A Project Report On Taxation

A PROJECT REPORT ON

“TAXATION”

Submitted By

PRADEEP N. PATIL
With Reference To
IDEMITSU LUBE INDIA PVT. LTD.

N-31, Additional Patalganga,
MIDC Industrial Area, Taluka - Panvel, Khalapur,
Raigad, Maharashtra 410 220.
In Partial Fulfillment for the Award Of
MASTER IN MANAGEMENT STUDIES

2015-2016
Submitted
To
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF

MANAGEMENT
Saket Vidyanagari, Chinchpada Road,
Katemanivali, Kalyan (E).
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DECLARATION
I, Pradeep N. Patil, hereby declare that the project report entitle
“TAXATION” is original of mine, done from “ IDEMITSU LUBE INDIA PVT.
LTD.” submitted in partial fulfillment for the Award of Master’s Degree in
Management System of Mumbai University is my original work and does any
Part of previously carried / conducted project.
(Pradeep N. Patil)
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 2

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CERTIFICATE

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ACKNOWLEDGEMENT
I am sincerely thankful to my Faculty supervisor Prof. Srikesh Poojari,
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT who
spared his Valuable time and effort to guide me in the completion of project
report.
Last but not least I would like to thank all my friends who stood by my
Side through times and helped me tide over many obstacles during the
Completion of this project.

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CONTENTS
Sr. Particulars Page

No. No.
1 Need for the study 6
2 Scope of the study 6
3 Objectives of the study 7
4 Company Profile
● History of The Company
● Company Structure
● Organization Structure
5 My job profile
6 Introduction To Taxation In India
7 Direct and Indirect Tax Collection
8 Direct Taxes
● Income Tax
▪ Form 16(A)
▪ TDS (Tax Deduction At Source)
● Wealth Tax
● Corporate Tax
● Professional Tax
9 Indirect Taxes
● VAT
▪ VAT form 231
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● Excise Duty
● Custom Duty
● Service Tax
● Entertainment
10 Conclusion & suggestions
▪ Bibliography
▪ Webliography
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
government and also I have done my summer internship in the company
which is related to the taxation that is Idemitsu Lube India Pvt. Ltd.
Service Tax :
Service means any activity carried out by a person for another person
for consideration and includes a declared service.
But 1) It must be activity.
2) It must be done by a person for another person.
3) There must be a consideration for provision of service.
4) Includes a declared service.
Excise Duty :
An excise duty is a type of tax charged on goods produced within the

country (as opposed to customs duties, charged on goods from outside the
country).
Source of revenue for government to provide public service.
▪ For the liability of duty of central excise to arise, the item in question
should not only be goods it should also be excisable goods.
▪ Goods become excisable if and only if it is mentioned in the Central
Excise Tariff Act 1985.

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▪ Goods must be movable. Duty cannot be levied on immovable

property .Central excise duty cannot imposed on plant and machinery.
▪ Goods must be marketable .The goods must be known in the market
and must be capable of being bought or sold.
▪ The liability to pay tax excise duty is always on the manufacturer or
producer of goods.
There are three types of parties who can be considered as manufacturers:
1. Those who personally manufacture the goods in question
2. Those who get the goods manufactured by employing hired labour.
3. Those who get the goods manufactured by other parties.
NEED FOR THE STUDY
● The purpose of the study is to get detailed knowledge about

Service Tax & Excise Duty in India.
● The purpose of the study is help to Service Provider to briefly
understand the need for charging Tax and the benefits out of that.
● Need to understand how Government raises their fund to run
government and provide services to the public.
SCOPE OF THE STUDY
This particular study about Work Stress Management is restricted

within the organization. The study is conducted on the employees of the
organization. This is not because of non-availability of resources but the
nature of the study itself restricts it. It studies the existence or non – existence
of stress among the employees in the organization and identifies the factors
which are contributing for stress (If any). It also provides the various steps
adopted by the organization for managing the work stress of the employees,
which can be used as future reference for decision-making and policy making
with regard to the employees. This study reveals the morale of the
employees.
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OBJECTIVE OF THE STUDY
● The objective of the study is to identify the existence of work stress

in the organization.
● If YES, then to study the factors causing stress among the employees
● To study the impact and usefulness of Work Stress Management
and also to suggest measures for coping with stress.
COMPANY PROFILE
History of Company
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: Chiyod-
ku, 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
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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 kℓ 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.
Company has near about 1500 dealers and 30 salesmen.
(A bird's-eye view of the plant)

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(An exterior view of the plant's office building)
Overview of Plant
1. Location Patalganga Industrial Estate, Khalapur, Panvel, Raigarh,
Maharashtra, India
2. Site Area Approx. 78,000 sq.m

3. Production Capacity 70,000 kl/year
4. Total Construction Cost 2.6 Billion rupees (Approx. 4.7 billion yen)
▪ Organization Structure:
Managing Director
Directors
HR Head Finance & Purchase Production Marketing Logistic

Account Head Head Head Head Head
HR Manager Finance Purchase Production Marketing Logistic

Manager Manager Manager Manager Manager
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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.
5) How to passed entry Account Receivable and Account Payable at SAP
with Transit Code.
6) They gave me the task to Internal Audit of credit tax liability for Service
Tax Set Off payment and which was useful for Service Tax Return filing
on time.
7) Prepare the summary of Agreements in excel.
So when I joined they allotted me lots of work.

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INTRODUCTION ON TAXTION IN INIDA
Taxation is the imposition of financial charges or other levies, upon a

taxpayer (an individual or legal entity) by Central and a state such that failure
to pay is punishable by law. It is the most pervasive and the strongest of all the
powers of the government. Taxes are the lifeblood of the government, without
which, it cannot subsist.
Taxes in India are levied by the Central Government and the state
governments. Some minor taxes are also levied by the local authorities such as
the Municipality.
Central Government levies taxes on income (except tax on agricultural
income), customs duties, central excise and service tax. Value Added Tax (VAT),
(Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land
revenue and tax on professions are levied by the State Governments. Local bodies
are empowered to levy tax on properties, octroi and for utilities like water supply,
drainage etc.
Since April 01, 2005, most of the State Governments in India have replaced
sales tax with VAT.
The main purpose of taxation is to accumulate funds for the functioning of
the government machineries. No government in the world can run its
administrative office without funds and it has no such system incorporated in
itself to generate profit from its functioning. The government’s ability to serve the
people depends upon the taxes that are collected. Taxes are indispensable in the
government operation and without it, the government will be paralyzed.
Taxation has four main purposes or effects:
1. Revenue 2. Redistribution
3. Repricing 4. Representation

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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 carbon-
based fuels.
Representation: - As what goes with the slogan "no taxation without
representation”, it implies that: ruler’s 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 Central Excise Duty
Wealth Tax Customs Duty
Corporate Tax Central Sales Tax
Professional Tax Sales Tax (VAT)
Entertainment Tax
DIRECT TAX

TAXATION
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 Condition Range Tax Rate %
Company Total Income up to 1 Crore Nil
Net Income of Company 1 Crore to 10 Crores 5%
Net Income of Company Exeeds 10 Crores 10%
According to the corporate tax rates for 2015-16 fiscal, international

business organizations working in India and earning more than 10 million rupees
need to pay a corporate tax rate of 42.024 percent. This includes a basic tax of
40%, and education cess of 3 % and a surcharge of 2%. Companies, whose
turnover exceeds 10 million rupees, need to pay an extra surcharge of 10% on their
basic tax.
If their aggregate income is less than INR 10 million they have to pay a
corporate tax of 41.2 percent. This includes a basic tax of 40 percent along with
an education cess of 3%.
If net income for a foreign company exceeds Rs. 10 crores then the

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surcharge that it will have to pay will be 5%.

Minimum Alternate Tax at a rate of 18.5 % along with applicable cess and
surcharge. Fringe benefits are liable to be taxed at 30 % along with an additional
education cess of 3% on the aggregate tax amount and dividend distribution tax
of 16.22 % is applicable for the domestic companies.
1) INCOME TAX
The government of India imposes an income tax on taxable income of

individuals, Hindu Undivided Families (HUFs), companies, firms, co-operative
societies and trusts (identified as body of individuals and association of persons)
and any other artificial person. Levy of tax is separate on each of the persons. The
levy is governed by the Indian Income Tax Act, 1961. The Departments governed
by the Central Board for Direct Taxes (CBDT) and is part of the Department of
Revenue under the Ministry of Finance, Govt. of India.
An income tax is a tax levied on the income of individuals or businesses
(corporations or other legal entities). Various income tax systems exist, with
varying degrees of tax incidence. Income taxation can be progressive,
proportional, or regressive. When the tax is levied on the income of companies, it
is often called corporate, corporate income tax, or profit tax. Individual income
taxes often tax the total income of the individual (with some deductions permitted),
while corporate income taxes often tax net income (the difference between gross
receipts, expenses, and additional write-offs). Various systems define income
differently, and often allow notional reductions of income (such as a reduction
based on number of children supported).
Charge to Income-tax:
Every Person whose total income exceeds the maximum amount which is not
chargeable to the income tax is an assesse, and shall be chargeable to the income
tax at the rate or rates prescribed under the finance act for the relevant assessment
year, shall be determined on basis of his residential status.

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Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act)
for every Assessment Year, on the Total Income earned in the Previous Year by
every Person.
The changeability is based on nature of income, i.e., whether it is revenue or

capital. The principles of taxation of income are:-
Some people have lots of confusion in mind about income tax

rates/slabs like which income tax slab applicable to this assessment year, financial
year etc. Majority of peoples are confused to applicable income tax rates/slabs on
particular assessment year. So this is the static page of income tax slab/rates
applicable in India for current and last 3 years.
(A) Income Tax Rates for Individual, HUF, AOP, BOI
A.Y 2016-2017 (Current Year)
General Senior Citizen Super Senior Citizen Tax Rate

(60 to 79 Years) (80 Years and above) %
Upto 2,50,000 Upto 3,00,000 Upto 5,00,000 Nil

2,50,001 to 5,00,000 3,00,001 to 5,00,000 - 10
5,00,001 to 5,00,001 to 5,00,001 to 10,00,000 20
10,00,000 10,00,000
Above 10,00,000 Above 10,00,000 Above 10,00,000 30
Surcharge @ 12% if total income exceeds 1 Crore | Cess @3%
(B)Income Tax Rate - Other than Individuals (Companies)
A.Y. 2016-2017 (Current Year)

Total Income Rate of Income Tax Rate of MAT/AMT (%)
(%)
Tax Rates for Domestic Companies

Upto Rs 1 crore 30.900 19.055
Exceeding 1 Crore but not exceeding 10 Crore 33.063 20.389
Exceeding Rs 10 crore 34.61 21.342
Tax Rates for Foreign Companies

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Upto Rs 1 crore 41.200 19.055

Exceeding 1 Crore but not exceeding 10 Crore 42.024 19.436
Exceeding Rs 10 crore 43.260 20.008
Tax Rates for Firms / LLPs/Local
Authorities 30.900 19.055
Upto Rs 1 crore 34.61 21.342
Exceeding Rs 1 crore
(C) Income-tax Rates - Co-operative Societies
Net income range Rate of income tax Alternative Minimum tax
Upto Rs 10,000 10%

Rs10,000 to Rs 20,000 20%
Rs20,000 and above 30%
Surcharge
If income upto Rs 1 crore Nil 19.055
If income Exceeds 1 Crore 12% 21.342
Education Cess 2%
Secondary and Higher Education Cess 1%
Residential Status:
RESIDENCE IN INIDA
Basic Conditions:
1) Person must be living in India at least 182 days during previous year.
RESIDENT
2) MustAND
be present in RESIDENT
India forBUT NOT of 60 daysNON
period or -more
RESIDENT
during the
ORDINARILY ORDINARILY
previous year and 365 days or more during the 4 years immediately
RESIDENT RESIDENT
preceding to that financial year.
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 but not ordinarily Non-resident

resident resident

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Must satisfy at least one of the Must satisfy at least one of Must not satisfy either of the
basic conditions and both the the basic conditions and one basic conditions.
additional conditions. or none of the additional
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.
Meaning

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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
HUF, companies can earn salary income.
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● Salary:
The salary earned of current year or arrear salary of last year or salary
received in advance are taxable but the salary on which tax is paid in previous
year such salary should not be added in current year Because he cannot paid tax
twice on same income.
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.
▪ Fees, Commission and Bonus :
Any fees, commission or bonus or incentive paid or payable to an employee
by an employer is fully taxable and is included in salary.
▪ 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:
Advance Salary is taxable on receipt basis in the year of receipt; however
there will be no tax in the year of actual accrual of such salary again. Further
assessee shall be entitled to relief u/s 89 in respect of advance salary. Loan to
employee is not treated as advance of salary and the same is not taxable.
▪ Gratuity - Section 10(10):
Gratuity is a lump-sum payment to reward an employee for his past
services, on his retirement or termination. Sec .10 gives tax of treatment of
gratuity as under-
1. Amount received as gratuity on termination as per service rules is Fully
EXEMPT in case of employees of Central or State governments or local
authorities.

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2. In case of employees covered by the Payment of Gratuity Act, 1972.

EXEMPTED amount would be lowest of the following:
a) Amount of gratuity received,
b) Rs 10,00,000/-
c) 15 days’ salary for every completed or part thereof in excess of six
month year of service computed on the basis of last salary drawn and
denominator 26. i.e.
15 X Completed year of service X Last Drawn Salary
26
3. In case of employees not covered by the Payment of Gratuity Act, 1972.
EXEMPTED amount would be lowest of the following:
a) Amount of gratuity received,

b) Rs 10,00,000/-
c) Half month’s salary for every completed year of service in excess of six
months (ignoring the fraction) computed on the basis of average salary of last 10
months preceding the retirement. i.e.
1/2 X Average Salary for last 10 months X Completed year of service.
▪ Pension - Section 10(10A) :

On retirement of an employer, the employer makes a regular payment to
the employee as a reward for his past services. The regular payment so made at
monthly or annual intervals is called pension. Some employers allow an employee
to forgo a portion of pension in lieu of lump sum amount. This is known as
commutation of pension.
Tax treatment of these two kinds of pension is as under:
A. Uncommuted Pension : -
Uncommuted pension is monthly / Quarterly / some other interval
periodical pension. This pension for taxable all employees therefore
whether is Govt. employee of Non-Govt. employee it is not material. Such
pension directly added in salary.
B. Commuted Pension : -

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This amount paid by assessee in Lump sum. It depends upon type of

assessee.
a) If he is Government employee full amount of commuted pension
exempted from tax hence no amount of commuted pension is added in
income from salary.
b) Non-Government employee part of commuted pension is exempted
and part is taxable.
i) If he received Gratuity then 1/3 of full pension is exempted
= 1/3 X Full Pension.
ii) If he is not received Gratuity then ½ of full pension is exempted.
= ½ X Full Pension.
Pension 10(10A)
Commuted Uncommuted
Govt. Employee Other Employee Taxable for all
Full Exempted Gratuity Gratuity

Yes No
1/3 of the Total ½ of the Total

Value of value ofPension
PensionExempte Exempted
▪ Encashment of Leave Salary - Section 10(10AA):

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.

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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.
i.e. (Leave Entitlement - Leave Availed) X Average Salary
▪ House Rent Allowance (Section 10-13A)

House Rent Allowance or HRA paid by the employer to the employee to
meet the housing expenses of the employee, is exempt from tax U/s 10(13A) being
the least of the following:
i) HRA actually received.
ii) Rent paid by employee in excess of 10 per cent of salary during the
previous year.
iii) 50% of salary, if employee is residing in the Four metro cities of Mumbai,
Delhi, Chennai or Kolkata and 40% of salary, if the employee is residing at
any other place.
▪ Wholly or partly tax-free Allowances:

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.

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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
employee’s 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.
e) Other allowances for official purposes-S 10(14)
f) Tiffin / Lunch Allowance
g) Out station allowance
● Perquisites (Section 17)
A) Meaning of Perquisites:
Section 17(2), Any benefits given by employer to employee in addition to
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.

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ii) For him following perquisites are taxable

- Free domestic servant (Sleeper, Watchman, and Gardner)
- Free education facility for his family
- Gas, electricity and water supply free of cost
D) Valuation of Perquisites:
a. Accommodation & Furniture
b. Transport
c. Domestic servant
d. Gas, water or electricity
e. Educational facilities
f. Medical facilities
● Profits in Lieu of Salary – Sec. 17(3)

1. Payment from Employer from PF or Other Fund
2. Keyman Insurance Policy
3. Sums Received from Future or Former Employer
4. Payment of Employee’s Obligation Employer
5. Payments from Certain Funds
6. Treatment of Annual Accretion to Provident Fund
- The funds are of three types
a) Statutory Provident Fund set up or established and administered by
the Government.
b) Recognized Provident Fund set up by others but recognized by the
Commissioner of Income Tax
c) Unrecognized Provident Fund set up by others but not recognized by
the Commissioner of Income Tax due to non-compliance with the
guidelines laid down for recognition.
7. Transferred Balance.
● Deductions from Salaries Sec.-16
Aggregate of taxable amount in respect of salary, various allowances and
perquisites is called the Gross Salary. From the Gross Salary so arrived,

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Deductions are allowed u/s 16. Other than that, no further deductions are
allowed under this head. The following are the deduction available to the
employee U/s 16:
1. Entertainment Allowance- Sec. 16(ii)
Entertainment allowance as per Section 16(ii) is first included in salary

income under the head “Salaries” and thereafter a deduction is given on the
basis enumerated in the following points:
In the case of a Government employee deduct least amount of the following
a) Rs. 5,000
b) 20% of basic salary(including D.A)
c) Actual allowance received
Deduction in respect of entertainment allowance is allowed only to the
Government Servants. Employees working in private institutions are not
entitled to this deduction.
2. Profession Tax- Sec. 16(iii)

The Profession Tax, paid by an employee in a given previous year, will
be deducted from the gross salary in order to get the taxable amount of salary.
Profession Tax is levied by state government on employment.
(II) INCOME FROM HOUSE PROPERTIES
Income from house Property” is significantly different than the other heads
of income unlike the other heads as it covers not only the actual income but also
the notional income.
▪ Basis of Charges – (Sec. 22)
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

TAXATION
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 self-
occupied.
(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:
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.
▪ Annual Value of House Property( Sec. 23)
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.
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‘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) Owner’s obligations discharged by the tenant:
d) Tenant’s 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
Corporation or Municipal Council or Grampanchayat. On the basis of the
Municipal rateable value, local taxes are levied by the existing local
authorities. In big city like Bombay, local taxes are levied at a specified
percentage after arriving at net reteable value. This net rateable value is
determined after allowing 10 % of Gross Rateable value, as deduction. We
are required to take gross reteable value into consideration for determining
Annual Value.
Thus, Fair Rent or Municipal rateable value which is greater is taken
as Reasonable Letting Value (Gross Annual Value) u/s 23(1)(a)
B) If the property or part of the property is let out and actual rent received
after excluding unrealised rent and rent pertaining to vacancy period, is
more than Reasonable Letting Value as above, the rent actually received
TAXATION
after excluding unrealised rent and vacancy period is taken as Gross Annual
Value u/s 24(1) (b).
C) If the property or part of the property is let out and actual rent received
after excluding unrealised rent and realized rent and rent pertaining to
vacancy period, is less than the reasonable letting value as above and such
a decline is caused only due to vacancy and not by any other factor (such as
property let out at less than expected rent) such rent received after
excluding unrealised rent and rent pertaining to vacancy period is taken as
Gross Annual Value u/s 23(1) (c).
However if the rent received is lower than reasonable letting value
due to factors other than vacancy, Gross annual value would be Reasonable
letting value as determined u/s 24 (1) (a).
Property may be let out or may be let out or may be occupied by the
assessee himself, i.e. self-occupied. It may also happen that the property is
partly self-occupied and partly let out. In both cases, income is required to
be ascertained on the basis of annual value. However, the mode of
ascertaining the income from house property is different in case of house
property which is either let out or self-occupied. Therefore, we can divide
the computation of taxable income into two groups, i.e.:
A) Income from House Property Let Out and

B) Income from self-occupied House Property
Terms:
1) F.V. - Face value
2) M.V.- Municipal value
3) R.L.V. – Reasonable letting value
4) A.R.R. - Actual rent received
5) U.R. – Unrealised rent
6) V.P.R. – Vacancy period rent
Steps for Determining Annual Value Sec. 23
Compare F.R. with M.V.

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(Whichever is higher is considered as R.L.V.)
Compare R.L.V. with A.R.
A.R.R. > R.L.V. A.R.R < R.L.V.
(A.R.R. does not include

V.P.R.& U.R.)
.
A.R.R < R.L.V. A.R.R < R.L.V

Because of V.P.R. Because of any
& U.R. other factors
A.R.R. is Annual
Value
A.R.R. is Annual R.L.V. is Annual

Value Value
A) Income from House Property Let Out :
1. Income from house property is to be ascertained on the basis of annual

value as discussed above. Thus, the annual value which is being
ascertained we will be calling it as Grass Annual Value (GAV) for the
sake of convenience.
2. From the gross annual value determined in the manner indicated above,
a deduction is to be made under the first proviso to section 23(1), on
account of local taxes actually paid and borne by the owner during the
previous year. After deducting such amount of local taxes actually paid

TAXATION
during the previous year from the gross annual value, we will be arriving
at Net Annual Value.
Computation of Income from House Property Let Out
1. Gross Annual Value xxx
Less: Municipal Taxes actually paid by the
assessee during previous year [Sec. 23(1)] xxx
2. Net Annual Value xxx
Less: Deduction U/s. 24
i) 30% of Net Annual Value xxx
ii) Interest on loan borrowed from construction xxx
xxx
Income from Late out Property xxx
B) Income from Self-occupied Property:

1. When a property is occupied by the owner himself that property is
called
Self-occupied house property. Where the property consists of only one
house or a part of house which is occupied by the owner for his own
residence, the annual value of such a house shall be taken as NIL.
However, the following two conditions must be satisfied:
a) The property or part thereof is not let out actually during any part of
the previous year, and
b) No other benefit is derived from such property.
2. The limit for deduction is Rs. 2,00,000/- (w.e.f. 01.04.2015. Earlier Rs.
150,000/-) or Rs. 30,000/- as the case may be.
If the all following conditions are satisfied, then the limit in respect of
Interest on borrowed capital will be Rs. 2,00,000/-
a) Capital is borrowed on or after 1st April 1999
b) Capital is borrowed for the purpose of acquisition or construction
(i.e. not for repair, renewal, reconstruction)
c) Acquisition or construction is complete within 3 years from the end
of the financial year in which capital was borrowed.
If any of the above condition not satisfied, then limit will be reduced Rs.
30,000/-

TAXATION
Computation of Income from House Property Self-Occupied

Net Annual Value NIL
Less: Deduction U/s. 24
iii) 30% of Net Annual Value xxx
iv) Interest on loan borrowed from construction xxx
xxx
Loss from Self-Occupied Property xxx
(III) INCOME FROM BUSINESS AND PROFESSION
This is one of the most important heads of Income. Under this head we are
required to take into consideration the profits and gains of a business or
profession including vocation carried on by the assessee.
The term business is defined in section 2 (13) “includes ay trade, commerce
or manufacture or any adventure in the nature of trade, commerce or
manufacture.” Though the definition is not exhaustive, it covers all types of
occupation carried on by a person with a view to earn profit. Production of goods
from raw material, buying and selling of goods with the intention to make profit
and providing services to others are different forms of business. The profit
earned from these is chargeable to tax under the head. “Profits and Gains of
Business or Profession”. In simple words, any activity carried on with a view to
earn profit is called as business. It is not necessary to carry on business
continuously. Even a single transaction conducted during the year, with a view to
earn profit is business.
Profession means an occupation requiring using intellectual skill or manual
skill or both, e.g. a chartered accountant, a lawyer, an engineer, a doctor. It may
be noted that if these persons are employed by any association and they receive
monthly remuneration by way of salary. It is taxed under the head ‘Income from
salary’ and not as income from business or profession.
Vocation is an activity in which an assessee has developed a special skill
and makes use of such skill for earing income, for example, a singer, a dancer, a
painter, a magician. It may be noted that the persons who are practicing vocation
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.
TAXATION
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 FROM INCOME FROM BUSINESS /
PROFESSION
All the expenses relating to business and profession are allowed against income.
Following are few examples of expenditures which are allowed against income:-
● Rent rates and insurance of building.
● Payment for know-how, patents, copy rights, trade mark, licenses.
● Depreciation on fixed assets.
● Payment for professional services.
● Expenditures on scientific research for business purposes.
● Preliminary Expenses in case of Limited companies.
● Salary, bonus, commission to employees.
● Salary, interest and remuneration to working partners subject to certain
conditions.
● Communication expenses.
● Traveling and conveyance expenses.
● Membership fees etc.
● Advertisement expenses in respect of promotion of business products.
● Discount allowed to customers.
TAXATION
● Interest on loans (Whether Private of Institutional).

● Bank Charges/Bank Commission expenses.
● Entertainment/Business Promotion expenses
● Staff Welfare expenses.
● Festival Expenses.
● Printing and stationery expenses
● Postage expenses.
● All other expenses relating to business/profession
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 NOT DEDUCTIBLE FROM BUSINESS/PROFESSION
INCOME
1. Expenditure on any type of advertisement of political party.
2. Any interest, royalty, fees for technical services or other sums chargeable
under this act, which is payable outside India or in India to non-resident or
a foreign company on which tax has not been deducted or after deduction,
not deposited in prescribed time.
3. Any interest, commission, rent, royalty, professional or technical fees paid
or payable to any resident of India or payment to contractor or sub-
contractor on which TDS is not deducted, or if deducted then not
deposited before the due date of filing the return.
4. Any tax calculated on the basis of profit of business.
5. Any amount of Wealth Tax paid.
6. Any payment of salaries payable outside India or to a non-resident on
which tax is not deducted.

TAXATION
7. Any tax actually paid by an employer on any income by way of perquisites,

on behalf of the employee.
8. Any remuneration paid to non-working partner.
9. Any remuneration paid to working partner other than specified in
agreement or as per the specified limits by income tax act.
10.Any interest to partner if not specified in agreement and not more than
12%.
11.Any payment in cash exceeding Rs.20000/=. (Rs.35000/= in case of
payment made for plying, hiring or leasing goods carriages) except when
payments are made under circumstance specified in Rule 6DD of Indian
income tax act.
12.Where a deduction has been claimed on accrual basis during an assessment
year and the payment is made in a subsequent year, and the payment or
aggregate of payments made to a person in a day otherwise than by way of
an account payee cheque/DD, exceeds Rs.20000/= (Rs.35000/= in case of
goods carriages), such payments shall be deemed as profit of the assessee
for the year in which the payment is made.
13.Any provision for the payment of gratuity to the employees.
14.Any personal expenditure.
15.Expenses on defending in any proceedings for breach of any law relating to
sales tax etc.
Notes:
● Restriction on acceptance of loans or accept a deposits of Rs.20000/= or
more from any other person except by an account payee cheque/draft. This
restriction shall not apply if the loan or deposit is taken or accepted from
government, bank, post office, co-operative bank, government undertaking
etc.
● Restriction on repayment of loans or deposits: No person can repay loan
along with interest except by way of account payee cheque/draft if the
amount is Rs.20000/= or more.
COMPULSORY AUDIT OF ACCOUNTS
During Finance Year 2014-15 (Assessment Year 2015-16) and financial
year 2015-16(Assessment year 2016-17), if the gross turnover of business exceeds
Rs. One Crore or receipts of a profession exceeds Rs.25 laces then audit of
accounts is compulsory under section 44AB of Indian income tax act.

TAXATION
The audit report by a chartered accountant, along with a statement of particulars,

should be furnished in the prescribed form as under:
Category Form for Form for
Audit Statement of
Report Particulars
Where accounts have been audited under any 3CA 3CD
other law
Where accounts have been audited under 3CB 3CD
Income Tax Act
Note:
1. Failure to get the accounts audited or to furnish audit report, in time
attracts penalty u/s 271B up to ½% 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.

TAXATION
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.
However, jewellery, drawings, paintings, sculptures of any work of art
if held for personal use then, it is treated as a capital asset and not
personal effect.
3. Agriculture land in India provided it is not situated within the specified
are.
Short Term Capital Assets

Kinds of Capital
Assets
Long Term Capital Assets
A) Short Term Capital Assets

i) Capital Assets in terms of share in company listed security / units of
UTI / Zero coupon Bonds etc.
If such assets head by assessee for the period of not more than 12
months then such capital assets is called short term capital assets.
Eg. Equity or Preference share of company, Debentures, Govt.
Security, Unit of UTI, Units of mutual fund, Zero coupon bonds etc.
ii) Capital Assets other than share in company
If such assets held by assessee for the period not more than 36
months it shall be treated as short term capital assets.
B) Long Term Capital Assets
An Asset other than short term capital assets are called long term
capital assets. It means share, debenture, units of UTI held by assessee
for more than 12 months and other capital assets are held for more than
36 months is called long term capital assets.
CALCULATION THE PERIOD OF HOLDING OF CAPITAL ASSET.

TAXATION
This period short from date of acquisition to date of transfer but

following rule should be considered.
1) Share held in a company liquidation
The period subsequent to the date on which the company goes
into liquidation should be excluded from a period of holding.
2) Capital Assets becomes a property of assessee in the
circumstances mention under section 49(1)
If the assessee become owner of Capital assets in case of gift,
Will, inheritance then the period of which the previous assessee
owner should be included.
3) Capital assets being share an Indian company in case of
amalgamation.
In this case period of holding of share in amalgamating
company also included.
4) Share in case of renounced
The date which right to subscribe the share is renounce. This
period should be excluded means ignore.
I) How to compute to short term capital gain

following steps are to be taken
1) Compute full value of consideration (S.P)
2) Deduct expenditure in respect transfer of such property i.e. transfer
expenses
3) Deduct cost of acquisition or purchase
4) Deduct cost of improvement
COMPUTATION OF SHORT TERM CAPITAL GAIN
Full Value of consideration (S.P) xx

Less: 1) Expenditure of transfer property xx
2) Cost of acquisition xx
3) Cost of improvement xx xx
Short Term Capital Gain xx
II) How to compute to long term capital gain

following steps are to be taken
TAXATION
1) Compute full value of consideration

2) Deduct transfer expenses
3) Deduct Indirect cost of acquisition
4) Deduct Index cost of improvement
COMPUTATION OF LONG TERM CAPITAL GAIN
Full Value of consideration (S.P) xx

Less: 1) Transfer Expenses xx
2) Index Cost of acquisition xx
3) Index Cost of improvement xx xx
Long Term Capital Gain xx
A) FULL VALUE OF CONSIDERATION

Full value consideration means what the transferor receives as
consideration of sale of property / Asset. This value may be in cash or in
kind i.e. in exchange for an asset.
In case of exchange for an asset, the full value of computation of
capital gains shall be the Fair Market Value of the property (Assets) granted
in exchange. Fair Market Value in relation to capital gains means the price
which the property would normally fetch if sold in the open market on the
relevant date.
In case, the full value of consideration is received in installments in
different years, the entire value of consideration shall be the Market value
of property / asset granted in exchange.
B) EXPENSES ON TRANSFER
Expenses on transfer include any expenditure incurred, whether
directly or indirectly for the purpose of transfer like Advertisement
Expenses, Brokerage Expenses, Stamp duty, Registration Fees and Legal
Expenses etc. However, any expense which has been claimed deduction
under any other provision of the Income Tax Act cannot be claimed as a
deduction under this Clouse.
C) COST OF ACQUISITION

TAXATION
Cost of acquisition is the price which the assessee had paid, or the
amount which the assessee as incurred, for acquiring the property / assets.
The expenses incurred at the time of completing the title are a part of the
cost of acquisition.
In cases where the capital assets become the property of assessee in
any of the manners mention below the cost of acquisition shall be deemed
to the cost for which previous owner of the property acquired it :
1) On the Distribution of Assets / Total Partition of HUF
2) Under a Gift or Will
3) By Succession, Inheritance or Devolution
4) On Distribution of Assets on Liquidation of a Company
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 head- “Income 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

TAXATION
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)]
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 co-
operative 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 employer’s 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.

TAXATION
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 doesn’t apply if the assessee receives money
● from relatives or a local authority or a trust, fund, educational/medical

institution, body or any such institution outlined under section 10(23C) and
section 12AA
● as a wedding gift
● by way of being named in a Will or as inheritance
● from a dying donor
Gifts include monetary gifts, immovable property and specified property.
Monetary gifts - sums of money received without any consideration or without

adequate consideration.
Immovable property as gifts - Property value will be the stamp duty value.
Inadequate consideration will be if the property value is lower than stamp duty
value.
Specific movable property - Property here are shares, jewellery, securities,

paintings, archaeological collections, sculptures and drawings and other artwork.
As of 1st June 2010, bullion also forms a part of this list. Property value will be the
fair market value. Inadequate consideration is when property value is below fair
market value.
Gifts from relatives means gifts from the assessee’s
● parents, parents’ brothers or sisters (i.e. aunts, uncles)

● any lineal predecessor/successor
● brother, sister; brothers’ or sisters’ spouses (i.e. brothers or sisters- in-law)
● Spouse, spouse’s parents (i.e. in-laws), spouse’s brothers or sisters (i.e.
brothers or sisters- in-law), spouse’s lineal predecessor/successor and their
brothers or sisters.
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 spouse-

TAXATION
An 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 son’s wife.
4) Income from assets transfer for the benefit of spouse
5) Income from asset transfer for the benefit of son’s 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.
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

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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
assessor’s 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
(b) as pension received from the annuity plan,
the whole of the amount shall be the income of the assessee or his nominee in
that previous year in which such withdrawal is made shall be chargeable to tax as
income of that previous year.
8.1.3. Deduction In Respect Of Contribution to Pension Scheme Of

Central Government Or Any Other Employers [Sec. 80 CCD]
(1) Where an assessee on or after the 1st day of January, 2004, has in the
previous year paid or deposited any amount in his account under a pension
scheme notified by the Central Government, he shall be allowed a deduction in
the computation of his total income, of the whole of the amount so paid or
deposited as does not exceed ten per cent (10%) of his salary in the previous year.

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(2) If the Central Government or any other employer makes any contribution to
his account the assessee shall be allowed a deduction in the computation of his
total income, of the whole of the amount contributed by the Central Government
or any other employer as does not exceed ten per cent (10%) of his salary in the
previous year.
(3) Where any amount standing to the credit of the assessee in his account , in
respect of which a deduction has been allowed in whole or in part, in any
previous year,—
(a) on account of closure or his opting out of the pension scheme; or
(b) as pension received from the annuity plan purchased or taken on such closure
or opting out,
the whole of the amount shall be deemed to be the income of the assessee or his
nominee, and shall accordingly be charged to tax as income of that previous year.
8.1.4. Deduction In Respect Of Health Or Medical Insurance Premium [Sec. 80

D]
Medical Policy should be taken on the health of the following persons: ---
Tax Payer Insured Person

8 Individual On the health of the taxpayer,
spouse, patents or dependent
children of the taxpayer
8 Hindu Undivided Family (HUF) On the health of any member of the
family
Amount of Deduction from the Assessment Year 2009-10 is as follows: ---
Individual HUF
Parents of
the Taxpayer Any
Taxpayer, Spouse, and
whether member of
Dependent Children
dependent or family
not
Maximum amount Rs. 15000 Rs. 15000
Rs. 15,000
deductible
Additional amount Rs. 20,000 Rs. 20,000 Rs. 20,000

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which is deductible
when policy is taken
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
8.1.5. Deduction In Respect Of Maintenance Including Medical Treatment Of A

Dependent Who Is A Person With Disability [Sec. 80 DD]
(1) Where an assessee, being an individual or a Hindu undivided family, who is

a resident in India, has, during the previous year,
(a) Incurred any expenditure for the medical treatment (including nursing),
training and rehabilitation of a dependent, being a person with disability; or
(b) paid or deposited any amount under a scheme framed in this behalf by the
Life Insurance Corporation or any other insurer or the Administrator or the
specified and approved by the Board in this behalf for the maintenance of a
dependent, being a person with disability.
The assessee shall be allowed a deduction of a sum of fifty thousand rupees

(Rs.50,000) from his gross total income in respect of the previous year:
Rs.1, 00,000 where such dependent is a person with severe disability exceeding
80%
8.1.6. Deduction In Respect Of Medical Treatment, Etc. [Sec. 80 DDB ]
Where an assessee who is resident in India has, during the previous year, actually
paid any amount for the medical treatment of such disease or ailment
(a) for himself or a dependent, in case the assessee is an individual: or
(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

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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 Minister’s National Relief
Fund, the Chief Minister’s Relief Fund, or the Lieutenant Governor’s 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]
In computing the total income of an assessee, there shall be deducted any

expenditure incurred by him in excess of –
- 10% of his total income towards payment of rent in respect of any furnished
or unfurnished accommodation occupied by him for the purposes of his own
residence,

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- To the extent to which such excess expenditure does not exceed two
thousand rupees (Rs. 2000/-) per month or twenty-five percent ( 25%). of his total
income for the year, whichever is less.
[No Exemption is allowed to those who are in receipt of HRA & Claiming
Deduction U/s 10(13A)]

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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.

TAXATION
Due Dates Chart

For Financial Year 2015-16
Month Payment Quarterly Filing of Advance Payment Service ESIC PF VAT

of TDS TDS Income Tax of Tax Payments Payment Payment
Return Tax Payment Service Return
Return Tax#
April 30 - - - - 25 21 15 21/30
May 7 15 - - 6 - 21 15 21
June 7 - - 15 6 - 21 15 21
July 7 15 31 - 6 - 21 15 21
August 7 - - - 6 - 21 15 21
September 7 - 30 15 6 - 21 15 21/31
October 7 15 - - 6 25 21 15 21
November 7 - 30* - 6 - 21 15 21
December 7 - - 15 6 - 21 15 21
January 7 15 - - 6 - 21 15 21
February 7 - - - 6 - 21 15 21
March 7 - - 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
eTDS Form 24Q filing
Qtr. Quarter Ending Due Date
Q1 June Jul-15
Q2 Sept Oct-15
Q3 Dec Jan-15
Q4 March May-15

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PF, ESIC & Payroll Compliance
Type Description Responsibility
Contribution
PF 12% of Basic+DA Employee
PF 12% of Basic+DA Employer
of which 8.33% or Max 541 Rs1250 for Pension Fund
EDLI 0.5% of Basic+DA or Max 32.50 Rs 75 Employer
ESIC 1.75% of Wages Employee
ESIC 4.75% of Wages Employer
Admin Charges
PF 1.1% of Basic+DA Employer
EDLI 0.01% of Basic+DA or Max Re 1.50 Employer
*New amounts effective Sept 1, 2014, as threshold for PF increased from ` 6500 to 15000

Form 16 / 16A Issuance Due Dates
Qtr. Quarter Ending Due Date
Form 16 A
Q1 June Jul-30
Q2 Sept Oct-30
Q3 Dec Jan-30
Q4 March May-30
Form 16 Apr to Mar May-31
Profession Tax Maharashtra
Salary Profession Tax
Upto Rs7,500 NIL

7,501 to 10,000 - Male 175
7,501 to 10,000 - Female NIL
Above 10,000 200
Above 10,000-Feb 300

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LIMITATION OF THE STUDY:
The opinions, behavior and attitudes of the respondents
reflected in this study are restricted to the duration of the research
and are subject to change with the passage of time.

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INTRODUCTION TO STRESS

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INTRODUCTION
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.
How can I eliminate stress from my life?
As we have seen, positive stress adds anticipation and excitement to life, and we all
thrive under a certain amount of stress. Deadlines, competitions, confrontations, and
even our frustrations and sorrows add depth and enrichment to our lives. Our goal is not
to eliminate stress but to learn how to manage it and how to use it to help us.
Insufficient stress acts as a depressant and may leave us feeling bored or dejected; on
the other hand, excessive stress may leave us feeling "tied up in knots." What we

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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
TAXATION
to external events and it can be positive or negative depending upon how we react, it is
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 today’s 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 today’s 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 “body’s 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.
● Stress is defined as an adaptive response to an external situation that results in
physical, psychological and behavioral deviations for organizational participants.
● Stress is understood as an individual reaction to a disturbing factor in the
environment.
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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
● Acceptance-oriented: Where something has happened over which we have no power
and no emotional control, and where our focus is on surviving the stress.
Action-oriented approaches – best where you have some control

To be able to take an action-oriented approach, we must have some power in the
situation. If we do, then action-oriented approaches are some of the most satisfying and
rewarding ways of managing stress. These are techniques that we can use to manage
and overcome stressful situations. Changing them to our advantage.
The early selections on the title bar above focus on action-oriented coping.
These selections introduce skills that help you to manage your job actively, work well
with your boss and co-workers, and change your surroundings to eliminate
environmental stress.
Emotionally-oriented approaches-subtle but effective

If you do not have the power o change a situation, then you may be able to
improve things by changing he way you look at it, and feel about it, by using an
emotionally oriented approach. These are often less attractive than action-oriented
approaches in that the stresses can recur time and again; however, they are useful and

TAXATION
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 there’s 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 one’s 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

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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.
● In an anxious state the person does not want to be corrected or interrupted. He
looks out for other areas where he can forget about the stress-causing event for
a while . The person becomes irritable and moody.
● 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.
● Physiological and Behavioral Changes
● Speech problems
● Impulsive Behavior
● Crying for no apparent reason
● Laughing in a high pitch and nervous tone of voice.
● Grinding of teeth
● Increasing smoking and use of drugs and alcohol.
● Being accident-prone
● Perspiration/ sweaty hands

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● Increased hear beat

● Trembling
● Nervous ticks
● Tiring easily
● Urinating frequently
● Sleeping problems
● Diarrhea / indigestion /vomiting /nausea
● Butterflies in stomach
● Headaches
● Premenstrual tension
● Pain in the neck and or lower back
Causes of Stress
Both positive and negative events in one’s 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 divorcé can cause stress. Pregnancy can also
generate Stress.
They are:
⮘ Time pressure
⮘ Competition
⮘ Financial problems
⮘ Noise
⮘ Disappointments
UNDERSTADING STRESS
Three potential sources of stress:
⮘ Environmental Factors
⮘ Organizational Factors

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⮘ 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
❖ Organization’s Life Stage
Task Demands: Task demands are factors related to a person’s job. They include the
design of the individual’s job (autonomy, task variety, degree of automation). Working
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

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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.

TAXATION
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 up’s.
❖ 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
implementing the different techniques the opinions of team leaders are also

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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
❖ It has recommended to the company that if stress management techniques are

initiative then the average health of the employees will be better and he will be able
to better cope with stress, then by the level and degree of performance of the
employee will improve.
❖ It is recommended that the company should give one task at a time and give
sufficient time in meeting the targets so that the employee performs his best without
any stress.
❖ It is recommended that it should focus more in giving stress management
techniques to the age group of 20-29 probably due to inexperience.
❖ It is recommended to the company to take appropriate measures in identifying and
arresting the psychological problems, then the health related problems would also
come down. As psychological has a direct impact on health, the performance of
employee will improve.
❖ It is recommended to the company that it should conduct frequent health check ups
gauges the health level of employees from time to time. If the health of the employee
is fine then it can inferred that the degree of stress in the organizations less or
negligible.
❖ 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

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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.
❖ It is recommended to the company to initiate a few changes at the work place

such as timely targets, distributed workload, flexible work hours and periodic
relaxation.
❖ It is recommended to the company to provide frequent counseling to the
employees who are under stress. The counseling should be more focused on the
employees in the age group between 20-29 they should also not ignore those
with 10 plus years of experience as they are more vulnerable to stress.
❖ It is recommended to the company to employee job rotation since doing the
same job again and again causes monotony therefore job rotation can be used
as an effective tool to reduce stress by creating more interest in the work which
will lead to better employee performance.
❖ It is recommended to the company to instantly recognize any good wok done by
the employees however small it may be. They should regard then suitably and
provide them constant encouragement and support. This will stand in good stead
in the long run in sustaining the high morale of the employees and also
enhancing it future.
❖ It is recommended that since psychological problem have a direct impact on
health it also affect the interpersonal relationships and the quality of work
performance among the employees. It is therefore recommended to the company
that they try to reduce or eliminate the psychological problems by engaging or
hiring well-trained psychiatrist.
❖ It is recommended that the more experienced employee should be given more
work load than the in experienced employee shouldn’t be burdened with
workload but initially they should be given distributed work and gradually the

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amount of workload can be increased with the passage of time as they gain more
experience.
❖ It is recommended that the company should create a balance between timely
targets and distributed workload by allotting a piece of work to be competed in a
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

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A PROJECT REPORT ON

IDEMITSU LUBE INDIA PVT. LTD.

In Partial Fulfillment for the Award Of

MASTER IN MANAGEMENT STUDIES

PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF

I, Pradeep N. Patil, hereby declare that the project report entitle

“TAXATION” is original of mine, done from “ IDEMITSU LUBE INDIA PVT.

LTD.” submitted in partial fulfillment for the Award of Master’s Degree in

Management System of Mumbai University is my original work and does any

Part of previously carried / conducted project.

PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 2

PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 3

I am sincerely thankful to my Faculty supervisor Prof. Srikesh Poojari,

PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT who

Completion of this project.

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Sr. Particulars Page

2 Scope of the study 6

3 Objectives of the study 7

6 Introduction To Taxation In India

7 Direct and Indirect Tax Collection

For any research assignment, a proper planning is required and the

An excise duty is a type of tax charged on goods produced within the

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▪ Goods must be movable. Duty cannot be levied on immovable

NEED FOR THE STUDY

● The purpose of the study is to get detailed knowledge about

SCOPE OF THE STUDY

This particular study about Work Stress Management is restricted

OBJECTIVE OF THE STUDY

● The objective of the study is to identify the existence of work stress

Manufacture and Sale of Lubricants from Idemitsu Group Plant in India

By fiscal 2021, India's vehicle production is forecast to increase further to

Today marks the start of production at the newly constructed lubricant

By building independent networks from manufacture through distribution

(A bird's-eye view of the plant)

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(An exterior view of the plant's office building)

2. Site Area Approx. 78,000 sq.m

HR Head Finance & Purchase Production Marketing Logistic

HR Manager Finance Purchase Production Marketing Logistic

So when I joined they allotted me lots of work.

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INTRODUCTION ON TAXTION IN INIDA

Taxation is the imposition of financial charges or other levies, upon a

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DIRECT TAX INDIRECT TAX

Income Tax Central Excise Duty

Wealth Tax Customs Duty

Corporate Tax Central Sales Tax

Professional Tax Sales Tax (VAT)

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According to the corporate tax rates for 2015-16 fiscal, international

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surcharge that it will have to pay will be 5%.

The government of India imposes an income tax on taxable income of

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The changeability is based on nature of income, i.e., whether it is revenue or

Some people have lots of confusion in mind about income tax