TITLE OF THE PROJECT

COMPUTARISED ACCOUNTING AND E-FILING OF TAX RETURNS

(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of Calcutta)

SUBMITTEDBY
NAME OF THE CANDIDATE :ARANI NATH
SECTION : B.COM ( GENERAL )
SUBJECT : E-FILLING OF TAX RETURN
CAS REGISTRATION NO : 144-1111-1376-20
ROLL NO : 201144-22-0044
COLLEGE ROLL NO. : B0066

SUPERVISEDBY
NAME OF THE SUPERVISIOR : DEBASIS BISWAS
NAME OF THE SUPERVISOR:
NAME OF THE COLLEGE : BANGABASI MORNING COLLEGE
MONTH & YEAR OF SUBMISSION
 SUPERVISOR’S CERTIFICATE
This is to certify that Mr Arani Nath a student of B.com General
in Accounting & Finance of Bangabasi Morning College under
University of Calcutta has worked under my supervision and
guidance for the title TALLY which he is submitting. His Genuine
and original work to the best of my knowledge.

Place : Kolkata
Signature:
Date:
Name: Debasis Biswas, Dipika Das
Name of College: Bangabasi Morning College
 STUDENT DECLARATION
I hereby declare that this project TALLY submitted by me for
the partial fulfillment of the degree B.Com general in
accounting and finance under University of Calcutta is my
original work and has not been submitted earlier under any
other University or institution for fulfillment the requirement of
other course of study. I also declared that no chapter of this
manuscript or part has been incorporated in this report from
any earlier work done by others or by me. However, extracts of
any literature which has been used for this report has been
duly acknowledge providing details of search literature in this
reference.

Place : Kolkata
Signature:
Date: NAME ARANI NATH
SEC: COMMERCE
SUB :B.COM GENERAL
UNIVERSITY ROLL NO :201144-22-0044
UNIVERSITY REGISTRATION NO:144-1111-1376-20
COLLEGE ROLL NO:B0066
 INDEX: E-FILLING OF TAX RETURN
SL NO CONTEXTS NO
1 INTRODUCTION

2 FILING OF TAX RETURN

3 FORMS

4 REGISTRATION OF MY PAN

5 26AS FORM

6 CHALLAN 480

7 CONCLUSION

8 BIBLIOGRAPHY
 INTRODUCTION
Income tax return is the form in which assessee files information
about his/her income and tax thereon to Income Tax Department.
Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and
ITR 7. When you file a belated return, you are not allowed to carry
forward certain losses.

The Income Tax Act, 1961, and the Income Tax Rules, 1962,
obligates citizens to file returns with the Income Tax Department
at the end of every financial year. These returns should be filed
before the specified due date. Every Income Tax Return Form is
applicable to a certain section of the Assessees. Only those Forms
which are filed by the eligible Assessees are processed by the Income
Tax Department of India. It is therefore imperative to know which
particular form is appropriate in each case. Income Tax Return
Forms vary depending on the criteria of the source of income of
the Assessee and the category of the Assessee.

A computerised accounting system is an accounting

information system that processes the financial
transactions and events as per Generally Accepted
Accounting Principles (GAAP) to produce reports as
per user requirements.
Filing of income tax returns: obligation by law
Individuals who fulfil any one of the following conditions should by law file
their Income Tax Returns during a financial year:

 People whose gross total income (before any deductions exceeds

₹2.5 lakh in FY or ₹3 lakh for senior citizens or ₹5 lakh for super
senior citizens).
 Companies or firms irrespective of whether you have income or loss
during the financial year.
 Those who want to claim an income tax refund.
 Those who want to carry forward a loss under a head of income.
 Resident individuals who have an asset or financial interest in an
entity located outside of India. (Not applicable to NRIs or RNORs).
 Residents and signing authorities in a foreign account. (Not applicable
to NRIs or RNORs).
 Those who derive income from property held under a trust for
charitable or religious purposes or a political party or a research
association, news agency, educational or medical institution, trade union,
a not for profit university or educational institution, a hospital,
infrastructure debt fund, any authority, body or trust.
 Foreign companies taking treaty benefit on a transaction in India.
 NRIs, who have income that exceeds ₹2.5 lakh in FY which is
earned or accrued in India, are required to file an income tax return in
India.

Penalty on late filing of ITR (effective from 1 April 2018)

As per the new law from this year, Individuals will have to pay late fee
after last date to file income tax return for the FY 2018-19

1. Rs 5000 if tax is filed after due date of 31 August but on before

31 December of that assessment year (in this case 31 December
2019)
2. Rs 10,000 if tax is filed after 31 December but on or before 31
March of the relevant assessment year (in this case from 1 January
to 31 March 2020.
3. Rs 1000 if total income does not exceeds Rs 5,00,000
Forms[
ITR-1
ITR-1 form is an essential Income Tax Return form for Indian citizens filing
their tax returns with the Income Tax Department.

Eligible individuals for ITR-1 SAHAJ (Hindi terminology meaning 'easy')

Individuals who have earned their Income for a Financial Year only through
the following means are eligible to fill the ITR-1 SAHAJ form.[5]

 Through Salary or Pension

 Through One House Property (except in case of losses brought
forward from preceding years)
 Through other sources apart from Lottery, Racehorses, Legal
Gambling etc. Other sources include FD interest, spousal pension etc.

In case of clubbed Income Tax Returns, where a spouse or a minor . is

included in the tax returns, this can be done only if their income too is
limited to the specifications laid down above.

Non-eligible individuals for ITR-1 SAHAJ

Individuals who are not eligible to fill the ITR-1 SAHAJ form are those who
have earned Income through the following means:

 Through more than one piece of Property

 Through Lottery, Racehorses, Legal Gambling etc.
 Through non tax-exempted capital gains, Short term as well as
Long term
 Through exempted income exceeding Rs. 5000
 Through Business and Professions
 Loss under the head other sources
 Any Person claiming relief under section 90 and/or 91
 Having Total Income more than Rs 5 million
 If any Resident Individual who has any Income from any source
outside India or has any asset outside India or has signing authority in
any account located outside India
Submission of ITR-1 form

The form can be submitted physically at any Income Tax Returns Office. An
Acknowledgment Receipt can be obtained upon submission.

In case of Electronic Filing of the form there are two alternatives. Firstly, if a
Digital Signature is obtained, the Form is uploaded online. Secondly, the
Form is downloaded, printed, signed, and a copy of the acknowledgement is
sent by post to the Income Tax Department's office in Bengaluru.

ITRV can now be verified online using Unique Identification Authority of India
Aadhaar Card or Electronic Verification Code (EVC). The EVC can be
generated either via One Time Password sent to email and registered mobile
number (if income is less than INR 500,000) or via Net Banking. After
online verification Income Tax Assesses is not required to send ITRV to
Bangalore CPC.

The ITR-2 is a Form used by Income Tax Assesses in India. The process of
filing Tax Returns in India involves the use of various forms for different
categories of Assesses and the ITR-2 is one such form.

ITR-2 Form
The ITR-2 Form is an important Income Tax Return form used by Indian
citizens as well as Non Residents to file their Tax Returns with the Income
Tax Department of India. The Income Tax Act, 1961, and the Income Tax
Rules, 1962, require citizens to file their tax returns with the Income Tax
Department at the end of every financial year and this form is a part of the
filing process as specified by the Government of India.

The due date for filing return with the Income Tax Department of India is
31 July every year. This is subject to change only if a directive to this effect
is issued by the Income Tax Department or the Ministry of Finance, India.
The Financial Year ends on 31 March every year so Assessees have a period
of four months to prepare their Income Tax Returns.

Eligibility for the ITR-2 Form

The use of the ITR-2 Form is applicable to the following means of income
only. This form is available for both Individuals as well as Hindu Undivided
Families. Individuals earning an income only through the following means are
eligible to fill and submit the form to the Income Tax Department.

 Earning Income through a salary or pension

 Income through House Property.
 Earning Income through capital gains (Short Term and Long Term)
 Earnings through Other Sources (includes Income through Lottery
Winnings, through bets on Racehorses, and other Legal methods of
Gambling)

The Income Tax Returns, if clubbed together with that of a spouse, minor
child etc. needs to ensure that their sources of income are similar to those
stated above. Only then can their returns be filed together. A difference of
earnings in even one category makes the Assessee liable to fill a separate and
applicable Income Tax Returns Form.

Non-eligibility for the ITR-2 Form

 Any Individual or Hindu Undivided Family whose income, in whole

or in part, is earned either through a Business or a Profession.
 Individuals who are eligible to fill the ITR-1 SAHAJ form.
 An individual who is designated as a partner in a Partnership Firm is
not eligible to fill the ITR-2 Form.

Special concession for salaried personnel

Salaried personnel who earn an income of Rupees Five Lakh or less are
exempted from filing Tax Returns as per the directive of the Income Tax
Department of India. This rule however is only applicable to those who earn
less than Rupees Ten Thousand as Income by way of Interest earned through
their Savings Bank Accounts. Those who earn Rupees Ten Thousand or more
are required to file their Tax Returns.

E-filing compulsory for a certain section of Income Earners

The Central Board of Direct Taxes (CBDT) has made it compulsory for
Individual and Hindu Undivided Families earning an income in excess of
Rupees Five Lakh to file their Tax Returns only through the E-Filing Process.
The manual filing of returns is no more an option for Assessees who come
under this category. Electronic Filing of their Tax Returns is the only way to
file the income tax return for the Individual and HUFs

ITR-3 Form
The ITR-3 Form particularly applies to those Individuals and Hindu
Undivided Families who are registered as Partners in a firm. As per Rule 12
of the Income Tax Rules, 1962, this form does not apply to those who
are Proprietors of a firm. It is mainly for the business which includes
partnership deals. It is also applicable for professionals but it should be a
partnership profession.[citationneeded]

Eligible Assessees for the ITR-3 Form

The eligibility criteria of every Income Tax Return form are governed by a
set of rules and conditions. The ITR-3 Form is applicable only to those
Individuals and Hindu Undivided Families that can be placed under the
following categories

 Is a Partner in a firm
 Gains Income through ‘Profits or gains of business or profession’
 Gains Income by means of interest, salary,
bonus, commission, remuneration, as a
partner

If the partner of a firm only earns income from the firm as a share in the
profits and not by any other means such as interest, bonus, salary,
remuneration, or commission etc. then such an Individual or Hindu
Undivided Family should file Income Tax Returns using only the ITR-3 Form,
and not the ITR-2 Form.

Non-eligible Assessees for the ITR-3 Form

Individuals and Hindu Undivided Families who are not eligible to fill the ITR-
3 Form are those who have earned Income through a Business or Profession
operated as a Proprietorship firm.[9] Assessees, who apart from being a
partner in a firm, also have sources of income from a business or profession,
including the speculation market, are also not eligible to file their Income Tax
Returns through this form.

ITR-4 Form

The ITR-4 Form is applicable to those individual and Hindu Undivided

Families who want to declare their income from Business or Profession under
Presumptive Income Scheme of Income Tax under Section 44AD ,Sec 44ADA
and Section 44AE of the Income Tax Act
1. PROJECT WORK ON REGISTRATION MY PAN

Step - 1
▪ Click Link https://www.incometaxindiaefiling.gov.in/home
▪ Click Register yourself
▪ Select User Type as Indivisual and Press Continue
▪ Fill the Registration form Indivisual – Enter Basic Details and
Press Continue
Step – 2
• Fill The Registration Form
✓ Enter Password Details
✓ Select Secret Question Form The Drop Down List
✓ Fill The Contact Details
✓ Fill The Address of Indivisual and Click Continue
Step – 3
• Registration Varification
✓ Enter E-mail OTP
✓ Enter Mobile OTP
NOTE – OTP Sent to Your E-mail and Mobile Number

Step – 4
• Registration Sucessful
✓ Open My Transaction ID and User ID
2. PROJECT WORK ON 26AS FORM
Step – 1
▪ Click Link https://www.incometaxindiaefiling.gov.in/home
▪ Click on the Log in Here
▪ Fill The Log In Details – [User ID Your PAN No.]
➢ Enter Your User Id
➢ Enter Password
➢ Enter Captcha Code And Click on Log In Tab
Step – 2
• Click On Profile Setting
• Select My Profile
• Cliclk On Contact Details
• Click On PAN Details
Step – 3
• Click On My Acoount
• Select Veiw Form26AS (Tax Credit)
• Click Confirm
• Click Proceed
Step – 4
• Click View Tax Credit (Form 26AS) to view your Form 26AS.
• Put Assesment Year( Current Year) in the Box
• Put HTML in the Veiw as Box
• Click View/Download
3.
PROJECT WORK ON CHALLAN 280

Challan or Chalan is a common Hindi word (चालान, cālān) that has

become an Indian English technical word used officially in many professional,
especially financial transactions. It usually means an official form or receipt
of acknowledgement or other kind of proof document, piece of
paperwork, police citation, etc. According to American Merriam-
Webster Dictionary "Chalan" means voucher or invoice. Similarly, British-
English Dictionary Lexico also defines Challan as noun, "an official form or
document, such as a receipt, invoice, or summons," and verb, "issue (someone)
with an official notice of a traffic offence" and gives several examples of their
applications, which are also paralleled by the Oxford Learner's
Dictionary's two separate entries on the same. Wiktionary also gives examples
of the application of the word challan in southeast Asia, including its use as a
verb with challaning and challaned used similarly in context and meaning to
police ticketing or someone being ticketed. While most of the dictionaries talk
about the meaning representing a monetary penalty which is true in most
real cases, Collins English Dictionary goes one step further and defines the
verb part of the meaning of Chalan as "verb (transitive), to cause (an accused
person) to appear before a magistrate,"[5] which in reality happens only in a
subset of cases of Challan when a person misses paying the Challan and the
matter moves to the next step of receiving a summon from a court.

Application of "challan" in different contexts[

As opposed to the banking Challan which is an acknowledgement receipt for
a credit, in case of a Traffic Challan, the receipt or ticket usually represents
acknowledgment of an accusation for a penalty which is usually fine of a sum
of money.

Challan as a monetary credit receipt

Banking challan

In case of banking "Challan" is a way of crediting the money to one's bank

account through a form, generally used in India and Pakistan as a receipt
for payment or delivery, and "C.I.N." would stand for "Challan Identification
Number".

As per the definition on the UBS Management firm website:

A challan or bank challan is defined as an official document,

form, or piece of paper used to credit money from one account
to another. It is almost similar to the deposit slip available in
the bank with which you can deposit money into someone's
account in cash. However, in the deposit slip you need to enter
the recipient's data and details while in the bank challan, they
are already pre-filled.

Tax challans
Several Tax forms in India are known as Tax Challan [9] forms e.g. CHALLAN
NO./ITNS 280, CHALLAN NO./ITNS 281, CHALLAN NO./ITNS 282,
CHALLAN NO./ITNS 283. The abbreviation CIN is also used in this context of
tax forms as well.

General payment receipt challan

Any payment receipt from a big institution, especially govt institution issued
to an individual may be termed a challan. e.g. Oxford Learners Dictionary
gives an example "You need to show a copy of the fee payment challan before
you can take the exam.

Challan No/ ITNS 280 to pay Income Tax Online

To pay Income Tax Online, the tax payer is required to open the link –
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and then
click on Challan No/ ITNS 280 for the payment of Income Tax & Corporation Tax.
This will open the Challan No/ ITNS 280 wherein all requisite details
should be furnished by the taxpayer.

The following are Instructions (along with screenshots) to be followed while

furnishing Challan No/ ITNS 280

1. Tax Applicable: If the Income Tax is being levied on a Company, the option
to be selected in Challan No/ ITNS 280 is (0020) – Income Tax on
Companies. In all other cases, i.e. where income tax is not being levied on
a company and is being levied on others like Partnership Firm, LLP,
Individual etc – the option to be selected in Challan No/ ITNS 280 is
(0021) – Other than Companies.
2. PAN No. & Full Name: The taxpayer should carefully furnish the PAN
No. in Challan 280 as a wrong PAN No. would lead to the tax being deposited
on somebody else’s name. The option for mentioning the name of the
taxpayer cannot be manually furnished Challan 280 and it would
be automatically fetched from the name on the PAN No. The
name would be displayed on the confirmation screen after you click the
submit button.
3. Assessment Year: The Assessment Year for which the tax is being paid
should be carefully selected in Challan No/ ITNS 280 as it displays the
option pay the tax for previous years as well. The Assessment Year
is the next year to the financial year.
4. Type of Payment: In this option, the taxpayer is required to select the
type of payment in Challan 280. If the tax is being paid for the same
financial year on the basis of the estimated income – it would be Advance
Tax whereas if the tax is being paid after the end of the financial year – it
would be Self Assessment Tax.
5. Bank Name: The name of the bank through which you intent to make the
online payment is to be selected in this box.
 6. Amount of Tax: The amount of income tax to be paid is not mentioned in
Challan No/ ITNS 280 and would be mentioned on the bank website.

Challan No/ ITNS 280: Beginners Guide to pay Tax

Online
Challan No/ ITNS 280 is required to be used for the payment of Income Tax.
This payment of Income Tax may be in the form of Advance Tax, Self Assessment
Tax, Tax on Regular Assessment, Surcharge, Tax on Distributed Profits or Tax on
Distributed Income.
 Recommended Read: Income Tax Slab Rates
Income Tax can be paid online as well as through cash/cheque/demand draft at
various designated bank branches. Whether you pay tax online or by visiting the
bank, Challan No/ ITNS 280 would be required to be filed in all the cases.
If you intent to pay Income Tax by visiting the bank, you can download the Challan
No/ ITNS 280 through the following links, furnish all relevant details in form
Challan No/ ITNS 280 and deposit it with the bank along with payment of income
tax.

Challan No/ ITNS 280 to pay Income Tax Online

To pay Income Tax Online, the tax payer is required to open the link –
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and then
click on Challan No/ ITNS 280 for the payment of Income Tax & Corporation Tax.
This will open the Challan No/ ITNS 280 wherein all requisite details
should be furnished by the taxpayer.

The following are Instructions (along with screenshots) to be followed while

furnishing Challan No/ ITNS 280

1. Tax Applicable: If the Income Tax is being levied on a Company, the option
to be selected in Challan No/ ITNS 280 is (0020) – Income Tax on
Companies. In all other cases, i.e. where income tax is not being levied on
a company and is being levied on others like Partnership Firm, LLP,
Individual etc – the option to be selected in Challan No/ ITNS 280 is
(0021) – Other than Companies.
2. PAN No. & Full Name: The taxpayer should carefully furnish the PAN
No. in Challan 280 as a wrong PAN No. would lead to the tax being deposited
on somebody else’s name. The option for mentioning the name of the
taxpayer cannot be manually furnished Challan 280 and it would
be automatically fetched from the name on the PAN No. The
name would be displayed on the confirmation screen after you click the
submit button.
3. Assessment Year: The Assessment Year for which the tax is being paid
should be carefully selected in Challan No/ ITNS 280 as it
 displays the option pay the tax for previous years as well. The
Assessment Year is the next year to the financial year.
4. Type of Payment: In this option, the taxpayer is required to select the
type of payment in Challan 280. If the tax is being paid for the same
financial year on the basis of the estimated income – it would be Advance
Tax whereas if the tax is being paid after the end of the financial year – it
would be Self Assessment Tax.
5. Bank Name: The name of the bank through which you intent to make the
online payment is to be selected in this box.
6. Amount of Tax: The amount of income tax to be paid is not mentioned in
Challan No/ ITNS 280 and would be mentioned on the bank website.

Once you have furnished all relevant details, process the proceed button given at the
bottom of the page and it would lead to a confirmation page wherein all details as
furnished by you would be displayed. The Full name of the taxpayer would also
be displayed as mentioned on the PAN Card.

If all details displayed on the confirmation screen are correct, press the button –
“Submit to the Bank” or else press the “Edit” button which will again take you back
to the first page to edit the details.

Once all details have been verified by you as correct and submitted to the bank, your
banker will ask you to login to your bank account. Once logged in, it will ask you
for the amount of Income tax you would like to pay, the surcharge levied on
the same (if any), education cess levied on the same, Interest and penalty levied
(if any).

On submitting these details, press the “Calculate tax button” and it will show the total
tax to be paid (incl. the surcharge, education cess, interest & penalty). You are
requested to make this payment online.
 CONCLUSION
The following projects are hencely researched
and taken from differwnt websites and
study matterials given by professors and
invigilators who helped us taking this
project. I also am grateful to our college for
taking this initiative to conduct practicals as
well as theoretical concepts to complete this
project as a whole.
My respects also goes to our
supervisors to guide us to completely finish
this project in time.
 BIBLIOGRAPHY
 WWW.GOOGLE.COM
 WWW.WIKIPEDIA.COM
 https://www.incometaxindiaefiling.gov.in/home