GURU GOBIND SINGH

INDRAPRASTHA UNIVERSITY
NEW DELHI

SUMMER INTERNSHIP PROJECT REPORT

On
HLG & CO. (CA)

Submitted in partial fulfillment of the requirement

For the award of degree of BCom(H) Session: 2021-2024

SUBMITTED AT:

MANAGEMENT EDUCATION AND RESEARCH INSTITUTE

Submitted To: Submitted By:
CMA AJAY JAIN Farheen
Assistant Professor 01415188821

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 DECLARATION

I hereby declare that this Project Report titled “HLG & CO. (CA)” submitted by me to
Management Education and Research Institute is a
bonafide work was undertaken during the period from AUGUST 2023 to SEPTEMBER
2023 and has not been submitted to any other University or Institution for the award of
any degree
diploma/certificate or published any time before.

(Signature of the Student) Date:

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 BONAFIDE CERTIFICATE

This is to certify that as per the best of my belief the project entitled “HLG & CO. (CA)” is the
bonafide research work carried out by Farheen, 0141518821 student of B.com(H),
MERI, Janakpuri, New Delhi during AUGUST-SEPTEMBER 2023 in partial fulfilment of the
requirements for the Degree of Bachelor of Commerce (Honours).
He / She has worked under my guidance.

____________________
Name: CMA AJAY JAIN
Research Project Guide
Date:
Countersigned by
------------------

Name

HOD / Director
Date:

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 ACKNOWLEDGEMENT

I have been very fortunate to get the opportunity to work on a summer internship project HLG & CO.
(CA). I hereby take this opportunity to express my profound gratitude towards Guru Gobind Singh
Indraprastha University for allowing me to work on a valuable project. I would
like to extend my deepest regards and gratitude to CMA AJAY JAIN sir, my project
guide who continuously guided me throughout the project. Monitoring and
constant encouragement throughout the course of this study made the successful completion
of this project possible.

Signature of the Student FARHEEN

01415188821

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 Table of Contents

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 EXECUTIVE SUMMARY

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 Chapter 1
INTRODUCTION
About summer internship
An internships provide an opportunity for students to apply what they have learned in
institutions to practical work experiences related to their academic or career goals, in
other words it is an opportunity offered by an employer to interns, to work at a firm
for a fixed period of time. Interns are usually undergraduates or students, and most
internships last between a month and three months. It is usually part time if offered
during a university semester and full time if offered during the vacation periods. An
internship would give you practical skills, workplace experience and greater
knowledge of that industry, in exchange for employer benefiting from your labor. An
internship can be either paid or voluntary. The trend is increasingly (and rightly)
towards the former, as voluntary internships are often cited as exploitative. As you
would expect, internships that pay well are usually the most competitive.

The internship is a compulsory part of the BCOM(H). The most important thing is
that the university authority has included a forty-five days internship program in the
course curriculum after completing the program. Students must work in any bank,
financial institution, small business, or other public or private company related to
their particular academic requirements.

About company

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  H L G & C O (Chartered Accountants)
 CA. – Founder and owner
 Address: Office Suite# 509,DLF Star Tower, Sector 30, Gurgaon, Haryana-122 001,
Delhi NCR, India.
 Phone - +91-124-414-0073
 E-mail:
 Established in
 Industry type:
 Nature of business:

Company: HLG & CO is a chartered accountancy firm rendering comprehensive

professional services like audit, accounting services, management consultancy, tax
consultancy and more. It is a firm consisting of chartered accountant and other financial
experts. The firms aim in providing sound financial services to their clients and
assisting them in their business operations and growth.

Customer: The Typical customers are Earning professionals or Individuals, Business persons,
Companies and Industries.

Competition: The Competitions typically includes other firms and also the awareness or
financial knowledge by the common people. Once someone has the financial knowledge of how
to maintain his/her records and file the returns by themselves without anyone help then it would
create less demand.

Environment: The Environment of the company is very friendly refreshing and since it’s an
MSME the working culture is also very relaxed.

Technology: The Technology used are normal basic professional Desktops with high-speed
network facility. No other technology is required as everything can be done online nowadays.

Services offered

1. Auditing Services:

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 - Statutory Audits: Conducting financial statement audits as required by law to
provide an independent opinion on the accuracy of financial statements.

- Tax Audits: Verifying the accuracy of tax returns filed by individuals or entities to
ensure compliance with tax laws.

2. Taxation Services:

- Tax Planning: Advising clients on tax-efficient strategies to minimize their tax

liabilities.

- Tax Compliance: Preparing and filing income tax returns for individuals and
businesses.

- Tax Consultation: Providing guidance on various tax matters, including international

taxation, transfer pricing, and tax dispute resolution.

3. Accounting Services:

- Financial Statement Preparation: Compiling financial statements in accordance with

accounting standards.

- Bookkeeping: Maintaining accurate and up-to-date financial records for businesses.

- Forensic Accounting: Investigating financial irregularities and fraud within an

organization.

4. Advisory and Consulting Services:

- Business Advisory: Offering strategic advice on business growth, expansion, and

financial management.

- Management Consulting: Assisting with improving operational efficiency and

effectiveness.

- Mergers and Acquisitions: Providing due diligence and financial analysis for
potential mergers or acquisitions.

5. Assurance Services:

- Review Engagements: Providing limited assurance reports on financial statements.

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 - Compilation Engagements: Compiling financial information with providing an
opinion or assurance.

6. Compliance Services:

- Compliance Audits: Ensuring compliance with industry-specific regulations and

standards.

- Regulatory Filings: Assisting with the preparation and submission of regulatory

reports and filings.

7. Financial Planning and Analysis:

- Personal Financial Planning: Helping individuals plan for their financial future,
including retirement and investment strategies.

- Budgeting and Forecasting: Assisting businesses in creating budgets and financial

projections.

Objective of summer internship

I choose to work with HLG & CO. for my summer internship program. During this
internship I have learnt many new skills and got an opportunity to explore corporate
world. Before I only had theoretical knowledge about work in organization but now, I
have gained more of practical working experience. Now I have knowledge about the
organization’s working environment and how organization’s work and achieve their
goals and objectives. This internship has also provided me with the better
understanding of business and also about the elements of strategic thinking, planning
and implementation, and how these things are applied in a real-world organization
environment.
Following are the objectives that I have in my mind before working as an internee.
 To improve communication skills
 To learn more than the theoretical knowledge.
 To learn book keeping practices of different companies
 To compare practical aspects with theoretical aspects
 To enhance my personal knowledge and professional preparation for future.
 Develop a solid work ethics and professional manner as well as commitment to
ethical conduct and social responsibility.
 Develop organizational skills to complete the project in a timely manner.
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  To gain more knowledge regarding taxation and accounting
 To gain field experience working with CA.

Nature of organisation

A Chartered Accountancy (CA) firm is a professional services firm that specializes in providing a wide
range of financial and accounting services to businesses and individuals. These firms are typically
comprised of Chartered Accountants who have obtained the necessary qualifications and licenses to
practice as accountants and auditors.
Here are some key aspects of the nature of a CA firm:
 Professional Services: CA firms offer professional services related to accounting, auditing,
taxation, and financial management. They assist clients in maintaining accurate financial
records, complying with tax laws, and making informed financial decisions.
 Diverse Clientele: CA firms often serve a diverse client base, including businesses of all sizes,
nonprofit organizations, government agencies, and individual taxpayers. They may also provide
services to clients in various industries.
 Audit and Assurance: Many CA firms specialize in audit and assurance services, which
involve examining and verifying financial statements to provide an independent assessment of
their accuracy and fairness. This is often required by regulatory authorities and shareholders.
 Taxation Services: CA firms help clients navigate complex tax laws and regulations. They
assist with tax planning, preparation of tax returns, and represent clients in dealings with tax
authorities.
 Financial Advisory: CA firms may provide financial advisory services, helping clients with
investment decisions, mergers and acquisitions, financial restructuring, and business valuation.
 Compliance and Regulatory Matters: CA firms help clients stay compliant with financial
regulations and reporting requirements, which can vary depending on the industry and
jurisdiction.
 Consulting: Some CA firms offer management consulting services, assisting clients with
strategic planning, cost control, risk management, and improving business processes.
 Ethical and Professional Standards: Chartered Accountants adhere to a strict code of ethics
and professional standards to ensure integrity, objectivity, and confidentiality in their work.
 Continuing Education: Chartered Accountants are required to engage in ongoing professional
development and stay updated with changes in accounting standards, tax laws, and business
regulations.
 Independence: Independence is a critical aspect of CA firms, especially when performing
audits and assurance services. They must maintain an unbiased and impartial stance to provide
reliable assessments.
 Size and Structure: CA firms can vary in size from small local practices to large multinational
firms. The structure can also differ, with some firms being partnerships, while others are part of
larger networks or associations.
 Technology Integration: Modern CA firms often embrace technology to enhance their services.
They use accounting software, data analytics, and digital tools to streamline processes and
provide more valuable insights to clients.
In summary, CA firms play a vital role in the financial and business ecosystem by providing a wide
range of financial and accounting services. They are subject to rigorous professional standards and
regulations to ensure the quality and integrity of their work. The nature of a CA firm's services can vary
depending on its specialization and the needs of its clients.

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 Chapter – 2
About the Industry

The financial service industry:

The financial service industry, often referred to as the financial sector, is a critical component of
the global economy. It encompasses a wide range of businesses, institutions, and services that
are involved in managing and facilitating the flow of money, investments, and financial
transactions within the economy. The financial service industry plays a pivotal role in economic
development by providing essential services related to money management, investments, risk
mitigation, and financial intermediation. I worked under :-
 The accounting service industry:
The accounting service industry is a vital component of the broader financial services
sector, specializing in providing various financial and accounting services to individuals,
businesses, organizations, and government entities. These services are essential for
maintaining accurate financial records, ensuring compliance with tax and accounting
regulations, and making informed financial decisions.

The organization is working as a Chartered Accountant firm under the rules and regulations and
code of ethics designed for CA firms by ICAI (The Institute of Chartered Accountants of India).
The Institute of Chartered Accountants of India (ICAI or the Institute) was established as a
statutory body on July 1, 1961, under the Chartered Accountants Ordinance, 1961 to regulate
the profession of Accountancy in the country. ICAI is governed by the Council which consists
of fourteen members. Thirty-two are selected from among the members. The remaining Eight of
the council members are nominated by the Government of India. These kinds of firms provide
different kinds of professional services like audit, taxation, and management consultancy to
their clients. The Chartered Accountancy course is conducted by the Institute of Chartered
Accountants of India, which has its headquarters in New Delhi, 5 Regional offices (Calcutta,
Kanpur, Chennai, Mumbai and New Delhi) and 81 branches under their regional centres.

The Finance department shall-

 Manage all Finance activities of the company except adjudication and award of
contracts
 Support the functioning of the Finance committee
 Implement the decisions of the Finance committee
 Check and payment Vouchers of company clients
 Prepare Payment documents
 Prepare purchase vouchers and any other contract document
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Financial accounting is a specific branch of accounting involving a process of recording,
summarizing, and reporting the myriad of transactions resulting from business operations over
a period of time. These transactions are summarized in the preparation of financial statements
—including the balance sheet, income statement, and cash flow statement—that record a
company’s operating performance over a specified period. Work opportunities for a financial
accountant can be found in both the public and private sectors. A financial accountant’s duties
may differ from those of a general accountant, who works for themself rather than directly for
a company or an organization.

Generally speaking, the accounting industry has much to offer to recent graduates in terms of
opportunities, career development, and advancement. Accountancy firms provide employment
and career development opportunities to accountants and auditors with a wide range of
qualifications. It is important to note that recent graduates who want to become future
accountants are not limited to working only for Big Four accounting firms. For example,
graduates with bachelor's or master's degrees can work in a wide variety of job functions
ranging from auditing or tax planning in public accounting firms to financial planning or
forensic advisors in small enterprises.
To have a good career development path in accounting does not mean that one needs to work
for a big player. There are numerous possibilities to become a private or management
accountant in profit organizations whose core business does not revolve around selling
accounting services.

Necessary Skills for an Accountant

To succeed as a professional accountant, you not only need to have good analytical skills and
the ability to analyze and interpret financial data to develop future business strategies but you
also need to possess good soft and interpersonal skills to communicate with clients, customers,
and business partners effectively. Once, you develop managerial abilities such as learning how
to supervise the work of others or direct less experienced individuals the opportunities for
advancement become present.
When you apply for accountancy roles in public accounting firms, medium-sized enterprises, or
large corporations be prepared to demonstrate the below skills and abilities to maximize your
chances of success:

 Analytical skills and strong affinity to numbers – show that you have the aptitude to
analyse, manipulate, and draw conclusions and recommend future courses of action
based on financial data
 Teamwork – demonstrate that you have the ability to work as a part of the team
 Soft skills – prove that you have strong communication, interpersonal, and managerial
abilities
 Time management – show that you can prioritize task and meet the set deadlines
 Attention to detail – demonstrate that you have capability to complete the task first time
and spot any weaknesses and improve on them

To become a successful accountant, you need to be willing to learn constantly and keep up with
latest regulations and legislative requirements. You need to be passionate about what you are

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doing like everything else in life – it is hard to become good at something if you don’t have
passion for it.

A financial services CA (Chartered Accountant) firm is a specialized type of accounting firm

that primarily focuses on providing financial and accounting services to clients within the
financial services industry. This industry-specific expertise allows these CA firms to cater to the
unique needs and regulatory requirements of financial institutions, investment firms, and related
businesses. Here are some key aspects of a financial services CA firm:

1. Financial Institutions: Financial services CA firms often work closely with banks, credit
unions, insurance companies, and other financial institutions. They help these entities with
various financial reporting, auditing, compliance, and risk management services.

2. Investment Firms: CA firms in the financial services sector provide critical services to
investment companies, including hedge funds, private equity firms, mutual funds, and asset
management firms. This may involve fund accounting, auditing, valuation, and regulatory
compliance.

3. Regulatory Compliance: The financial services industry is highly regulated, and CA firms
specializing in this sector assist their clients in adhering to complex regulatory requirements.
They help clients stay compliant with financial reporting standards, anti-money laundering
(AML) regulations, and securities laws.

4. Risk Management: These CA firms offer risk assessment and management services to
financial institutions and investment firms. This includes assessing credit risk, market risk,
operational risk, and implementing risk mitigation strategies.

5. Audit and Assurance: Auditing is a crucial service provided by financial services CA firms.
They conduct independent audits to verify the accuracy and completeness of financial
statements, internal controls, and compliance with regulatory standards.

6. Tax Planning and Compliance: Financial services entities have specific tax considerations.
CA firms assist in tax planning, optimization, and compliance, ensuring that clients meet their
tax obligations while minimizing tax liabilities.

7. Valuation Services: Valuation is significant in the financial services industry, especially for
investment firms. CA firms may provide valuation services for portfolios, securities, and
business entities.

8. Financial Reporting: These firms assist clients in preparing accurate and timely financial
statements and regulatory reports required by financial authorities and stakeholders.

9. Forensic Accounting: Forensic accountants within these firms may investigate financial
irregularities, fraud, and financial disputes, which are particularly critical in the financial sector.

10. Consulting and Advisory: Financial services CA firms often provide strategic financial
and business consulting services to help their clients navigate market trends, mergers and
acquisitions, and other financial challenges.

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11. International Financial Services: Some financial services CA firms have a global presence
and offer services related to international financial standards, cross-border transactions, and
international tax planning.

12. Technology Integration: Like other CA firms, those specializing in financial services
increasingly integrate technology solutions to enhance efficiency, data security, and
compliance.
These specialized CA firms play a crucial role in ensuring the financial stability, transparency,
and compliance of businesses within the financial services industry. They help their clients
navigate complex regulatory environments while managing financial risks effectively.

CHAPTER -3
Description of work

Job description
I have tried my best to enhance my abilities and apply the knowledge that I gained
during the studies. On my first day at firm, company in charge gave me briefing
about TDS returns and computerized accounting in tally Prime software and also
shared his practical experience with me and gave me some techniques of this process.
He also guided me that how to prepare VAT/GST return and filling data in income
tax return preparation software.
Different task that I performed during my internship
 Vouching
 Preparing books of accounts in tally
 Voucher entry
 Bill booking
 Preparing Data in Excel Sheet
 Theoretical learning of different types of Taxation and GST
 TDS, GSTR-1, GSTR-2B, GSTR-3B return preparation
 Preparation of financial statements.

Task Activity Name Activity Description

No
Studied about various tax rules and regulations and its
1 Knowledge gaining exemptions under the section 80C, GSTR 1, 2b, 3b, .

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 Preparation of Bank statement, Income Statement, Computation
Preparation of total income, Balance sheet, Capital account and P&L account.
2 of Financial
files

3 Filing ITR and GSTR Prepared files are filed on the respective online portal on behalf
of the clients.

Many scripts, idea and contents have been made to create

Content and awareness about the finance schemes and their availability.
4 Document Creation Along with other services like registrations, Deeds, Agreements
have been made on Documents for the clients.

Insights / Learnings Concepts / Theories / Skills

All basic accounting standards and calculations were applied

1 Basics of Accounting

The concept of Taxation was learned along with the GST. The
2 ITR & GST knowledge was successfully applied.

This involved learning new excel tools, data aligning and gathering.
3 Financial Files
Preparation

Software used during internship

 MS office
 Tally Prime software
Introduction to accounting software

Accounting software is a computer program which helps accountants in recording and reporting
financial transactions of the business. Accounting software makes accounting calculations
easier and less office space is required as all details are stored in computer. With the help of
accounting software, retrieving of old accounting data is easier and quick. So, business people
can divert their time on important decisions of business rather than preparing accounts, as
accounting software do various accounting and book keeping tasks and also offers useful tools
like invoicing, bill payment, payroll and financial reporting.

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Accounting software can create a variety of Reports and Financial Statements, which includes
Profit and Loss Account and Balance Sheet, which are used by Management, Investors, Market
Analyst, Government and Suppliers to evaluate financial condition of a business and its earning
potential.

There are plenty of Accounting Software available in the Market. An organization can choose
the Accounting Software as per their requirements and needs of Business. In this summer
internship program, I have worked on Tally Prime software.

About Tally Prime

Tally Prime is a popular accounting and business management software used by businesses in
India and many other countries. It is developed by Tally Solutions Pvt. Ltd. Tally Prime is
designed to help businesses with tasks such as accounting, inventory management, taxation,
payroll, and more.
Since tally is one of important software in business world. And getting the opportunity to

learn regarding that would help me boost my career in future.

Here are some key features and functions of Tally Prime:

1. Accounting: Tally Prime allows users to maintain their financial records, ledger entries,
and generate various financial reports like balance sheets, profit and loss statements,
and cash flow statements.

2. Inventory Management: It helps businesses manage their inventory efficiently by

tracking stock levels, managing purchase and sales orders, and generating inventory
reports.

3. Taxation: Tally Prime is equipped to handle various tax compliance requirements in

India, such as GST (Goods and Services Tax), TDS (Tax Deducted at Source), and TCS
(Tax Collected at Source). It generates tax-related reports and facilitates e-filing.

4. Payroll Management: Users can manage employee payroll, including salary

calculations, deductions, and compliance with labour laws.

5. Banking and Reconciliation: It enables users to reconcile their bank accounts, handle
fund transfers, and manage transactions effectively.

6. Multi-lingual Support: Tally Prime supports multiple languages, making it accessible to

users across India.

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 7. Data Security: Tally Prime offers data security features, including user access controls,
data encryption, and backup options.

8. Reporting: The software provides a wide range of customizable reports and financial
statements to help businesses make informed decisions.

9. Integration: Tally Prime can be integrated with various third-party applications and
services to extend its functionality.

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 CHAPTER -4
Learning Summary

THEORIES, CONCEPTS AND SKILLS

1. Record Transactions
Recording transactions for accounting entry in Tally Prime follow a simple pattern.
You can record a transaction with the following steps. A transaction for payment of
bank charges (expenses) is used as an example.

1. Press Alt+G (Go to) > Create Voucher > press F5 (Payment).
Alternatively, Gateway of Tally > Vouchers > press F5 (Payment).
2. Press F2 (Date) to change the transaction date, if needed.
When you press F2 to change the date, the date shown is for the subsequent day
of the current date. This is done to avoid manual entry of date for the next day
as the immediate next day is the most common business day. You can however
enter any date, even a date before the current date.
3. In the Account field, select the Cash or Bank ledger.
When you create a Company in TallyPrime, the system creates two ledgers by
default – Cash and Profit & Loss A/c.
4. Provide the payment details.
a. Under Particulars, select expense ledger for which you are making this
payment.
As always, press Alt+C to create a ledger under Indirect Expenses, on
the fly, if an expense ledger does not exist.
b. Amount: Enter the payment amount.

5. Provide Narration, if any, and accept the voucher creation screen. As always,
press Ctrl+A to save.

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In each and every transaction in the cash book follow the golden rule of accounting.
Nominal account- debit all expenses and losses, credit all incomes and gains.
Personal account- debit the receiver and credit the giver.
Real account- debit what comes into business and credit what goes out.

2. GST Invoice booking

An invoice is a key element of the sales process. It is the prime document that serves as a bill
for the service/s or product/s your business has provided.

As per GST laws, every supplier who has acquired GST registration in India has to issue an
invoice in the pre-notified format, while supplying goods or services.

Meaning every business transaction affected by nature involving removal of goods for supply to
recipient or provision of service to the recipient can only be executed by the issue of invoices to
the recipient, irrespective of whether such supplier operates such business online or offline.

Sales can be of two types:

 Local Sales on which CGST and SGST are applicable

 Intestate Sales on which IGST is applicable

Before making sales entries in Tally, one needs to create ledgers related to sales to prepare
a GST invoice.

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Types of GST Charged in India
1. State Goods and Services Tax (SGST)
The State Goods and Services Tax is one of the GST types which the government of a

particular state imposes. The state government taxes goods and services within the state

(intrastate, for example Mysore), and the state government is the sole beneficiary of the

collected revenue.

 The SGST replaces various state-level taxes such as lottery tax, luxury tax,

VAT, purchase tax and sales tax.

 However, if the transaction of the goods is interstate (outside the state), then

both SGST and CGST are applied. But, if the goods and services are

transactions within the state, only SGST is imposed.

 The rate of GST is equally divided among the two types of GSTs. For

instance, when the traders sell their commodities within their state, they must

pay SGST and CGST. The revenue earned from SGST belongs to the state

government and revenue from CGST to the central government.

SGST Rates
Commodities SGST

Handloom, printed books, 0%

newspapers, Jute, fresh meat, fish
chicken
Common Groceries such as Tea, Salt, 2.5%

Spices, Sugar, etc.

Processed foods, 6%

electronic

Capital Goods, toiletries, etc. 9%

Premium luxury commodities 14%

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2. Central goods and Services tax (CGST)

The Central goods and Services tax applies to the intrastate (within the state) supply of goods and services. The

central government taxes it. The CGST Act governs this type of GST. Here, the revenue generated from the

CGST is collected along with the SGST and is divided between the central and state government.

CGST Rates

Commodities CGST

Handloom, printed books, newspapers, Jute, 0%

fresh meat, fish chicken
Common Groceries such as Tea, Salt, Spices, 2.5%

Sugar,

Processed foods electronic 6%

goods

Capital Goods, toiletries, etc. 9%

Premium luxury commodities 14%

3. Integrated Goods and Services tax (IGST)

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 The Integrated Goods and Services tax is a type of GST, where the tax applies on the interstate supply of goods

and services. This GST type is also imposed on the goods and services that are imported as well as exported.

The IGST Act governs it, and the central government is responsible for the collection of IGST.

The collected IGST is equally divided into central and state government portions. The State portion of the IGST

is provided to the state where the goods and services are received

For instance, when the trader makes a supply between two states, the type of tax in this case would be IGST.

IGST Rates

Commodities IGST

Handloom, printed books, newspapers, Jute, fresh 0%

meat, fish chicken
Common Groceries such as Tea, Salt, Spices, 5%

Sugar, etc.

Processed foods electronic 12%

goods

Capital Goods, toiletries, etc. 18%

GST SET OFF RULES:

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Let’s understand new GST set off rules with examples

Credit of

IGST - Rs. 200

CGST - Rs. 50

SGST - Rs. 50

Output liability of

IGST - Rs. 100

CGST - Rs. 100

SGST - Rs. 100

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As per the earlier GST input set off rules, CGST & SGST credit can be utilized to set off the liability of
CGST & SGST, respectively and the balance can be paid through IGST credit. And the taxpayer has to pay
nothing in cash.

But, as per the new GST ITC set off rules 2022, IGST credit of 200 shall be utilized towards the payment
of output liability of Rs. 100 of IGST and Rs. 100 of CGST.

This will lead to the accumulation of credit under CGST of Rs. 50 that can be carried forward along with
this the SGST output liability of Rs. 50.

3. TDS (Tax deducted at source)

Usually, the person receiving income is liable to pay income tax. But with the help of TDS the government
makes sure that income tax is deducted in advance from the payments being made to the person. The recipient
receives the net amount (after reducing TDS). The recipient will add the gross amount to his income and the
amount of TDS is adjusted against his final tax liability. TDS or Tax Deducted at Source is income tax reduced
from the money paid at the time of making specified payments such as rent, commission, professional fees,
salary, interest etc. by the persons making such payments.

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 TDS Rate Chart for FY 2023-24 (AY 2024-25)

Section Deductee Nature of transaction Threshold TDS Rate

Limit (Rs)
192 Resident non Payment of salary Basic Normal Sla
resident exemption limit Rates
of employee
193 Resident Interest on securities income if the 10%
limit of Rs
5,000 on
debentures and
Rs 10,000 on
others is
crossed.
194 Resident Payment of any dividend 5,000 10%

19A Resident Interest other than Interest on interest earned 10%

Securities up to 50,000

194C Resident Payment to contractor/sub- Single

contractor:- transaction-
1,00,000
a) Individuals/HUF 1%

b) Other than Individuals/HU 2%

194-I Resident Rent:

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 194-I(a) Rent on plant and
machinery
2,40,000 2%

194-I(b) Rent on
land/building/furniture/fittin
2,40,000 10%
g

194J Resident Fees for professional or 30,000 10%

technical services during the
year

TDS Return & Payment Due Date For FY 2023-24

Due dates for depositing TDS Return

Month of
Quarter ending TDS Due Date
deduction
(FY 2023-24) (FY 2023-24)

April 2023 7th May 2023

30th June 2023 May 2023 7th June 2023 31st July 2023

June 2023 7th July 2023

30th September July 2023 7th August 2023 31st October

2023 2023

August 2023 7th September 2023

September 7th October 2023

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 Due dates for depositing TDS Return
Month of
Quarter ending TDS Due Date
deduction
(FY 2023-24) (FY 2023-24)

2023

October 2023 7th November 2023

31st December 31st January

November 2023 7th December 2023
2023 2024

December 2023 7th January 2023

January 2024 7th February 2024

February 2024 7th March 2024

31st March
7th April 2024 (for tax 31st May 2024
2024
deducted by govt. office)

March 2024

30th April 2024 (for other

deductors)

Example of TDS entries.

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Income Tax Rates
Individuals
(Other than resident senior and super senior citizen)

Net Income Range Rate of Income-tax

Assessment Year 2024-25 Assessment Year 2023-
24
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%

Resident Senior Citizen

(who is 60 years or more but less than 80 years at any time during the previous year)

Net Income Range Rate of Income-tax

Assessment Year 2024-25 Assessment Year 2023-24

Up to Rs. 3,00,000 - -
Rs. 3,00,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%

Add:

a. Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee

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 exceeds specified limits: -

Rate of Surcharge
Assessment Year 2024-25 Assessment Year 2023-24
Range of Income Range of Income

Rs. 50 Rs. 1 Crore Rs. 2 Crores above Rs. 50 Rs. 1 Crore Rs. 2 Crores above Rs.
Lakhs Rs. Lakhs

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 to Rs. 1 to Rs. 2 to Rs. 5 5 crore to Rs. 1 to Rs. 2 to Rs. 5 5 crore
Crore Crores Crores Crore Crores Crores
10% 15% 25% 37% 10% 15% 25% 37%

The tax rates under the new tax regime are as under:

(a) For Assessment Year 2023-24:

Net Income Range Tax rate

Up to 2,50,000 Nil
From 2,50,001 to 5,00,000 5%
From 5,00,001 to 7,50,000 10%
From 7,50,001 to 10,00,000 15%
From 10,00,001 to 12,50,000 20%
From 12,50,001 to 15,00,000 25%
Above Rs. 15,00,000 30%

(b) For Assessment Year 2024-25:

Net Income Range Tax rate

Upto Rs. 3,00,000 Nil
From Rs. 3,00,001 to Rs. 6,00,000 5%
From Rs. 6,00,001 to Rs.9,00,000 10%
From Rs. 9,00,001 to Rs. 12,00,000 15%
From Rs. 12,00,001 to Rs. 15,00,000 20%
Above Rs. 15,00,000 30%

Add:

a. Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee
exceeds specified limits: -

Range of Income
Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore to Rs. 2 Crores Rs. 2 crores to Rs. 5 crores Exceeding Rs. 5 Crores
10% 15% 25% 37

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 Lotter
ITR Applicabl Salar House Capita Other Foreign Carry
Business Exempt y
For e to y Propert l Source Assets/Foreig Forwar
Income Income Incom
m y Gains s n Income d Loss
e

Yes
ITR- Individual, Yes(One No (Agricultur
1/ HUF Yes House No Yes al Income No No No
Sahaj (Residents) Property) less than Rs
5,000)

ITR- Individual,
Yes Yes No Yes Yes Yes Yes Yes Yes
2 HUF

Individual
ITR- or HUF,
Yes Yes Yes Yes Yes Yes Yes Yes Yes
3 partner in a
Firm

Yes Yes
Yes(One Presumptiv (Agricultur
ITR- Individual,
House e Business No Yes al Income No No No
4 HUF, Firm
Property) Income less than Rs
5,000)

No
ITR- Partnership
Yes Yes Yes Yes Yes Yes Yes Yes
5 Firm/ LLP

No
ITR-
Company Yes Yes Yes Yes Yes Yes Yes Yes
6

ITR- No
Trust Yes Yes Yes Yes Yes Yes Yes Yes
7

TYPES OF INCOME TAX RETURN:-

Income Tax Return (ITR) is a form in which the taxpayers file information about their
income earned and tax applicable, to the income tax department. The department has notified
7 various forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every
taxpayer should file his ITR on or before the specified due date. The applicability of ITR
forms varies depending on the sources of income of the taxpayer, the amount of the income
earned and the category of the taxpayer like individuals, HUF, company, etc.

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