: Chiyodku, Tokyo; Representative Director and CEO: Takashi Tsukioka) announces that its
wholly owned subsidiary Idemitsu Lube India Pvt Ltd. (head office: New Delhi,
India; representative: Takeyoshi Miki) today has begun sale of genuine oil to
dealers of Japanese motorcycles and automobiles, following completion of
lubricants plant in August 2013.
Demand for lubricants in India in fiscal 2012 has increased with the advance
of Japanese motorcycle and automobile makers into the market accompanying
India's motorization. India already has the world's third-highest level of lubricant
demand, after China and the United States.
By fiscal 2021, India's vehicle production is forecast to increase further to
23 million motorcycles/year and 11 million automobiles/year, and the nation's
lubricant demand also is projected to expand, to 1.5 times its current level or more.
Today marks the start of production at the newly constructed lubricant
blending plant the only one in India affiliated with a Japanese company of products
that until now had been manufactured under a genuine oil technology licensing
contract and the beginning of selling genuine oil to dealers of Japanese
motorcycles and automobiles. This plant is intended to manufacture engine oils for
motorcycles and automobiles, which are expected to see particular growth in
demand in the future, and to supply high performance lubricants.
By building independent networks from manufacture through distribution
and sale of its own products with the construction of its own plant, Idemitsu Lube
India will be able to deliver smooth and attentive services. Plans call for taking
advantage of the new plant to further strengthen lubricant sales in India, aiming for
sales volume of 70,000 k and net sales of 11 billion rupees. It may be approx. 20
billion yen in 2018.
Company Structure:
This is first plant in India. And second in Japan of Idemitsu.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
TAXATION
Overview of Plant
1. Location
2. Site Area
3. Production Capacity
70,000 kl/year
Organization Structure:
TAXATION
Managing
Director
Directors
HR Head
Finance &
Account Head
Purchase
Head
Production
Head
Marketing
Head
Logistic
Head
HR Manager
Finance
Manager
Purchase
Manager
Production
Manager
Marketing
Manager
Logistic
Manager
MY JOB PROFILE
I had joined IDEMITSU LUBE INIDA PVT. LTD. as a management
trainee for the period 15th of June, 2015 to 13th August, 2015. (For two months).
There was my work as
1) Vouching of expenses for sales person and Checking to Proof of
Dispatch (POD)
2) They showed me C form, F form which related with Against CST and
Stock Transfer respectively.
3) And how to fill Form 15 CA for remittance.
4) Application of remittance which was used for foreign payment to
submitted to bank.
After some days they allotted as well showed me some and work on Service tax
Credits.
10
TAXATION
11
TAXATION
2. Redistribution
3. Repricing
4. Representation
Revenue: - The taxes raise money to spend on armies, roads, schools and
hospitals, and on more indirect government functions like market regulation
or legal systems.
Redistribution: - This refers to the transferring wealth from the richer
sections of society to poorer sections.
Repricing: - Taxes are levied to address externalities; for example, tobacco is
taxed to discourage smoking, and a carbon tax discourages use of carbonbased fuels.
Representation: - As what goes with the slogan "no taxation without
representation, it implies that: rulers tax citizens and citizens demand
accountability from their rulers as the other part of this bargain.
TAXATION IN INDIA
DIRECT TAX
INDIRECT TAX
Income Tax
Wealth Tax
Customs Duty
Corporate Tax
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TAXATION
Professional Tax
DIRECT TAX
Direct tax is referred to as the tax, which is paid by the person to the
government to whom it is levied and charged on the income and wealth of
persons and any levy that is both imposed and collected on a specific group of
people or organizations. The person on whom it is levied bears its burden i.e.
it increases with an increase in income or wealth and vice versa. It levies
according to the paying capacity of the person, i.e. the tax is collected more
from the rich and less from the poor. The burden of tax cannot be shifted.
Direct tax helps in reducing inflation. The tax progressive in nature. Tax
evasion is possible.
Direct taxation would be income taxes that are collected from the people who
actually earn their income.The tax is levied and collected either by the Central
government or State government or local bodies. The plans and policies of the
Direct Taxes are being recommended by the Central Board of Direct Taxes
(CBDT) which is under the Ministry of Finance, Government of India.
Corporate tax rate for the 2015-2016 fiscal to domestic companies are levied
with an income tax at the rate of 30%. Surcharge is applicable in following cases:
Description
Company Total Income
Net Income of Company
Net Income of Company
Condition Range
up to 1 Crore
1 Crore to 10 Crores
Exeeds 10 Crores
Tax Rate %
Nil
5%
10%
13
TAXATION
14
TAXATION
15
TAXATION
Senior Citizen
(60 to 79 Years)
Upto 2,50,000
Upto 3,00,000
Upto 5,00,000
2,50,001 to 5,00,000 3,00,001 to 5,00,000 5,00,001 to 10,00,000 5,00,001 to 10,00,000 5,00,001 to 10,00,000
Above 10,00,000
Above 10,00,000
Above 10,00,000
Surcharge @ 12% if total income exceeds 1 Crore | Cess @3%
Tax Rate
%
Nil
10
20
30
Rate of MAT/AMT
(%)
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TAXATION
Tax Rates for Domestic Companies
Upto Rs 1 crore
Exceeding 1 Crore but not exceeding 10 Crore
Exceeding Rs 10 crore
Tax Rates for Foreign Companies
Upto Rs 1 crore
Exceeding 1 Crore but not exceeding 10 Crore
Exceeding Rs 10 crore
Tax Rates for Firms / LLPs/Local
Authorities
Upto Rs 1 crore
Exceeding Rs 1 crore
30.900
33.063
34.61
19.055
20.389
21.342
41.200
42.024
43.260
19.055
19.436
20.008
30.900
34.61
19.055
21.342
Upto Rs 10,000
Rs10,000 to Rs 20,000
Rs20,000 and above
Surcharge
If income upto Rs 1 crore
If income Exceeds 1 Crore
Education Cess
Secondary and Higher Education Cess
10%
20%
30%
Nil
12%
2%
1%
19.055
21.342
Residential Status:
RESIDENCE IN INIDA
RESIDENT AND
ORDINARILY
RESIDENT
NON - RESIDENT
Basic Conditions:
1) Person must be living in India at least 182 days during previous year.
2) Must be present in India for period of 60 days or more during the
previous year and 365 days or more during the 4 years immediately
preceding to that financial year.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
Additional Conditions:
1) The person is resident in at least 2 out of 10 previous years preceding the
relevant previous year,
2) His stay in India in the last 7 years preceding the relevant previous year is
730 days or more.
Resident and Ordinarily
resident
Must satisfy at least one of the
basic conditions and both the
additional conditions.
Non-resident
Must not satisfy either of the
basic conditions.
HEAD OF INCOMES
Income tax is payable by an assessee on his total income from all the source
of income. Each source has its own unique features and requires specific treatment
for correct computation of income from that particular source. Naturally, rules and
method for computation of income from each such source are different according
to the nature of the source.
CLASSIFICATION OF INCOMES
Section 14 of the Income Tax Act, 1961 deals with the classification of
income under five heads of income. The five heads of income listed in S 14 are:
1) Income under the head salaries (Section 15 17)
2) Income from house property (Section 22 27)
3) Profits and gains from business or profession (Section 28 44)
4) Capital gains (Section 45 55)
5) Income from other sources (Section 56 59)
1) INCOME FROM SALARY
Among the five heads of income listed by S.14, Salaries is the first and
most important head of income. The concept of Salaries is very wide and
includes not only the salary in common parlance but also various other receipts,
gifts, perquisites and benefits.
The lesson is divided into various sections dealing with the concept of salary
income and its characteristics, which define as to what constitutes salaries
followed by the incomes falling under this head the computation of basic salary,
types of allowances and perquisites, valuation of the perquisites, various income
tax provisions for computing taxable value of allowances etc. and their detailed
descriptions along with the applicable legal provisions of income tax.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
Meaning
Salary, in simple words, means remuneration of a person in any form, which
he has received from his employer for rendering personal services to him under an
expressed or implied contract of employment or service.
But receipts for all kinds of services rendered cannot be taxed as salary. The
remuneration received by professionals like doctors, architects, lawyers etc. cannot
be covered under salary since it is not received from their employers but from their
clients. So, it is taxed under business or profession head. This implies the presence
of the following norms or essential characteristics to determine whether any
particular income is to be taxed under the head Salaries or not.
Essential Characteristics of Salaries
Employer-Employee Relationship:
Assessee should receive the income from his employer only. Any income
which is received by assessee (employee) from his employer should be taxable
under section. If income not received from his employer then such employer is not
taxable under this head.
Salary to partner by firm:
If partner received salary from the firm this salary is not taxable under this
head but taxable head from business.
Received salary form two or more employer:
If an assessee received salary from two or more employer then income
received from all employer is taxable under this head.
Real intention to pay:
Salary income must be real and not fictitious. There must exist an intention/
obligation to pay and receive salary.
Salary or Bonus to Director:
If Director received any salary / bonus / commission as an employee is
taxable under this head.
Salary received by individuals only:
Salary is a compensation for personalized services, which can obviously be
rendered by a normal human being and not a body corporate. Salary income is
taxable in the hands of individuals only. No other type of person such as a firm or
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
Key Points
Basic Salary:
Basic salary is fixed as per their respective terms of employment. But some
employee received their salary on graded system. Under the graded system, apart
from starting basic, salary annual increments are pre-fixed. Increment is given
thereafter till next date of increment or the date when he is promoted and placed in
other grade.
Arrears of salary:
Arrears of salary are taxed on receipt basis, if the same has not been taxed
earlier. However, relief u/s 89 will be allowed in respect of such arrears.
Advance Salary:
20
TAXATION
21
TAXATION
a) If he is Government employee full amount of commuted pension
Pension 10(10A)
Commuted
Govt. Employee
Full Exempted
Uncommuted
Other Employee
Gratuity
Yes
Gratuity
No
When an employee, instead of enjoying leave at his credit, gets the same
encashed following tax treatment will be given:a) Amount received on encashment of leave during the continuity of
employment by all the employees, will be taxable in the year of receipt. However,
the employee will be entitled to relief u/s 89.
b) Amount received on encashment of leave at the time of retirement by way
of superannuation or otherwise, by
1. An employee of the Central or State Government will be fully exempt.
2. Any other employees including employees of a local authority or a
statutory corporation would be exempt at the lowest of the following and only the
balance will be taxable:i) Actual amount received.
ii) Notified Amount currently Rs 3,00,000/iii) 10 months average salary.
iv) Cash equivalent of leave to be encashed.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
Following allowance are wholly or partly tax -free. Some of the exemptions
are conditional. Most of the conditions and monetary limits, though prescribed in
rules are incorporated in brief to make the subject comprehensive. Brief
description of these allowances is as follows:
a) Fixed Medical Allowances
Fixed Medical Expenses are taxable but reimbursement of medical expenses
is however exempt upto Rs 25,000
b) Transport Allowance- Sec. 10(14)
Any allowance or benefit given to meet the expense wholly and necessarily
in the course of employment is fully exempt u/10(14) subject to the assessee
presenting the proof in this regard.
Under Rule 2BB, Transport or conveyance allowance paid to meet
conveyance expenses of the employee from place of residence to place of work and
back is exempt upto Rs 1600 per month.
c) Education Allowance:
Education Allowance given to meet the education expenses of the
employees is taxable in hands of employee. However, under rule 2BB a sum of
Rs100 per month per child subject to maximum of 2 children is allowed as
exemption from total education allowance received by the employee in a given
year. If the children of the employee are residing in a hostel, an additional
exemption of Rs 300 per month per child subject to maximum of 2children is made
available to the employee. Therefore if the employee has 2 children and who are
residing in a hostel and the employee is giving total education allowance of Rs
1000 per month, the taxable amount will be (1000-800) i.e. Rs 200 per month only.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
his salary. E.g. free accommodation facility, Lunch and Diner facility
B) Taxable perquisites in case of all tax:
1) Value of Rent free accommodation
2) Value of concession in Rent.
3) Provident fund paid by employer on behalf of employee.
C) Perquisites taxable in case of specified employee:
i)
Meaning:
Specified employee means a director who is an employee of a
company, an employee having substantial interest in the company by
share more than 20% paid up capital.
ii)
D) Valuation of Perquisites:
a.
b.
c.
d.
e.
f.
24
TAXATION
1.
2.
3.
4.
5.
6.
7. Transferred Balance.
25
TAXATION
The owner of the house property is taxed on the income from the house
property. Income from the house property is ascertained on the basis of annual
value. According to section 22, the annual value of property consisting of any
buildings or lands appurtenant thereto, of which assessee is the owner, other than
such portions of such property as he may occupy for the purpose of any nosiness or
profession, shall be chargeable to tax under this head, following conditions are
satisfied namely
(a) Income chargeable to tax is ascertained on the basis of annual value of
property consisting of Buildings and Lands attached thereto of which
assessee is the owner. This means any income from vacant land or open
plot is not to be charges under the head Income form House Property.
(b) The legal owner of the house property is charged to tax in respect of
income from House Property.
(c) Property may be either let out or occupied by the assessee himself i.e.
Self-occupied. Property may be partly self-occupied or partly let out. In
both the circumstance, income is ascertaining on the basis of annual
value. However, the mode of ascertaining the income from house
property is different in case of property which is either let out or selfoccupied.
(d) Certain deductions, as discussed hereinafter under this topic, are allowed
form annual value in order to arrive at the taxable income under this
head. If such deductions are in excess of the annual value, the resultant
figure is termed as loss from house property. Such loss can be set off
against the income under other heads.
Building Defined:
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
The word Building id not defined under the Act. Many courts have
given judicial interpretation of the word, building as follows:
Building is an enclosure of the brick or stone work covered by roof.
Building is an enclosure which may even consist of mud walls.
Building may be occupied or intended for residence, Office use,
storage, warehousing etc.
Land Appartenant There To:
It is the land occupied along with a building. It includes approach
roads, compounds, courtyards Kitchen garden, Car parking space, Play
grounds. Cattle Shed etc.
Since, there is no definitive meaning of the term annual value defined in Sec
2(22) as the annual value determined under Sec. 23, meaning of annual value has
to be seen in common parlance.
Annual value may be defined as the inherent capacity of a property to earn
income or the amount for which the property may reasonably be expected to be let
out from year to year. It is not the actual rent but the capacity to fetch rent that is
important. It implies that a property need not necessarily be let out.
The annual value of a property will, therefore, depend upon the use of the
property- self occupied, let out or partly vacant etc. The provisions of section 23
for determination of annual value are given below:
A) The sum for which is property might reasonably be expected to let our from
year to year; i.e. Reasonable Letting Value. It can be ascertained having
regards to Fair Rent Municipal Rateable Value of the house property.
The Fair Rent can be ascertained by taking the following factors into
consideration:
a) Locality in which property is situated:
b) Rent Payable for similar property in the same or similar locality:
c) Owners obligations discharged by the tenant:
d) Tenants obligations discharged by the owner:
e) If Rent Control Act is applicable, the standard rent as fixed by the Rent
Controller.
After taking into consideration the above factors relating to the house
property the fair rent is determined.
The Municipal Rateable Value is one of the important tests to be taken
into consideration for determining the annual value. Municipal Rateable
Value is being ascertained by the local authorities such as Municipal
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
27
TAXATION
28
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A.R.R. is Annual
Value
A.R.R. is Annual
Value
R.L.V. is Annual
Value
29
TAXATION
1. Income from house property is to be ascertained on the basis of annual
xxx
xxx
xxx
xxx
xxx
xxx
30
TAXATION
NIL
xxx
xxx
xxx
31
TAXATION
are generally not liable to any action from any organized association. It is not so in
case of a professional person, for example, a doctor is subject to disciplinary action
by the Medical Council of India.
INCOME CHARGEABLE UNDER BUSINESS/PROFESSION
The following are few examples of incomes which are chargeable under this head:1. Normal Profit from general activities as per profit and loss account of
business entity.
2. Profit from speculation business should be kept separate from business
income and shown separately.
3. Any profit other than regular activities of a business should be shown as
casual income and will be shown under income from other sources head.
4. Profit earned on sale of REP License/Exim scrip, cash assistance against
export or duty drawback of custom or excise.
5. The value of any benefits whether convertible into money or no from
business/profession activities.
6. Any interest, salary, commission etc. received by the partner of a firm will
be treated as business/professional income in hand of partner. However, the
share of profit from partnership firm is exempt in hand of partner.
7. Amount recovered on account of bad debts which were already adjusted in
profit in earlier years etc.
EXPENSES DEDUCTIBLE
PROFESSION
FROM
INCOME
FROM
BUSINESS
All the expenses relating to business and profession are allowed against income.
Following are few examples of expenditures which are allowed against income:
32
TAXATION
Note: The above expenditures are allowed on the basis of actual payment as well
as on accrual basis at the date of finalization accounts.
EXPENSES WHICH ARE DEDUCTIBLE ON ACTUAL PAYMENT ONLY
Following expenses will be allowed if these expenses have been paid before or on
due date or before filing of income tax return:1. Any tax, duty, cess or fees by whatever name called.
2. Contribution to provident fund, ESI premium, gratuity fund or other funds
for welfare of employees.
3. Bonus or commission or leave encashment payable to employees.
4. Interest on loan from public financial institutions, state financial corporation
or from scheduled bank.
EXPENSES
INCOME
NOT
DEDUCTIBLE
FROM
BUSINESS/PROFESSION
33
TAXATION
34
TAXATION
Category
Where accounts have been audited under any
other law
Where accounts have been audited under Income
Tax Act
Form for
Audit
Report
3CA
Form for
Statement of
Particulars
3CD
3CB
3CD
Note:
1. Failure to get the accounts audited or to furnish audit report, in time attracts
penalty u/s 271B up to % of turnover or gross receipts or Rs.1,50,000/=
whichever is less.
2. From Assessment Year 2007-08 (Financial Year 2006-07), with the
introduction of annexure less return forms, the audit report is neither
required to be attached with the return nor furnished separately before or
after the due date and no penalty u/s 271B shall be imposed for this.
However, an audit report must be obtained by the assessee before the due
date of furnishing the return and the relevant columns in the return should be
filled in based on such report.
(IV) INCOME FROM CAPITAL GAIN
Capital Gain is a part of the Taxable income. It is not an income in general
sense as Capital Gains is the profit earned on sale of capital asset or an investment.
Capital Gain in fact is brought to tax net by the deeming fiction created u/s 2(24)
(vi) while defining the term Income. Thus in order to invoke the provisions of
Capital Gains the following ingredients should be present
1. The existence of Capital Asset
2. The transfer of such asset and
3. Profit and Gains from Transfer of such asset.
Capital asset is property of any kind held by an assessee, whether fixed or
circulating, movable or immovable, tangible or intangible. Following assets are
excluded from the definition of capital assets and hence, these are not to be
considered as capital assets.
1. Any stock in trade consumable stores or raw materials held for the
purposes of business or profession.
2. Personal effects of the assessee. It includes movable property including
wearing apparel and furniture held by the assessee, for personal use of
the assessee and for the members of his family dependent on him.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
Kinds of Capital
Assets
36
TAXATION
xx
xx
xx
xx
xx
xx
xx
xx
37
TAXATION
xx
xx
xx
xx
38
TAXATION
Where the cost for which the previous owner of the capital asset
acquired the property cannot be ascertained, the cost of acquisition to the
previous owner shall be the fair market value of the asset on the date on
which the asset became the property of the previous owner. The Interest on
money borrowed for acquiring the capital asset will also form a part of the
cost of Asset.
D) COST OF IMPROVEMENT
All Capital Expenditures incurred in making any additions or
alterations to the Capital Asset by the Assessee after it became his property
or alterations to the capital asset by the assessee after it became his property
shall be deductible as the Cost of Improvement. If the Asset was transferred
to the assessee under the cases specified immediately above, the capital
expenditure incurred by the previous owner shall also be treated as cost of
improvement. However, the Cost of Improvement does not include any
capital asset which is deductible in computing the chargeable under headIncome from House Property, Profits or Gains of Business or Profession,
or Income from Other Sources. Only the Capital Expenses are considered
as a cost of Improvement and routine expenses on Repairs and Maintenance
do not form part of cost of improvement.
For the purpose of Computation of Long Term Capital Gain,
Indexation using the Cost Inflation Index shall be done to the Cost of
Acquisition & Cost of Improvement and the resultant figure shall be the
Indexed Cost of Acquisition & Indexed Cost of Improvement for the
purpose of computation of LTCG
Cost Inflation Index of the Year of Sale
Indexed Cost = Actual Cost X
Cost Inflation Index of the Year of Purchase
The Assessee also has the option of not opting for Indexation and the
Long Term Capital Gain Tax Rate in this case shall be 10%
(V) INCOME FROM OTHER SOURCE
Where any income, profit or gains includible in the total income of an
assessee, cannot be included under any of the other heads, it would be chargeable
under the head Income from other sources. Hence, this head is the residuary head
of income [Section 56(1)]
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
The nature of income earned will decide whether income has to be shown
under this head. However, there are some standard inclusions as outlined below.
1. Dividends: Income by way of dividend is shown under this head. Deemed
dividend as under section 2(22)(e) is fully taxable as is dividend from cooperative societies and foreign companies. Dividend not chargeable to tax
includes dividends exempt U/S 10(34) i.e. dividend from Indian companies,
dividend liable to corporate dividend tax, income on mutual fund units or
income from UTI unit holder.
2. Winnings: This includes winnings over Rs.10,000 from lotteries, puzzles,
races, games and all forms of gambling and betting. E.g. card games, horse
races, game shows etc.
3. Interest received: All interest income earned in the previous year (on
compensation/enhanced compensation) is taxable. However, 50% of this
income can be claimed as deduction.
4. Incomes not declared under the head Profits and Gains of Business or
Profession: This includes contributions made to an employers employee
welfare fund, interest earned on securities, rental income from furniture,
plant and machinery (including building where it cannot be let out
separately), keyman insurance policy proceeds.
5. Gifts: Taxable gifts are declared under this head by individuals and HUFs.
This includes monetary or non-monetary items received without any
consideration or without adequate consideration. Non-monetary gifts include
all immovable property and certain movable property.
Gifts are taxed only if the total amount received during the previous year is more
than Rs.50,000 and applies only to those gifts individuals or HUFs received after
Oct.1st 2009. This doesnt apply if the assessee receives money
40
TAXATION
CLUBBING INCOME
Generally an assessee is tax in respect of his own income. But as per section
64 the income legally belonging to other person. Spouse or minor child alos
including in the income of assessee it is called as clubbing income.
These following incomes are clubbed.
1) Remuneration of spouseAn individual is chargeable to tax in respect of any surgery, fees,
commission or remuneration received by spouse from the business in which
he has substantial Interest
2) Income from asset gifted to spouse.
3) Income from asset gifted to sons wife.
4) Income from assets transfer for the benefit of spouse
5) Income from asset transfer for the benefit of sons wife.
6) Income of Minor child.
7) Income from own property converted into property of H.U.F
DEDUCTION FROM GROSS TOTAL INCOME
The Aggregate income from all the heads of income is known as Gross Total
Income. In computing the total taxable income on an assessee, certain deductions
under section 80C to 80 U are allowed from his Gross Total Income. It means,
firstly that the income of the assessee shall be calculated under 5 specific Heads of
income and incomes from all heads are put together and then from this total,
certain deductions are made and after making deductions whatever remains shall
be the total income or total taxable income.
41
TAXATION
The following essential rules have to be kept in mind while calculating deductions
under sec. 80C to 80U. :
1. The aggregate amount of the deductions under this Chapter shall not, in
any case, exceed the gross total income of the assessee.
2. No such deduction shall be allowed to him unless he furnishes a return of
his income for such assessment year on or before the due date
These Deductions are divided into 3 categories:
1. Deductions in respect of certain PAYMENTS.
2. Deductions in respect of certain INCOMES.
3. Other Deductions.
A) DEDUCTIONS IN RESPECT OF CERTAIN PAYMENTS :
Deduction In Respect Of Life Insurance Premia, Deferred Annuity,
Contributions To Provident Fund, Subscription To Certain Equity
Shares Or Debentures, Etc. [SEC. 80 C ]
In computing the total income of an assessee, being an individual or a Hindu
undivided family, there shall be deducted the whole of the amount paid or
deposited in the previous year, being the aggregate of the sums as does not exceed
one lakh rupees (Rs 1,00,000/-).
However, amount of deduction u/s 80C is
- Gross Qualifying Amount or
- Rs. 1,00,000/whichever is LESS.
8.1.2. Deduction In Respect Of Contribution to Certain Pension Funds. [Sec.
80 CCC]
1. Where an assessee paid or deposited any amount out of his income chargeable to
tax for any annuity plan of Life Insurance Corporation of India or any other
Insurance Company for receiving pension from the fund, he shall be allowed a
deduction in the computation of his total income, of the whole of the amount paid
or deposited (excluding interest or bonus accrued or credited to the assessors
account, if any) as does not exceed the amount of (Rs. 1,00,000) one lakh rupees in
the previous year.
2. Where any amount received by the assessee or his nominee
(a) on account of the surrender of the annuity plan whether in whole or in part, in
any previous year, or
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
42
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Insured Person
On the health of the taxpayer, spouse,
patents or dependent children of the
taxpayer
On the health of any member of the
family
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HUF
Parents of the
Taxpayer
and
Any member
whether
of family
dependent or
not
Rs. 15000
Rs. 15000
Maximum
amount
Rs. 15,000
deductible
Additional
amount
which is deductible
when policy is takenRs. 20,000
Rs. 20,000
Rs. 20,000
on the health of a
senior citizen
Note : Upto Rs. 5000/- incurred for preventive check-ups can be claimed
within overall limit of Rs. 15,000/- or 20,000/- u/s 80D
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(b) for any member of a Hindu undivided family (HUF) , in case the assessee is a
Hindu
undivided
family
(HUF),
the assessee shall be allowed a deduction of the amount actually paid or a sum of
forty thousand rupees (Rs.40,000), [ Rs. 60,000 for Senior Citizen]
whichever
is
less
Provided that no such deduction shall be allowed unless the assessee furnishes with
the return of income
8.1.7. Deduction In Respect Of Interest Of Loan Taken For Higher
Education [Sec. 80 E ]
Any amount paid in the previous year, out of the income chargeable to tax, by way
of interest on loan taken by him from any financial institution or any approved
charitable institution for the purpose of pursuing his higher education shall be
allowed in computing the total income
1. in respect of the initial assessment year and seven assessment years
immediately succeeding the initial assessment year or
2. Until the interest is paid by the assessee in full, whichever is earlier?
8.1.8. Deduction In Respect Of Donations To Certain Funds, Charitable
Institutions, Etc. [Sec. 80 G ]
The Claim in respect of such Donation to the Prime Ministers National Relief
Fund, the Chief Ministers Relief Fund, or the Lieutenant Governors Relief Fund
will be admissible u/s 80G of the Income Tax Act,1961 on the basis of the
certificate issued by the Drawing and Disbursing Officer (DDO) / Employer in this
behalf.
Amount of Deduction: 50% of Donation. Income some cases Donation is
restricted to 10% of Gross Total Income. 100% in some cases like National
Defence Fund.
Applicable to All Assessee.
Deduction is allowed only if made in Cheque / Draft.
8.1.9. Deductions In Respect Of Rents Paid. [Sec. 80 GG]
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INDRECT TAX
Indirect Tax is referred to as the tax, which is paid by the taxpayer to the
government indirectly, charged on goods and services. Indirect taxes are collected
from someone or some organization other than the person or entity that would
normally be responsible for the taxes. The burden of tax can be shifted to another
person. Indirect tax regressive in nature. Tax evasion is hardly possible because it
is included in the price of goods and services.
Indirect Tax is referred to as a tax which is paid by the taxpayer indirectly to
the government, the burden of which can be easily shifted to another person. The
tax is regressive in nature, i.e. as the amount of tax increases the demand for the
goods and services decreases and vice versa. It levies on every person equally
whether he is rich or poor. The administration of tax is done either by the Central
government or State government.
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Payment
of TDS
Quarterly
TDS
Return
Filing
of
Income
Tax
Return
Advance
Tax
Payment
Payment
of
Service
Tax#
Service
Tax
Return
ESIC
Payments
PF
Payment
VAT
Payment
April
30
25
21
15
21/30
May
15
21
15
21
June
15
21
15
21
July
15
31
21
15
21
August
21
15
21
September
30
15
21
15
21/31
October
15
25
21
15
21
November
30*
21
15
21
December
15
21
15
21
January
15
21
15
21
February
21
15
21
March
15/31
6/31
21
15
21
*For Companies required to file report u/s 90E #e-Payment is mandatory for All assesseess w.e.f. 01-10-2014
Quarter Ending
Due Date
Q1
Q2
Q3
Q4
June
Sept
Dec
March
Jul-15
Oct-15
Jan-15
May-15
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TAXATION
PF
PF
EDLI
ESIC
ESIC
PF
EDLI
Description
Responsibility
Contribution
12% of Basic+DA
12% of Basic+DA
of which 8.33% or Max 541 Rs1250 for Pension Fund
0.5% of Basic+DA or Max 32.50 Rs 75
1.75% of Wages
4.75% of Wages
Admin Charges
1.1% of Basic+DA
0.01% of Basic+DA or Max Re 1.50
Employee
Employer
Employer
Employee
Employer
Employer
Employer
*New amounts effective Sept 1, 2014, as threshold for PF increased from ` 6500 to 15000
Quarter Ending
Due Date
Form 16 A
Q1
Q2
Q3
Q4
June
Sept
Dec
March
Jul-30
Oct-30
Jan-30
May-30
Form 16
Apr to Mar
May-31
Profession Tax
NIL
175
NIL
200
300
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INTRODUCTION TO STRESS
INTRODUCTION
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Stress is a part of day-to-day living of every individual. The college
students may experience stress in meeting the academic demands, people on the
job, business men may suffer stress to reach office in time and to complete the
projects on time and even the house hole ladies may experience stress in
managing the home affairs and to look for the maid servant. The reasons for the
stress differ from person to person. The stress people experience should not be
necessarily treated as harmful. An optimum amount of stress can always act as
an energizer or motivator and propel people to apply the efforts and complete the
work. But a high level of stress can be serious threat to the personality trails of
the individual and can cause physiological and social problems.
What is Stress?
Stress is the "wear and tear" our bodies experience as we adjust to our continually changing
environment; it has physical and emotional effects on us and can create positive or negative
feelings.
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We generally believe that the stress is caused by the external events and
the dynamics of the environment. But we need to emphasis the fact that the Stress is
caused by our reaction to the external environment. The manner in which we perceive
and understand the changes or the particular event creates same event can bring
happiness and cause stress in two different people depending upon how they react to it.
When students are asked to prepare a presentation, some may take it to the other
students may be perturbed by it for the fear of his weakness. So, Stress is our reaction
to external events and it can be positive or negative depending upon how we react, it is
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
54
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the general wear and tear of the body machine that takes place due to extra demands
put on it.
Stress is the biggest killer in the Western world and the cause of huge
losses of production in industry. But the techniques t o combat stress and
Increase well being in your daily life are within your reach if you know how to go
about them.
REPLACING NEGATIVE WITH POSITIVE EMOTIONS
The Successful Stress Management course gives you guidance on the changes
necessary to overcome and reject negative emotions, and to replace them with positive
ones that give you true quality of life. Your course will enable you to consider the causes
and effects of the stress in todays world, and help you plan strategies for managing and
controlling stress to develop a healthy sense of self-esteem. This is a much-needed
course in todays world of increasing anxieties, and is invaluable whether you want to
benefits yourself or make a career out of giving guidance to others.
We can define stress as bodys non-specific response to any demand made on
it. Stress is not by definition synonymous with nervous tension or
anxiety. On one side stress provides the means to express talents and energies and
pursue happiness on the other side it can also cause exhaustion and illness, either
physical or psychological.
Definition of stress
According to the father of stress of research, Hans Selye, stress is the spice of life;
the absence of stress in death.
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Ivancevich and matteson define stress simply as the interaction of the individual
with the environment.
Remember that our main definition of stress is that stress is a condition or feeling
experienced when a person perceives that demands exceed the personal and social
resources the individual is able to mobilize. With this in mind, we can now look at how
you can manage all of the stresses that your career will bring From our definition, you
can see that there are three major approaches that we can use to manage stress;
Action-oriented: In which we seek to confront the problem causing the stress, often
changing the environment or the situation;
Emotionally-oriented: In which we do not have the power to change the situation, but we
can manage stress by changing our interpretation of the situation and the way we feel
about it; and
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effective in their place. The section on Reducing Stress With Rational Thinking explains
powerful techniques for getting another perspective on difficult situations.
Acceptance-oriented approaches-when theres no valid alternative
Sometimes, we have so little power in a situation that it is all we can do to survive
it. This is the case, for example, when loved-ones die. In these situations, often the first
stage of coping with the stress is to accept ones lack of power. The section on Building
Defenses Against Stress looks at building the buffers against stress that helps you
through these difficult periods. Arguably, the section on Useful Relaxation Techniques
also fails in to this category.
These different approaches to stress management address our definition of
stress indifferent ways: the action-oriented techniques help us to manage the
demands upon us and increase the resources we can mobilize; the emotionally oriented
techniques help us to adjustor perceptions of the situation; and the acceptance-oriented
techniques help us survive the situations that we genuinely cannot change.
took the relationship between stress and industry very seriously.
Stress: What it is not
Stress is not simply anxiety or nervous tension
Stress need not necessarily be damaging
Stress is not always due to over stimulation
Stress cannot be avoided
Levels of Stress
Eustress: Eustress denotes the presence of optimum level of stress in an individual,
which contributes positively to his performance. This may lead employees to new and
better ways of doing their jobs. In certain jobs such as sales, creativity a mild level of
stress contributes positively to productivity.
Distress: Distress denotes the presence of high level of stress in an individual, which
affects job performance adversely and creates many types of physical, psychological
and behavioral problems.
Symptoms of Stress
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
As stated earlier Stress is caused by or reaction to the external events and bring
about changes in our response and our general behavior. The presence of Stress can
be estimated by the analysis of certain symptoms an individual shows. These symptoms
can be divided into three different categories.
They are Feelings, Behavior and Physiology. When the individual experience Stress,
one or more of the following symptoms can be exhibited.
Feelings
The individual becomes anxious become anxious about the outcomes and is
scared. The person feels that he has got something to loose or something wrong
will take place.
During high level of Stress the individual develops a negative frame of mind and
suffers from low self-esteem. The person loose faith in his capabilities and is
afraid of the failures. The individual does not have a focused approach and is not
able to concentrate and is involved in his own plans and thoughts.
Speech problems
Impulsive Behavior
Grinding of teeth
Being accident-prone
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Trembling
Nervous ticks
Tiring easily
Urinating frequently
Sleeping problems
Butterflies in stomach
Headaches
Premenstrual tension
Causes of Stress
Both positive and negative events in ones life can be stressful. However major life
changes are the greatest contributors of stress for most people.
1. If people have to travel a lot and have to move from place to place, it can cause
stress.
2. Individual can also be under stress if they are about to enter some new
environment. They may be going to new colony. To a new college or they may be
joining a new organization.
3. Some events, which are generally once I a lifetime can also cause stress. The
social institutions of marriage or divorc can cause stress. Pregnancy can also
generate Stress.
They are:
Time pressure
Competition
Financial problems
Noise
Disappointments
UNDERSTADING STRESS
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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TAXATION
Three potential sources of stress:
Environmental Factors
Organizational Factors
Individual Factors
Environmental Factors:
Economic uncertainty is created when there is a change in the business cycle.
That is when people become anxious about their security. This uncertainty not only
affects the stress level of the organization but also to design of the organisation. By the
coming up to the new innovations in the field of technology
like computers, robotics, automation etc. It has become a threat to many people, which
causes stress. This type of uncertainty is called Technology Uncertainty.
Organizational Factors:
There is no storage of factors within the organization that can cause stress.
These are categorized into:
Task Demands
Role Demands
Interpersonal demands
Organizational Demands
Organizational Leadership
Task Demands: Task demands are factors related to a persons job. They include the
design of the individuals job (autonomy, task variety, degree of automation). Working
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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conditions, and the physical work layout. Working in an overcrowded room or in a visible
location where interruptions are constant can increase anxiety and stress
Interpersonal Demands: Interpersonal demands are pressures created by other
employees. Lack of social support from colleagues and poor interpersonal relationships
can cause considerable stress, especially among employees with a high social need.
Organizational Structure: Organizational Structure defines the level of differentiation in
the organization, the degree of rules and regulations, and where decisions are made.
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anxiety than graduates 33%, this can be considered as a positive stress of the
employees for the organization.
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CHAPTER-5
Conclusion and Suggestions
CONCLUSIONS
The employees of APIL are selected in a step by step procedure, only the best
are selected and the rest are screened out, the usual working hours are 8 to 10
hours a day, depending upon the work load. The work is assigned on equitable
basis. On achieving the targets, monetary incentives and perks are given.
No medical camps are held, but medical reimbursement is given. The employees
are satisfied with the working environment; a friendly environment usually
prevails in the organization. The management maintains both formal and informal
relationship with the employees. There is low particicpation of employees in the
management decisions. The promotion policy and transfer policy is favorable to
the employees. If an employee is unable to complete the job he is given constant
back ups.
The management understands the various reasons for stress and plans different
techniques and implements it to reduce stress and increase employee moral.
The cost incurred on implementing the work stress management techniques is
considered to be cost effective. APIL considers work stress as a management
process.
The different techniques are adopted to boost of the moral the employee and it is
achieved. Work stress management is considered to be profitable to the
organization. The employees have job satisfaction. The techniques adopted are
usually preplanned but in unavoidable cases they are instant. While planning and
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT
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implementing the different techniques the opinions of team leaders are also
considered. The work stress management techniques have also proved to be
effective in appraising the employee performance. The H.R department is
Responsible for planning and implementing work stress management.
APIL the work stress management is being implemented from the past 3-4 yrs
and is successful in enhancing the employee morale. This can be seen in the
employee performance; the employee avoids absenteeism and is satisfied with
his job. The techniques so implemented have proved to be positive in nature.
The employees are surely benefited from work stress management. The more
the employee morale, the less the chances of leaving the organization, so this
reduces chances of leaving the organization. Yes, the different techniques
adopted boost up confidence of employee. The quality of performance is not
considered for vertical up graduation. The different techniques used are
innovative plans; they are not based on any set standards. The employees are
satisfied with the remuneration what they are paid.
SUGGESTIONS
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It is recommended to the company to conduct frequent recreational programs like
get together in departments concerned, parties on occasions like the birthdays of the
employees, on the achievements of any particular department, cultural activites,
sports pleasure trips etc.
It is recommended to the company that bit should improve interpersonal
relationships among the employees of different departments by bridging the gap
between superiors and subordinates. These can a long way in reducing the degree
stress to some extent.
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specified time. The time limit be proportionate with the work given i.e. time limit should
be neither too short not too long.
It is recommended to the company to organize frequent camps or programs on
meditation, yoga, transcendental meditation and stress management.
It is recommended to the company that it compulsorily insist on the employees to
mediate for 15 minutes after coming to the office and before starting their work. They
should also similarly mediate for 10-15 minutes after their lunch break and once at
the end of the day before they leave the office. This will help the employees to take
the work on the next day with a fresh mind.
It is recommended to the company to arrange for a special and separate room from
noise and disturbance and which is quite and peaceful for meditation purposes.
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FINDINGS
It has been found that 58% of the employees among the total employees in the
organization are undergoing stress and these are officers and asst. Managers.
It has been found that the employees in the age group of 20-29 are facing more
health problems than the higher age headache. This is because the employees of
this age are undergoing more stress compare to higher age group due to factors like
work load, meeting targets and performance anxiety.
It is observed that though the employees in the age group of 30-39 are facing stress
than the employees in the age group 40-49. Still they are able to maintain better
inter personal relationship with their peers, subordinates and superiors.
It has been found that employees in the age group of 30-39 wanted a few changes
at work place to reduce the stress like timely targets, distributed work load and
periodic relaxation because they feel that it is too concentrated and the time to meet
these targets is highly insufficient.
It is observed that 95% of the employees are comfortable with the working
environment in which they are working.
It is observed that the 99% of employees agree that the work stress management
techniques will improve the morale of the employees.
It has been found that most of the organization has the opinion to take into
consideration the employees while implementing the stress management techniques
taken by the HR dept.
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Bibliography
www.incometaxindia.com
http://taxprintindia.com
69