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To
I, Mr. Siddhant chopra, Roll No. 10890301716, certify that the Project
e-filing of income Tax return” is an authentic work carried out by me. The matter
embodied in this project work has not been submitted earlier for the award of any degree
perception of Tax payers’ towards e-filing of income Tax return” done by Mr.
large number of individuals to this effort. First and foremost I wish to express my
management for giving me the opportunity to do this project work. I am in debt to the
department for the encouragement and co-operation extended to me and for their help
and useful suggestions for this Major project report. I am deeply thankful to my guide,
management who spared her valuable time and effort to guide me in the completion of
the project.
CONTENTS
S No Topic Page No
1 Chapter-1: Introduction -
5 References/Bibliography
6 Appendices
LIST OF ABBREVIATIONS
Government of India. This department has come into existence in 1860. The department
followed this act only for five years and, the second act came in force in 1865. There
were major changes in this act as compared to the first act. With this act the income tax
department started working with a new concept of agriculture income. However the
original story of income tax came into existence in 1922 with the implementation of
income tax act 1922. It showed the major changes from the last act by imposing the
charges in the year of assessment on the income of last year. After this, in 1956 the
government revised this act with few changes keeping the original in its format. For its
review, a committee was formed by the government. This committee made few changes
and submitted the income tax bill in Lok Sabha during April 1961. The president
accepted this bill on 13th September, 1961. Since 1961, Government has been using
this act for running Indian taxation system. The system identified few important facts
that tax payment decreases when tax saving investment increases along with the income
and employees preferred to invest in life insurance Corporation, provident fund and
In 2014, income tax department has established a system for centralized process of
returns and one prominent type is the introduction of electronic filing system for income
tax payers.
A system was desired that would make the process of filing of income tax returns (ITR)
easier for taxpayers and as well as reduce the time required for data entry at tier end of
receipt of income tax returns (ITR). Electronic filing is a new and effective method of
filing income tax returns online and has electronic taxes. The major advantage of
electronic filing includes the ease of use, technology, reduction in rush and saves the
time. After using an electronic service over the internet, the public may find that the
Why there was an evolution of E-filing system existed? In this era the modern people
use the exclusive technology then the government of India make some possible facts
towards electronic filing, that the taxpayers have been submitted their tax returns online
comes with many benefits like Income Tax Payer can file their online return anytime in
confirmation from tax administration that returns have been received. Tax payer
receiving refunds to get them sooner, privacy and security is assured by government of
India. Different drawback related like chance of data entry errors however in online the
allowed 24*7*365. The handling and storing of data and documents is easy. It is the
fastest way to file electronic returns and helps to proceed quickly; even the due date to
file is over. Paper returns take approximately four to six weeks to process. If the filing
of returns is done electronically and choose direct deposit of your refund, the fund will
transfer directly in the bank account within few days. It is free for the income tax payers
who are willing to file the returns. It is a secured process that is using the private network
Electronic filing is the process of submitting tax returns over the internet, using tax
preparation software that has been pre-approved by relevant tax authority that means
the income tax imposed on the individual or entities (taxpayers) that varies with the
Surprisingly, literature an E-filing in India is scanty. Keeping this in wind, the present
study aimed to find the income taxpayers perception towards electronic filing among
individual, business firms and HUFs. The study is being conducted with primary data.
Observations are being observed by questionnaire to find out the income tax payers
1.2 OBJECTIVES
To analyse the level of satisfaction among tax payers towards e-filing of income tax
returns.
To know the awareness of the law and rules of e- filing of income tax among tax
payers.
To study the perceptions of the tax payers about the impact of e-filing of income tax.
To make suggestion based on findings drawn from the study.
Chapter-II
Theoretical Framework and Research Methodology
2.1 HISTORY OF INCOME-TAX
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.
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
TAX
DIRECT
TAXES WEALTH
TAX
TYPES EXCISE
OF DUTY
TAXES
CUSTOM
INDIRECT DUTY
TAXES SERVICE
TAX
SALES
TAX/VAT
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 ta x 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.
Both primary and secondary data have been used in carrying the present work.
Secondary data is obtained mainly from different magazines and newspapers, whereas
primary data is collected through questionnaires from the respondents, the respondents
were selected on random basis.
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 us
10
Chapter-III
Data Presentation, Analysis and Interpretation
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. This chapter contains general profile of the respondents and attempts to examine
their opinion regarding various important aspects of E-filing of income tax system.
Table -4.1
20 to 30 06 12%
30 to 40 26 52%
Total 50 100%
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 year’s category.
11
Graph showing Age wise classification of respondents
20 to 30 30 to 40
Table 4.2
Male 49 98%
Female 01 2%
Total 50 100%
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.
12
Graph showing Gender wise classification of respondents
Female
Table 4.3
C.A 07 14%
Total 50 100%
The table contains 100% respondents in education wise classification respondents studied
up to C.A 14, degree holders are 44%, and PG respondents are 42%. Out of 50 respondents
07 respondents from C.A, 22 respondents from degree, 21 respondents from pg.
Graph showing Education wise classification of respondents
Table 4.4
Married 38 76%
Unmarried 12 24%
Total 50 100%
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
Graph showing Distribution of taxpayers with respect to marital status
Married
Table 4.5
Total 50 100%
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.
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 5 lack, and rest of the respondents is respective status.
Table 4.6
Friends 02 4%
IT Website 25 50%
Media/Advertisement 05 10%
Total 50 100%
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
50
45
40
35
30
25
20
15
10
Table 4.7 Respondents Location of E-filing.
Cyber cafe - -
In the office 35 70
At Home 5 10
Total 50 100%
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.
1 to 2 hour 09 18%
Total 50 100%
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.
Yes 12 24%
No 38 76%
Total 50 100%
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
.
Graphs showing Error of Difficulty while E-filing
Yes
Table 4.10
Is it Digital Signature costly?
Yes 13 26%
No 37 74%
Total 50 100%
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, 37 are No.
50
45
40
35
30
25
20
15
10
0
Yes No Total
Table 4.11
Tax professional’s satisfaction with Digital Signature
Factors Respondents In percentage
Excellent 28 56%
Good 15 30%
Average 06 12%
Poor 01 02%
Total 50 100%
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.
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.
Safety of E-filing
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Highly
satisfied Satisfied Neutral Dissatisfied Highly Total
Dissatisfied
Table 4.13
Facilities provided by e-filing
Factors Respondents In percentage
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.
Graph showing Facilities provided by E-filing
Satisfied Total
Satisfied
Table 4.14
Reasons for using e-filing
Factors Respondents In percentage
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.
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%).
Graph showing Reasons for unsuccessful attempt of e -filing
50
40
30
20
10
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%
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.
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.
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.
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.
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
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
Graph showing Satisfaction with e-payment procedure
5 years 11 22%
3 to 4 years 34 68%
1 to 2 years 04 08%
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 1 year. So, majority of respondents have experience 3 to 4 years.
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
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.
Graph showing in efficiency of Income Tax Department after
Introducing E-filing
Increased 27 54%
Decreased 09 18%
No change 14 28%
Total 50 100%
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.
Graph showing Respondents opinion regarding impact of introducing e -filing on
administrative efficiency of income tax department
Table 4.23
Overall experience of e-filing
Factors Respondents In percentage
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 poor with 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.
Graph showing Overall experience of E-filing
Poor
And easy to
use
Chapter-IV: Summary & Conclusions
4.1 FINDINGS
All the respondent tax payers 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 payers.
The survey reveals that the most of the tax payers 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 is good and
pleasant and 24% are convenient and easy to use.
It saves tax payers golden time, energy, cost and also reduces tax payers tension.
4.2 SUGGESTIONS
The income tax department should give information about E-Filing through Media
and Newspapers.
The tax payers are requested to use e-filing and e-payment facilities.
Tax payers should be encouraged to use e- filing as there are many benefits of this
system.
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.
4.3 LIMITATIONS
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 payers and covers only in GADAG city.
Questionnaires
Name:-
Age:-
Gender:-
Male Female
Educational Qualification:-
Degree
Post Graduation
C.A
Marital Status
Married
Unmarried
Income level
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
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
11. Is it Digital Signature costly?
Yes
Your satisfaction with Digital Signature
Excellent
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
All of the above
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
Satisfaction towards e-filing
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
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
Satsfied
Neutral
Dissatisfied
Highly dissatisfied
21. Experience regarding e-filing
5 years
3 to 4 yrs
1 to 2 yrs
Poor