TAX DEDUCTED ON SOURCE UNDER INCOME TAX ACT,1961

SUMMER INTERNSHIP REPORTON

TAX DEDUCTED ON SOURCE UNDER INCOME TAX ACT,1961

Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General

B.COM(H) 5th Semester Batch 2013-2016

Submitted to: Submitted by: Mrs. Pallavi Ahuja Arnav Tripathi Professor 00814188813

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL KALKAJI

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STUDENT’S UNDERTAKING I hereby certify that this is my original work and it has never been

submitted elsewhere.

PROJECT GUIDE: STUDENT NAME:

Mrs. Pallavi Ahuja Arnav Tripathi

Professor 00814188813

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ACKNOWLEDGEMENTThe purpose of compilation of the subject for a project report always involves

creation of huge debt towards innumerable publications ,managers ,chartered

accountants and senior officers. I hereby put my sincere thanks to one and all.

A special thanks to Mr. M.K.Singhal (AGM, Taxation), for giving me an opportunity

to work as an intern in the esteemed organization.

This project would have been incomplete without the guidance of my mentor Mrs

Pallavi Ahuja with whom I have been closely associated.

ARNAV TRIPATHI 00814188813

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CONTENTS

DESCRIPTION PAGE NO.

ACKNOWLEDGEMENT 3

CONTENTS 4

LIST OF TABLES 5

LIST OF FIGURES 5

EXECUTIVE SUMMARY 7

INTRODUCTION TO TOPIC 8

OBJECTIVES 40

LITERATURE REVIEW 41

COMPANY PROFILE 46

RESEARCH METHODOLOGY 61

FINDINGS AND INFERENCES 62

LIMITATIONS 68

RECOMMENDATIONS 69

CONCLUSION 70

BIBLIOGRAPHY 71

LIST OF FIGURES

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Direct Taxes 1.2 9

Indirect Taxes 1.3 10

Deductees 1.5 65

Interest paid 1.6 66

TDS Deducted 1.7 67

LIST OF TABLES


Management Team 2.1 49

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CERTIFICATE OF COMPLETION

This is to certify that Arnav Tripathi, pursuing 5th semester of B.com (Hons) from Jagannath International Management School, has completed his project on the topic “Tax Deducted at Source under Income Tax Act 1961”. This project report is the work carried out by him under my supervision and guidance.The work done by him is appreciable and up to my satisfaction.

Project GuideMrs.Pallavi AhujaAssistant ProfessorJIMS KalkajiNew Delhi

EXECUTIVE SUMMARY

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As a part of academic requirement, I Arnav Tripathi , having enrolment number

00814188813 a student of Jagannath International Management School, Kalkaji

affiliated to Guru Gobind Singh Indraprastha University, did my summer internship

with Tata Power Delhi Distribution Limited from 2nd July 2015 to 14th August 2015.

Tata Power Delhi Distribution Limited (TPDDL) is a joint venture between Tata

Power and the Government of NCT of Delhi with the majority stake being held by

Tata Power (51%). TPDDL distributes electricity in North & North West parts of

Delhi and serves a populace of 6 million. The company started operations on July 1,

2002 post the unbundling of the erstwhile Delhi Vidyut Board (DVB). With a

registered consumer base of 1.44 million and a peak load of around 1704 MW, the

company's operations span across an area of 510 sqkms.

I have done my internship in the Taxation group of Finance and Accounts (F&A)

department, under Mr. M. K. Singhal was my company mentor.

INTRODUCTION TO THE TOPIC

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Tax regime in India has undergone elaborate reforms over the last couple of years in order to enhance rationality, ensure simplicity and improve compliance. The tax authorities constantly review the system in order to remain relevant. India has a federal system of Government with clear demarcation of powers between the Central Government and the State Governments. Like governance, the tax administration is also based on principle of separation therefore well defined and demarcated between Central and State Governments and local bodies.

The tax on local on local incomes, custom duties, central excise and service tax are levied by the Central Government. The state government levies agricultural income tax (income from plantations only), Value Added Tax (VAT)/ Sales Tax, Stamp Duty, State Excise, Land Revenue, Luxury Tax and Tax on Professions. The local bodies have the authority to levy tax on properties, octroi/entry tax and tax for utilities like water supply, drainage etc.

Types of Taxes (Central)

Figure 1.1

DIRECT TAXES

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These are the taxes that are levied on the income of individuals or organizations. Income tax, corporate tax, wealth tax are some examples of direct direction.

Income tax is the levied on income of individual , HUF and Firm etc.

Corporate tax is the tax paid by the companies.

Figure 1.2

Acts Abolished:- Estate Duty Interest Tax Gift Tax Super Profit Tax Wealth Tax

INDIRECT TAXES

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Income TaxWealth TaxEstate DutyGift Tax

These are the taxes borne by the consumers when they buy goods and services. These include excise, customs duties, service tax and central sales tax.

Customs duty is the charge levied when goods are imported into the country , and is paid by the importer or exporter.

Excise duty is a levy paid by the manufacturer on item manufactured within the country.

Figure 1.3

INCOME TAX

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Exice DutyService Tax

A. Assessment Year [Sec.2(9)]:- A year in which the income of the previous year is to be assessed .In some countries it is known as “Tax Year”. It always starts from April 1 and ends on March 31 of the next year.

B. Previous Year[Sec.3]:- Income of the previous year is immediately following the assessment year. In some countries it is called “ Income Year”.

C. Assessee[Sec.2(7)]:-Assessee means a person by whom income tax or any other sum of money is payble under the act. It includes every person in respect of whom any preceding under the act. It includes every person in respect of whom any preceding under the act has been taken for the assessment of his income or loss and the amount of the refund due to him. It also includes a person a person who is assessable in default under any provision of the Act.

D. Under section 2(31), “person” includes:- An individual A HUF family A company A firm An association of persons or body of individuals A local authority Every artificial juridical person not falling within any of the

preceeding categories

These are the seven categories of persons chargeable to tax under the Act.

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INCOME FROM SALARY

Income under heads of salary is defined as remuneration received by an individual for services rendered by him to undertake a contract whether it is expressed or implied. According to Income Tax Act there are following conditions where all such remuneration are chargeable to income tax:-

When due from the former employer or present employer in the previous year, whether paid or not.

When paid or allowed in the previous year, by or on behalf of a former employer or present employer, though not due before it becomes due.

When arrears of salary is paid in the previous year by or on behalf of a former employer or present employer, if not charged to taz in the period to which it relates.

Incomes under the head of salary

Salary Wages Fees Commissions Pensions Annuity Perquisite Gratuity Annual Bonus Income from provident fund Allowance Leave Encashment

Income from House Property

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Section 22 provides for taxation of ‘annual value’ of a property consisting of any buildings or lands appurtenant thereto, of which the assessee is owner , under the head “ Income from House Property”. Tax imposed under section 22 is a tax on ‘annual value’ of house property and is not a tax on “House Property” . However, if a house property is occupied by a taxpayer for the purpose of business or profession carried on him by( the profits of which are chargeable to income tax), annual value of such property is not chargeable to tax under the head ‘Income from House Property’.

The phrase ‘lands appurtenant thereto’ has also been used. It needs to be clarified in this context that income from letting of vacant plots of land when there is no adjoining building will not be taxed under this head (will be taxed as income from other sources).The existence of a building is therefore, an essential prerequisite. Building will of course include residential houses (whether up for rent or self occupied), office building, factory, godowns, flats etc as long as they are used for business or profession by owner.

CONDTIONS NECESSARY FOR TAXING INCOME FROM HOUSE PROPERTY:-

The property should consist of any building or land appurtenant thereto

The assessee should be the owner of the property

The property should not be used by the owner for the purpose of any business or profession carried on by him, the profits of which are chargeable to tax.

Unless all the aforesaid conditions are satisfied, the property income cannot be charged tot ax under the head ‘Income from House property’

INCOME FROM BUSINESS AND PROFESSION

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The following incomes are chargeable under the head “Profits and gains of business of profession”-

The profits and gains of any business or profession which was carried on by assess at any time during the previous year.

Any compensation or other payment due to or similar by any person refereed to in section 28(ii)

Income derived by a trade, professional or similar association from specific services performed for its members.

The value of any benefit or perquisite, whether convertible into money or not, arising from the business or the exercise of a profession.

Any interest, salary, bonus ,commission or remuneration, by whatever name called ,due to, or received by , a partner of a firm from such firm, provided the same has been disallowed as deduction u/s 40(b) from the income of the firm.

Any sum received under a keyman insurance policy including a sun allocated by way of bonus on such policy.

Any sum, whether received or receivable, in cash or kind, on account of any capital asset being demolished, destroyed, discarded or transferred , if the whole of the expenditure on such capitalasset has been allowed as a deduction under section 35AD

Business[Section 2(13)]:-Includes any trade, commerce or manufacture or any adventure or concern in the nature of the trade, commerce or manufacture.

Profession [Section2(36)]:-Includes vocation .The word ‘Profession’ implies the professional attainments in special knowledge which is to be acquired only after patent study and application.

Income from Capital Gains

Any profit or gain from the sale or transfer of a capital asset is chargeable to tax under the head “ Capital Gains”. It is deemed to be the income of the

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previous year in which the transfer of a capital asset takes place. Capital gain arising from the transfer of immovable property is chargeable to tax in the previous year, in which the effective transfer of title is conveyed and registered.

Capital Asset:-Capital Asset is defined to include property of any kind, whether fixed or circulating, movable or immovable, tangible or intangible. Property includes any rights in or in relation to an Indian company, including the rights of management or control or any other rights whatsoever.

Types of Capital Gains:- Short Term- Gains on capital assets held for up to 36 months. For

shares it is up to 12 months.

Long Term-Gains on capital assets held for more than 36 months. For shares it is more than 12 months.

Income from Other SourcesOther incomes which are not included in any other head of income, is to be charged under the head “ Income from Other Sources”

Winning from lotteries, crossword puzzles, races, card games etc.

Dividend

Employees contribution towards PF, Super annuation fund

Income from interest on securities

Income from letting out on hire of machinery, plant and furniture

Payment under keyman insurance policy

Income from letting out on hire of machinery, plant and furniture

Payment received under keyman insurance policy

Any sum received without consideration

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Any sum of money or immovable property received without consideration

Shares received by a firm or a company Income by way of interest received on compensation

Consideration for know how

Other miscellaneous receipts

Personal Income Tax SlabCurrent year Total Income Tax Slab RateUp to 250,000* Nil

250,001-500,000** 10%

500,001-1,000,000 20%

1,000,001 and above 30%

*300,000 for individual 60 years but less than 80 years.500,000 for individual 80 years or more** Rebate of 2000 is available if taxable income is up to 5 Lakhs

IN TPDDL INCOME TAX IS LEVIED ON THE FOLLOWING TWO HEADS:-

Income from Business and Profession Income from Other sources

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Income from Business and Profession

The main Business of TPDDL is distribution of electricity in North and North Western parts of Delhi, so the company earns major part of the revenue from the same. Yearly approximately revenue of TPDDL is about INR 4000 Crores.The various Professional services are also provided by the company. Some of them are the following:-

Management consultants Advertising Agency Consulting Engineer Manpower recruitment agency Scientific and technical consultancy Erection, Commissioning and Installation Commercial Training and Coaching Sponsorship Service etc

Income from Other Sources

The various other sources of TPDDL are the following:- Interest on securities Income from other than energy business Interest on investment in government securities Late payment surcharge collected Miscellaneous Income

TDSEvery individual, company, firm, organisation are affected by the tax laws. Taxation

enables the government to mobilise a substantial amount of revenue. The tax revenue

is generated by imposing direct taxes and indirect taxes. The report analyses the types

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of Direct taxes and Indirect Taxes and in-depth study of the taxes which are levied by

the TPDDL.

WHAT IS TDS?

TDS means Tax Deducted Source. It is the amount withheld from payments of

various kinds such as salary, contract payment, commission, etc. This withheld

amount can be adjusted against your tax.

TDS is one of the modes of collecting Income-tax from the assesses in India. This is

governed under Indian Income Tax Act, 1961, by the Central Board for Direct Taxes

(CBDT) and is part of the Department of Revenue managed by Indian Revenue

Service (IRS).

A method of tax collection on income assessments in India. The tax collection can be

affected if the income increases. The taxpayer pays tax on income from the preceding

year. Tax collection is therefore delayed until the year has been completed. In order to

prevent from hiding income, the government collects some amount of tax owed from

the amount that is receivable by the tax payer.

Income is earned over a period of time but the assessment/ determination of tax

liability takes place much later. To avoid a liquidity problem for the tax payer and

also to ensure a regular flow of revenue for the government, the Income tax Act has

provided for periodic recovery of tax from income liable to tax by requiring the tax to

be deducted at source from certain income/payments as and when such

income/payments are credited. The concept of TDS is that the person responsible for

making certain specified payments is required to deduct tax at the prescribed rates

from the payments made to a specified recipient in accordance with the provisions of

the Income Tax Act.

TDS - Procedure for Deduction / Challan / Return / Certificates

1: Deduct correct TDS

1. Salaries2. Non Salaries

9: Verify submitted return

1. PRN or RRR number2. Login

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http://www.businessdictionary.com/definition/payer.html

http://www.businessdictionary.com/definition/receivable.html

http://www.businessdictionary.com/definition/amount.html

http://www.businessdictionary.com/definition/government.html

http://www.businessdictionary.com/definition/order.html

http://www.businessdictionary.com/definition/completed.html

http://www.businessdictionary.com/definition/pay.html

http://www.businessdictionary.com/definition/taxpayer.html

http://www.businessdictionary.com/definition/assessment.html

http://www.businessdictionary.com/definition/income.html

http://www.businessdictionary.com/definition/collection.html

http://www.businessdictionary.com/definition/tax.html

http://www.businessdictionary.com/definition/method.html

3. Consequences of not making Tax deduction

2: Make correct challan/payment

1. Points to be considered before making a payment

2. Steps to make a payment

3: Verify a paid challan

1. What is CIN?2. If banks does not provide a Proper CIN?3. Steps to verify the challan

4: Verify deductee / Employee PAN

1. Verifying a PAN2. Steps To verify the PAN3. Letter to missing/Wrong PAN deductees 4. Consequences of wrongly quoting a PAN

5: Deduction-to-payment verification

1. Points to be noted while verifying Deduction-to-payment

6: Prepare correct statement

1. Deductor2. Deductee3. Valid PAN Percentage4. Deductions5. Salary details6. Challan Details7. Challan and Deduction link

7: Submitting a Regular Return

1. What the law says?2. Type of submission3. Return not accepted by TIN FC4. Form 27A

8: Due dates for filing of TDS/TCS returns

1. Late filing consequences

3. Verification4. Action after verification5. Analyzing the challan status and further

action

10: Inconsistencies in TDS returns

1. Notice from DGIT [Systems]2. Content of Notice3. How to verify the inconsistencies

11: Correction in regular return

1. Correction Statement2. Types of Corrections3. General Notes on Correction Statement

12: Submit a correction statement

1. Procedure to submit2. Return not accepted by TIN FC3. Batches in the Correction

13: Verify a correction statement

1. Login2. Verification

14: TDS register maintenance

1. Types of registers

15: Issue TDS certificate

1. TDS certificates2. How it will be useful 3. Compulsion/Optional4. Types of TDS certificates5. Issuing the certificate6. Covering Letter

16: Prepare ITR

1. ITR-12. ITR-23. Other ITR forms

Quoting of Tax Deduction/Collection Account Number (TAN)

All persons deducting or collecting Tax at source are required to apply for and obtain

a Tax Deduction/Collection Account Number (TAN). Quoting of TAN of the

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deductor is mandatory in the TDS Challan, TDS return, TDS certificates and other

TDS related transactions. Application for obtaining TAN is to be made in Form

No.49B at any of the TIN FC’s.

Improving compliance with provisions of quoting of PAN (from 1-4-2010

onwards)

It is now mandatory for the tax payer/ deductee to furnish his PAN to the deductor,

failing which the deductor shall deduct tax at source @ 20% or the rate in force,

whichever is higher.TDS would also be deductible @20% in cases where the tax

payer files a declaration inForm.No.15G or 15H without quoting his/her PAN. No

certificate under section 197 will be granted unless the application contains the PAN

of the applicant.

RESPONSIBILITIES OF THE DEDUCTOR/COLLECTOR

DEDUCT TAX AT THE TIME OF PAYMENT/ CREDIT

Any person responsible for paying any sum, on which tax is deductible,

shall deduct tax at the prescribed rates at the time of payment/credit.

DEPOSIT DEDUCTED TAX WITHIN THE PRESCRIBED TIME

LIMITS:

1.) In case of Government deductors: on the same day when tax is paid

without production of an IT challan (book adjustment) within 7 days

from end of the month, when tax paid is accompanied by an IT challan.

2.) In case of others: within 7 days from end of the month in which tax is

deducted for TDS made in March: On or before 30th April

Mode of remittance of tax

Remittance of TDS is to be made in Challan type 281.

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Use separate challans for tax deducted under each section and also for

different types of deductees.

Indicate the correct nature of payment.

The 10 digit TAN should be correctly mentioned in the challan.

Ensure that the Financial Year and Assessment year are indicated correctly in

the challan.

All companies and other assesses (who are subjected to compulsory Audit u/s

44AB) are required to make electronic payment of tax through internet

banking facility offered by Authorized banks.

Proof of remittance of tax

After the taxes are paid, the collecting bank branch will give a counterfoil as

acknowledgement for the taxes paid. Ensure that the bank has mentioned the Challan

Identification Number (CIN) on the counterfoil. If not, immediately take up the matter

with the bank. CIN comprises of the following:

Bank Branch Code (BSR code) 7 digits

Challan serial number up to 5 digits

Date of tender of challan DD/MM/YYYY

Book Identification Number (BIN)

In case of Government Offices where tax has been paid to the credit of Central

Government without the production of a challan (book adjustment), the Pay and

Accounts Office (PAO), Cheque Drawing and Disbursing Office (CDDO), District

Treasury Office (DTO) or an equivalent Government Office is required to File Form

No.24G within ten days from the end of the month in electronic form. A unique seven

digit Accounts Office Identification Number (AIN) shall be allotted by the Directorate

of Income Tax (Systems), to every AO .On filing of Form No.24G, TIN Central

System will generate Book Identification Number (BIN) to the AOs. The Accounts

Officers filing Form No.24G should intimate the BIN to all the DDOs who are

included in Form 24G. BIN is to be reported in the TDS/TCS statement filed by the

DDOs. BIN comprises of the following:

Receipt Number 7 digits for each 24G

DDO Serial Number 5 digits unique no. for each DDO

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Date of tender of challan DD/MM/YYYY

Verification of tax payment information transmitted to TIN and procedure

For Challan Correction

The collecting bank branch will transmit the details of taxes deposited by the

deductortothe “Tax Information Network” (TIN) through the Online Tax Accounting

System (OLTAS). All details of payment as uploaded by the banks are available at the

NSDL website www.tin-nsdl.com under the link “Challan Status Enquiry”. The

deductor must verify the details that have been captured and transmitted by the

bank before filing the Quarterly Statements. If there is any mistake in the challan, a

correction request has to be filed to the Bank. The fields that can be corrected

through the bank are tabulated below.

Sl.No Type of Correction Period for Correction request to Banks

1. TAN/PAN within 7 days from challan deposit date

2. Assessment Year within 7 days from challan deposit date

3. Total Amount within 7 days from challan deposit date

4. Major head within 3 Months from challan deposit date

5. Minor Head within 3 Months from challan deposit date

6. Nature of Payment within 3 Months from challan deposit date

TABLE 1.1

After the expiry of the window period available to banks for challan correction, the

deductor can make a request for challan correction to the Jurisdictional TDS

Assessing Officer.

ISSUE OF TDS/TCS CERTIFICATES TO THE DEDUCTEES

Every person deducting tax is required to issue TDS certificates in the prescribed

form to the deductees within the specified time. From F.Y 2012-13 onwards the

procedure for generating the TDS certificates has been significantly revised. It is

now mandatory for all the deductors to issue the TDS certificates after generating

and downloading the same from “TRACES”(www.tdscpc.gov.in).

All deductors shall generate and download Part A of Form No.16 through the

TRACES portal in respect of all sums deducted on or after 1-4-2012. (Applicable for

the assessment year 2013-14 onwards). Part A of Form No.16 shall have a unique

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TDS certificate number. The deductor after downloading Part A of Form No.16, shall,

before issuing it to the deductee, authenticate the correctness of the contents

mentioned therein and verify the same by using his/ her signature. (Manual/

Digital).Part B of the Form No.16 shall be prepared by the deductor manually and

issued to the deductee, after due authentication and verification, along with the Part A

of the Form No.16.

The forms prescribed periodicity and the due dates for issuing the certificates are

given below.

Form No. Periodicity Due Date

16 (Salary) Annually Before 31st May immediately following

the end of the financial year

16A (Others) Quarterly Within fifteen days from the due date for

furnishing the quarterly statement of TDS

27D ( for Tax

Collection at Source)

Monthly Within a period of one month from the end of

the month in which collection was made.

TABLE1.2

The certificate should specify

Valid PAN of the deductee

Valid TAN of the deductor

Challan Identification Number(CIN) in case of payment through banks

Book Identification number (BIN) in case of book adjustment

Receipt number of relevant quarterly statements.

Unique TDS certificate number.

FILING OF QUARTERLY STATEMENTS

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Every person responsible for deduction/ collection of tax should file quarterly

statements of tax deducted/ collected at source. Filing of TDS quarterly statements in

electronic form is mandatory where,

1) The deductor is an office of the Government,

2) Principal Officer of a company,

3) A Person who is required to get his accounts audited u/s.44AB in the immediately

preceding year,

4) The number of records of deductees is 20 or more in a statement for any quarter.

The deductor at the time of preparing of statements of tax deducted shall

Quote his Tax deduction Account Number (TAN) in the statement

Quote his PAN in the statement (not applicable for Government Deductors)

Quote PAN of all deductees

Furnish particulars of tax paid to the Central Government including Book

Identification Number (BIN) or Challan Identification Number (CIN) as the

case maybe.

Furnish particulars of amount paid or credited on which tax was not deducted

in view of the issue of certificate of no deduction of tax under section 197 by

the Assessing Officer of the payee


inview of the compliance of provisions of Section 194C (6) by the payee.

(payments to transporter if PAN has been provided)


inview of the declaration under section 197A (1) or (1C). (Self declaration

filed in Form No.15G/15H)


inview of the notification issued under section 197A(1F) (institutions notified

by the Central Government)

Deductors can prepare the quarterly e-TDS returns using in-house software or

using the Return Preparation Utility (RPU) developed by NSDL. This utility is

freely downloadable from the websites www.tin-nsdl.com. At the time of preparing

quarterly e-TDS/TCS statements, the following precautions need to be taken:

Quote the correct TAN, name & address. TAN should be the same as quoted

in your tax payment challans.

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Provide details of challans by which taxes have been deposited in the bank

(i.e. the amount of tax deposited and CIN). Verify the CIN details uploaded by

the banks to TIN before these details are included in the statement.

The challan amount mentioned in the statement should be exactly the same

amount as deposited through the challan. This will enable matching the

challan details provided in the statement with the challan details uploaded by

banks.

Against each challan, indicate the details of deductees on whose account the

tax has been deducted.

Even if the actual tax deposited as per the challan is higher than the total of the

amount of tax deducted on account of the deductees, challan details should

contain the amount deposited as per the counterfoil.

If TDS for two months (June and July) was paid using one challan, the same

challan details are to be repeated in item 4 of the TDS form for both Q1 and

Q2. However, please ensure that the total TDS deposited for the corresponding

deductees given in statements for both quarters should be less than or equal to

the challan amount.

Quote correct Permanent Account Numbers (PAN) of the deductees.

After the file is prepared, the file has to be validated using NSDL’s File

Validation Utility(FVU), which is also available in the NSDL website. After

validating the file with File Validation Utility (FVU), copy the ‘.fvu’ file on a

Compact Disk/Pen Drive, and affix a label mentioning TAN, Assessment

Year, Form Number, Periodicity and name and furnish the same to any TIN

facilitation Centre, and obtain acknowledgement thereof along with

Provisional Receipt Number (PRN). Each quarterly e-TDS returns should be

accompanied by a duly filled and signed Form.No.27A in physical form.

The deductor shall ensure that

Quarterly e-TDS/TCS statement is in conformity with the file format notified

by the Income Tax Department

Each quarterly e-TDS/TCS statement (Form 24Q, 26Q, 27Q and 27EQ) is in a

separate CD/Pen drive.

Each quarterly e-TDS/TCS statement is accompanied by a duly filled and

signed(by an authorised signatory) Form 27A in physical form.

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More than one CD/Pen drive is not used for furnishing one Quarterly

statement.

Quarterly e-TDS/TCS statement should be compressed, if required, only by

using Winzip 8.1 or ZipItFast 3.0 (or higher version) compression utility to

ensure quick and smooth acceptance of the file.

Label mentioning TAN, name of deductor/collector, period to which statement

pertains (quarter and F.Y.) and Form no. (24Q, 26Q, 27Q or 27EQ) is affixed

on each CD/Pen Drive for the purpose of identification.

There is no overwriting/ striking on Form 27A. If there is any, then the same

should be ratified by an authorised signatory.

TAN quoted in quarterly e-TDS/TCS statement and stated on Form 27A is the

same. Confirm new TAN by using search facility on ITD

website(www.incometaxindia.gov.in)

TAN details (name, address, etc.,) of the deductor as provided in the quarterly

e-TDS/TCS statement should be same as in the TAN database maintained by

ITD(these details can be verified with the TIN-FC or the ITD web-site

www.incometaxindia.gov.in). If they are different, the deductor shall submit a

TAN change request application to update the ITD TAN database.

Quarterly e-TDS/TCS statements pertain to the period for which they are

allowed to furnish.

The quarterly e-TDS/TCS statement has been successfully validated through

the latest version of the FVU.

Control totals, TAN and name mentioned in the quarterly e-TDS/TCS

statement match with those mentioned on Form 27A.

CD/Pen Drive is virus free.

Due dates for filing of Quarterly Statements

Form No. Particulars Due date for furnishing statement

Due date for furnishing

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Government statement Non govt24Q Quarterly return of

TDS from “Salaries” July 31st July 15th26Q Quarterly return of TDS

in respect of all paymentsother than “Salaries” October 31st October 15th

27Q Quarterly return in respectof payments made toNon resident

January 31st

May 15th

January 15th

May 15th

27EQ Quarterly Return of TCS July 15th, October 15th,January 15th , May 15th

July 15th, October 15th,January 15th , May 15th

TABLE1.3

Quarterly returns (24Q) in respect of employees who are with the employer for

apart of the year

Where an employee has worked with the deductor for part of the F.Y only, the

deductor should deduct tax from his salary and report the same in the Q.R of

respective quarter(s).Further while submitting Form No.24Q for the last quarter, the

deductor should include the particulars of that employee in Annexure II and III

irrespective of the fact that the employee was not under his employment on the last

day of the year.

The Quarterly Return in Form No.24Q in respect of Salaries is to be filed in

respect of every employee whose income under the head “Salaries” exceeded the

Maximum amount not chargeable to tax.

CORRECTION STATEMENT

The returns/ statements relating to TDS/ TCS are required to be complete and

correct. However, a procedure has been provided for correction of any genuine

mistakes in the original returns/ statements by way of submission of ‘correction

27

returns/ statements’. Financial Year (F.Y.), Assessment Year (A.Y.) and Quarter

cannot be updated by correction statements. Values in these fields have to be same as

specified in corresponding regular statements.

For preparing the correction statement, the Consolidated File for the relevant

Quarter should be downloaded from TRACES website (www.tdscpc.gov.in). This file

has to be imported to the RPU for making necessary correction. Correction statement

can be furnished multiple times to incorporate changes in the regular TDS/TCS

statement.

Importance of e-TDS Returns

The computerised processing of the e-TDS returns filed by tax deductors is now in

sync with the processing of individual returns of income filed by the deductees. In

view of this ,credit for the taxes deducted at source by the deductor cannot be given

only on the basis of TDS certificates mentioned in the return of income. The deductee

is given credit for the taxes deducted only if the tax deducted has been paid and the

deductor has filed the relevant quarterly e-TDS Return. It is also essential that in the

e-TDS Return, the correct

PAN of the deductee and the amount deducted is mentioned. The details of payment

i.e BSR code, serial number and date of payment should also be correctly mentioned

in the return.

Claim for refund

A claim for refund for TDS paid to the credit of the Central Government shall be

furnished by the deductor in Form No.26B electronically under Digital Signature.

CONSEQUENCES OF NON COMPLIANCE

WITH TDS PROVISIONS

I. EXPENDITURE CLAIMED IS DISALLOWED

28

As per section 40(a)(ia) of the IT Act, the following expenditure will be disallowed

from computation of business income of the deductor, if TDS is not made or tax

deducted has not been paid on or before the due date for filing return of income.

Interest (TDS u/s194A) Commission or Brokerage (TDS u/s194H)

Rent (TDS u/s194I) Professional/technical fee/Royalty (TDS u/s194J)

Amount paid to a contractor or sub contractor (TDS u/s194C)

The above expenditure will be allowed as a deduction in computing the income of the

previous year in which such TDS has been paid.

II. ASSESSEE IN DEFAULT

An assessed shall be deemed to be in default in respect of:

1. Non deduction of tax at source

2. Non payment, in whole or in part, of the tax deducted

Amendment to section 201

W.e.f 1-7-2012, if the payer has not deducted tax, he shall not be deemed to be an

assessee in default in case:

The recipient has included such income in the return submitted u/s.139 and

has paid tax on such income and

The payee submits a certificate to this effect from a chartered accountant

(Form No.26A)

The amendment is not applicable if the recipient is a Non resident. If any

deductor who is not considered as an assessee in default as per the above provision,

interest u/s.201(1A) underclause(1) shall be payable from the date on which such tax

was deductible to the date of furnishing of return of income (w.e.f 01.07.2012).

III. INTEREST

Section Nature of default Interest

201(1A) Non-deduction of tax at

source, either in whole or part.

simple interest @ 1% per

month from the date on which

29

After deduction,

Non payment of tax, either in

whole or part.

Non-payment of tax u/s

192(1A).

tax was deductible to the date

on which tax is actually

deducted

@1.5% per month from the

date on which tax was

deducted to the date on which

tax is actually paid

TABLE 1.4

IV. LEVY OF FEE U/S.234E (w.e.f.01-07-2012)

Failure to file TDS/TCS quarterly statements shall be liable for a fee of Rs.200 per

day of default and shall not exceed the amount of tax deductible or collectible. The

fee shall be paid before delivering the quarterly statements.

V. PENALTY

Section Nature of default Penalty

271C Failure to deduct the whole

or any part of tax at source

Sum equal to the amount of

tax which was failed to be

deducted

271CA Failure to collect the whole or

any part of tax at source (TCS)

Sum equal to the amount of

tax which he failed to collect

271H(1)(a) Failure to submit quarterly return Penalty of Rs.10,000 to

Rs.1,00,000.

No penalty shall be levied if

the

Returns are filed within a

period of one year from the

due date.

271H(1)(b) for furnishing quarterly returns Penalty of Rs.10,000 to

30

with incorrect information Rs.1,00,000.

No penalty shall be levied if

the

returns are filed within a

period of one year from the

due date.

272B Failure to comply with provisions

of Section139A for quoting Pan

Rs.10,000

272BB Failure to obtain TAN Rs.10,000

272A(2) 1. Failure to issue TDS certificates

2. Failure to deliver declaration in

Form15G/15H

3. Failure to file quarterly

statements (only till 30-06-2012)

Rs.100 for every day during

which the failure continues

but the penalty shall not

exceed the amount of tax

Deductible

TABLE1.5

VI. PROSECUTION

Section Nature of default Prosecution

276B Failure to pay Tax Deducted at

Source

Punishable with rigorous imprisonment

for minimum

3 months , maximum 7 years

and with fine

276BB Failure to pay Tax Collected at

Source (TCS)

Punishable with rigorous imprisonment

for minimum

3 months , maximum 7 years

and with fine

TABLE 1.6

PROVISIONS FOR DEDUCTION OF

TAX FROM SALARIES (SECTION 192)

31

Every person responsible for paying any income chargeable under the head

“Salaries” shall deduct Income Tax on the estimated income of the employee.

Income tax is required to be calculated on the basis of the rates given in Part III of the

Third Schedule of the Finance Act and shall be deducted equally at the time of

payment. Salary is taxable on due basis or on receipt basis whichever is earlier. Tax

deduction is required only at the time of payment of salary.

Salary includes:

1. Wages

2. Any annuity or pension

3. Any gratuity

4. Any fees, commission, perquisites or profits in lieu of salary

5. Any advance of salary

6. Encashment of leave not availed

7. Interest earned in excess of 9.5% on Recognised Provident Fund

8. Amount contributed by Employer to Recognised Provident Fund in excess of

12% on salary

Fully Taxable Allowances

Dearness Allowance City Compensatory

Allowance

Wardenship Allowance

Rural Allowance Proctorship Allowance Project Allowance

Deputation Allowance Overtime Allowance Interim Relief

Tiffin Allowance Fixed Medical Allowance Servant Allowance

TABLE 1.7

Some of the other Allowance which are exempt to the extent of limit specified

Nature of allowance Limit specified Remarks

32

Hill compensatory Rs.300 p.m to Rs.7000 p.m Rule 2BB

Transport Allowance Rs.800 p.m Rs.1,600 for blind and

Handicapped

Children education Rs.100 p.m per child Maximum 2 children

Allowance

TABLE1.8

Specific Allowance that are fully exempt (Section 10(14))

Nature of allowance Condition for complete Exemption

Travelling Allowance Should be expended by the employee to meet the cost of

official tour or transfer expenses

Daily Allowance Should be expended by the employee for meeting the

daily charges incurred on a tour

Conveyance Allowance Should be used by the employee to meet the expenditure

on conveyance in performance of official duties.

Academic Allowance Should be used by the employee for his academic

Purpose

Uniform Allowance Should be expended by the employee for

purchasing/ maintaining office uniform for official

duties.

TABLE1.9

Taxability of House Rent Allowance

As per section 10(13A), an employee who is in receipt of House Rent Allowance can

claim exemption , if he does not live in his own house, and pays rent in excess of 10%

of salary(Basic+ DA considered for retirement benefits+ Fixed commission )for his

residential accommodation.

Least of the following is allowed as exemption

1. Actual amount of HRA Received

2. Rent paid in excess of 10 % of Salary

3. 40% of salary

33

Taxability of Gratuity [Section 10(10)]

Gratuity received by Government Employees or employees under Civil Services is

fully exempt from Tax. The exemption is available even if the employee after leaving

the Government services joins the private sector.

If covered under payment of Gratuity Act, 1972, Least of the following is exempt

Actual Gratuity Received

15/26 X Last Drawn Salary X Completed years of service +Part thereof

Rs.10,00,000 (Rs.3,50,000 upto May 23,2010)

Others

Least of the following is exempt

Actual Gratuity Received

½ X Average salary for 10 months preceding the month of retirement X No. of

fully completed years of service

Rs.10,00,000 (Rs.3,50,000 upto May 23,2010)

Taxability of Commutation of Pension [Section 10(10A)]

Any payment of commutation of pension received by a Government employee is fully

exempt. Commutation of pension on annuity plan of LIC is also exempt.

Non government employee in receipt of Gratuity, 1/3rd of full value of pension is

exempt. Non government employee not in receipt of Gratuity, 1/2 of full value of

pension is exempt.

Taxability of Leave Encashment [Section 10(10AA)]

Leave encashment while in service is fully taxable. Leave encashment on retirement

received by a Government employee is fully exempt.

Non Govt. Employee, the least of the following is exempt. :

Actual encashment received

Average salary for past 10 month X 10 months

Rs.3,00,000

34

Leave at Credit (calculated at 30 days credit for each completed year of

service –leave availed) X Average Salary for Past 10 Months (For this

purpose, Salary = Basic +DA(If part of retirement benefit + Commission if

fixed percentage of turnover.)

Taxability of Voluntary Retirement Scheme [Section 10(10C)]

An individual who receives voluntary retirement compensation is entitled for

exemption u/s.10(10C) in respect of the amount. The scheme should be in accordance

with guidelines framed by the Government (Rule 2BA). Maximum exemption amount

is Rs.5 lakhs.

Not Available if:

- Employed in another company of same management

- Should not have claimed exemption earlier for VRS scheme

Exemption u/s.10(10C) can be availed only Once in his life time.

Taxability of Medical Facilities

Medical Allowance is fully taxable. The following are tax free medical benefits

The value of medical treatment provided to an employee or any member of his

family in any hospital maintained by the employer.

Any sum paid by the employer in respect of any expenditure actually incurred

by the employee on treatment of his or any member of his family in any

hospital maintained by the Government, Local authority or approved by the

government for the purpose of medical treatment of its employees.

Any sum paid by the employer in respect of the prescribed diseases in any

hospital approved by the Chief Commissioner of Income Tax [Section 17(2)

(v)].

Any other medical reimbursement subject to a maximum of Rs.15,000

Deduction to an employee against his salary

35

1. Entertainment allowance [Section 16(ii)]: In the case of government employees the

least of the following will be allowed as deduction.

Actual amount of entertainment allowance received

20% of the Basic salary

Rs.5,000

2. Professional Tax [Section 16(iii)]: Professional tax or tax on employment

actually paid by an employee shall be allowed as deduction.

TDS RATES & RELATED PROVISIONS - FINANCIAL YEAR 2013-14 (ASSESSMENT YEAR 2014-15)Section Nature of Payment Payment in

excess ofRate of

deduction in individual

Rate of deduction in

others192 Salary Rs. 200,000 As per finance

act194A Interest from a banking

companyRs. 10000 P.A 10% 10%

194A Interest other than from a banking company

Rs. 5000 P.A 10% 10%

194B Winnings from Lottery/Crossword puzzles

Rs. 10,00,000 P.A

30% 30%

194C Payment to Contractors Rs.30,000 per payment or Rs.

75000 P.A

1% 2%

194D Insurance commission Rs. 20,000 P.A 10% 10%194G Commission on sale of

lottery ticketsRs. 1,000 P.A 10% 10%

194H Commission or Brokerage Rs. 5,000 P.A 10% 10%194I Rent of Land & building Rs. 1,80,000

P.A10% 10%

194I Rent of Plant & Machinery etc.

Rs. 1,80,000 P.A

2% 2%

194IA Transfer of immovable property

Rs.50,00,000 1% 1%

194J Payment for professional/technical

service

Rs.30,000 P.A 10% 10%

194LA Compensation on Land Acquistion

Rs.2,00,000 P.A

10% 10%

195 Payments to non-resident Any sum As per rates in As per rates

36

force in forceTABLE1.10

DUE DATES GOVERNMENT DEDUCTORSPAYMENT QUARTERLY RETURN

FILINGISSUE OF CERTIFICATE

same day where the tax ispaid without IT Challan(book adjustment)

within 7 days from endof the month, where taxis paid accompanied byan IT Challan.

Challan No.281

1st quarter July 31st2nd quarter October 31st3rd quarter January 31st4th quarter May 15th

salary: Form No.24QOthers: Form No.26QNRI : Form No.27Q

Form No.27A to be filedalong with TDS quarterlystatements

1st quarter August15th2nd quarter November15th3rd quarter February 15th4th quarter May 30th

Salary : Form No.16Others : Form No.16ATCS : From 27D

TABLE 1.11

DUE DATES OTHER THAN GOVERNMENT DEDUCTORS

PAYMENT QUARTERLY RETURN FILING

ISSUE OF CERTIFICATE

within 7 days from endof the month.

for TDS made in March: On or before 30thAprilChallan No.281

E-payment compulsoryFor Corporate assessees(Companies) Assessees towhom provisions ofsection 44AB of the ITAct are applicable

1st quarter July 15th2nd quarter October 15th3rd quarter January 15th4th quarter May 15th

Salary : Form No.24QOthers : Form No.26QNon resident : Form No.27QTCS : Form No.27EQ

Form No.27A to be filedalong with TDS/TCSquarterly statements

1st quarter July 30th2nd quarter October 30th3rd quarter January 30th4th quarter May 30th

Salary : Form No.16Others : Form No.16ATCS : From 27D

TDS certificates shall beissued by downloading fromTRACES Portal(WWW.TDSCPC.GOV.IN)

TABLE1.12

DELHI VALUE ADDED TAX (DVAT) ACT,2004

37

DVAT Act 2004 is an act to consolidate and amend the law relating to levy of tax on sale of goods, tax on transfer of property involved in execution of works contract, tax on transfer to use goods and tax on entry of motor vehicles by way of introducing a value added tax regime in the local areas of the National Capital Territory of Delhi.Imposition of tax:-

Subject to other provisions of this act, every dealer who isA. Registered under this act or,B. Required to be registered under this act;

Shall be liable to pay tax calculated in accordance with this act, at the time and in the manner provided in this act.

Every dealer shall be liable to pay tax at the rates specified in section 4 of this act on every sale of goods effected by him.

The amount of tax payable under this act by a dealer, is the dealer’s net tax period calculated under section 11 of this act.

The net tax of a dealer shall be paid within first 28 days of the conclusion of the dealer’s tax period.

Tax shall be paid in the specified manner in the section 36 of this act. Every dealer who has become liable to pay tax under this act on the sales of

the goods shall continue to be liable unless his taxable turnover during the preceding 12 months has remained below the taxable quantum and on the expiry of 12 months or such further period his liability to pay tax shall cease.

Every dealer who has become liable to pay tax under this act has ceased or whose registration has been cancelled, shall if his turnover calculated from the commencement of any year be liable to pay tax on and from the date on which his turnover exceeds the taxable quantum , on sales effected by him on and after that day.

Where it is found that any person registered as a dealer ought not to have been registered, then notwithstanding anything contained in this act , such person shall be liable to pay tax for the period during which he was registered.

If any person who transports goods or holds goods in custody in custody for delivery to or on behalf of any person , on being required by the commissioner so to do fails-

A. To furnish any information in his possession in respect of the goods; orB. Fails to permit inspection thereof;

Then without prejudice to any other action which may be taken against such person, a presumption must be raised that the goods in respect of which he has failed to furnish information or permit inspection, are owned by him and are held by him for sale in Delhi and the provisions and the provisions of this act shall apply accordingly.

Certain Sales not liable to pay tax In the course of inter-state trade or commerce; or

38

Outside Delhi; or In the course of import of the goods into or export of the goods out of , the

territory of India

The rate of DVAT varies 5% to 12.5%On goods of special importance (essential commodities) like cotton, bidi, wheat ,cereals ,iron, steel, jute etc the DVAT rate is 5%

Central Sales Tax (CST) Act,1956 This act may be called the Central Sales Tax Act, 1956 It extends to the whole of the India Its shall come into the force on such date as the Central Government may, by

the notification in the official gazette, appoint and different dates may be appointed for the different provisions of this act.

This tax is levy on purchase and sale of goods said to be take place outside a state.In TPDDL main work is generation and distribution of electricity but it is exempted from tax , so in TPDDL Sales Tax is levied on the following transactions:

Sale of scrap or obsolete items Maintenance of street lights Used car sales Used laptop sales

List of scrap items:- Transformers Cable wire Iron scrap Air conditioner Wooden goods Waste paper etc

In case of scrap sales if vendor issue the C form against the sold items then the rate of CST will be 2% else it will be higher up to 20%

Concessional List of Purchase Items All kinds of transformers All kinds of switches and switchgears Battery , Battery chargers

39

All types and kinds of cable All kinds of electric and electronic systems Fire protection system & fire extinguishers Generators All kinds of Poles Natural gas IT related equipments and systems All types of danger boards All types of computer software Meter seals and meter boxes

In case of purchase of items, if TPDDL purchases any goods from outside Delhi and issues the ‘C’ form, then the CST rate will be 2%, else it will be higher up to 20%A company can issue C form only against registered items. Registered items are mentioned under the RC issued by the sales Tax authorities.TPDDL deposits DVAT and CST monthly and submits the file to the DVAT officer.

SERVICE TAX

It is a tax on services rendered by one person to another. It is not meant to be a tax on anything else. The levy of service tax pre-supposes the existence of two important aspects:-

There should be a tax by means of imposition of a charge The charge should be on services rendered.

40

OBJECTIVES

The objectives of study are as follows:-

To understand the Tax Deducted at Source(TDS) process, which comes under the Income Tax Act 1961

To know the various types of taxes are paid by the company

To understand the importance of taxation in an organization

Getting a more practical insight into the tax filling process.

LITERATURE REVIEW

41

There are many researches done in the past by many researchers on TDS, e-TDS ,

filling of TDS, etc

Geetha R. And Sekar M studied the tax payer’s perception, awareness towards filling

of income tax returns, and to analyse the level of satisfaction among the tax payers

towards e-filling of income tax returns. Their study reveals that 56% of the

respondents are female. It is inferred from the above that majority of the individual

tax payers are male (56%) it is concluded that there is no significance relationship

between the residential status and the level of awareness regarding the e-filing of

income tax returns, time limit of returns, cost of e-filing , website address, digital

signatures, usage of computer software for e-filling , e-payment through banks, TDS

returns, registration number, usage of IRS forms and the terms and conditions of e-

payment.

Dr. Y. M. Dalvadi studied the preparation of e-TDS return File, Forms

24,26,27,,27E,24Q,26Q 26QA,27EQ,16,16A,16AA, 22,27D by giving single input,

Salary Calculation, Rebate, Relief u/s 89, Data can be imported from MS-Excel

Files/Text Files and FVU Files. Generation of TDS/TCS Certificates (Form 16,

16A,27D) in PDF Format signed with Digital Signature. Preparation of TDS/TCS

Book Adjustment Form (TBAF). Study shows that technology does not give

guarantee for reduction to taxation is too low among SME’s so it is advisable to

increase the usage so that they can be relieved from stress from complex rules and

regulation and concentrate in the main business and strategy for the development of

enterprise.

Saumen Chattopadhay and Arindam Das Gupta studied that TDS has a uniformly

significant and positive effect on taxes paid and also a uniformly positive on tax

compliance for two of the three tax compliance variables.

The latter impact accords with the finding of the Crane and Nourzad (1994) for US

tax payers. However the finding must be taken to be inconclusive, since the TDS

effect for the third tax evasion variable was uniformly positive, through uniformly

insignificant and numerically small.

Taxation Policy has been a widely debated issue all over the world. A large number of studies have been conducted covering different aspects of income tax structure such as personal income tax, capital gains taxation, agricultural taxation, efficiency of

42

income tax administration etc. over the years. In this chapter, the available literature was studied to get an insight into the main objectives of the study. The review of literature is confined to India only as income tax legal frame work varies from country to country. Moreover, reports of important committees constituted by Government of India have also been reviewed. A brief review of relevant studies in this regard is given below:

Ambirajan (1961) tried to study the evolution, structure, administration and future prospects of the corporate income tax in India in the context of changing ideas and concepts that influenced Indian tax policy. He revealed that revolutionary tax changes were made only in the post freedom-period. He found that the corporate tax structure had a minor impact on investment structure in corporate sector. He opined that Indian corporate tax rates were very high as compared to even many underdeveloped countries. The study concluded that there was an urgent need of tax reforms

Boothalingam (1968) was appointed by the Government of India to examine the structure of direct and indirect taxes in India. He recommended to abolish the classification of income under various heads for determination of total income and to allow setting off losses against any kind of income for improvement in income tax structure. He highlighted that arrears of salary received when spread over a number of past years, resulted in reopening of many assessments. Thus, he recommended spreading the arrears of salary received over the future years rather than past years. He suggested for stablisation in tax rate structure over the years, elimination of surcharge and raising the exemption limit to Rs. 7500 for individuals and Rs. 10000 for HUF and discontinuation of personal allowances. He was of the opinion that number of Public Relation Officers should be increased for the convenience of the taxpayers.

Singh (1971) examined depreciation provisions under the Income Tax Act with

special reference to their impact on corporate financial decisions. He pointed out that

sound depreciation policy could be adopted by the corporates to minimize their tax

liability. However, depreciation policy could not be used for sound financial decisions

because of some inherent weaknesses in the depreciation provisions under the Income

Tax Act viz. complicated tax depreciation structure with too many rates for different

categories of assets, absence of depreciation allowance on the live stock which were

disabled but could not be sold, difference between actual economic life of plant and

machinery and that depicted in tax laws etc. So the author stressed the need for a rational and liberal deprecation policy to provide incentives for industrial

43

development and growth. In the end, he suggested that depreciation should be based on replacement cost in place of historical cost of the asset.

Aggarwal (1971) analysed the impact of corporate taxes on retained profits of a concern and performance of corporate sector in India. He also analysed its impact on public policy. The study covered the period from 1960-61 to 1967-68 and was based on data collected from RBI Bulletins. He highlighted that tax structure was not conductive for growth of corporate sector. Lack of internally generated funds had shown adverse effect on investment in corporate sector. He suggested a number of measures for rationalizing corporate tax policy such as exemption to small companies from distribution dividend tax, revival of development rebate, removal of taxes on inter corporate dividends and bonus shares.

Sundram and Pandit (1979) tried to find out what ought to be the logical tax entity and its impact on equity and revenue. The authors opined that tax entity should be identical with the decision making unit and in India decisions were taken by nuclear family (Husband, wife and minor children). Under the existing system of taxation, H.U.F. and individuals have always been taken as independent assessment units leading to multiple tax entities. The study found that it resulted in severe revenue loss as each tax entity enjoyed variety of deductions and exemptions and effective marginal tax rate came down. The authors recommended that nuclear family should be treated as a single tax entity by eliminating „individual‟ and „HUF‟ as tax entities. They estimated that suggested change would generate additional revenue amounting to Rs. 130 crore and make tax system more equitable. A decrease in exemption limit on income from approved investments and reduction in deductions on account of approved savings were also suggested for rationalisation of income tax system.

Murti (1982) studied different aspect of income tax administration in India viz. origin and development of income tax in India, the structure and organization of income tax administration, public relations, recruitment and training of personnel as well as morale of income tax personnel. The study reflected both strengths and weaknesses of Indian Income Tax administration based on its historical evolution since the colonial period. It highlighted that income tax officials were overburdened with work. The service conditions in the department were not healthy for accomplishment of goals. The reforms in administrative machinery were very slow. In the end, the researcher stressed upon reviewing the income tax administration as a part of the larger Indian bureaucracy.

44

Maji and Rakshit (2001) examined the provisions of Income Tax Act relating to integration of agricultural income with non-agricultural income over the period 1987-88 to 2000-01. The authors calculated tax liability by taking different amounts of agricultural income for the purpose of integration and found that higher the amount of agricultural income, lower was the effective rate of additional tax. The study highlighted that integration provision was disproportionate in nature. The researchers opined that exempting agricultural 84 income from tax was unfair as it resulted in horizontal inequity, narrowing the tax base and tax evasion. They suggested that agricultural income should be brought under the purview of Income Tax Act by amending constitution and a separate head of income should be inserted for agricultural income. They further suggested that average of the first two bracket rates should be applicable on the agricultural income.

COMPANY PROFILE

45

Tata Power Delhi Distribution Limited [TPDDL] is a joint venture between Tata Power and the Government of NCT of Delhi with the majority stake being held by Tata Power (51%). TPDDL distributes electricity in North & North West parts of Delhi and serves a populace of 6 million. The company started operations on July 1, 2002 post the unbundling of the erstwhile Delhi Vidyut Board (DVB). With a registered consumer base of 1.44 million and a peak load of around 1704 MW, the company's operations span across an area of 510 sq kms.

TPDDL has been the frontrunner in implementing power distribution reforms in the capital city and is acknowledged for its consumer friendly practices. Since privatization, the Aggregate Technical & Commercial (AT&C) losses in TPDDL areas have shown a record decline. AT&C loss is a measure of overall efficiency of the distribution business which is the difference between units input into the system and the units for which the payment is collected. Today, AT&C losses stand at 9.87% which is an unprecedented reduction of around 81% from an opening loss level of 53% in July 2002.

On the power supply front too, TPDDL areas have shown remarkable improvement. The company has implemented high-tech automated systems for its entire distribution network. Systems such as, SCADA, Geographical Information System [GIS], Outage Management System [OMS], DMS and OTS are the cornerstone of the company's distribution automation project. To fight the menace of power theft, modern technologies like High Voltage Distribution (HVDS) System and LT Arial Bunch Conductor have been adopted.

TPDDL has to its credit several firsts in Delhi: SCADA controlled Grid Stations, Automatic Meter Reading, GSM based Street Lighting system, SMS based Fault Management System, etc. TPDDL has also embarked on its Smart Grid Journey and has become the first utility to initiate Automated Metering Infrastructure based Auto Demand Response program in the country which will help in managing peak demand & Grid stress.

To ensure complete transparency, TPDDL has also provided online information on billing and payment to all its 1.44 million consumers. TPDDL has added solar generation as a part of sustainable initiative since 2008. With fifteen (15) Solar Plants installed at its license area the total capacity till FY 2014-15 is 1.65 MW.TPDDL is also a member of a Global Intelligent Utility Network Coalition (GIUNC) which is working towards accelerating the development of common standards, technology solutions and processes for intelligent networks. TPDDL is the first Indian utility to join the IUN Coalition which also includes utilities from North America, Europe and Asia-Pacific regions.

TPDDL is the only utility in the Country to have been empanelled by the Power Finance Corporation, Govt. of India's nodal implementation agency for its Restructured Accelerated Power Development and Reforms Program (R-APDRP), as IT Consultant and SCADA Consultant. TPDDL is also empanelled with the Rural Electrification Corporation as System Consultant/IT and Energy Auditing and is currently providing consultancies to various National and International utilities on IT/ SCADA implementation e.g. Haryana, Uttar Pradesh etc. TPDDL has been assigned with consultancy service project with newly privatized utility in Nigeria.

46

TPDDL's change management experience, distributed leadership system, adoption of latest technology; robust competence development process and innovative & open work culture are the key strategic boosters which helped in building and sustaining competitive advantage in the changing business scenario.

TPDDL has created several milestones in its journey so far; it is now focused and committed to the road ahead and is exploring new opportunities to replicate its experience of distribution reforms both in India and abroad. It is leveraging its unique learning and skill sets solely and in collaboration with leading utilities and technology providers in the areas of communications & technology, change management, consumer service delivery and business process re-engineering.

A journey which began a decade ago for empowering the consumers in Delhi now holds the potential to transform the distribution sector in India and similarly help utilities across the globe. Today, TPDDL is providing project management and consultancy services to the states of Haryana and Uttar Pradesh. It is also exploring opportunities in Chhattisgarh and Punjab. The company is providing a technical and management support to a Distribution Company in Nigeria and is also looking for consultancy assignments in Kurdistan, Turkey and Iraq.

TPDDL is sensitive to the aspect of Climate Change and is committed to introduce energy efficient and greener technologies. As a part of the Tata Group, TPDDL carries forward the Group's ethos of giving back to society. In fact, 'Reaching out to communities TPDDL operates in' is an integral part of the company's mission statement. This drives a wide array of Corporate Social Responsibility efforts of the company. TPDDL's CSR Policy rests on four main pillars – Employability, Entrepreneurship, Education and Employment. TPDDL has around 223 Jhuggi Jhopri (JJ) clusters in its licensed area. Apart from enhancement in distribution services, TPDDL also focuses on community engagement and welfare programmes particularly in these areas. TPDDL continuously identifies the needs of the local communities and undertakes relevant initiatives/ drives accordingly. These initiatives includes Adult Literacy Centers (ALC) for women, Vocational Training Centers (VTC), neighborhood electrician program, tutorials for children, medical aid, drug-de addiction support, accidental insurance scheme and safety awareness drives. TPDDL has also undertaken several community development and welfare activities under its CSR initiatives to educate, empower and bring about transformation in the lives of illiterate and downtrodden women, students & children especially belonging to the families which are economically and socially underprivileged and deprived and residing in the slum clusters and resettlement colonies within our licensed area .TPPDL through such initiatives have touched lakhs of lives to improve their living conditions.

Apart from this, TPDDL also works on various projects to preserve and regenerate the environment. It is a member of the Greening Agency within the Department of Forest & Wildlife, Government of Delhi and is committed to promote tree plantation. TPDDL has been aggressively creating energy conservation awareness though its Energy Club prograMmes comprising of students from over 190 member schools.

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More than 2 lakhs students and 10 lakhs people have been sensitized to the issue of climate change and conservation through this initiative.

Tata Power Delhi Distribution has won several accolades for its pioneering efforts in transforming the power distribution scene in its licensed area both at the national and international levels. It has been conferred with the 'National Award for Meritorious Performance' thrice by the Ministry of Power, Government of India for outstanding performance in power distribution. It has also won six Asian Power Awards in a row and holds a rare distinction of becoming the first power distribution utility from India to have received the prestigious Edison Award twice, in the international category in 2008 Edison Award for Innovative Implementation of GIS and again in 2009 for Policy Advocacy.

Some of the other key recognitions include Best Performing Private Discom Award at Power Line Award- 2013, IPPAI Award 2013, International Palladium Balanced Scorecard Hall of Fame award- 2008, SAP Ace award 2008; UPN, USA metering award. It is also the youngest company and the first power utility in India to receive the prestigious CII EXIM Award for 'strong Commitment to Excel'. It is also the only distribution utility to receive the ISO 9001, ISO 14001 and OHSAS 18001 certification. TPDDL is the only Indian utility to have SA8000 certification. TPDDL has been recognized as 2nd best in the "Best in Class – Energy, Oil and Gas Industry by the Great Places to Work, India.

TPDDL has also been a subject of various Case Studies on Organizational Transformation & Power Sector Reforms, prepared by eminent management institutions such as IIM Lucknow, MDI Gurgaon, IMI Delhi, TMTC Pune, with the most recent one being NDPL-The Tata experience of a transformation. Management consultants, McKinsey and the prestigious Wall Street Journal, USA, have also researched and lauded our performance. TPDDL's Case Study on BSC was published in Emerald Emerging Case Studies, UK by Faculty of Management Studies (FMS).

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MANAGING TEAM

Name Designation

Praveer Singha CEO & Managing DirectorArup Ghosh CTO & Executive DirectorAjay Kapoor CFO & Chief - Legal & RegulatorySudarshan Kumar Saini Chief - CommercialSunil Singh Head - Operations, Systems and SafetySanjay Kumar Banga Head - Business Development,Power

Management, Project, Engineering & Contract

Shiv Ram Bhardwaj Head - Estate Management & CivilBrajamohan Panigrahi Head - Internal Audit & Risk AppraisalSushil Kumar Srivastava Head - Human ResourcesTABLE 2.1

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TATA POWER-DELHI DISTRIBUTION LIMITED CSR POLICY

As a part of the Tata Group, Tata Power Delhi Distribution Ltd. (TPDDL) believes in the Tata Group’s ethos of giving back to society. Rich heritage and unmatchable legacy of Tata Group for holistic development of underprivileged communities, societies & nation becomes the guiding force for adoption of community development initiatives. TPDDL’s CSR vision corroborates being a responsible corporate and aims at imbibing social alignment as a key component of all its business processes and strategy. ‘Reaching out to communities we operate in’ is an integral part of our mission statement. TPDDL’s inclusive approach to reach out to its stakeholders and maintaining equilibrium brings more agility to the business. The community outreach programs, working on the lines of triple bottom line approach, aims to serve key communities in a systematic & planned way. There are 200+ listed JJ clusters & resettlement colonies which fall in company’s area of operation. The residents of these JJ clusters are basically migrants from different communities, culture, ethnicity and creed who drifted from their native places. These clusters also have a very high representation of SC/ST communities which further emphasizes the need for inducing various developmental initiatives there. Creating avenues for Education, Employability, Health Services, Environment and Empowering marginalized societal sections & communities in distress are the focus areas of community development at TPDDL. TPDDL looks forward for an enhanced and valuable contribution in the lives of communities by the company, create a win win situation for all stakeholders and strives for achieving the milestones of sustainable development and inclusive growth.

Objective of TPDDL CSR programs / projects CSR programs/projects aim to achieve: Holistic development in the lives of individuals of JJ clusters and resettlement colonies residing in TPDDL’s licensed area of supply.

Development of active & long term association with communities around for sustainable, replicable & scalable projects of livelihood, social entrepreneurship and empowerment of underprivileged sections of JJ clusters & Resettlement Colonies.

Inclusion of employees for value creation/contribution in these communities through volunteering.

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Geographies and Target Communities

CSR programs/projects would be targeted primarily for JJ Clusters & Resettlement Colony residents residing in TPDDL’s licensed area spread approximately over 550sq. kms. Across North & North West of Delhi. In addition, in case of natural disasters & calamities TPDDL will take up relief work across country as appropriate.

The target communities of CSR programs/projects would be underprivileged, socially and economically marginalised men, women, adolescent, school going students, school drop outs, SC/ST, old age individuals, orphans and differently abled individuals.

Sectors & Issues CSR programs/projects focuses on following sectors & issues as per sectors mentioned in Schedule VII read with Section 135 of Companies Act, 2013:

In addition, we will respond to any disasters, depending upon where they occur and our own ability to respond meaningfully.

CSR Plan of TPDDL also includes:

Taking up new projects specified in Schedule VII read with section 135 of the Companies Act, 2013 and rules made thereunder and any amendments made thereto from time to time. Note: Surplus arising out of the CSR programs/projects or activities shall not form part of the business profit of the Company. Implementing mechanism CSR programs/projects would be primarily implemented by proficient NGOs. In-House CSR team would look after the identification, planning, budgeting, monitoring, evaluation and reporting of the CSR programs/projects.

Monitoring & Review Mechanism

TPDDL’s CSR programs/projects have clearly defined targets, no. of beneficiaries and timelines by which the deliverables of projects are measured & monitored. The working mechanism, deliverables & outcome of the programs are detailed in the contract agreement of the implementing partner. The monitoring process will cover both programme and financial reviews. TPDDL has adopted 3 tier monitoring & review structure to ensure effective implementation of CSR programs/projects

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53

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AWARDS AND RECOGNITIONS

1. Great Places to Work 2013 : As per a Survey conducted by the Economic Times and Great Places to Work Institute, India Tata Power- DDL has been ranked 46th amongst 100 Best Companies to Work for in India and also declared 2nd Best in Energy, Oil and Gas Industry for the year 2013

2. AIMA’s Breakthrough Innovation Award 2013 : Tata Power Delhi

Distribution Ltd. (TPDDL) was conferred this award for its ‘Last Mile AT&C Loss Reduction in JJ Clusters by CS intervention, This award is instituted by All India Management Institute and conferred for breakthrough innovations.

3. Best Performing Private Discom Award 2013 : Tata Power Delhi

Distribution Limited has won the Power Line ‘Best Performing Private Discom’ award at Power Line Award 2013. The Powerline Awards recognize excellence and outstanding performance in the Indian power sector in the fields of generation, transmission and distribution.

4. IPPAI Award for Most Improved Power Distribution Company

(DISCOM) 2013 : Tata Power Delhi Distribution Limited, has been conferred the Most Improved Power Distribution Company Award for 2013 by Independent Power Producers Association of India (IPPAI),This is a non-partisan awards program to recognize the contribution of organizations, Indian States and State Electricity Regulatory Commissions who have significantly contributed to the development of the power sector in India.

5. Safety Innovation Award : Tata Power Delhi Distribution Ltd. (TPDDL) has

won the prestigious Safety Innovation Award for the Year 2013 for the fifth consecutive year. This award has been instituted by The Institution of Engineers (India) under the aegis of Safety & Quality Forum

6. 12th Annual Greentech Safety Award 2013, Gold Category: Tata

Power Delhi Distribution Ltd. (TPDDL) has won the Gold Award in Public Utility Services Organisation Sector at the 12th Annual Greentech Safety Award 2013. This Award is in recognition for the excellence, best practice and innovation in Fire, Safety Management

7. National Award for Meritorious Performance (2008-09): Tata

Power-DDL won the National Award for Meritorious Performance 2008-09. Tata Power-DDL was presented the silver award by Shri Sushil Kumar Shinde, Hon'ble Union Minster of Power. The award, instituted by the Ministry of Power, Government of India, was conferred in recognition of Tata Power-DDL's outstanding performance in power distribution.

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BOUQUET OF SERVICES

TPDDL is a unique name amongst firms providing consultancy in the power sector. Building up on its four-fold strengths of being a Power Distribution utility, Change Management expertise, Idea Capital and IT& Technology Expertise, TPDDL has been offerings services laden with domain experience as well as a consultant's vision.TPDDL's hands on experience of successful implementation and regular maintenance enable it to act as a Project Management Consultant and handhold utilities from the cradle to youth to embrace state-of-art technologies.

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TPDDL's success story has led to an influx of progressive measures in other power sectors in India as well. Encouraged by the wholesome transformation witnessed in TPDDL regions, other sectors such as water distribution, retail gas supply, solar rooftop generation, etc. have embarked on producing the change in their business areas. TPDDL, harnessing its pioneering presence and pool of exceptional brains, has also been involved in assisting these firms on their path to excellence.

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MAJOR PLAYES OF POWER COMPANIES

Major Power Generating companies

NTPC

National Hydro Electric Power Corporation

JINDAL

TATA Power

RELIANCEBSES

ADANI Power Limited

Major Power Transmission companies

Power Grid Corporation of India Limited

Power Link

Delhi Transco Limited

BBMB

Major Power Distributing companies

Tata Power

Torrent Power

BSES

BRPL

India possesses a vast opportunity to grow in the field of power generation, transmission, and distribution. The target of over 150,000 MW of hydel power germination is yet to be achieved. By the year 2013, India requires an additional 100,000 MW of generation capacity. A huge capital investment is required to meet this target. This has welcomed numerous power generation, transmission, and distribution companies across the globe to establish their operations in the country under the famous PPP programmes. The power sector is still experiencing a large demand-supply gap. This has called for an effective consideration of some of strategic initiatives. There are strong opportunities in transmission network ventures –additional 60,000 circuit kilo meters of transmission network is expected by 2013

with a total investment opportunity of about US$ 200 billion.

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The implementation of key reforms is likely to foster growth in all

segments:

Unbundling of vertically integrated SEBs

Open Access to transmission and distribution network

Distribution circles to be privatized

Tariff reforms by regulatory authorities

Initiatives

Allowing foreign equity participation up to 100 per cent in the power sector

under the automatic route.

Encouraging the private sector to set up coal, gas or liquid-based thermal

projects, hydel projects and wind or solar projects of any size.

Constitution of Independent State Electricity Regulatory Commissions in the

states.

Deregulation of the ancillary sectors such as coal.

Introduction of the Electricity Act 2003 and the notification of the National

Electricity and Tariff policies.

Provision of income tax holiday for a block of 10 years in the first 15 years of

operation and waiver of capital goods' import duties on mega power projects

(above 1,000 MW generation capacity).

Un-bundling of the State Electricity Boards (SEBs) into generation,

transmission, and distribution companies for better transparency and

accountability.

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Potential

Large demand-supply gap: All India average energy shortfall of 7% and peak

demand shortfall of 12%

Opportunities in Generation for:

o Coal based plants at pithead or coastal locations (imported coal)

o Natural Gas/CNG based turbines at load centres or near gas terminals

o Hydel power potential of 150,000 MW is untapped as assessed by the

Government of India

o Renovation, modernization, up-rating and life extension of old thermal

and hydro power plants

Opportunities in Transmission network ventures - additional 40,000 circuit km

of transmission Network expected by 2013

Opportunities in Distribution through bidding for the privatization of

distribution in thirteen states that have unbundled/corporatized their State

Electricity Boards expected to take place Over the next 2-3 years

Total investment opportunity of about US$ 200 billion over a seven year

horizon.

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RESEARCH METHODOLOGY

Secondary data , is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organisational records and data collected through qualitative methodologies or qualitative researchSecondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments.The data required was collected in the following ways:-

Appointment was taken from a few employees Data was gathered on the basis of the appointment. Further research was based on the data collected from books, journals,

documents.

Research methodology used is systematic, theoretical analysis of the methods applied to a field of study. It comprises the theoretical analysis of the body of methods and principles associated with a branch of knowledge.

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FINDINGS AND INFERENCES

TPDDL is following all the statutory compliances under various tax laws like Income Tax, Service Tax, DVAT and CSAT.

The company is deducting tax amount at the applicable tax rates under various tax laws and depositing account on or before the due date.

TPDDL is using SAP ERP system and before depositing the tax amount it is checked by the various levels of concerned staff by using required reports generated by SAP system.

Tax is submitted online and not manually.

All the returns are filled timely.

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DATA REDECTION, PRESENTATION AND ANALYSIS

First Quarter Financial Year 2014-2015

(Section 194 A)

Total number of deductee 13000

Total Interest paid 19 Crores

TDS deducted 65 Lakhs

PAN Available 5900

TDS on PAN Available 42 Lakhs

Interest on PAN Available 17.8 Crores

The table presented above represents the data for First Quarter for the financial year

2014-2015 under section 194 A. The data shows that the total number of deductee

involved are 13000 and the total interest paid by all is Rs. 19 crores. The total TDS

that has been deducted is Rs. 65 lakhs. The number of deductees that have furnished

their PAN are around 5900 and the remaining are those who have not furnished their

PAN are 7100.

The amount of TDS on number of PAN available is Rs. 42 lakhs which means that

that TDS on non-availability of PAN is 23 lakhs. Interest on PAN availability is Rs.

17.8 Crores so the remaining amount indicated the interest on non availability of

PAN ie.1.2 Crores.

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First Quarter Financial Year 2015-2016

Section 194 A

Total number of deductee 13300

Total Interest paid 30 Crores

TDS deducted 2 crores and 50 lakhs

PAN Available 6200

TDS on PAN Available 2 crores and 25Lakhs

Interest on PAN Available 28 Crores and 25 lakhs

The table presented above represents the data for First Quarter for the financial year

2015-2016 under section 194 A. The data shows that the total number of deductee

involved are 13300 and the total interest paid by all is Rs. 30 crores. The total TDS

that has been deducted is Rs. 2 crores and 50 lakhs. The number of deductee who

have furnished their PAN are around 6200 and the remaining are those who have not

furnished their PAN are 7100.

The amount of TDS on number of PAN available is Rs. 2 crore and 25 lakhs which

means that that TDS on non-availability of PAN is 25 lakhs. Interest on PAN

availability is Rs. 28 Crores and 25 lakhs so the remaining amount indicated the

interest on non availability of PAN ie.1.5 lakhs

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Year 2014-15 Year2015-1612850

12900

12950

13000

13050

13100

13150

13200

13250

13300

13350

Number Of Deductee

Number Of Deductee

Figure 1.5

Inference from the above graph:

The number of deductee has increased in the financial year 2015-16 by 300.

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Figure 1.6

Inference from the above graph:

The above graph depicts that the interest paid has been increased during the financial

year 2015-2016 by 11 crores.

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Year 14-15 Year 15-140

50000000

100000000

150000000

200000000

250000000

300000000

350000000

Interest

Interest

Year 2014-15 Year 2015-160

50000000

100000000

150000000

200000000

250000000

300000000

350000000

TDS Deducted

Interest Paid

Figure 1.7

During the financial year 2015-16 the TDS deducted is more as compared to the

previous financial year .

LIMITATIONS

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Having not studied taxation in depth before, made it at times difficult to understand concepts .

As the subject of taxation is so vast, it is difficult to understand whole taxation in a short duration of training period.

At times, the employees were busy with their own work which made it a bit difficult for me to get my doubts cleared.

Limitations of the Indian Taxation System:-

Bias in incidence of taxes: As per the indirect taxation enquiry committee, “The burden of the urban households was distinctly higher than the rural households in the corresponding expenditure class”. Urban population is taxed far higher than the rural rich.

Complexity and corruption: A provoking feature of the Indian tax system is its complexity. Both direct and indirect tax laws are complex. This provides enough scope for avoiding and evading taxes.

Imbalance in tax system: Excessive emphasis on indirect taxes has resulted in the glaring imbalances of nearly 100% citizens affected by indirect taxes but hardly 1% of the population coming under the purview of direct taxation.

Lack of built-in elasticity: Income from taxation does not increase automatically in India in proportion to increase in National income. Hence, the government is compelled to increase taxes every year to maintain a constant tax income ratio.

Squandering away of resources: Colossal amounts of taxes realized are spent on civil administration and defence.“Vote Bank Politics” result in “populist schemes” subsidized by the governments. As a result, resources for the rapid economic development of the country are always lacking.

Multiplicity of taxes: Taxes by Union Government, State Governments

and the local governments have resulted in difficulties and harassment to the

tax payer. He has to contact several authorities and maintain separate records

for each of them.

Dominance of Indirect taxes: Central government revenues from indirect and direct taxes were in the ratio of 74:26 respectively in 1994-95. In the same year the ratio for State government was 83:17. It is well known that indirect taxes are more burdensome to the poor than the wealthy.

RECOMMENDATIONS

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Training regarding how to use the SAP software should be given to employees

.

Employees should be educated on how to plan their tax filing and reduce their

tax liability.

Since tax rules and regulations change almost year, employees must be made

equipped with knowledge to ensure they are up to date with the latest

amendments made.

Employees must be helped on keeping the necessary documents ready for tax

filing.

For Tax Collection Focus resources on improved auditing, processes, tools.

Use simple segmentation to identify larger collection opportunities

Ensure regular updates to the taxpayer registry

Introduce account managers to oversee large taxpayers

Use electronic channels for simple transactions

Simplify the tax system to encourage formalization

Analyze opportunities to close tax loopholes

CONCLUSIONTaxation is the process by which the government imposes charges on citizens and corporate

businesses. The charges collected by the government are used to fund different government

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projects that would in the end benefit the citizens of the country as a whole. The taxation process

can benefit both the society and business as a whole. The government allocates the money

collected from the taxpayers to different areas of the country. The areas picked are rural areas.

Some rural areas may have resources that might be beneficial for both the country and its

economy. Therefore, the government would allocate part of the tax money to provide the essential

services required and to improve the standards of such places.

Tax should be paid by all those who have to

Awareness as to why should one pay tax should be spread

Best possible methods of tax collection and payment should be used.

BIBLIOGRAPHY

Reference Books:

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TPDDL manuals TPDDL tax guru TPDDL tax patrika Systematic Approach to Income Tax , Service Tax and VAT by Girish Ahuja

Websites: www.wikipedia.org www.incometaxindia.gov.in www.tatapower-ddl.com www.taxguru.in www.tatapower.com

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Documents

TAX DEDUCTED ON SOURCE UNDER INCOME TAX ACT,1961