INTRODUCTION

India is presently focused on formalizing its economy, partly due to its long history of
tax avoidance, black money, and institutional corruption. Accordingly, authorities are
keen to ensure that businesses and traders alike are brought under federal and state tax
and regulatory networks.

Although concerns over the grey economy have had its impact on India’s tax agenda,
foreign investors should pace themselves: the country is keen to boost its
competitiveness for foreign investors.

Corporate tax rates are expected to come down in the next five to eight years, as
immediate federal tax targets are met and India’s formal economy widens.

India is still liberalizing its economy decades after the first series of reforms were
introduced in 1991 – its intention to lower corporate tax rates should be treated as
credible, but only possible in the long-term.

At present, large firms and multinational companies in India pay corporate taxes in the
range of 30 to 40 percent, depending on the applicability of various cess duties and
surcharges.

Further, the Union Budget 2018-19 has lowered the corporate income tax (CIT) rate
for micro, small, and medium enterprises (MSMEs) to 25 percent, applicable from
assessment year (AY) 2019-20.

This lower tax rate for MSMEs targets the quantum of India’s business sector – at
over 95 percent; large multinational firms represent the country’s minority of top
taxpayers. The latest budget made further important tax announcements, namely the
return of tax on long-term capital gains and tax relaxations for specific sectors.
Advance tax means income tax should be paid in advance instead of lump sum
payment at year end. It is also known as pay as you earn tax. These payments have to
be made in instalments as per due dates provided by the income tax department.

Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more
in a financial year you have to pay advance tax. Advance tax applies to all taxpayers,
salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do
not run a business, are exempt from paying advance tax.

Presumptive income for Businesses–The taxpayers who have opted for presumptive
taxation scheme under section 44AD have to pay the whole amount of their advance
tax in one instalment on or before 15 March. They also have an option to pay all of
their tax dues by 31 March.

Presumptive income for Professionals– Independent professionals such as doctors,

lawyers, architects etc. come under the presumptive scheme under section 44ADA.
They have to pay the whole of their advance tax liability in one instalment on or
before 15 March. They can also pay the entire amount by 31 March.

OBJECTIVE

To understand, analyze and interpret the basic concepts of Taxation and various

 Use of 26AS of the company for the analysis and interpretation of taxes paid by
the company.

 To know about the interest calculation of the advance tax paid.

 To Know about interest calculation of the tax to be paid.

 To Know About Inter- firm Comparison

 This project mainly focuses in detail the basic types of Taxes calculation. 6 Years
26AS of the company was reviewed and excel sheet was formed.
LITERATURE REVIEW

According to Gautam, U. S. (2005) Accountancy (P#215) Financial Statement is

generally explained as financial information which is the information relating to
financial position of any firm in a capsule form.

Financial statement according to J. A Ohison (1999) was defined as a written report

that summarizes the financial status of an organization for a stated period of time. It
includes an income statement and balance sheet or statement of the financial position
describing the flow of resources, profit and loss and the distribution or retention of
profit

According to Pandey, I.M. (2005 Financial management) profitability is the ability of

an entity to earn income. It can be assessed by computing various relevant measures
including the ratio of net sales to assets, the rate earned on total assets etc

According to Meigns et al. (2001), Financial Statement simply means a declaration of

what is believed to be true and which, communicated in terms of monetary unit. It
describes certain attributes of a company that is considered to fairly represent its
financial activities.

Meigs and Meigs (2003) stated that the rate of return on investment (ROI) is a test of
management’s efficiency in using available resources. This review is organized under
the following sub-heads for ease of comprehension.