AN INTERNSHIP REPORT

Submitted to J.J. College of Arts and Science (Autonomous) Pudukkottai in partial

fulfilment of the requirement for the award of Degree of

MASTER OF COMMERCE WITH COMPUTER APPLICATIONS

Submitted by
SHAKRIHAA S
Reg. No. P24CM1020
Under the Guidance of
Dr.S.Adaekalavan,MCA.,M.PHIL.,Ph.D.
Assistant Professor
-

P. G. AND RESEARCH DEPARTMENT OF COMMERCE WITH COMPUTER

APPLICATIONS
J.J. COLLEGE OF ARTS AND SCIENCE (Autonomous)
(Re-accredited by – NAAC with B++--4th Cycle )
(Affiliated to Bharathidasan University, Tiruchirappalli)
PUDUKKOTTAI-622422
 Dr.S.Adaekalavan,MCA.,M.PHIL.,Ph.D.
Assistant Professor
P.G and Research Department of Commerce With CA,
J.J. College of Arts & Science (Autonomous),
Pudukkottai-622422

CERTIFICATE

This is to certify that the SHAKRIHAA S (Reg.NO: P24CM1020) has been submitted

the Internship report under my supervision during 2024-2025 is partial fulfilment of

the requirement for the award for the degree of MASTER OF COMMERCE WITH

COMPUTER APPLICATIONS and the report has not formed the basis for the awarded

previously of any degree diploma, or any other similar titles.

Head of the Department Project Guide

The viva-voce examination held on at J.J. College of Arts and Science

(Autonomous), Pudukkottai.

External Examiner

1) 2)
 DECLARATION

I hereby declare that the INTERNSHIP REPORT is prepared by myself and submitted
the JJ College of Arts and Science (Autonomous), Pudukkottai under the supervision of
Assistant Professor of Commerce with computer Applications, during 2025-2026 is partial
fulfilment of the requirement for the award for the degree of MASTER OF COMMERCE
WITH COMPUTER APPLICATIONS and the report has not formed the basis for the
awarded previously of any degree diploma, or any other similar titles.

Date: SHAKRIHAA S

Place: Reg.No: P24CM1020

ACKNOWLEDGEMENT

Right From the genesis of the very idea to work on the subject to submission of the
research report,I have incurred both intellectual and moral debts to many eminent
personalities, Therefore, I would like to express my sincere gratitude to them.
I articulate my sincere thanks to Dr.J.Parasuraman, MA.,MBA.,MCA.,B.Ed.,Ph.D.
Principal,J.J. College of Arts and Science (Autonomous) Pudukkottai, for providing
me an opportunity to pursue the degree in this prestigious institution.
I express my sincere thanks to Dr.S.Kavitha,M.Com.,M.Phil.,Ph.D head
Deparment of Commerce With Computer Applications, J.J. College of Arts and
science (Autonomous) Pudukkottai, for her encouraging and support to complete this
internship work.
I wish to record my deep sense of respectful regards to my supervisor .
Dr.S.Adaekalavan, MCA.,M.Phil.,Ph.D. Assistant professor of Commerce With
Computer Application Post Graduate and Research Department of Commerce ,J.J
College of Arts and Science (Autonomous) Pudukkottai, who encouraged me to
complete this internship in time. And for this benevolent constant encouragement,
untiring help in every stage of this projectwork.
I also convey my thanks to all the FACULTY MEMBERS OF COMMERCE
WTH COMPUTER APPLICATIONS of J.J College of Arts and Science
(Autonomous) Pudukkottai, who attended their encouragement completion of research
work .
I would like to express my sincere gratitude to Mr. Deepak Suryanarayanan, Income
Tax Consultant, for his valuable guidance and support throughout the course of
my internship. I am truly grateful for the opportunity to learn under his mentorship.

SHAKRIHAA.S
CONTENT

S.NO TOPIC NAME PAGE NO.

1. EXECUTIVE SUMMARY 1

2. CHAPTER I- 2
INTRODUCTION

3. WHO IS ACCOUNTANT IN 5
PROPRIETORSHIP

4. CHAPTER II- 10
AUDITOR PROFILE

5. CHAPTER III 12
LEARNINGS OUTCOME

6. APPLICATIONS OF LEARNINGS 15

7. CONCLUSION 24
 EXECUTIVE SUMMARY

An internship program is very crucial & essential for acquiring experience through
learning and extending the scope of knowledge. I have done my internship program in
proprietorship
This internship report focuses on understanding the structure of proprietorship businesses
and their income tax obligations in India. A proprietorship is a type of business owned and
operated by a single individual. It is the simplest form of business structure, widely used by small
and medium entrepreneurs due to its ease of setup and minimal regulatory requirements.
During my internship, I learned about the maintenance of books of accounts, and income
tax compliance for proprietors. Proprietors are taxed under the individual income tax slab rates as
their business income is treated as personal income. Key tax aspects studied include the filing of
Income tax Return and about section 44AB of Income Tax Act 1961.
The report also discusses challenges faced by proprietors in tax planning and compliance,
and highlights the importance of maintaining proper records to avoid penalties. Overall, the
internship provided practical insights into tax regulations, documentation, and the role of tax
professionals in assisting proprietorship businesses.

1
 CHAPTER I

INTRODUCTION: WHO IS AN AUDITOR?

An auditor is a professionally qualified person who is responsible for checking and verifying
the financial records and statements of an organization. The main objective of an auditor is to
ensure that the financial statements give a true and fair view of the organization’s financial
position.
Auditors can be classified into two types:
 Internal Auditors– They work inside the organization and help in monitoring internal
processes and controls.
 External Auditors– They work independently and provide an impartial opinion on the
financial statements.

ROLE OF AN AUDITOR IN SOCIETY

1. Ensures Financial Accuracy:
An auditor checks whether the financial records and statements of the organization are accurate
and free from material misstatements.
2. Prevents and Detects Fraud:
By carefully examining accounts and transactions, auditors help in identifying and preventing
fraud, errors, and financial irregularities.
3. Promotes Transparency:
Auditors ensure that businesses present a true and fair view of their financial condition,
increasing transparency for all stakeholders.
4. Builds Public Confidence:
Audited financial statements build trust among investors, banks, shareholders, and the general
public, leading to greater financial stability.
5. Ensures Legal Compliance:
Auditors verify that organizations comply with government regulations, tax laws and
accounting standards.

2
6. Improves Internal Controls:
Through their observations, auditors suggest improvements in internal control systems and
operational efficiency.
7. Encourages Good Corporate Governance:
Auditors support ethical business practices and responsible decision-making by providing
independent and objective opinions.
8. Supports Economic Development:
By maintaining financial discipline in organizations, auditors contribute to the overall
economic stability and growth

PROPRIETORSHIP
A proprietorship, also known as a sole proprietorship, is the simplest form of business
ownership. It is owned, managed, and controlled by a single individual. In this type of business,
there is no legal distinction between the owner and the business, meaning the owner is
personally responsible for all the debts and liabilities incurred by the business. It is easy to set
up, requires minimal legal formalities, and the owner has complete control over all decisions.
All the profits earned by the business belong to the owner, and they are taxed as part of the
owner’s personal income. However, one major drawback of a proprietorship is that the owner
has unlimited liability, which means their personal assets can be used to settle business debts.
Despite its risks, a proprietorship is ideal for small businesses and individuals who want full
ownership and control.

AIMS OF PROPRIETORSHIP
 Curtail cost and deliver products at affordable price and earn
acceptable profit.
 To have complete control over business decisions
 Provide good products or services to attract and keep customer.
 To expand the business over time.
 To make fast decisions without needing others' approval.
 To gain personal fulfillment and independence.
 To use money, time, and effort wisely for maximum output.

3
OBJECTIVES OF PROPRIETORSHIP

The main objective of a proprietorship is to Curtail cost and deliver products at

affordable price and earn acceptable profit or services while maintaining full control over
the business. It aims to provide self-employment to the owner and allows for quick and
flexible decision- making. Another important objective is to build strong customer
relationships by offering quality products and good service. The proprietor also focuses
on growing the business, increasing its market presence, and maintaining a good
reputation. Since managed by a single person, maintaining efficiency and personal
involvement in all aspects of the business is also a key goal.

The Important objective of a proprietorship are to provide the owner with full control
over the business while aiming for profit generation and financial independence. Since a
proprietorship is owned by a single person, one of its key goals is to allow the owner to
make quick decisions and respond flexibly to market demands. It also aims to offer a
simple and low-cost method of starting and managing a business, especially for small-
scale entrepreneurs. Additionally, a proprietorship seeks to build a strong personal
relationship with customers, ensuring trust and loyalty. Another important objective is to
maintain direct supervision over all aspects of the business, which helps in reducing costs
and improving efficiency. Overall, the proprietorship focuses on personal satisfaction,
self-employment, and the long-term growth of a business managed with minimal

4
WHO IS ACCOUNTANT IN PROPRIETORSHIP?
An accountant is a professional who specializes in the field of accounting, which involves
recording, analyzing, and interpreting financial information for individuals, businesses,
organizations, and government entities. Accountants are responsible for preparing financial
statements, such as balance sheets, income statements, and cash flow statements, to provide
an accurate representation of an entity's financial performance and position.
Accountants also play a crucial role in areas such as taxation, auditing, budgeting, financial
planning, and advisory services. They ensure compliance with financial regulations and laws,
help with strategic financial decision-making, and provide recommendations for improving
financial efficiency and profitability

Why Accountants are important in PROPRIETORSHIP

Financial Decision Making: Accountants help individuals and businesses make informed
financial decisions. They analyze financial data, prepare reports, and provide insights that
assist in determining the financial health of an organization. Their expertise enables
effective budgeting, investment evaluation, and strategic planning.
1)Compliance and Regulation:
Accountants ensure compliance with financial regulations and reporting standards. They
stay updated on tax laws, auditing requirements, and financial reporting guidelines,
enabling businesses to meet legal obligations. By adhering to these standards, organizations
maintain transparency and accountability, which builds trust among stakeholders.
2)Tax Planning and Preparation:
Accountants assist individuals and businesses with tax planning and preparation. They stay
updated on tax laws, regulations, and incentives, ensuring compliance while minimizing
tax liabilities. Their expertise helps optimize tax strategies, identify deductions, and
maximize tax benefits.

5
3)Financial Management:
Accountants assist with financial management, including bookkeeping, payroll, and cash
flow management. They track income and expenses, monitor financial transactions, and
create financial statements. This information helps businesses assess their financial
performance and identify areas for improvement.
4)Risk Assessment and Mitigation:
Accountants play a crucial role in risk management. They evaluate financial risks, identify
potential areas of concern, and implement measures to mitigate those risks. By providing
accurate and timely financial information, accountants help businesses make risk-informed
decisions and safeguard their financial stability.
5)Auditing and Assurance:
Accountants conduct audits to ensure the accuracy and reliability of financial information.
They review financial records, assess internal controls, and verify compliance with
applicable laws and regulations. Auditing helps identify errors, fraud, or mismanagement,
providing assurance to stakeholders regarding the financial integrity of an organization.
6)Business Performance Evaluation:
Accountants evaluate business performance by analyzing financial statements, ratios, and
key performance indicators. They provide insights into profitability, efficiency, and
liquidity, helping organizations identify strengths, weaknesses, and areas for improvement.
This information is crucial for making strategic decisions and improving overall
performance.
7)Financial Transparency and Accountability:
Accountants contribute to financial transparency and accountability within organizations.
By maintaining accurate financial records, conducting audits, and providing reliable
financial reporting, they enable stakeholders to assess the financial health and performance
of an organization. This transparency fosters trust among investors, creditors, and the public.

6
Area of service
(1) Maintenance of books of accounts:
Record transactions in systematic manner.
Help ascertaining profit and loss and financial position.
Help in planning, decision-making, controlling function.
(2) Statutory Audit:
Every company requires to audit their accounts by an external auditor.
Accountant helps auditor to audit the accounts.
(3) Internal Audit:
Internal auditor examines the accounting system and ensures management that
accounts have been properly maintained.
It improves operational efficiency of business.
(4) Taxation:
An accountant can handle taxation matter of business as well as of individual and can
represent himself on their behalf to taxation authorities and settle tax liabilities.
It can also reduce tax liability by proper planning.
(5) Management Accounting and consultancy services:
Management accountant is mainly responsible for internal reporting to
management.
It provides services for planning controlling current operation, decision-making and
special matter and making long term plans.
Accountant also provides consultancy service in area of management information system,
expenditure control, new investment, working capital management, corporate planning etc.
(6) Financial advise:
Financial advise in following area :
Investment, Insurance, Business expansion, Investigation etc.
 To ascertain financial position.
 To make or buy decision.
 To ascertain reason of profit fallen.

7
Accounts and Records of a Proprietorship
1. Cash Book
The cash book records all cash transactions, including receipts and payments made daily. It
helps in monitoring the business's cash flow and is usually maintained in single, double, or
triple column formats depending on whether bank and discount columns are included.
2. Bank Book / Bank Statements
All bank-related transactions such as deposits, withdrawals, cheque payments, and fund
transfers are recorded in the bank book. Monthly bank statements are used to match and
reconcile with the business’s bank book for accuracy.
3. Sales Register
This register tracks all sales transactions, whether cash or credit. It includes important details
like invoice number, customer name, date of sale, amount, and applicable GST. The sales
register helps in sales tracking and is also required for preparing GST returns.
4. Purchase Register
The purchase register keeps records of all items bought, including raw materials and
business supplies. It includes supplier details, invoice dates, amounts paid, and GST input,
which are essential for claiming input tax credit under GST.
5. Ledger Accounts
Ledgers are individual accounts maintained for every business activity like sales, purchases,
expenses, and parties (debtors and creditors). They help in preparing the trial balance and are
the foundation for final accounts like the Profit & Loss Account and Balance Sheet
6. Stock Register
This register helps track inventory levels by recording opening stock, purchases, sales, and
closing stock. It is essential for evaluating inventory turnover, controlling excess stock, and
determining the cost of goods sold (COGS).

8
7. Expense Records
All business expenses such as rent, salaries, electricity bills, travel, and advertising are
recorded in detail. These records help in accurate profit calculation and are also needed for
tax deduction and financial planning.
8. GST Records (if applicable)
If the proprietorship is registered under GST, it must maintain proper GST records. These
include tax invoices issued, credit and debit notes, GST returns (like GSTR-1 and GSTR-
3B), and details of input and output GST
9. Payroll Records (if employees are hired)
When employees are part of the business, payroll records must be maintained, including
attendance, salary statements, pay slips, and statutory deductions such as Provident Fund
(PF) and Employee State Insurance (ESI), if applicable.
10. Income Tax Records
The proprietorship must keep detailed tax records such as income computation, advance tax
payments, TDS challans, and previous years’ income tax returns. These documents are
essential for filing annual returns and facing tax assessments or audits.
11. Final Accounts
At the end of the financial year, the proprietor must prepare final accounts which include the
Trading Account, Profit & Loss Account, and Balance Sheet. These statements show the
overall financial health of the business and are used for tax filing and decision-making.

9
 CHAPTER II

Introduction of Auditor’s Office

During my internship program, I had the privilege of working under the guidance of
Mr.S.Deepak, an experienced and well-reputed Income Tax Practitioner based in Pudukkottai.
His office is situated at No. 51, Ezhil Nagar, Pudukkottai – 622005.

About the Auditor

Mr. S. Deepak belongs to a family with a strong professional legacy in the field of auditing
and taxation. He is a third-generation Income Tax Practitioner, following in the footsteps of
his grandfather, who was also an auditor, and his father, who served as an Advocate as well as
an Income Tax Practitioner.
Mr.Deepak completed his Undergraduate degree (B.Com.) at St. Joseph’s College, Trichy,
between 1995 and 1998. After graduation, he underwent Articleship training from 1998 to
2001 at G. Ramesh & Co., Trichy, where he gained practical experience in audit and taxation.
Since 2002, he has been practicing independently as an Income Tax Practitioner, providing
tax and audit services to a wide range of clients in and around Pudukkottai.

Services Offered
Over the years, Mr. Deepak has built a large and loyal client base, currently handling
around 600 to 700 income tax claims annually. His office provides a wide range of professional
services, including:
 Income Tax Return Filing for Individuals and Firms
 Statutory Audits of Partnership Firms and Proprietorships
 Tax Audits and Financial Reporting
 GST Registration and Filing Services
 TDS (Tax Deducted at Source) Filing and Returns
 Consultancy for Business and Professional Clients
 Tax Planning and Compliance Advisory

10
Area of Specialization
Mr. Deepak is highly specialized in handling tax matters and audits for:
 Partnership Firms
 Proprietorship Businesses
 Professionals (Doctors, Consultants, etc.)

 Small and Medium Businesses

His expertise in these areas has helped him maintain a large and satisfied client base, making
him a well-known practitioner in Pudukkottai.

Office Structure and Work Culture

The office follows a professional yet friendly work culture where clients’ queries are handled
with patience and accuracy. The team working under Mr. Deepak is small but efficient, with
clear divisions of work between data entry, client communication, return filing, and document
verification.

Learning Experience for Interns

Interning at Mr. Deepak’s office offers an excellent learning environment for commerce
students. Interns are exposed to:
 Preparation and filing of ITRs and GST returns
 Understanding of partnership and proprietorship audits
 Client data management and record keeping
 Hands-on experience with tax calculations and compliance work
The internship helps in developing practical knowledge, technical skills, and professional
communication abilities, which are essential for future careers in accounting and taxation.

Conclusion
Working under Mr. S. Deepak was a valuable and enriching experience. The practical exposure
I received during this period has deepened my understanding of auditing, taxation, and client
handling. The experience gained at this renowned auditor’s office with a legacy of three
generations will undoubtedly help me in building a successful career in the field of commerce
and finance.

11
 CHAPTER III
LEARNINGS OUTCOME :

Section 44AB of the Income Tax Act, 1961: Tax Audit

1. Introduction
 Section 44AB of the Income Tax Act, 1961 mandates the audit of accounts
of certain persons carrying on business or profession, to ensure correctness
of income and deductions. This is known as a tax audit.

 The provision is mainly intended to reduce tax evasion and ensure

proper maintenance of books of accounts.

2. Applicability of Section 44AB

The following persons are required to get their accounts audited by a chartered
accountant:

A. Persons Engaged in Business:

 If total sales, turnover, or gross receipts exceed Rs. 1 crore in the previous year.
 However, if cash transactions (cash receipts and cash payments) do not
exceed 5%, the limit increases to Rs. 10 crores (w.e.f. AY 2021-22).

B. Persons Engaged in Profession:

 If gross receipts in profession exceed Rs. 50 lakhs in the previous year.

C. Persons Covered under Presumptive Taxation (Sections 44AD,

44ADA, or 44AE):
 If such persons declare income below the deemed income and their total
income exceeds the basic exemption limit, they must get audited.

12
3. Due Date for Tax Audit
The audit report must be obtained and submitted:
 On or before 30th September of the relevant assessment year.
 The audit report must be furnished in:
 Form 3CA/3CB (Audit Report)
 Form 3CD (Statement of particulars)

4. Forms for Audit Report

Form Applicable To

Form 3CA If the taxpayer is already required to get an audit under any other
law (e.g., Companies Act)

Form 3CB If no audit is required under other laws

Form 3CD A detailed statement of particulars (Annexure to 3CA/3CB)

5. Exceptions to Section 44AB

The following are not required to get a tax audit under this section:

 Persons opting for presumptive taxation under Section 44AD, 44ADA, or 44AE,
and declaring income as per the scheme.
 If total sales/receipts are within the limits specified and other conditions are met

13
6. Penalty for Non-Compliance (Section 271B)
Failure to get accounts audited or furnish the audit report within due date may
attract penalty:
 0.5% of turnover/gross receipts, or
 Maximum of Rs. 1,50,000
 However, no penalty is levied if there is a reasonable cause for the failure
(like natural disaster, CA’s health issues, etc.).

7. Objective and Importance of Tax Audit

 Ensures accuracy and reliability of financial statements.
 Helps in preventing tax evasion.
 Reduces chances of errors and frauds.
 Helps the tax authorities in assessment and verification of income.

8. Amendments and Changes (Recent)

 The threshold limit of turnover for business was raised to Rs. 10 crores if
cash transactions are less than 5% (Finance Act, 2020).
 These changes promote digital payments and reduce reliance on cash.

9. Conclusion
Section 44AB is a crucial compliance requirement for businesses and
professionals. It promotes transparency, accountability, and facilitates accurate tax
assessments. Non-compliance can lead to heavy penalties, making it essential for
eligible taxpayers to ensure timely and correct audit procedures.

14
APPLICATION OF LEARNINGS
During my internship at the Auditor's office, I gained practical exposure
to various aspects of income tax computation for different types of businesses. One of the
important tasks I observed and learned was the process of calculating income tax for
proprietorship firms.

A proprietorship is a business owned and managed by a single individual. The income of the
proprietorship is treated as the personal income of the proprietor and is taxed under the
individual income tax slab rates applicable to the owner.

The following is an example that illustrates the step-by-step process of calculating income tax
for TUBESMART a proprietorship business, based on actual procedures followed during my
internship

TUBESMART
 Proprietorship business was registered on 16 November 1999 and started
from 18 November 1999 and operates as separate legal entity.
 The shop sells steel tubes and related products to both other businesses and
individual customers. It is situated in the SIDCO Industrial Estate, which
is a major industrial area in Chennai.
 Good quality of products is being sold in and around Tamil Nadu at a reasonable
price

15
FINAL ACCOUNTS

TUBESMART
OFF: 57,7TH STREET,NORTH PHASE
SIDCO INDUSTRIAL ESTATE,AMBATTUR
CHENNAI - 600098

TRADING,PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2025

PARTICULARS PARTICULARS

To Opening Stock 91,52,631.00 By Sales Exempted 38,76,496.54

To Purchases
- GST Purchase 7,26,38,371.02 -GST Sales 11,49,63,982.36
- IGST Purchase 5,18,45,410.09 -IGST Sales 1,97,05,869.00
To Freight Charges 30,14,600.00 By Closing Stock 69,51,624.00
To Inward Weighment Charges 9,745.00

To Gross Profit 88,37,214.79

14,54,97,971.90 14,54,97,971.90

To Expenses
Bank Charges 1,424.04 By Gross Profit 88,37,214.79
Bonus 34,000.00 By Bank Interest 34,827.57
Business Promotion 59,419.00 By Rebates & Discounts 1,46,528.92
Advertisement 84,650.00
Car Maintenance Expenses 88,850.00
Computer Maintenances 76,540.62
Commission Paid 70,721.00
Conveyance To Staff 1,48,519.00
Coolie & Cartage 10,73,590.00
Dealer Meet Expenses 63,800.00
Electricity And Maintenance 7,910.00
Forwarding Charge 16,73,559.00
Galvanizing Coating Charges 29,745.40
Insurance & Others 17,862.00
Job Work Charges 59,250.00
Legal Expenses 24,500.00
Medical Expenses 32,350.00
Mess Expenses 92,500.00
Miscellaneous Expenses 1,15,497.08
Outward Weighment Charges 21,305.00

16
Pipe Draw Charges 82,480.00
Postages - Courier & Xerox 19,030.00
Printing & Stationery 60,011.44
Rebates & Discounts 1,398.64
Rent 6,24,000.00
Repairs & Maintenance 88,305.00
Salary 19,16,670.00
Staff Welfare & Others 2,62,114.00
Telephone Charges 40,845.05
Training Program 43,084.75
Travelling Expenses 32,431.33
Round Off 22.77
Electricity Charges 40,824.00
Salary Paid To Partners 3,60,000.00
Interest Paid To Partners 5,79,325.00
Expenses Input - G 2,93,178.70
Telephone Charges - G 2,029.65

By Net Profit 7,96,828.81

- 90,18,571.28 90,18,571.28

17
 TUBESMART
OFF: 57,7TH STREET,NORTH PHASE
SIDCO INDUSTRIAL ESTATE,AMBATTUR
CHENNAI - 600098

BALANCE SHEET AS AT 31st MARCH – 2024

LIABILITIES ASSETS

Capital Account 1,25,50,000.00 Fixed Assets 38,32,672.70

Sundry Creditors 3,03,83,686.31 Closing Stock 69,51,624.00

Other Current Liabilities 4,42,295.13 Sundry Debtors 2,12,28,343.37

Partners Loan A/c 5,82,977.52 Cash at Banks 84,24,313.53

Cash on Hand 12,48,273.36

Other Current Assets 23,065.00

Advances 20,05,167.00

Deposits 2,45,500.00

- 4,39,58,958.96 4,39,58,958.96

18
INCOME TAX CALCULATION REPORT FOR THE FINANCIAL YEAR 2024-
2025 (AY 2025-2026)

1. New Tax Regime

New Tax Regime – Slab Rates

Income Range Tax Rate

₹0-₹300000 NIL

₹300001-₹600000 5%

₹600001-₹900000 10%

₹900001-₹1200000 15%

₹1200001-₹1500000 20%

₹1500000 and above 30%

Slab-Wise Tax Calculation:

Income Slab Tax Rate Tax Amount

₹0-₹300000 NIL ₹0

₹300001-₹600000 5% ₹15000

₹600001-₹796828 10% ₹19,682.80

Total Tax Before ₹34,682.80

Cess

Health & Education ₹1,387.31

Cess (4%)

Total Tax Payable ₹36,070(rounded)

19
2. Old Tax Regime

Old Tax Regime – Slab Rates

Income Range Tax Rates

₹0-₹250000 NIL

₹250001-₹500000 5%

₹500001-₹1000000 20%

₹1000000 and above 30%

Slab – Wise Tax Calculation

Income Slab Tax Rate Tax Amount

₹0-₹250000 NIL ₹0

₹250001-₹500000 5% ₹12,500

₹500001-₹796828 20% ₹59,365.60

Total Tax Before ₹71,865.60

Cess

Health & Education ₹2,874.62

Cess (4%)

Total Tax Payable ₹74,740(rounded)

20
3. Surcharge Applicability

Income Level Surcharge Applicability

₹7,96,828 Not Applicable (applies only if income exceeds ₹50

lakh)

4. Summary And Comparison

Regime Type Total Tax Payable

New Regime ₹36,070

Old Regime ₹74,740

5. Result

For a taxable income of ₹7,96,828 without deductions:

 The New Tax Regime is clearly more beneficial, saving ₹38,670 in tax
compared to the Old Regime.
The Old Regime may be more advantageous only if substantial deductions (e.g., under 80C,
80D, etc.) are claimed

21
SALES TURNOVER

SALES
2 T U T U TUBESMART
1.
8
1.
6

1.
4

1.
2
1
0.
8
2021 2022 2023 2024 2025

GROSS PROFIT PERCENTAGE

NP
2 PERCENTAGE
1.
8

1.
6

1.
4

1.
2

0.
8

0. 2021 2022 2023 2024 2025

22
NET PROFIT PERCENTAGE

NET PROFIT
2 PERCENTAGE
1.
8

1.
6

1.
4

1.
2

0. 1 2 3 4 5

STOCK PERCENTAGE

CHART
2
TITLE
1.
8

1.
6

1.
4 Series
1
0.
8

0.
6

0.
4
1 2 3 4 5

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CONCLUSION

Based on the books of accounts and financial records maintained by the proprietorship
firm for the financial year [insert year], it has been observed that the gross turnover
exceeds the prescribed limit under Section 44AB of the Income Tax Act, 1961.
Therefore, the provisions of tax audit under this section are applicable. A tax audit has
been duly conducted in accordance with the guidelines and requirements specified under
the Income Tax Rules. The audit report has been prepared in Form 3CA and Form 3CD
and submitted as per the due dates prescribed. All necessary disclosures regarding
income, expenditure, deductions, and statutory compliance have been made to ensure full
transparency and adherence to tax laws. The audit ensures that the financials present a
true and fair view of the business operations for the relevant year.

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