Introduction

Income tax was introduced in 1860, abolished in 1873 and reintroduced in 1886. Income

tax levels in India were very high during 1950-1980, in 1970-71 there were 11 tax slabs with

highest tax rate being 93.5% including surcharges. In 1973-74 highest rate was 97.75%. But to

reduce tax evasion tax rates were reduced later on, by 1992-93 maximum tax rates were reduced

to 40%. Lack of awareness amongst taxpayers is often cited as one of the main reasons for low

level of compliance towards tax laws. It has been a constant Endeavour of the Directorate of

Income Tax to increase the awareness of the taxpayers about the provisions of tax laws and the

steps taken by the government to reduce the complexities of tax laws and improve Tax Payer

Service.

“Filing Your Tax Return” is one of the most popular booklets among the taxpayers.

The filing of income tax is a legal obligation of every person whose total income and wealth tax

during the previous year exceeds the maximum amount which is not chargeable to income tax or

wealth tax under the provisions of I.T. Act, 1961 or Wealth Tax Act 1957, as the case may be.

The return should be furnished in the prescribed form on or before the due date(s).

It is compulsory for every company to furnish return of income. Every person, other than a

company, whose total income from all sources of income exceeds the maximum amount which is

not chargeable to income tax in any previous year ending on 31st March is liable to file the

Income-tax Return.

Though this present study I am try represent ‘What about Income tax Act’ & Procedure for

Income Tax filing return.

1
Objectives

1. To study Income tax act in India.

2. To study procedure for filing income tax return.

Research methodology

The information for the project study is collected from secondary sources such as internet, books.

Limitation

The information for the project study is related only income tax act in India & it referred from

internet & books only.

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 Income tax act, 1961
History

Income tax was introduced in 1860, abolished in 1873 and reintroduced in 1886. Income tax

levels in India were very high during 1950-1980, in 1970-71 there were 11 tax slabs with highest

tax rate being 93.5% including surcharges. In 1973-74 highest rate was 97.75%. But to reduce

tax evasion tax rates were reduced later on, by 1992-93 maximum tax rates were reduced to 40%.

What is income tax?

Every government derives revenues by levying taxes. Such taxes can be either “Indirect”

or “direct.” Indirect taxes are in the form of customs duties, excise duties, Value added tax

(VAT), services tax etc. These indirect taxes are levied irrespective of level of income of a

person. On the other hand, direct taxes are levied directly based on the income of person. The

dictionary meaning of the word ‘Income Tax” Is ‘a tax directly levied on income or incomes

over a certain period.” Thus, income tax is a direct tax. Of all the direct taxes, the maximum

revenue to the government is from income tax. The law relating to it is contained in the income

tax act, 1961.

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INCOME TAX ACT - 1961

1.Person - According to Income Tax Act Person includes the following : -

a) an Individual
b)a Hindu Undivided Family
c) a Company
d)a Firm
e) an association of persons or a body of individuals whether incorporated or not
f)a local authority
g)every artificial juridical person not falling in the categories mentioned above.

EXAMPLES:-

Individual : - Mr. Ram.

H.U.F. : - Joint Hindu Family of Mr. A, Mrs. A & their son B.
Company : - Reliance Industries Ltd.
Firm : - M/s X & Y a partnership firm.
AOP / BOI : - Tata Memorial Trust .
Local Authority : - Ratnagiri Municipal Corporation.
Artificial Juridical person : - Mumbai University.

2. Assessment –
Assessment means the process of determining and computing the amount of Taxable

Income & the tax payable by the assessee or refundable to the assessee.

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3. Assessee -Assessee means a person by whom any tax or any other sum of money is payable

under this Act. The term Assessee includes following persons -

i) A person by whom any tax, interest or penalty is payable under Income Tax Act.

ii) A person who is required to file return of income or loss.

iii) A person who is not liable to pay the tax but since the tax is deducted at source, he is

entitled to claim for refund.

iv)A person who is assessable in respect of income or loss of any other person.

v) Every person who is deemed to be an assessee under any provisions of this Act.

vi)Every person who is deemed to be an assessee in default under any provisions of this Act.

4. Assessment Year -

Assessment Year means a period of 12 months commencing on the first day of April

every year. Income earned by the assessee during the previous year is chargeable to tax in

the assessment year. Assessment Year begins immediately after the end of the previous

year.

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5. Previous Year -

Financial year immediately preceding the assessment year shall be the previous year.

All assessees for all sources of income will have to follow the same previous year i.e.

financial year ending 31st March every year.

Example of previous year & assessment year -

Previous year 2012-2013 : - 1st April 2012 to 31st March 2013.

Assessment year 2013-2014 : - 1st April 2013 to 31st March 2014.

6. Income - Income means the amounts earned by a person by way of different sources. A

person gets income from many sources. Important points to understand the concept of

Income are as under,

1. Income means periodical monetary return of regular nature from definite source.
2. Income may be received in cash or in kind.
3. Income may be received by way of legal or illegal activities.
4. The term income includes loss.
5. Personal gifts such as gifts at the time of birthday, marriage etc. are not treated as
income. But gifts received by professionals in appreciation of their professional skills is
treated as income.
6. Pin money received by wife for her personal expenses is not treated as income.
Definition of Income is inclusive & not exclusive. As per section 2(24) of The Income Tax
Act, the term Income includes the following -
1. Profits & Gains.
2. Dividend.
3. Voluntary contributions received by a charitable or religious trust or institution.

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 4. Salary, Perquisites, profits in lieu of salary, allowances, pension etc. granted to an
employee.
5. Export incentives.
6. Any interest, salary, commission, bonus or remuneration earned by partner from the firm.
7. Any capital gains chargeable u/s 45.
8. Profit on sale of import licence.
9. Export cash assistance received from government.
10. Refund of customs or excise duty.
11. Benefits or perquisites from business or profession.
12. Profits of any business of insurance carried on by insurance company or a co-operative
society.
13. Profits of any business of banking carried on by a co-operative society with its members.
14. Winnings from lottery, crossword puzzle, races including horse races, card games, game
show etc.
15. Rental Income from House Property.
16. Income from sub letting of property.
17. Income from letting of machinery & other assets.
18. Interest on Investments.
19. Family Pension.
20. Any sum of money exceeding Rs.50,000/- received as a gift by an Individual or HUF
from any
person. However exception is granted in following cases - a) from any relative b) on
occasion of marriage of individual c) under will or by way of inheritance d) due to
death of payer.

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According to Income Tax Act Income is divided into following heads.
1. Income from Salary.
2. Income from House Property.
3. Profits and Gains of Business or Profession.
4. Capital Gains.
5. Income from Other Sources.

7.Charge of Income Tax – Income Tax liability is determined in the following manner -

* Income tax is a tax on annual income.

* Rates of income tax are not specified in the Income Tax Act. But the rates of tax
are laid down by
the Finance Act passed by the parliament every year.
* Total income of one financial year ( previous year ) is charged to tax in the succeeding
financial
year ( assessment year ).
* Total income is to be computed in accordance with the provisions of the Income Tax act
applicable for that assessment year.
* Income earned by all types of persons is charged to tax.

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INCOME EXEMPT FROM TAX (SECTION 10)

Following incomes are totally exempt from tax as per section 10 of the Income Tax Act 1961.
1. Agricultural Income from land situated in India.
2. Any Sum received by an individual as a member of HUF.
3. Share of Profit received by a Partner from his Partnership Firm.
4. Any amount received on maturity of L.I.C. policy.
5. Scholarship received to meet the cost of education.
6. Award received from Central Govt. or State Govt.
7. Any income arising from transfer of units of Unit Scheme 1964.
8. Dividend received from Unit Trust of India.
9. Dividend received from Indian Company.
10. Interest on Post Office Saving A/c.
11. Interest on Public Provident Fund A/c.
12. Income received in respect of units of Mutual Fund.
13. Daily allowances received by MPs & MLAs.
14. Any proceeds received from Provident Fund.
15. If income of a minor child is clubbed with the income of parents, then such income is
exempt from tax up to
Rs.1,500/- in respect of each minor child whose income is clubbed.

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Income Tax Rates/Slabs Rate (%) (applicable for assessment year 2015-16)

Net income Net income Net income Net income Income Tax
range range (For range (For range (For any rates
(Individual resident senior super senior other person
citizen)
resident (Age citizen) excluding
below 60 Yrs.) companies and
or any NRI / co-operative
HUF / AOP / societies)
BOI / AJP)
Upto Rs. 250,000 Upto Rs. 300,000 Up to Rs.500,000 Upto Rs. 200,000 Nil
Rs.250,001- Rs.300,001– - Rs.250,001– 10%
500,000 500,000 500,000
Rs.500,001– Rs. 500,001– Rs. 500,001– Rs. 500,001– 20%
1,000,000 1,000,000 1,000,000 1,000,000
AboveRs. AboveRs. Above Above Rs. 30%
1,000,000 1,000,000 Rs.1,000,000 1,000,000

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Obligation to file Return of Income

Under section 139 of the Act, following persons are under an obligation to file their return

of income:

 All Companies and Firms (including LLP) - irrespective of level of income

 Person other than company / firm, if the total income exceeds maximum amount not

chargeable to tax [section 139(1)(b)]

 Resident & Ordinary Resident having foreign asset or signing authority for foreign bank

account [4th proviso to section 139(1)]

 Person having business loss/capital loss seeking carry forward to file return of income

[section 139(3)]

 Individual / HUF / AOP / BOI / Artificial Juridical Person having total income exceeding

maximum amount not chargeable to tax before deduction under Chapter VIA / Section 10

/ 10B / 10BA also liable – 5th proviso to section 139(1)

 Political party with total income before section 13A exemption exceeding maximum

amount not chargeable to tax liable – section 139(4B)

Person having income from property held in trust for charitable / religious purposes with total

income before section 11/12 exemption exceeding maximum amount not chargeable to tax liable

section 139(4A)

 Research association, news agency, professional regulatory body, khadi / village industry

development body, educational/medical institution, trade union, public regulatory body,

infrastructure debt fund liable if total income before exemption exceeds max amt not

chargeable to tax – section 139(4C)

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  University/college/institution [section 35(1)(iii)] liable to file where:

• Exemption under section 10AA/10C

• Exemption under DTAA

• Only Income liable to flat rate of tax under section 115A

- Interest with TDS deducted – section 115A(5)

- Royalty & FTS with TDS deducted

• Non Resident Indian with only investment income/LTCG & TDS deducted section 115G

• Non-resident with GDR interest/dividend income - section 115AC(4)

• Non-resident sportsmen/entertainers/sports associations – section 115BBA(2)

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Due Dates

13
Recent Amendments in ITA/ITR

W.e.f. AY 2012-13, any resident who is otherwise not required to furnish a ROI, will now be

required to furnish a return if-

 has asset located outside India including any financial interest in any entity, or

 has signing authority in any account located outside India

 The Finance Act, 2013 has made an amendment to explanation to section 139(9) –

treatment of return as defective if self assessment tax and interest not paid before filing of

return of income

 The amendment will be with effect from 1.6.2013 and is applicable to returns filed after

that date.

 Limits for tax audit increased to Rs. 1 crore/Rs.25 lakhs for business and profession

respectively with effect from AY 2013-14

 Vide IT (Seventh Amendment) Rules, 2013, even trusts claiming exemption u/s. 10(23C)

will have to compulsorily file e-returns

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ITR Forms

ITR1 For Individuals having Income from Salary/ Pension/

family pension & Interest
ITR2 For Individuals and HUFs not having Income from
Business or Profession
ITR3 For Individuals/HUFs being partners in firms and not
carrying out business or profession under any
proprietorship
ITR4 For individuals & HUFs having income from a proprietary
business or profession
ITR5 For firms, AOPs and BOIs
ITR6 For Companies other than companies claiming exemption
under section 11
ITR7 For persons including companies required to furnish return
under section 139(4A) or section 139(4B) or section
139(4C) or section 139(4D)
ITR8 Return for Fringe Benefits
ITRV Where the data of the Return of Income/Fringe Benefits in
Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8
transmitted electronically without digital signature

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ITR Forms to be used

Form No Applicable to Not Applicable to

ITR-1 Individual having income only from Individual having:
(Sahaj) Salaries, Family Pension, House Property i. More than one HP
(HP), Income from Other ii. B/f losses under HP or loss under
Sources (IOS) IFOS
iii. Winnings from Lottery or Income
from Race Horses
iv. R & OR having foreign assets/
signing authority in foreign bank
account
v. Claim for foreign tax credit/ relief
under section 90/90A/91
vi. Exempt income exceeding
Rs.5,000
ITR-2 Individual/HUF Individual/HUF having
business/professional Income
ITR-3 Individual/HUF who is partner in a firm Individual/HUF having any other
business/ professional income
ITR-4 Person (including company) required to _
file return under section 139(4A),(4B),
(4C) or (4D)
ITR-4S Individual/HUF having presumptive Individual/HUF :
(Sugam) business income computed under section i. Being R & OR having foreign
44AD/44AE assets/ signing authority in foreign
bank account
ii. Claiming foreign tax credit/ relief
under section 90/90A/ 91
iii. Having exempt income exceeding
Rs.5,000
ITR-5 Person other than Persons required to file return
Individual/HUF/company u/s.139(4A),(4B),(4C) or (4D) ITR 7
ITR-6 Company Company required to file ITR 7
ITR-7 Person (including company) required to -
file return under section 139(4A),(4B),
(4C) or (4D)

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Steps To File Your Income Tax Return Online

The last day for filing your income tax return is here. Don't fret. Follow these simple steps and

file your tax return online before the end of the day:

Step 1

Log on to the Income Tax Department's portal meant for filing taxes online. Register yourself

using your Permanent Account Number (PAN), which will act as your user ID.

Step 2

Under the 'Download' menu, go to e-filing AY 2012-13 < Individual/HUF and select the

appropriate Income Tax Return (ITR) form. Download ITR-1's (Sahaj) return preparation

software if you are a salaried individual, pensioner, own one house property and/or earn interest

income.

Step 3

Open the downloaded Return Preparation Software (excel utility), follow the instructions and

enter all the details using your Form 16.

17
Step 4

Compute tax payable by clicking the 'Calculate Tax' tab. Pay tax and enter the challan details in

the tax return (not applicable if your tax liability is nil).

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Step 5

Confirm the details entered by clicking the 'Validate' tab. Proceed to generate an XML file,

which will be automatically saved on your computer. The registration process (Step 1) can also

be initiated at this stage.

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Step 6

Go to 'Submit Return' on the portal's left panel and upload the XML file after selecting 'AY

2012-2013' and the relevant form.

Step 7

You will be asked whether you wish to digitally sign the file. If you have obtained a DS (digital

signature) select 'Yes'. Else, choose 'No'.

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Step 8

Once the message regarding successful e-filing is flashed on your screen, the process is

complete. The acknowledgement form - ITR-Verification (ITR-V)-will be generated and you can

download the same. It will also be mailed to your registered email ID.

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Step 9

Take a print-out of the form ITR-V, sign it in blue ink, and send it by ordinary or speed post to

the Income Tax Department-CPC, Post Bag No-1, Electronic City Post Office, Bangalore - 560

100, Karnataka, within 120 days of uploading your e-return. Couriered documents will not be

accepted.

Step 10

The I-T department will send you the acknowledgement by email, which is the final step in the

process. If you do not receive it from the Income Tax Department in due course, you can send

the form ITR-V again.

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Some Helpful Tips for Filing Income Tax Returns
Income-tax return is a legal document and it should be filed by the assessee with due care

and caution. There should be no corrections or overwriting and it should be properly signed and

verified by the person authorized to do so under the provisions of the Income-tax Act. The

following important points may be taken care of while filling up the

return forms:

1. Assessment year to which New Forms are applicable

The new ITRs notified are applicable for the assessment years 2008-09 onwards only, for return

of income relating to earlier assessment years return is to be furnished in the appropriate form as

applicable in that assessment year. Each assessee has to identify the correct ITR Form applicable

in its case before filing the return of income.

2. No enclosures to the return

Rule 12(2) of the I.T Rules provides that the return of income and return of fringe benefits

required to be furnished in Form No. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, or ITR-8 shall

not be accompanied by a statement showing the computation of tax payable on the basis of

return, or proof of tax, if any, claimed deducted or collected at source or the advance tax or tax

on self assessment, if any, claimed to have been paid or any document or copy of any account or

form or report of audit required to be attached with the return of income or return of fringe

benefits under any provisions of the Act.

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3. For timely delivery of refunds, ensure correct address and account number on your

Return of Income

From 1.10.07 onwards, all income tax refunds in Bangalore, Chennai, Delhi, Kolkata and

Mumbai will be delivered by the Refund Banker directly at the communication address

mentioned on the Return of Income. Taxpayers are requested to fill in the correct address

(available during working hours for delivery) to ensure speedy delivery of refunds. In the case of

taxpayers who opt for refunds through ECS, it will be credited directly to the bank account for

which correct MICR code/ Bank Account Number has to be furnished on the Return.

4. Manner of filing the new Forms

These Forms can be submitted in the following manner:

(i) a paper form;

(ii) e-filing

(iii) a bar-coded paper return.

Returns can be e-filed through the internet. E-filing of return is mandatory for companies and

firms requiring statutory audit u/s 44AB. E-filing can be done with or without digital signature)

If the returns are filed using digital signature, then no further action is required from the tax

payers.

b) If the returns are filed without using digital signature, then the tax payers have to file ITR-V

with the department within 15 days of e-filing.

c) The tax payers can e-file the returns through an e-intermediary who would e-file and assist

him in filing of ITR-V within 15 days.

24
Where the form is furnished by using bar coded paper return then the tax payers need to print

two copies of Form ITR-V. Both copies should be verified and submitted. The receiving official

shall return one copy after affixing the stamp and seal.

5. Filling out acknowledgement

Where the return is furnished in paper format, acknowledgement slip attached with the return

should be duly filled in. The new forms are not required to be filed in duplicate.

6. Intimation of processing under section 143(1)

The acknowledgement of the return is deemed to be the intimation of processing under section

143(1). No separate intimation will be sent to the taxpayer unless there is a demand or refund.

7. Furnishing details of high value transactions

In the return the details of high value transactions need to be compulsorily stated, which are

ordinarily reported through the annual information return (AIR) and these details are cross

checked and matched with the data in the AIR.

8. Filing your return through Tax Return Preparers (TRPs)

If you are an individual or an HUF assessee and you are not required to get your accounts

audited (called ‘eligible person’) under the provisions of the Income Tax Act, then you can use

the services of a Tax Return Preparer (TRP). However, if the ‘eligible person’ is not a resident in

India during the previous year relevant to such assessment year, he can not avail of the services

of a TRP. If you are filing your returns through a TRP then you should ensure that:

25
i) You are eligible to file return of Income under this Scheme;

ii) You give your consent to any Tax Return Preparer to prepare your return of income for any

assessment year;

iii) You verify that the facts mentioned in the return are true and correct before you sign the

return;

iv) You certify the amount which has been paid by you under this Scheme to the Tax Return

Preparer for preparing and furnishing of the return of income; and

v) You take a receipt of the payment made to the Tax Return Preparer and produce the same

before the Resource Centre or Assessing Officer, if required,

Incentive to Tax Return Preparers

The Tax Return Preparer shall charge a fee of two hundred and fifty rupees for any assessment

year from the eligible person for preparing and furnishing his return of income for that

assessment year: Provided that he will charge no fees for preparing and furnishing the return for

any eligible assessment year if the amount disbursable to him as per the scheme notified by the

government for that eligible assessment year exceeds two hundred and fifty rupees. If the amount

disbursable is less than two hundred and fifty rupees, we can charge the difference between

rupees two hundred fifty and the amount disbursable.

9. Verification

The verification must be signed by the authorized person before furnishing the return and the

name and designation of the person signing the return should also be written. Any person making

false statement is liable to be prosecuted under section 277 of the Act.

26
Who Can Verify And Sign The Income Tax Return ?

a) Individual :

The individual filing his Income Tax Return has to sign the return. In case the individual is

mentally incapable, then the return may be signed by his Guardian or by any other person

competent to act on his behalf. In case the individual is absent from India or because of any other

reason he is not able to sign and verify his return of income, then any person duly empowered by

him through valid Power of Attorney may sign on his behalf. In such a case, a certified copy of

the Power of Attorney must accompany the return.

b) Hindu Undivided Family :

By the Karta or where he is absent from India or is mentally incapacitated from attending to his

affairs, by any other adult member of such family.

c) Company :

In this case by the following :-

1) Resident : Managing Director or, where there is no Managing Director or he is not able to sign

and verify the return due to any unavoidable reason, by any director thereof.

2) Non-Resident : The return may be signed and verified by a person holding a valid Power of

Attorney from the Company, which should be attached to the return.

3) Wound up/taken over by the Govt. : The return should be signed and verified by the

Liquidator or the Principal Officer as the case may be.

27
d) Firm :

Managing Partner, or where there is no Managing Partner or due to some unavoidable reasons,

he is not able to sign and verify the return, by any partner thereof not being a minor.

e) Local Authority:

By the Principal Officer.

f) Association of Persons :

By any member of the Association or the Principal Officer thereof.

28
Documents to be enclosed with return:

1. Acknowledgment slip in duplicate.

2. Statement of Computation of Income and Tax.

3. Ensure that Challan Identification Number (CIN) is mentioned in your Income-tax Challan.

Attach copy of the acknowledgment of Challan.

4. Attach original T.D.S. Certificate in Form No. 16 or 16A or 16AA as applicable.

5. Certificates/Receipts of payment of insurance premium, provident fund, purchase of NSCs,

new equity shares, mutual fund, NSS, medical insurance, donations etc. in support of

deductions/rebates claimed. Requisite evidence where ever prescribed by law in support of your

claim for any deduction/exemption, must be along with the return. Failure to do so may deprive

you of the deduction and such evidence, even if produced later may not be entertained by the

Assessing Officer.

6. Certificate of interest on housing loan from the lender, in support of deduction from house

property income.

7. Other documents/statements as specified in the return itself and in support of income.

8. Quote your PAN clearly and correctly.

9. In case the assessee has applied for PAN but has yet not received allotment, a copy of PAN

application form filed earlier and its acknowledgment should be enclosed with the return.

10. The name of the employer needs to be mentioned. Salaried employees to mention whether

they are pensioners/Sr. Citizens.

11. Details of bank account to be mentioned to help in issue of electronic refunds. are to filed

with such forms.

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Where To File The Income Tax Returns?

An existing assessee must file his Income-Tax Return with the Assessing Officer who had

previously assessed him or with the Assessing Officer where his case stands transferred. A new

assessee should file the Return with the Assessing Officer having territorial jurisdiction

over the area where he resides or his principal place of business is situated or with the Assessing

Officer having special jurisdiction over specific assessee or classes of income.

For example, where the major source of income of an assessee is the income from contract

business, the IT Return should be filed with the assessing officer having jurisdiction over the

contractor circles. A doctor or C.A. or an Advocate should file the returns in professional circles

if any specified.

The return may be delivered at the counter in the concerned Range/Circle or it may be sent by

registered post. The return is attached with two acknowledgement forms which should be duly

filled in by the assessees. One copy of the acknowledgement form is to be returned by the

official at the counter duly signed, stamped, numbered and dated in support of having received

the return. In case of any doubt or problem, the taxpayer should contact the Public Relations

Officer for guidance and help.

30
Precautions to be taken while preparing the Return of Income

Beware of some of the commonly made mistakes while preparing the tax returns. Here

are some points that you may consider while preparing the tax returns:

1. Prepare a checklist to be followed for preparation and filing of the Return of Income

2. Make sure that signed financials are available. If not, confirm if the profit as per signed

financials matches with the profit as per financials used for preparation of the return.

3.Confirm if all the disallowances reported in the Tax Audit Report are considered in the Return

of Income. If any item of disallowance is not appearing in either the Tax Audit Report or the

Income tax Return, it needs to be highlighted to the management of the company as a possible

issue for litigation.

4. Make sure to highlight the litigative or aggressive stands taken while preparing the Return of

Income to the management of the company / the partner of the firm.

5.As far as possible try to find out the points which are relevant for preparation of return for the

next year and document the same for record purpose. Check the claim for TDS receivable made

in the return of income with the TDS receivable appearing in Form 26AS.

6. Impact of past assessments to be taken into consideration while preparing current years return

of income.

7. It is also important to consider the stands taken in previous year regarding allowance or

disallowance of a particular matter and check whether the same holds good for current year also.

8. Since all the communication by the income tax department is now done via email, one should

make sure that only a valid and functional email id is provided for filing income tax returns.

31
Conclusion

Reforming taxation is an on going process, through which tax policy makers and tax
administrators are continuously adapting their tax system to reflect changing economic, social
and political circumstances. The present study examines the Taxation of Income in India during
post liberalisation period and policy perspective in this regard. It has analysed the growth of
income tax revenue, performance of Income Tax Department and perception of tax professionals
regarding Income Tax System in India.With a view to have a proper understanding of the
research topic important studies relating to personal income tax, capital gains taxation,
agricultural taxation, efficiency of income tax administration etc. conducted in India have been
reviewed. For evaluating growth of income tax revenue in India and performance of the income
tax administration secondary data has been collected mainly from Finance Acts, Explanatory
Memorandum on the Budget of the Central Government, Reports of the various
committees/commissions, Indian Economic Survey, Income Tax Act 1961, Income Tax Rules
1962, various announcements, circulars and notifications of Central Board of Direct Taxes,
Budget speeches of Finance Ministers, Reports of Comptroller and Auditor General of India on
Direct Taxes for the period 1997-98 to 2007-08. For studying the perception of tax professionals
regarding Income Tax System, data has been collected from tax professionals i.e.

SUGGESTIONS FOR FUTURE RESEARCHERS

The present study tried to do an extensive analysis of different aspects of

Income Tax System in India. But, still there is a scope for further research in

the following fields:

 A comparative study of different aspects of Income Taxation in India may

be undertaken with respect to other countries.

32
 An intensive study may be conducted to examine one of the various aspects

of Income Tax System in India.

 The present study examines the perception of tax professionals with respect

to Income Tax System in India. Similarly perception of Income Tax

officials and taxpayers may be studied.

Webliography

patelameet@hotmail.com

www.incometaxindiaefiling.gov.in

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Bibliography

Direct & Indirect Taxes

-C. Sitaraman & Co. Pvt. Ltd (Law Book Publications)

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