KARNATAK UNIVERSITY DHARWAD

POST GRADUATE COURSE

(COMMERCE)

KARNATAK UNIVERSITY PG CENTRE

HAVERI -581110
A PROJECT REPORT ON

“TAX PROFESSIONALS PERCEPTION TOWARDS E-FILING

OF INCOME TAX IN HIREKERUR”
A Project report submitted in partial fulfillment of the
Requirement for the award of
MASTER DEGREE IN COMMERCE
By the Karnataka University Dharwad
During the academic year 2016-17

Submitted by
MR.GIREESH.CHANDRAPPA.KUBASAD
Reg. No :- 15C01158

Dr.CHANDRAMMA.M
College Guide Co-ordinator
 KARNATAK UNIVERSITY DAHRWAD
KARNATAK UNIVERSITY PG CENTRE
HAVERI-581110

Certificate

This is to certify that

MR.GIREESH.CHANDRAPPA.KUBASAD.

has successfully completed the Project work on

“TAX PROFESSIONALS PERCEPTION

TOWARDS E-FILING OF INCOME TAX
HIREKERUR”

For the partial fulfillment of the requirement for the award ofMaster of
Commerce (M.Com)By Karnataka University Dharwad For the academic
year 2016-17.

Dr. CHANDRAMMA.M
College Guide Co-ordinator

Page 2
 DECLARATION

I hereby declare that this project titled “Tax Professionals Perception towards E-
Filing of Income Tax in Hirekerur” Has been prepared by me during the year 2016-
2017, is a report of independent research work carried out by me under the
guidance of Dr. Chandramma M. PG Department of Commerce
K.U.P.G.Centerof Commerce and this project has not been submitted for the
aware of any degree and any other institutions.

PLACE: - HIREKERUR GIREESH CHANDRAPPA KUBASAD

- M.COM IV SEMESTER

REG.NO 15C01158

Page 3
 ACKNOWLEDGEMENT:

This is to express my sincere gratitude to all those

who have helped me in the successful completion and
presentation of this report.
I am profoundly thankful to our Co-ordinator and
also Internal Guide Dr. CHANDRAMMA M, for his
encouragement in bringing out this Project Report.
My sincere thanks are due to Dr.Chandramma M,
HOD of PG DEPARTMENT OF COMMERCE for his
valuable suggestions.
My sincere thanks to Shri Jagadish.L.Bidarur, Tax
Consultant for his valuable information and
suggestions.
I acknowledge the help received from all the
taxpayers in collecting the data and their cooperation
in completing this project.
I am highly indebted to my Family and Friends for
their valuable help, suggestions and support
throughout the preparation of this Project Report.

GIREESH.CHANDRAPPA.KUBASAD

Page 4
M.COM IV SEMESTER

CONTENTS

SL.NO PARTICULARS PAGE NO

CHAPTER-1

INTRODUCTION

01 Need for the study 7-10

Objectives
Database and methodology
Scope of the study
Limitations of the study
CHAPTER-2

AN OVERVIEW OF INCOME TAX

History of Income-Tax
Meaning of Tax
Types of Taxes
Return of Income
Residential status 11-28
02
Rates of Income-Tax
Tax Deducted At Source
Tax Collected At Source
Advance tax

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 Taxable Head of Income-Tax
Incomes Exempt from Tax
Tax benefits, deductions, rebates and
donations.

CHAPTER-3

INCOME TAX E-FILING

What is E-Filing
03 29-33
Benefits of E-Filing

Types of E-Filing

Documents Required for E-Filing

Process of E-Filing

CHAPTER-4

INTERPRETATION AND ANALYSIS OF

DATA
04 34-58
CUSTOMER PROFILE

CHAPTER-5

FINDINGS AND SUGGESTIONS

05 Findings 59-61

Suggestions

Conclusion

BIBLOGRAPHY 62-63

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 ANNEXURE 64-67

CHAPTER-1
INTRODUCTION

Page 7
Page 8
INTRODUCTION
Tax professionals play an important role in the implementation of income tax law of the
country. They help the taxpayers in efficient management of tax affairs and discharging
their tax obligations. They are well aware of the weakness of tax law, tax administration
and problems faced by taxpayers. So, they can be helpful in understanding the various
aspects of income tax system. In this study an attempt has been made to examine the
perception of tax professionals regarding E-filing of income tax in Hirekerur.

NEED FOR STUDY

The importance of income-tax has increased considerably in the present days because
it has become a major source of revenue to the Government to be utilized for the social
and economic development of the country. It is one of the effective instruments of
reducing unequal distribution of wealth between the rich and the poor. It is also one of the
means to solve the acute problem of unemployment. The above objectives can be
achieved by introducing a progressive system of taxation. Income-tax is a direct tax and
has an immense impact on the tax payers creating hardships on them. Such hardships
have to be reduced by rationalizing the tax structure. On the whole this type of taxation is
inevitable to our country. Understand the meaning of Tax.

 Recognize the types of tax.

 Comprehend the reason for levy of taxes.

 Know the components of income-tax law.

 Grasp the concept of income.

 Understand the procedure for computation of total income for the purpose of
the levy of income-tax.

 Know that there is a requirement of paying advance tax and deduction of tax
at source.

 Appreciate what a “Return of income” means

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OBJECTIVES

The present study has the following main objectives

 To study the significance of income-tax.

 To assess the tax professionals perception.

 Awareness towards e-filing of income tax returns.

 To analyze the level of satisfaction among tax professionals towards e-

filing of income tax returns.

 To know the awareness of the law and rules of E-filing of INCOME TAX
among tax professionals.

 To study the perception`s of the tax professionals about the impact of E-

filing of INCOME TAX.

 To make suggestion based on findings drawn from the study.

 To know the merits and demerits of E-filing of INCOME TAX

implementation on tax professionals.

RESEARCH AND METHODOLOGY

Both primary and secondary data have been used in carrying the present work.
Secondary data is obtained mainly from different magazines and news papers, where as
primary data is collected through questionnaires from the respondents, the respondents
were selected from both segments, i.e. tax consultants and Chartered Accountants for the
study spread over the city of Hirekerur.

Title of the study:

“Tax Professionals Perception towards E-filing of Income Tax in Hirekerur”.

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Sample of the Study:

To meet the objectives of the study I selected 50 respondents to collected required

data and information for the present study.

Tools of Analysis:

Tools used in carrying out the present work various statistical tools like percentages,
averages, ranges wise classification of data, etc have been made use of.

SCOPE OF THE STUDY

The study covers the law and rules of INCOME TAX, and their impact on tax
professionals. The provisions have been studied based on their existence in the INCOME
TAX as on 1st April 2005 and rules there on. Due to the time constraint the study pertains
to the tax professionals of HIREKERUR city.

LIMITATIONS OF THE STUDY

The study is subject to the following limitation

 It is based on only 50 respondents.

 The data collected from the respondents has come mainly from the memory of
respondents and answers to the various questions covered in the questionnaire.

 The study restricted to only the tax professionals and covers only in
HIREKERUR city.

 Time was the one of the constraints.

 The study covers only impact of E-FILING on tax professionals.

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CHAPTER SCHEME
Chapter -1 : “ Tax professionals perception towards e filling of Income tax” for the need
for study, study objectives, research methodology, scope of the study and limitations of
the study and chapters scheme.

Chapter -2: “Overview of income tax” it includes History of income tax. Meaning and
types of taxes, income exempted from income tax, tax benefites, deductions, rebates and
donetions.

Chapter -3: “Income tax e-filling” meaning of E-filing, types and required for E-filing.

Chapter -4: “Interpretation and Data analysis”

Chapter -5: “Findings suggestions and conclusion”.

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CHAPTER-2
AN OVERVIEW OF INCOME
TAX

Page 13
HISTORY OF INCOME-TAX

The British rules incurred some expenditure to suppress the freedom movement
started in India in 1857 called by them as “Soldiers mutiny”. They introduced income
tax for the first time in India in the year 1860 as a temporary measure to tide over the
financial difficulties. However, it became a permanent feature of the tax system only after
passing the Indian income tax Act of 1886. Due to several amendments made in this Act,
it was repealed by passing the income-tax Act in 1918. Further on the recommendations
made by the All India Tax Enquiry committee a new income-tax Act was passed in 1922.
This Act also did not remain static. It underwent number of amendments from time to
time and hence this Act became very complicated, cumbersome and confusing one. It was
therefore, referred to Law Commission in 1956 to suggest the measure for simplification
of the Act. The Direct Taxes Administration Committee was also appointed by the
Government for suggestion of the means and measures to minimize the inconveniences
caused to tax payers and for preventing evasion of tax. It is on the recommendations made
by them that the new income tax Act, 1961 was passed and if came into force from 1 st
April 1962 and is now applicable to the whole of India.

This act has also not remained stationary. Number of amendments dynamic in
nature, are being made since the passing of the Act. It has been drastically amended by
the Direct Tax Laws (Amendment) Act 1975, 1987, 1989 and by the income-tax
(Amendment) Acts, besides being amended by the Finance Act every year.

MEANING OF TAX

Tax is a compulsory contribution or payment of money by various persons to the

government by virtue of its powers conferred under the Constitution. The tax collected is
used for public purposes. The contribution, so received is not for any specific services
rendered to the tax payers.

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TYPES OF TAXES

There are two types of taxes – Direct taxes and Indirect taxes. If tax is levied on
the price of a goods or services, then it is called an indirect tax e.g. excise duty. In the
case of indirect taxes, the person paying the tax passes on the incidence to another person.

INCOME
DIRECT TAX
TAXES WEALTH
TAX
TYPES
EXCISE
OF DUTY
TAXES
CUSTOM
INDIREC DUTY
T TAXES SERVICE
TAX
SALES
TAX/VAT

RETURN OF INCOME

The income tax Act, contains provisions for filing of return of income. Return of
income is the format in which the assesses furnishes information as to his total income
and tax payable. The format for filing of returns by different assesses is notified by the
CBDT. The particulars of income earned under heads, gross total income, deductions
from gross total income, total income and tax payable by the assesses are required to be
furnished in a return of income. In short, a return of income is the declaration of income
by the assesses in the prescribed format.

The Act has prescribed due dates for filing return of income in case of different
assesses. All companies and firms have to mandatorily file their return of income before
the due date. Other persons have to file to file a return of income if their total income
exceeds the basic exemption limit.

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RESIDENTIAL STATUS (SECTION 6)

For all purposes of income-tax, taxpayers are classified into three broad categories
on the basis of their residential status. Via

 Resident and ordinarily resident

 Resident but not ordinarily resident

 Non-resident.

The residential status of an assessee must be ascertained with reference to each previous
year. A person who is resident and ordinarily resident in one year may become non-
resident or resident but not ordinarily resident in another year or vice versa. The
provisions for determining the residential status of assesses are:

 RESIDENTIAL STATUS OF INDIVIDUALS

Resident and ordinarily resident Sec.6 (1): A person is said to be“resident”in India in
any previous year if he fulfills any one of the following two basic conditions:

a. Is in India in that year for an aggregate period of 182 days or more; or

b. having within the four years preceding that year been in India for a period of 365
days or more, is in India in that year for an aggregate period of 60 days or more.

The above two conditions are called the “BASIC CONDITIONS”.

In addition to any one or more of the above basic conditions, an individual to become
“Ordinarily Resident” in India should also satisfy both the following conditions, namely:

(a) That he has been resident in India in at least 2 out of the 10 previous years
preceding the relevant previous year; and
(b) He has been in India for a period or periods amounting in all to 730 days or
more during the 7 previous years preceding the relevant previous year.

The above two conditions are called the “SUBSEQUENT CONDITIONS”

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In short, an individual is said to be ordinarily resident in India if he satisfies at least one
of the basic conditions and both the subsequent conditions.

Not ordinarily Resident: Sec. 6(6)

An individual, after satisfying at least one of the basic condition if he does not
satisfy both the subsequent conditions, he becomes “Not ordinarily resident” in India.

Non Resident: Sec. 2(30)

If an individual does not satisfy any of the basic conditions, he is said to be “Non-
Resident” in India.

 RESIDENTIAL STATUS OF HINDU UNDIVIDED FAMILIES

Resident and ordinarily resident Sec.6 (2): A Hindu undivided family is said to be
resident in India if control and management of its affairs is wholly or partly situated in
India.

This is called the “Basic condition”. In addition to this basic condition, a Hindu
undivided family to become ordinarily resident in India in any previous year, must also
satisfy both the following conditions, namely:

(a) That its manager has been resident in India in at least 2 out of the 10 previous
years preceding the relevant previous year, and

(b) That its manager has been in India for a period or periods amounting in all to
730 days or more during the 7 previous years preceding the relevant previous
year

The above two conditions are called the “Subsequent conditions”.

Resident and not ordinarily resident Sec.6 (6): If the control and management of the
affairs of the HUF is wholly or partially situated in India and if the manager of the family
does not satisfies any of the subsequent conditions. The HUF shall be considered as “Not
Ordinarily Resident”

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Non Resident: Sec. 2(30): A Hindu undivided family is said to be “Non-resident” if the
control and management of its affairs is situated wholly outside India.

 RESIDENTIAL STATUS OF FIRMS AND ASSOCIATION OF FIRMS

Resident and ordinarily resident Sec.6 (2): A firm or other association of persons is
said to be “Resident” in India in any previous year, if the control and management of its
affairs is situated in India either wholly or partly in that year.

Non Resident: Sec. 2(30): They are said to be “Non-resident” when the control and
management of their affairs is situated wholly outside India.

 RESIDENTIAL STATUS OF COMPANIES

Resident and ordinarily resident Sec.6 (3): in India in any previous year, if:-

(a) It is an Indian company, or

(b) The control and management of its affairs is situated wholly in India, during
the previous year.

Non Resident: Sec. 2(30): A company is said to be “Non-resident” when it does not
satisfy the above mentioned conditions.

RATES OF INCOME TAX

The following tables show the rates of income-tax as applicable to different assesses for
the assessment year 2016-17:-

Table 1: The rates of income-tax applicable to the individual (other than the individual
referred to in Table 2 and 3 below), Hindu undivided family, Association of persons or
Body of individuals :

(1) On the first (does not exceed) Rs. 250000Nil

(2) On the next Rs.250000 -50000010%

(3) On the next Rs. 500000 -1000000 20%

(4) On the remaining balance of the total income 30%

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 Table 2: The rates of income-tax applicable to the individual being a man or woman of
the age of 60 years or more but less than80 years :

(1) On the first (does not exceed ) Rs. 300000 Nil

(2) On the next Rs. 300000 -500000 10%

(3) On the next Rs. 500000-100000020%

(4) On the remaining balance of the total income 30%

Table 3: The rates of income-tax applicable to the individual being a man or women of
the age of 80 years or more:

(1) On the first (does not exceed) Rs. 500000 Nil

(2) On the next Rs. 500000 -1000000 10%

(3) On the remaining balance of the total income 30%

Table 4: The rate of income-tax applicable to the firm :

On the whole of the total income 30%

TAX DEDUCTED AT SOURCE (TDS)

Under TDS, tax is deducted at the source of income, by the employer or the payer and
paid to the government. It includes salary, interest, commission and contract fees, rent,
professional fees, etc. This type of deduction is popularly known as TDS. Such tax is
subject to certain limits and certain conditions.

In case of senior citizen, if he/she estimates that the tax on the income is nil, Form
No.15H duly filled and signed is to be submitted in duplicate to the bank. So, no TDS will
be deducted. If the total income is less than the threshold limit, Form No.15G is to be
submitted to the payer to prevent TDS from such interest

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TAX COLLECTED AT SOURCE (TCS)

Unlike tax deducted at source, TCS is collected by a seller of certain specified goods at
the specified rates on the purchase of the goods and it is remitted to the treasury on behalf
of the buyer. In the same way, a person granting a lease or license in a parking lot, toll-
plaza, etc. collects the taxes at the specified rates as tax paid on behalf of the lessee

ADVANCE TAX

Under this scheme, every assessee is required to pay tax in a particular financial year,
proceeding the assessment year, on an estimated basis. However, if such estimated tax
liability for an individual who is not above 60 years of age at any point of time during the
previous year and does not conduct any business in the previous year, and the estimated
tax liability is below Rs. 10,000, advance tax will not be payable. The due dates of
payment of advance tax are:-

In case of corporate assessee Otherwise

On or before 15 June of the Up to 15% of advance tax

-
previous year payable
On or before 15 September of Up to 45% of balance of Up to 30% of advance tax
the previous year advance tax payable payable
On or before 15 December of Up to 75% of balance of Up to 60% of advance tax
the previous year advance tax payable payable
On or before 15 March of the Up to 100% of balance of Up to 100% of advance
previous year advance tax payable tax payable

Any default in payment of advance tax attracts interest under section 234B and any
deferment of advance tax attracts interest under section 234C.

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TAXABLE HEAD OF INCOME TAX

HEADS OF INCOME:
For the purpose of income tax and computation of total income all income have
been classified under the following five heads:-
The total income of a person is segregated into five heads:-
 Income from Salaries
 Income from House property
 Income from Business or Profession
 Income from Capital Gains
 Income from Other Sources.

INCOME FROM SALARY:

INCOME FROM SALERY Under section 17 of the Income Tax Act, 1961 there are
following incomes which comes under head of salary: Salary (including advance salary)
Wages Fees Commissions Pensions Annuity Perquisite Gratuity Income From Provident
Fund Leave Encashment Allowance
Leave encashment is the salary received by an individual for leave period. Annuity: It is
an annual income received by the employee from his employer. It may be paid by the
employer as voluntarily or on account of contractual agreement. Gratuity: It is salary
received by an individual paid by the employee at the time of his retirement or by his
legal heir in the case of death of the employee.
Allowance: It is the amount received by an individual paid by his/her employer in
addition to salary. It includes: House rent allowance Entertainment Allowance Over time
allowance Transportation allowance Children hostel Children education

INCOME FROM HOUSE PROPERTY:

INCOME FROM HOUSE PROPERTY it is defined as income earned by a person
through his house or land. The building can be house, office building, godowns, etc.
Annual value Let-out house properties Self- occupies house properties partly let-out and
partly self – occupies house properties More than one houses

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INCOME FROM BUSINESS OR PROFESSION:

INCOME FROM BUSINESS OR PROFESSION BUSINESS: It includes any

trade, commerce or manufacture or any adventure or concern in the nature of trade of
trade, commerce or manufacture. It covers every activity which engages time, attention
and labor. Business may be carried on without any intention or agreement to make profits.
PROFESSION: Means a vocation which requires the personal qualification of the person
by whom it is carried on. Profession covers a wide area and usually refers to occupation
requiring either purely intellectual skills or manual skill but controlled by the intellectual
skill of the operator as required in painting and sculpture or surgery.

BASIC CONDITIONS:

BASIC CONDITIONS There should be a business or profession. The business or

profession should be carried on by the assessee. The business or profession should be
carried on at least for some time during the previous year. The profit and gains of the
previous year of the business or profession are chargeable to tax. The charge extends to
any type of business or profession.

CAPITAL GAINS:
CAPITAL GAINS What is Capital Gain ? According to Income Tax Act, 1961 heads of
capital gain is defined as gains derived on transfer of capital asset. Capital Gain is the
profit or gain of an assessee coming from the transfer of a capital asset effected during the
previous year or assessment year. "Capital Asset" and transfer are predefined in income
tax act. What is Capital Asset: Under section 2(14) of the Income Tax Act,1961 Capital
Asset is defined as property of any kind held by assessee including property held for his
business or profession. It includes all type real property as well as all rights in property. It
is also defined as gains on transfer of assets in which there in no cost of acquisition like:
Goodwill of business generated by assessee Tenancy rights Stage carriage permits Loom
hours Right to manufacture Processing & production of any article or things

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Assets Which Don't Come Under Heads of Capital Assets:
Assets Which Don't Come Under Heads of Capital Assets According to Income Tax
Act,1961 there are few assets which don't form a part of Capital Assets, which are as
follows: Stock of goods and raw materials used by assessee for his business or profession
Those property which are movable like wearing apparel, furniture, automobile, phone,
household goods etc. Held by assessee. But Jewelry which is also an movable assets
comes under heads of Capital Assets Agricultural property in India. But agriculture land
coming under municipal limits (in area having population or than 10,000) comes under
Capital Assets. Agriculture lands within 8 Km from municipal limit also comes under
Capital Assets if it is notified by the central government of India Few Gold Bonds issued
by government Few special bonds issued by central government like Special Bearer
Bonds, 1991

Transfer of Capital Assets:

Transfer of Capital Assets Under Section 2(47) of The Income Tax Act,1961 transfer of
capital assets is defined as: Sale, exchange and relinquishment of assets Extinguishment
of any rights in capital assets Acquisition of capital assets or rights Conversion of capital
asset by its owner as stock in trade of his business, it may also be a term of transfer
Transfer of immovable property under Section 53A of Transfer of Property Act, 1882
Any transaction by which an assessee become enable to act as a member of cooperative
society Any transaction by which an assessee acquire shares in cooperative society

INCOME FROM OTHER SOURCES:

INCOME FROM OTHER SOURCES So under Section 56(2) of Income Tax Act, 1962
all such income comes in this heads of income. There are following incomes which are
taxed under this heads Income coming as a dividend paid by a company to an assessee
Income coming from winning in lottery, crossword puzzles, races, card games, gambling
or other such sports Income coming as an amount received by assessee from his employer
as a fund for welfare of employee Income as an interest on securities Income coming by
letting on hire machinery, plant, furniture, building or other goods Income coming from
insurance policy.

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INCOMES EXEMPT FROM TAX

 Agricultural income u/s 10(1)

 Receipts by a member, from a HUF u/s 10(2)
 Share of profit from partnership firm u/s 10(2A)
 Leave Travel Concession in India u/s 10(5)
 Gratuity u/s 10(10)
 Compensation received at the time of Voluntary Retirement u/s 10(10C)
 Amount received under Life Insurance Policy u/s10(10D)
 Payment received from Provident Fund u/s 10(11), (12)
 Payment received from an Approved Superannuation Fund u/s 10(13)
 House Rent Allowance u/s 10(13A)
 Special Allowance u/s 10(14): Transport Allowance, Conveyance Allowance,
Daily Allowance, Uniform Allowance, Helper Allowance, Research Allowance,
Children Education Allowance, Childrens Hostel Expenditure Allowance.
 Interest on Securities u/s 10(15)
 Educational Scholarship 10(16)
 Income of a minor child u/s 10(32) [including basic provisions of sec 64(1A)]
 Dividends and Interest on Units u/s 10(34) (35)

TAX BENEFITS, DEDUCTIONS, REBATES AND DONATIONS

In computing the total income of an assessee, he is allowed to make certain

deductions from his gross total income. Such deductions, benefits, rebates and
donations are contained in income tax act and they have been specified in sections
80C to 80U.
Gross total income means the aggregate of income from different heads computed
in accordance with the provisions of the Act before making any of these deductions.
However the aggregate amount of deductions specified in sections 80C to 80U should
not exceeds the gross total income. The following are the some of the important
deductions with reference to individuals and HUF in particular.

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REBATES

SECTION 80C:-

Deduction for L.I.C. Premium, P.F.Contribution, etc.

This deduction is available to individuals and HUFs.

Amount of deduction allowable:-

(a) Rs. 100000 (maximum) or

(b) Actual amount of specified savings and investments whichever is less, is allowed
as deduction.

Note:- in case the assessee has also contributed to pension fund of LIC u/s 80CCC
and/ or contributed to pension scheme of General Government u/s 80CCD, these
amounts are also taken into account for fixing the limit of maximum deduction u/s
80CCE.

DEDUCTIONS

SECTION 80CCC:-

Deduction for contribution to specified pension fund of LIC.

This deduction is allowed only to the individuals

Amount of deduction allowable:-

(a) Rs. 100000 (maximum), or

(b) Actual contribution paid (deposited)

Whichever is less is allowed as deduction.

Note: - if the deduction is claimed under this section, no deduction is allowed u/s 80C
for the same amount.

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SECTION 80CCD(1)

Deduction for contribution to Central Government pension scheme:

This deduction is allowable to Central Government employees.

a) Actual amount deposited in notified pension scheme, or

b) 10% of his “salary” (maximum)

Whichever is less, is allowed as deduction.

Note: where such amount is taken into account for deduction under this section no
deductions is allowed for this amount u/s 80C.

SECTION 80CCG:-

Deduction for investment under equity savings scheme:

This deduction is allowable only to individuals.

Amount of deduction allowable:

Actual amount of subscription made to the bonds or Rs. 20000 whichever is less, is
allowable.

Note: this deduction is allowed in addition to maximum deduction of Rs. 100000

allowable u/s 80CCE.

SECTION 80D:-

Deduction for medical insurance premium paid.

The deduction is allowed to individuals and Hindu undivided families

(1) In case of the individual the deduction allowable is the total of the following
amounts:-

(a) The actual amount paid to effect or to keep in force an insurance on the health
of an assessee or the spouse and the dependent children not exceeding the total
amount of Rs. 15000 and also

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 (b) The actual amount paid to effect or to keep in force an insurance on the health
of the parents of the assessee not exceeding the total amount of Rs. 15000.

(1) In case of a Hindu undivided family the deduction allowable is the actual total
amount paid to effect or to keep in force an insurance on the health of any member
of the family or any contribution made to the Central Government Health Scheme
not exceeding the total amount of Rs. 15000.

Note:- further in all the above cases of item (1) and (2), if the amount paid is to effect
or to keep in force an insurance on the health of a “Senior citizen” the maximum
deduction allowable should be taken as Rs. 20000 in place of Rs. 15000 in each case.

SECTION 80DD:-

This deduction is allowed to individuals and Hindu undivided families who are
residents.

This fixed amount of deduction of Rs. 50000 is allowable as deduction for any
expenditure incurred for the medical treatment, training, etc, of a dependent, being a
person with “Disability” or for any amount paid or deposited any amount under the
scheme framed by the LIC of India or any other insurer duly approved by the Board,
subject specified conditions.

Where the dependant is a person with “Severe Disability” the amount of such
deduction will be Rs. 100000 instead of Rs. 50000 mentioned above.

SECTION 80DDB:-

This deduction is allowed to a resident individual or a Hindu undivided family, if

the assessee actually incurred any expenditure for medical treatment of the specified
diseases for himself or dependant relative or for any member of the family.

The deduction allowable to the assessee is the amount actually paid or Rs. 40000
whichever is less in the year which such expenses are incurred.

Note:- in case the assessee or the dependant is a senior citizen the maximum deduction
allowable is Rs. 60000 instead of Rs. 40000 mentioned above.

Page 27
SECTION 80E:-

Deduction for interest on higher education loan.

This Deduction allowed only to individuals:

Deduction allowable only for interest:

Any amount of interest paid by the assessee on the education loan in the previous
year is fully allowed.

SECTION 80U:-

Deduction in case of a person with disability.

In computing the total income of a resident individual, who is certified by the

medical authority to be a person with “Disability” at any time during the year, he is
allowed a deduction of Rs. 50000.

In case such individual is a person with “Severe disability” he is entitled to a higher

deduction of Rs. 100000 instead of Rs. 50000 mentioned above.

DONATIONS:-

SECTION 80G:-

Deduction for donation to certain funds:-

This deduction is allowed to all the assesses, from the gross total income on the
basis of the qualifying amount of donations made to the following funds or institutions
during the previous year:-

1) 100% of the qualifying amount of donations made to

a) National Defense Fund
b) Prime Minister`s National Relief fund
c) Government or local authority or approved institution for promoting family
planning.
d) Prime Minister`s Armenia Earthquake Relief fund

Page 28
 e) The Africa (Public Contribution India) Fund.
f) A university or any educational institution of national eminence.
g) The chief Minister`s Earthquake Relief Fund, Maharastra
h) Gujarat State Government for earthquake victims in Gujarat
i) ZilaSaksharataSamiti duly constituted
j) National Foundation for Communal Harmony
k) National or any State Blood Transfusion Council
l) Any fund established by State Government to provide medical relief to the
poor
m) Any Central Welfare fund or the Indian Naval Benevolent Fund
n) Air Force Central Welfare Fund
o) Andhra Pradesh Chief Minister`s Cyclone Relief Fund
p) National illness Assistance Fund
q) Chief Minister`s Relief Fund or Lieutenant Governor’s Relief Fund.
r) National Sports Fund
s) National Cultural Fund
t) The fund for Technology Development & Application
u) National Trust for Welfare of Persons with Autism, etc

2) 50% of the remaining qualifying amount of donations subject to the limit of 10%
of adjusted gross total income.

SECTION 80GG:-

This deduction is allowed only to individuals who are not receiving any house rent
allowance as specified in Sec. 10(13A). The least of the following three amounts is
allowed as deduction:

a) Actual rent paid by him in excess of 10% of his “ Total Income”

b) 25% of his total income
c) Rs. 2000 per month (i.e., Rs. 24000 per month)

Page 29
SECTION 80GGA:-

Donations for scientific research, rural development etc,

1) Eligible assesses:- All assesses not having any income chargeable under the head
“Profit and gains of business or profession”.
2) Donations to approved Scientific Research Association, University, College or
Institution for Scientific Research, Statistical Research, Research in Social
Science or to public sector company or a local authority or to an association /
institution approved by the national committees for carrying out any eligible
project or scheme or to the National Fund for Rural Development are fully
deductable. Similarly any contribution to the “National Urban Poverty Eradication
Fund” set up and notified by the Government is also fully eligible for deduction.
3) Where a deduction is claimed and allowed under this section in respect of any
payment, no deduction shall be allowed under any other provision.
4) In case, any person making contribution to institution/ association, which was
granted approved under section 80GGA, is eligible to claim such contribution as
deduction, even though the approval was withdrawn subsequently by the Central
Government.

SECTION 80GGC:-

Deduction in respect of contribution given by any person to political parties or an

Electoral Trust.

Any assessee (except local authority and every artificial juridical person wholly
or partly funded by the Government), Contribution given by assessee to political parties
or an electoral trust, "Political party" means a political party registered under Section
29A of the Representation of the People Act, 1951. "Electoral Trust" is defined in
section 2(22AAA) of IT Act, 1961, 100% of the amount paid as contribution.

Page 30
CHAPTER-3
INCOME TAX E-FILING

Page 31
WHAT IS E-FILING

The process of electronically filing income tax returns through the internet is
known as e-filing. It is mandatory for companies and firms requiring statutory audit u/s
44AB to submit the income tax returns electronically for AY 2016-17. E-filing is possible
with or without digital signature.

BENEFITS OF E-FILING

 Convenience – returns can be filed at anytime (day or night).

 Certainty of delivery and quick confirmation – provides immediate
confirmation from tax administration that returns have been received.
 Fast refunds– allow taxpayers receiving refunds to get them sooner.
 Taxpayer privacy and security is assured.
 Use of online commercial tax preparation software.
 Eliminates error notices from tax administrations caused by data entry errors.
 The transactions can be done electronically with a click of a Button.
 Accessibility is allowed 24x7x365
 Documents handling and storing is made easy.

TYPES OF E-FILING

 There are three ways to file returns electronically

 Option 1: Use digital signature in which case no paper return is required to be
submitted
 Option 2: File without digital signature in which case ITR-V form is to file with
the department. This is a single page receipt cum verification form.
 Option 3: File through an e-return intermediary who would do e-Filing and also
assist the Assessee file the ITR V Form.

Page 32
DOCUMENTS REQUIRED FOR E-FILING
 Form No 16 (for tax deducted by employees)
 Form No 16A
 Account statements of Bank Accounts
 Property Details
 Sale and Purchase of Investments/assets
 Details of tax payments made
 Pan card photo copy
 Birth Date
 TAN Number
 Bank A/c No
 Bank details:- MICR code, type of a/c

Page 33
PROCESS OF E-FILING
 Step 1: On homepage, GO TO ‘Downloads’ section and select applicable Income
Tax Return Form of the relevant Assessment Year OR Login to e-Filing
application and GO TO ‘Downloads’–>’Income Tax Return Forms’ and select
applicable Income Tax Return Form of the relevant Assessment Year.

 Step 2: Download the excel utility of the Income Tax Return (ITR).

 Step 3: Fill the excel utility and Validate. (You can pre-fill the Personal and Tax
Information in your Income Tax Return. To pre-fill, Login to e-Filing application
and GO TO –> Downloads –> Download Pre-filled XML to the desired
path/destination in your desktop/system. Open the Excel utility (ITR) and click the
“Pre-fill” button. This will require you to select the path/destination where you
have saved the XML and click OK. The details will be uploaded into your utility.
You may edit the tax details, if needed).

 Step 4: Generate an XML file and save in desired path/destination in your

desktop/system.

 Step 5: LOGIN to e-Filing application and GO TO –> e-File –> Upload Return.

 Step 6: Select the Income Tax Return Form and the Assessment Year.

 Step 7: Browse and Select the XML file

 Step 8: Upload Digital Signature Certificate, if available and applicable.

 Step 9: Click ‘SUBMIT’.

 Step 10: On successful upload, Acknowledgement details would be displayed.

Click on the link to view or generate a printout of Acknowledgement/ITR-V
Form.

Page 34
Page 35
CHAPTER-4
INTERPRETAION AND DATA
ANALYSIS

Page 36
INTERPRETATION AND DATA ANALYSIS

Tax professionals play an important role in the implementation of income tax law
of the country. They help the taxpayers in efficient management of tax affairs and
discharging their tax obligations. They are well aware of the weakness of tax law, tax
administration and problems faced by taxpayers. So, they can be helpful in understanding
the various aspects of income tax system. In this chapter an attempt has been made to
examine the perception of tax professionals regarding E-filing of income tax in Hirekerur.
This chapter contains general profile of the respondents and attempts to examine their
opinion regarding various important aspects of E-filingof income tax system in
Hirekereur.

Table 4.1

The Age wise classification of respondents.

Age (in years) No of respondents In percentage

20 to 30 06 12%

30 to 40 26 52%

40 and above 18 36%

Total 50 100%

[Source: Primary Data]

Figures in table and below to the figures indicate percentage to the respective row
and column total.

In the above table it is clear that it is having 100% respondents, and 12% of respondents
are in 20 to 30 age category, 52% respondents from 30 to 40 years, 36% of respondents
are in 40 and above years category.

Page 37
 Graph showing Age wise classification of respondents

Age wise classification

60
50
40
30
20
10
0
20 to 30 30 to 40 40 and above Total

Series1

Table 4.2

The Gender wise classification of respondents.

Gender No of respondents In percentage

Male 49 98%

Female 01 2%

Total 50 100%

(Source: Primary data)

Figures in the above table and below to the figures indicate percentage to the
respective row and column total. Above table clears from out of 100% respondent’s row
and column, 98% of respondents are male and remaining respondents are female. It clears
that out of 50 respondents 49 are male and 01 are female.

Page 38
 Graph showing Gender wise classification of respondents

60
Gender wise classification

50

40

30

20

10

0
Male Female Total

Table 4.3

Education wise classification of respondents.

Level of Education No of respondents In percentage

C.A 07 14%

Degree holders 22 44%

Post graduates 21 42%

Total 50 100%

(Source: primary data)

The table contains 100% respondents in education wise classification respondents studied
up to C.A 14, degree holders are 44%, P G respondents are 42%. Out of 50 respondents
07 respondents from C.A, 22 respondents from degree, 21 respondents from pg.

Page 39
 Graph showing Education wise classification of respondents

Educational Qualification

50
45
40
35
30
25
20
15
10
5
0
C.A Degree holders Post graduates Total

Table 4.4

Distribution of taxpayers with respect to Marital status.

Marital status No of respondents In percentage

Married 38 76%

Unmarried 12 24%

Total 50 100%

(Source: primary data)

A figure in the table indicates the percentage to the respective row and column
total. It indicates that out of 100% respondents 76% are married, 24% are unmarried. Out
of total 50 respondents 38 are married, 12 unmarried.

Page 40
 Graph showing Distribution of taxpayers with respect to marital status

Marital Status

50
45
40
35
30
25
20
15
10
5
0
Married Unmarried Total

Table 4.5

Income level respondents

Income level No of respondents In percentage

Less than 200000 02 04%

2 lack to 5 lack 27 54%

5 lack to 10 lack 14 28%

10 lack and above 07 14%

Total 50 100%

(Source: primary data)

A figure in the table indicates the percentage to the respective row and column
total. It indicates that out of 100% respondents 04% are level of income is less than 2
lack, 54% are 2 lack to 5 lack, and 28% are 5 lack to 10 lack and rest are 10 lack and
above respondents.

Page 41
 Out of total 50 respondents 02 are having income level of less than 2 lack, 27 are
2 to 5 lack, 5 to 10 lack are 14 and 10 lack and above respondents are 07. It concludes
that more respondents are from less than 2 to 5lack, and rest of the respondents is
respective status.

Graph showing Income level of respondents

Income level

50

40

30

20

10

0
Less than 2 lack to 5 5 lack to 10 10 lack and total
200000 lack lack above

Table 4.6

Classification of the respondents based on their sources of awareness regarding e-

filing of income tax.

Sources of awareness No of respondents In percentage

News papers 10 20%

Friends 02 4%

IT Website 25 50%

Media/Advertisement 05 10%

All of the above 08 16%

Total 50 100%

(Source: primary data)

Page 42
 Table 4.6 reveals that out of 100% respondents, 20% of the tax professionals are
aware about e-filing through the newspaper, 04% of the individuals are availed e-filing
information through their Friends, 50% of the tax professionals are aware about e-filing
through IT Website, 10% of the tax professionals are got awareness through various
advertisement made by the income tax department and Media, 16% of the tax
professionals are got awareness through all of the above sources.
Graph showing in respect of sources of awareness

Source of Awareness

50
45
40
35
30
25
20
15
10
5
0

Table 4.7

Respondents Location of E-filing.

Place Respondents In percentage

Cyber cafe - -

In the office 35 70

At Home 5 10

Bothe home & office 10 20

Total 50 100%

(Source: primary data)

Page 43
 Table 4.7 shows that no respondents of e-filers did it from cyber café, 70% from
their office, 10% at home; both in the home & office are 20%. Out of 50 respondents no
numbers are from cyber café, 70 from the office, 10 are at home and 20 are from both
home and office. It concludes that more respondents are make e-filing from their office,
and rest of the respondents are respective status.

Graph showing where e-filers did e-filing

Location of E-filing

50
45
40
35
30
25
20
15
10
5
0
In the office At Home Bothe home & Total
office

Table 4.8

Time taken by tax professionals to file tax return forms electronically.

Time consumed Respondents In percentage

More than 2 hour 02 04%

1 to 2 hour 09 18%

30 minutes to 1 hour 28 56%

Less than 30 minutes 11 22%

Total 50 100%

(Source: primary data)

Page 44
 In respect of the time taken to e-file successfully, 22% of the e-filers indicated that
they took less than 30 minutes, 56% took between 30 minutes to 1 hour, 18% took
between 1 to 2 hours and 4% took more than 2 hours (see table 4.8). The findings indicate
that the duration to complete e-filing was rather long.
Graph showing Time taken by e-filers to file tax return forms electronically.

Time taken by E-filers to file tax return

50
45
40
35
30
25
20
15
10
5
0
More than 2 1 to 2 hour 30 minutes to Less than 30 Total
hour 1 hour minutes

Table 4.9
Difficulty while e-filing?
Factors Respondents In percentage

Yes 12 24%

No 38 76%

Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column total. It
indicates that out of 100% respondents 24% are facing difficulty while e-filing and
remaining 76% are not facing any problem while e-filing of returns
.

Page 45
 Graphs showing Error of Difficulty while E-filing

Error of Difficulty while E-filing

50
45
40
35
30
25
20
15
10
5
0
Yes No Total

Table 4.10
Is it Digital Signature costly?

Factors Respondents In percentage

Yes 13 26%

No 37 74%

Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column total. It
indicates that out of 100% respondents 26% are saying digital signature is costly to the
tax payers and remaining 74% are saying digital signature not costly and it’s reasonable
to the tax payers . Out of total 50 respondents 13 are predicted Yes, 37are No.

Page 46
 Graph showing is it Digital Signature Costly?

Is it Digital Signature Costly

50

45

40

35

30

25

20

15

10

0
Yes No Total

Table 4.11
Tax professionals satisfaction with Digital Signature
Factors Respondents In percentage

Excellent 28 56%
Good 15 30%
Average 06 12%
Poor 01 02%
Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column total. It
indicates that out of 100% respondents 56% are feeling Excellent, 30% are feeling Good,
12% are feeling Average and remaining 02% are feeling Poor.

Page 47
 Graph showing Tax Professionals satisfaction with Digital Signature

Tax Professionals Satisfaction with

Digital Signature

50

40

30

20

10

0
Excellent Good Average Poor Total

Table 4.12
Safety of e-filing

Factors Respondents In percentage

Highly satisfied 14 28%

Satisfied 29 58%
Neutral 05 10%
Dissatisfied 02 04%
Highly dissatisfied - -
Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column total. It
indicates that out of 50 respondents 14 are highly satisfied, 29 are satisfied, 05 neutral and
2 are dissatisfied and no one is highly dissatisfied.

Page 48
 Graph showing Safety of E-filing

Safety of E-filing

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Highly Satisfied Neutral Dissatisfied Highly Total
satisfied dissatisfied

Table 4.13
Facilities provided by e-filing
Factors Respondents In percentage

Highly satisfied 12 24%

Satisfied 27 54%
Neutral 07 14%
Dissatisfied 03 06%
Highly dissatisfied 01 02%
Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column total. It
indicates that out of 50 respondents 12 are highly satisfied, 27 are satisfied, 07 neutral and
3 are dissatisfied and 1is highly dissatisfied.

Page 49
 Graph showing Facilities provided by E-filing

Facilities provided by E-filing

50
45
40
35
30
25
20
15
10
5
0
Highly Satisfied Neutral Dissatisfied Highly Total
satisfied dissatisfied

Table 4.14
Reasons for using e-filing
Factors Respondents In percentage

Speed of filing 18 36%

Convenience 10 20%
Faster tax refund 09 18%
Extension of filing 04 08%
deadline
All of the above 09 18%
Total 50 100%

(Source: primary data)

Reasons for using e-filing, whilst 18% e-filers were hoping to get faster tax
refund. Notably, 08% opted to use e-filing, because extension of filing deadline for those
who used e-filing. 36% of e-filers are hoping to speed of tax filing and 20% of e-filers are
convenient with using the e-filing. 09% of e-filers are agree with all of the above.

Page 50
 Graph showing Reasons for using e-filing

Reason for using E-filing

50
40
30
20
10
0

Table 4.15
Reasons for unsuccessful attempt of e-filing
Reasons Respondents In percentage

Unable to sign 14 28%

electronically with
pin/password
Unable to access the e- 06 12%
filing website
The e-filing website not 23 46%
responding half way
Unclear instruction from 07 14%
the e-filing website
Total 50 100%

(Source: primary data)

When asked on the reasons for unsuccessful attempts. The survey revealed that
the key reasons for unsuccessful attempt was the server was not responding or the server
hanged half way through (46%), unable to access to e-filing website (12%), unable to
sign electronically with the Personal Identification Number or password provided by the
income tax department (28%), and unclear instruction from the e-filing website (14%).

Page 51
 Graph showing Reasons for unsuccessful attempt of e-filing

Reasons for unsuccessful attempt of E-

filing

50
40
30
20
10
0

Table 4.16
Satisfaction towards e-filing
Factors Respondents In percentage
Highly satisfied 14 28%
Satisfied 29 58%
Neutral 05 10%
Dissatisfied 02 04%
Highly dissatisfied - -
Total 50 100%
(Source: primary data)
In the above table the 28% of respondents highly satisfied towards e-filing, 58%
are satisfied, 10% are neutral, 04% are dissatisfied and no one is highly dissatisfied
towards e-filing
Out of 50 respondents 14 are highly satisfied, 29 are satisfied, 05 are neutral, 02
are dissatisfied and no one is highly dissatisfied. It shows that the more respondents are
satisfied towards the e-filing.

Page 52
 Graph showing Satisfaction towards e-filing

Satisfaction towards E-filing

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Highly Satisfied Neutral Dissatisfied Highly Total
satisfied dissatisfied

Table 4.17
Satisfaction towards Accessibility of e-filing.

Factors Respondents In percentage

Highly satisfied 11 22%
Satisfied 29 58%
Neutral 07 14%
Dissatisfied 02 04%
Highly dissatisfied 01 02%
Total 50 100%
(Source: primary data)
In the above table the 22% of respondents highly satisfied towards accessibility of
e-filing, 58% are satisfied, 14% are neutral, 04% are dissatisfied and 02% are highly
dissatisfied towards accessibility of e-filing
Out of 50 respondents 11 are highly satisfied, 29 are satisfied, 07 are neutral, 02
are dissatisfied and 01 are highly dissatisfied. It shows that the more respondents satisfied
towards accessibility of the e-filing.

Page 53
 Graph showing Satisfaction towards Accessibility of e-filing.

Saisfaction towards Accessibility of E-

filing

50
45
40
35
30
25
20
15
10
5
0
Highly Satisfied Neutral Dissatisfied Highly Total
satisfied dissatisfied

Table 4.18
Satisfaction towards easiness of e-filing.

Factors Respondents In percentage

Highly satisfied 15 30%
Satisfied 27 54%
Neutral 05 10%
Dissatisfied 02 04%
Highly dissatisfied 01 02%
Total 50 100%
(Source: primary data)
In the above table the 30% of respondents highly satisfied towards easiness of e-
filing, 54% are satisfied, 10% are neutral, 04% are dissatisfied and 02% are highly
dissatisfied towards easiness of e-filing
Out of 50 respondents 15 are highly satisfied, 27 are satisfied, 05 are neutral, 02
are dissatisfied and 01 are highly dissatisfied. It shows that the more respondents are
satisfied towards easiness of the e-filing.

Page 54
 Graph showing Satisfaction towards easiness of e-filing.

Satisfaction towards Easiness of E-filing

50
45
40
35
30
25
20
15
10
5
0
Highly Satisfied Neutral Dissatisfied Highly Total
satisfied dissatisfied

Table 4.19
Satisfaction with e-payment procedure
Factors Respondents In percentage
Highly satisfied 14 28%
Satisfied 26 52%
Neutral 07 14%
Dissatisfied 02 04%
Highly dissatisfied 01 02%
Total 50 100%
(Source: primary data)

Out of 50 respondents 14 are highly satisfied, 26 are satisfied, 07 are neutral, 02 are
dissatisfied and 01 are highly dissatisfied. It shows that the more respondents are satisfied
towards e-payment procedure of the e-filing

Page 55
 Graph showing Satisfaction with e-payment procedure

Satisfaction with e-payment

procedure
60

50

40

30

20

10

0
Highly Satisfied Neutral Dissatisfied Highly Total
satisfied dissatisfied

Table 4.20
Experience wise distribution of respondents about e-filling.

Experience Respondents In percentage

5 years 11 22%
3 to 4 years 34 68%
1 to 2 years 04 08%
Below 1 year 01 02%
Total 50 100%
(Source: primary data)
A figure in table and below to the figures indicates percentages to the respective
row and column total.
In the above table it is clear that it is having 100% respondents, 22% of respondents in 5
years, 68% of respondents in 3 to 4 years, 08% of respondents in 1 to 2 years and 2% of
respondents in below 1year. So, majority of respondents have experience 3 to 4 years.

Page 56
 Graph showing Experience wise distribution of respondents about e-
filling.

Experience about E-filing

60

50

40

30

20

10

0
5 years 3 to 4 years 1 to 2 years Below 1 year Total

Table 4.21
Respondent’s opinion regarding decrease in efficiency of income tax department
after introducing E-filing

Factors Respondents In percentage

Improper training to 14 28%
manpower
Non availability of proper 12 24%
tax software’s
Lack of technological up 17 34%
gradation
Power cuts 07 17%
Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column
total. It indicates that out of 50 respondents 14 are saying improper training to manpower,
12 are saying non availability of proper tax software’s and 17 are saying Lack of
technological up gradation and remaining 07 towards the power cuts.

Page 57
 Graph showing in efficiency of Income Tax Department after
introducing E-filing

In efficiency of Income Tax Department

after introducing E-filing
60

50

40

30

20

10

0
Improper Non availability Lack of Power cuts Total
training to of proper tax technological
manpower software’s up gradation

Table 4.22
Respondent’s opinion regarding impact of introducing e-filing on administrative
efficiency of Income tax department

Factors Respondents In percentage

Increased 27 54%
Decreased 09 18%
No change 14 28%
Total 50 100%
(Source:- primary data)
A figure in the table indicates the percentage to the respective row and column
total. It indicates that out of 50 respondents 27 are agree increased, 09 are agree
decreased, and remaining 14 are agree with no change in efficiency of income tax
department after introducing e-filing.

Page 58
 Graph showing Respondents opinion regarding impact of introducing e-filing on
administrative efficiency of income tax department

Impact fo introducing E-filing on

Administrative efficiency of Income Tax
Department
60
50
40
30
20
10
0
Increased Decreased No change Total

Table 4.23
Overall experience of e-filing
Factors Respondents In percentage

Good and pleasant 28% 56%

Not as good as expected 07% 14%

Convenience and easy to 12% 24%

use
Poor 03% 06%

Total 50% 100%

Source:- primary data
In the above table the 56% of respondents Good and pleasant with the overall experience
of e-filing, 14% are Not as good as expected, 24% are convenience and easy to use and
06% are poorwith the overall experience of e-filing.
Out of 50 respondents 11 are Good and pleasant, 29, 07 are not as good as
expected, 02 are convenience and easy to use and 01 are poor with the overall experience
of e-filing. It shows that the more respondents Good and pleasant with overall experience
of the e-filing.

Page 59
 Graph showing Overall experience of E-filing

Overall experience of E-filing

60%

50%

40%

30%

20%

10%

0%
Good and Not as good as Convenience Poor Total
pleasant expected and easy to use

Page 60
CHAPTER-5
FINDINGS AND
SUGGESTIONS

Page 61
FINDINGS

The major findings of the survey on tax professionals perception about the e-filing
of income tax in Hirekerur city are briefly enumerated in the ensuring paragraphs.

 All the respondent tax professionals are aware about E-Filing of Income
tax in India.

 The survey reveals that the majority of the respondents opined that the E-
Filing is beneficial to tax professionals.

 The survey reveals that the most of the tax professionals are satisfied with
E-Filing.

 From the survey it is found that all of the respondents (100%) know about
the e-filing and its importance.

 A survey reveals that 56% of the e-filers agree to the fact that e-filing
isGood and pleasant and 24% are convenient and easy to use.

 Most of the tax professionals are aware of the e-filing procedures.

 It saves tax professionals golden time, energy, cost and also reduces tax
professionals tension.

Page 62
SUGGESTIONS

 The income tax department should give information about E-Filing

through Media and News papers.

 The tax professionals are requested to use e-filing and e-payment facilities.

 Tax professionals should be encouraged to use e-filing as there are many

benefits of this system.

 The awareness can be increased by organizing awareness programs in

office/workplaces.

 The tax authorities should have to develop marketing strategies to reduce

and resolve the e-filing related issues.

 The awareness can be best spread by introducing the e-filing in the degree
and post graduate college curriculum.

 The income tax department upgrade its technologies in e-filing of

returns.(e-filing website)

 The IT department has to train manpower to increase its efficiency in

income tax administration.

Page 63
Conclusion :-

In the field of the Tax professionals perception towards E-Filling of

Income tax, professionals tax are having a vital role of Income tax in India.
Professionals tax are functioning very progressive nature. Tax professionals paid
income tax is well performing to words over all the performance economically
and also motivating for Income tax paid by professionals.
This professionals perception towards E-filling Income tax, it as tax
professionals play an important role in the implementation of income tax law of
the country. They help the taxpayers in efficient management of tax affairs and
discharging their tax obligations.
Most of the professionals are aware of the E-filling procedures, the income
tax department upgrade its technologies in e-filing of returns. The over all
observation of the data provides efficiency of the professionals income tax paying
development.

Page 64
BIBILOGRAPHY

Page 65
BIBILOGRAPHY

 MANOHARAN T N (2012)The book Income tax and law practices, chapter 3.

 Dr Mehrotra C H & Goyal S C (2015) Direct tax book. 11thedition. Indian

professionals tax topic. ISBN: 972-62-8791-853-2.

 Taxation: The Institute of Chartered Accountants of India. Tax additional note

2016 onwords.

 M.B.Kadkol, Income tax (2016) 9th revised edition, Bcom fifth & sixth sem book
professionals taxation.

 India today

 Finance India

 Management accountant Book

 Deccan Herald as on 20th December 2016 & 13thfebruary 2017.

 Vijaya Karnataka

 Times of India 30 January 2017 view topic tax rate increases.

INTERNET:

www.google.com, www.indianinfoline.comwww.incometaxindia.gov.in

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 Annexures

Questionnaires
1. Name:-
2. Age:-
3. Gender:-
Male Female
4. Educational Qualification:-
Degree
Post Graduation
C.A
5. Marital Status
Married
Unmarried
6. Income level
Less than 200000
2 to 5 lack
5 to 10 lack
10 lack and above
7. Sources of awareness regarding e-filing of income tax
News papers
IT website
Media
Friends
All of the above
8. Location of e-filing
Cyber café
In the office
At home
Both home & office

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9. Time consumed to file tax return
More than 2 hours
1 to 2 hour
30 mins to 1 hour
Less than 30 mins
10. Was there any error or difficulty while e-filing?
Yes No
11. Is it Digital Signature costly?
Yes No
12. Your satisfaction with Digital Signature
Excellent
Good
Average
Poor
13. Safety of e-filing
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
14. Facilities provided by e-filing
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
15. Reason for using E-filing
Speed of filing
Convenience
Faster tax refund
Extension of filing deadline

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16. Reason for unsuccessful attempt of e-filing
Unable to sign electronically with pin/password
Unable to access the e-filing website
The filing website not responding half way
Unclear instruction from the e-filing website
17. Satisfaction towards e-filing
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

18. Satisfaction towards accessibility of e-filing

Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
19. Satisfaction towards easiness of e-filing
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
20. Satisfaction with e-payment procedure
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

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21. Experience regarding e-filing
5 years
3 to 4 yrs
1 to 2 yrs
below 1 year
22. Reasons for decrease in efficiency of income tax department after
introducing
E-filing
Improper training to manpower
Non availability of proper tax software’s
Lack of technological up gradation
Power cuts
23. Impact of introducing e-filing on Administrative efficiency of Income Tax
Department
Increased
Decreased
No change
24. Overall experience of e-filing
Good and pleasant
Not as good as expected
Convenience and easy to use
Poor

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