Documente Academic
Documente Profesional
Documente Cultură
2018 – 20 Batch
Submitted by:
Jivesh Dilip Prajapati
PGDM182013730
PGDM
Finance – 1
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ACKNOWLEDGMENT
I express my gratitude to H&R Block, Pune for giving the opportunity to work with such an
esteemed organization for a summer internship. This internship has a great chance of
learning and professional development for me.
I would like to thank the management and employees of H&R Block for taking out time
from their busy schedule and providing guidance during the course of internship. I would
like to thank CA Vaibhav Sankla (MD, H&R Block India), Mr. Vishal Sankla (Senior
Manager), CA Vaibhav Sarode (Assistant Manager and Operations Head), CA Hemant
Bafana (Assistant Manager), Mr. Amit Khaire (Senior Tax Consultant), Miss. Aishwarya
Pardeshi (Quality Assurance Head), without her guidance project, wouldn’t have been
successful.
I sincerely thank Prof. Vijayanta Pawase, faculty at ITM Business School, for his support
and guidance all through this study and his valuable feedback and add-ons.
I extend my heartfelt gratitude to my college, ITM Business School and the Director Dr.
Saritprava Das for providing her valuable inputs and showing faith in my abilities.
Last but not least, I thank each and everyone who were directly or indirectly associated with
this project.
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Table of Contents
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EXECUTIVE SUMMARY
This summer internship project which was undertaken as a part of MBA curriculum was
aimed at understanding the concept of Income Tax and its e-filing in India at H&R Block
India Pvt. Ltd., Pune. The title of the project work is “Filing Income Tax Return of
Individuals”.
The primary objective of the project was to study income tax and help in e-filing of income
tax for salaried individuals. Client’s document such as Form 16, Form 26AS and other
investment proof were taken into consideration for preparing tax summary. After studying
the income tax act and working as a tax advisor it has been observed that the act has given
many provisions which can help reduce the tax liability of taxpayers. Minimum tax
applicable to pay is 5% and Maximum 30% plus 10% surcharge if the total income is more
than 50 Lakhs.
From observation and practical experience, it was known that e-filing is convenient that
physical tax filing. It was also found that a number of clients are aware of basic deductions
and exemptions and are comfortable with e-verification rather than paper-based verification.
For the betterment of the website, the government must focus on the website server that the
website properly works in the peak months and make sure to use more and more advanced
technology to make the website easy for the income taxpayers for filing the income tax
returns.
This project has helped gain in-depth knowledge and clear understanding of the concepts of
Income Tax in India and the process of e-filing and verification.
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List of Figures/ Charts
Page
Figure No. Item
No.
1 Type of Assessee 10
2 Residential Status 11
6 ITR Forms 13
10 Self-occupied Property 17
11 Let-out Property 17
12 Gratuity exemption 19
13 Pension 20
14 Leave Encashment 21
16 PF Withdrawal 22
Introduction
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1.1 Introduction
The Central Government has been empowered by Entry 82 of the Union List of Schedule
VII of the Constitution of India to levy a tax on all Income other than Agricultural Income
[Subject to Section 10(1)]. The Income Tax Law Comprises the Income Tax Act 1961,
Income Tax Rules 1962, Notifications and Circulars issued by Central Board of Direct Taxes
(CBDT), Annual Finance Acts and Judicial pronouncements by Supreme Court and High
Courts.
The Government of India on Taxable Income of all persons including individuals, Hindu
Undivided Families (HUF’s), Companies, Firms, Association of Persons, Body of
Individuals, Local Authority and any other Artificial Judicial Persons. Levy of Tax is
separate on each of the persons. The levy is governed by The Indian Income Tax Act, 1961.
The Indian Income Tax Department is governed by CBDT and is part of the Department of
Revenue under the Ministry of Finance, Govt. of India. Income Tax is a key source of funds
that the government uses to fund its activities and serve the public. Income Tax exemptions
and deductions give plenty of opportunities to save tax.
An individual can plan to maximize tax savings and reduce Income Tax Liability by availing
the benefit of provisions relating to a deduction from taxable income under various sections
of the Income Tax Act. If an individual has done proper tax planning, such deductions would
be subtracted from the gross income and income tax would be levied on the balance income
as per Income Tax Slabs in force.
The project was carried out at H&R Block India. H&R Block is a tax preparation company
in North America, Australia, Brazil, and India. The Kansas City-based company also offers
banking, payroll, personal finance, and business consulting services. Founded in 1955 by
brothers Henry W. Bloch and Richard Bloch, Block today operates approximately 12,000
retail tax offices worldwide. Block offers its own consumer tax software (formerly Tax Cut),
as well as online tax preparation and electronic filing from their website.
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• To study the importance of long-term capital investments to save excess tax
payments.
• To explore and simplify the tax planning procedure from a layman’s
perspective.
➢ Secondary Objectives
• Learning the procedure of execution of e-filing using H&R Block software.
• Learning tax calculation with respect to income slab.
• Understanding the process of e-verification through mobile banking, ATM,
AADHAR, registered mobile number.
• Also understanding the pattern of investment of salaried individual.
• To observe the work environment in the organization.
• To enhance my communication skills.
• To increase my confidence.
➢ Scope
• To learn the basics of Tax Planning of salaried income people.
• To learn the extent of awareness of clients on tax laws and tax planning
measures.
• To learn the tax rates, insurance plans and premiums for Financial Year 2018-
19.
• Study of the rules and regulations given by the Income Tax Dept. for paying the
taxes for the Assessment Year 2019-20.
• To study the tax liabilities of salaried employees.
1.3.2 Why Study of Residential Status is Necessary for Income Tax Filing
Why Study Residential Status?
Tax incidence on an assessee depends on his residential status. For instance, whether an
income, accrued to an individual outside India, is taxable in India depends upon the residential
status of the individual in India.
Similarly, whether an income earned by a foreign national in India or outside India is taxable
in India depends on the residential status of the individual rather than on his citizenship.
Therefore, the determination of the residential status of a person is very significant to find
out his tax liability.
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1.3.3 Types of Assessee
Section 6(1):
(1) He/She should stay in India for a period or periods amounting in all to 182 days or
more during the previous (i.e. 2018-19)
OR
(2)
a. He/She should stay in India for a period or periods amounting in all to 60 Days
or more during the previous year (i.e. 2018-19)
And
b. He/She should stay in India for a period or periods amounting in all to 365
Days or more during four preceding previous years (i.e. from 2015-16 to
2017-18)
Exceptions: (the First condition is used under certain conditions only when)
1. Indian Citizen leaving India for Employment purpose.
2. Indian Citizen leaving India as a Crew member of Indian Ship.
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3. Person of Indian Origin comes to India for visit purpose.
In the above scenario, if He/She satisfies any of the one condition than he will be considered
as a Resident of India. If he fails to satisfy any one of these conditions, then he will be
treated as Non-Resident.
Section 6(6):
(1) He/She should be Resident in India for at least 2 out of 10 years preceding to
that previous year.
And
(2) He/She should stay in India for period or periods amounting in all to 730 days or
more during 7 preceding previous years.
If both of the additional conditions are satisfied, then he/she will be Resident and an
Ordinary Resident. If anyone of the conditions is satisfied, then they will be treated as
Resident but not Ordinarily Resident.
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Where the Taxable Income exceeds Rs. Rs. 1,00,000/- plus 30 percent of the
3 10,00,000/- amount by which the total income
exceeds Rs. 10,00,000/-
Figure 5: Income Tax slab rates if the age is above 80 years
1.3.6 Which ITR form should be used while Income Tax Return Filing
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1.3.7 Why should an Individual file Income Tax Return?
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1.3.10 Calculations of Salary Income
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1.3.11 Income from House Property
Following are some of the incomes which are exempted from taxes:
(Note: Exemptions are not included in Gross Total Income and Deductions are included in
Gross Total Income)
Agricultural income – Sec 10(1): Pure agricultural income i.e. which includes no trading
and only agricultural activities is exempted from tax.
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Gratuity – Sec 10(10):
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Pension – Sec 10(10A):
Pension
Commuted Uncommuted
Pension Pension
Government Non-Government
Employee Employee
(Monthly Pension
after Retirement)
Taxable in all cases
Govt. as well as
Fully non-government
Exempt If Gratuity If Gratuity not
Received: Received:
(1/3 of total (1/2 of total
commuted value commuted value
of pension is of pension is
exempted) exempted)
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Leave Encashment – Sec 10(10AA):
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Amount Received on Life Insurance Policies (LIC) – Sec 10(10D):
Provident
Fund
Withdrawal
Exempt
Employee Employer
Interest will get Principal will Interest will get Principal will
Taxable under the get Taxable Taxable under get Taxable
head (Income from under the head the head (salary) under the head
Other Sources) (salary) (salary)
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Leave Travel Allowance/ Concession (LTA) – Sec 10(5):
Quantum of exemption:
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House Rent Allowance – Sec 10(13A):
An Assessee is eligible to claim an exemption on HRA received if He/She is staying in
rented accommodation.
Any payment from approved superannuation fund irrespective it is approved by the chief
commissioner or commissioner of income-tax shall be fully exempted if the payment is made
to,
➢ The Legal heirs on the death of the beneficiary.
➢ An employee in lieu or in commutation of an annuity on his retirement at or after a
specified age or on his becoming incapacitated prior to such retirement.
➢ An employee on his leaving the service in connection with which the fund is
established otherwise than, in the circumstance mentioned in above point i.e. leaving
employment for better pay, etc. then the lump sum received will be fully taxable.
-it is worthwhile to note that-
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➢ During employment – employer’s contribution to such a fund in excess of 1,00,000
p.a. per employee is taxable in the hands of the employees under section 17(2)(vii)
➢ Employee’s contribution is entitled to deduction under section 80C from his gross
total income.
➢ Interest on accumulated balance is exempt from tax every year.
The income of Minor is exempt of up to Rs. 1,500 per child and that income are clubbed
under the parent whose income is higher.
Minor’s income is not clubbed if he gets income through his Skill, Knowledge, Activity than
the taxes will be paid by his parents on his behalf.
Dividend from Domestic Company is exempt up to Rs. 10,00,000/- and if it exceeds, then
the excess amount above Rs. 10 Lakhs will be taxable at the rate of 10 percent.
If the same dividend is from the Foreign Company, then the whole amount will be taxable as
per the slab rates.
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In case of single premium policy, if the policy is terminated within two years from the
commencement of insurance under that policy the deduction claimed in the earlier
year would be added to the taxable income of the year in which such termination is
made.
• The contribution made to PPF (Public Provident Fund):
Contributions made in the name of Self, Spouse and Children under PPF he can claim
to benefit up to Rs. 1,50,000/-
• National Saving Certificate (NSC):
Investment done toward NSC can be claimed up to Rs. 1,50,000/- If both principals, as
well as interest, is less than 1.5 Lakhs than he can claim benefit for both the amount.
For example, he invested Rs. 1,00,000/- in NSC and on that he gets interested of Rs.
20,000/- then he can claim both Rs. 1,20,000 under 80C benefit.
• ELSS (Equity Linked Saving Scheme):
An Assessee is eligible to get the benefit of ELSS up to Rs. 1,50,000 because it has a
lock-in period of 3 years and more than 60 percent of your investments are done in
equity.
• Repayment of Housing Loan:
Under some circumstances, he cannot claim this benefit if –
If the property is under construction, he cannot claim benefit.
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• Premium amount paid towards annuity plan of LIC for receiving a pension from the
funds can be claimed for deduction under 80CCC.
Interest on Loan is taken for residential house property under section 80EE
An additional amount of Rs. 50,000/- can be claimed as a deduction for House Property if
the following conditions are satisfied:
• Purchaser should be first-time buyer i.e. he has never purchased any house and now he
is going to purchase a house.
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• Value of the house should not more than Rs. 50,00,000/-
• A loan taken by the Individual for the purpose of buying a house should not be more
than Rs. 35,00,000/-
• Loan for this purpose taken by an individual should be from the Financial Institution
or Housing Finance Company.
• The loan should be sanctioned within the year 1st April 2016 to 31st March 2017.
(Note: In the above exemption limit, Rs. 5,000/- which is for preventive health check-up has
already been considered)
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Donations to prescribed Charitable Institutions under section 80G
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Relief under section 89
➢ Relief u/s 89(1) is available to an employee when he receives a salary in advance or in
arrear or when in one financial year, he receives salary of more than 12 months.
➢ Relief u/s 89(1) is also admissible on family pension, as the same has been followed
by Finance Act.
➢ To claim this Relief assessee is mandatory to file Form 10E on the Income Tax
website.
A person can’t file his tax until and unless he/she clears his tax liability when a person has a
tax liability, he must make payment to ITD with the help of Form known as CHALLAN 280,
at H&R Block, individual gets a link below their tax summary which directs them for payment.
Tax payment is a 13 steps process which includes:
1) A person needs to select Challan 280, in challan 280 one needs to select major head
0021 (other than companies) and minor head as 300 (self-assessment tax).
2) A person needs to fill other basic details about him and at the end, he must select the
mode of payment along with the bank that he will use for payment.
3) After selecting the appropriate bank, a person will be redirected to his bank page where
he must make payment after which a receipt will be generated known as challan which
he needs to present to an advisor in order to make his return free from tax liability.
• NEFT - When a person has a refund less than 50000, it directly gets credited in his bank
account.
• Cheque - When a person has the refund more than 50000, at that time he receives a
cheque from ITD on provided address.
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• In most cases refund gets credit within a month, but it may take a year, it is totally case
to case base. One can check his/ her refund status by visiting the income tax page where
on the left-hand side it is mentioned know your status where a person can see his status
by entering his PAN, A.Y. and ACKNOWLEDGEMENT number (new change).
The taxpayer has an option to e-verify the return after tax filing in case of an already uploaded
return, the taxpayer can still e-verify the same through "E-Verify Return" option after login.
A taxpayer can e-verify the return using the below modes
• EVC received on Registered Mobile number and e-mail.
• Aadhar OTP
• Login to e-Filing through Net Banking
• ATM
• Demat account
E- Verification can only be done within 120 days of return filing, after that, a person can send
a copy of ITR-V to CPC Bangalore, with verification, the return is not counted as valid.
For the understanding of any layman, the process of computation of income and tax liability
can be outlined in the following five steps. It is computed as follows: -
1. Calculate the Gross total Income deriving from all sources.
2. Subtract all exemptions and deductions available.
3. Apply the tax rates on the taxable income.
4. Add Education Cess at 3% on tax.
5. Allow relief u/s 89 if any, the balance amount will be tax liability of the assessee.
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Chart Showing the Computation of Taxable Income:
Amount Amount
I. Income from Salary
i. Basic Pay
ii. Taxable Allowance
iii. Value of Perquisites
Gross Salary
Less: - Deduction u/s 16
i. Entertainment Allowance
ii. Professional Tax
Income from Salary
II. Income from House Property
i. Self-occupied Property
Annual Value
Less: - Interest on Loan
Loss from Self-occupied house property
ii. Income from Let-out property
Gross Annual Value
Less: - Municipal Taxes
Net Annual Value
Less: - Deduction u/s 24
a) Standard Deduction (30% of Net Annual Value)
b) Interest on Loan
Income from Let-out property
Income from House Property (1+2)
III. Income from Business and Profession
Profit as per Profit and Loss Account
Add: - 1) Expenses debited to P&L Account
but not allowed
2) Income taxable as business income
but not credited to P&L Account
Less: - 1) Expenses allowed but not debited to
P&L Account
2) Income not taxable as business
income but credited to P&L Account
Income from Business and Profession
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IV. Capital Gains
1) Short term capital gain
2) Long term capital gain
Less: - Deduction u/s 54
Capital Gain
V. Income from Other Sources
Gross Total Income
Less: - Deductions allowed u/s 80C to 80U
Total Income/ Net Income
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Chapter – 2
Details of The
Organisation
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H&R Block (India) Pvt. Ltd.
Pune
2.1 Introduction
In 1955, two brothers, Henry and Richard Bloch, founded a company which is also known as
H&R Block Inc., with Henry as president and Executive Officer and Richard as Chairman of
Board. Today H&R Block serves not the only US but also, Canada, Australia, Brazil, and
India. In 1960 H&R Block becomes Public Limited Company and got listed on the New
York Stock Exchange. Currently, the CEO of the company is Mr. Jeff Jones.
H&R Block is one largest tax preparers in the world. It is the first tax preparation company
in the world. The company has prepared around 605 million returns since its inception in
1955. The company has revenue of over 53 billion in 2014 H&R Block has prepared around
24.32 million tax return worldwide. H&R Block is one of the biggest companies in the US
with 12000 retail office and 99% brand awareness. H&R Block has its own bank and
‘premier tax entity.
As the company has evolved and achieved significant milestones, H&R Block has remained
committed to the factors that led to its success: superior customer service, a pledge to stand
behind our work and a commitment to serving clients.
H&R block started its operations in India in 2012. It has six retail offices in India, situated in
Gurgaon, Ahmadabad, Mumbai, Pune, Hyderabad, and Bangalore. The head office is in
Pune. The Managing Director of the company in India is CA Vaibhav Sankla.
Unlike in the USA, the business model in India is very different. The main segment is Online
Assistance channel whereas in the USA the main segment is retail offices.
➢ Vision:-
Company’s vision reflects the opportunity to execute their purpose successfully for
their Clients: - “To be the leading global consumer Tax Company bringing tax
and related solutions to clients year-round.” The company is about consumer tax in
the global market with access anywhere, anyway and anytime.
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➢ Values:-
Company’s values are the bedrock for how they act, wherever they operate in the
world. They are embedded in this simple statement: - “We Do the Right Thing”. This
means that the company believes in their people; take care of their clients and deliver
for their shareholders.
➢ Founder Members:-
❖ Henry Bloch
❖ Richard Bloch
➢ Key Members:-
❖ CA Vaibhav Sankla
❖ Mr. Vishal Sankla
❖ CA Vaibhav Sarode
❖ CA Hemant Bafana
❖ Ms. Aishwarya Pardeshi
❖ Mr. Amit Khaire
➢ Services Offered:-
1. OMC (Open Market Client) – This is the paid service and the major
source of revenues.
2. CORP (Corporate Client) – The company had done tie-ups with many
other companies for the employees of the company, the return filing
service is free, and they are charged only if there is capital gain or foreign
income according to their complexity.
3. NRI (Non-Resident Indians) – It is the paid service and serves many
NRI’s.
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• Brand Office:-
It is also called a retail office. In this channel, the client is served in the retail office located
in six cities in India. Most of the clients served in this channel are NRI’s complex cases or
small or medium businesses.
➢ Organizational Structure:-
During World War II, Henry W. Bloch was a young Army Air Forces navigator who wanted
to start a family business with his brothers in Kansas City.
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Home from the war in 1946, Henry saw a pamphlet suggesting a bright future for companies
serving small businesses, and it fired his imagination. That year, Henry and his older brother,
Leon, borrowed $5,000 and opened a small bookkeeping business on Main Street in
downtown Kansas City. However, four months later, they had few clients and Leon decided
to seek a law degree. Henry wanted to keep trying with the fledgling business and placed a
newspaper ad for help wanted. He got an unexpected response—from his mother—who
proposed that Henry hire his younger brother, Richard, for the job. Henry and Richard Bloch
jointly ran their United Business Company, which focused on bookkeeping but also did
some income tax work for clients. The brothers found that doing taxes was time-consuming
and they decided to end that type of service. One of their clients, John White, an ad salesman
for The Kansas City Star newspaper, had a different idea; he suggested the Bloch’s make tax
preparation a separate business and developed an ad announcing $5 tax services.
The Bloch’s were not convinced, but they agreed to run the ad in January 1955. The next
day, the brothers had an office full of tax clients, and H&R Block was born.
In 1956, the Bloch’s decided to expand and picked New York City. The move was
profitable, but neither brother wanted to move to New York, so they agreed to sell that
regional operation to two local accountants. However, since the would-be buyers could not
meet the asking price, the parties agreed the Bloch brothers would get $10,000, plus royalties
from the tax operation, creating the first H&R Block franchise tax office. The Bloch brothers
chose to spell the name "Block" with a K to ensure the name is not mispronounced "blotch."
In the following years, H&R Block grew quickly and went public in 1962, then opened its
first tax training school in 1965 to meet the demand for skilled tax professionals at its
franchise offices. A TV ad campaign begun in 1972 featured Henry Bloch and became the
springboard for H&R Block becoming one of the most widely recognized brand names in the
U.S. In 1980 H&R Block purchased the CompuServe online service.
By 1986, Block was handling more than 10 million tax returns each year and had opened
offices in Canada and Australia. That year, Block worked with the Internal Revenue Service
to introduce electronic filing. Since then, Block has moved further into the digital realm with
tax software and online tax preparation.
The company began to expand in the 1990s into the financial services arena, offering
mortgage loans, banking, and business services. H&R Block purchased Olde Discount
Stockbrokers and operated as a full-service securities broker-dealer under the name H&R
Block Financial Advisors. By 2007, the unit was managing $33 billion in assets, offering
investment planning, advice, and related financial products and services, and employed 900
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financial advisors in the U.S. In 2008, H&R Block sold the unit to Ameriprise Financial for
US$ 315 million.
RSM McGladrey Business Solutions was created in 1999 when H&R Block acquired the
assets and business of McGladrey & Pullen, based in Bloomington, Minnesota. McGladrey
had 100 offices in 25 states and offered accounting, consulting, tax services, and
international business services to mid-sized companies. Its clients included business in the
construction, health care, and manufacturing industries. Through an alliance with McGladrey
& Pullen and other accountancies, the Block subsidiary operated in 70 countries under the
RSM International name. In 2011, H&R Block sold the unit to McGladrey & Pullen.
Strengths
• Personalized products and services.
• The only brand to offer software, online and in-office solution
• Very user-friendly.
• The low number of major competitors and no one par with H&R Block as far as clients
served
Weaknesses
• Niche brand market position.
• Mass business system best serves lower-income consumers.
• Customer service in office and telephone.
• Part-time employees lack corporate citizenship.
Opportunities
• Financial advisory business.
• Tax preparations software.
• Digital self-preparation splitting between software and online.
• Online attracting younger, moderate-income consumer (Early Adopters) Push
for/advantage to E-Filing likely to drive growth for many years Financial services – the
long-term trend toward advice.
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Threats
• Availability of cheap and easy tax preparation programs Organizing low-end Competitors.
• Flood of entries into the financial services arena
Registered Offices:
▪ Ahmedabad
H&R Block (India) Pvt. Ltd.
No.G-1B GCP Business Centre, Opp Memnagar Fire Station
Nr Vijay Cross Roads, Navrangpura, Ahmedabad – 380009
▪ Bengaluru
H&R Block (India) Pvt. Ltd.
471, 6th BLOCK, 80 FT. Road
Koramangala, Bengaluru – 560095
▪ Gurgaon
H&R Block (India) Pvt. Ltd.
102, First Floor, DLF Cross Point,
Opposite Galleria Market, DLF Phase IV, Gurgaon -122002
▪ Hyderabad
H&R Block (India) Pvt. Ltd.
Owners Pride, 2nd floor,
Road No.12, Banjara Hills, Hyderabad - 500034
▪ Mumbai
H&R Block (India) Pvt. Ltd.
First floor, B wing, Zainab Villa, 187, Turner Road,
Bandra West, Mumbai – 400050
▪ Pune
H&R Block (India) Pvt. Ltd.
3rd Floor, Anand Square,
Survey No. 232, H. No. 1+2, Sakore Nagar, Viman Nagar, Pune – 411014
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Chapter – 3
Tasks Performed
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3.1 Task Assigned/ Task Given/ Live Assignment
During the tenure of Internship in H&R Block India, there were different tasks given to
me which I successfully completed at the end of my internship. There are multiple live
assignments/task given which is listed as below:
1. The major task assigned was to e-file the returns of the client for Financial Year 2018-
19. As my seniors found me trustworthy, they assigned me the clients of H&R Block
i.e. permanent employees working at Kerala along with regular corporate tie-up clients
and Open market clients. I was obliged to keep the client’s data confidential and
handle them with care and effective client experience.
2. Another major task was to manage the team of 15 people successfully, as being a team
leader, rather than instructing them on how to do work, I helped them in doing the work.
I resolved their all queries consulting with seniors. Being a team leader, I never
left the office until all my team member finished the work.
3. Also, to give an overview of the front end of the H&R Block effectively. In order to
guide the client for
➢ Updating the personal information and Payment of H&R Block fees.
➢ Uploading the Documents and viewing the document uploaded by H&R Block.
➢ Viewing the tax summary and approving the same.
➢ Checking the message and replying to it.
➢ Payment of Income-tax.
➢ Process of e-verification.
➢ Referring to a friend.
➢ Processing for feedback after e-filing.
4. As being an Intern at H&R Block, we joined them early than other college interns.
Thus, I was given the responsibility to train the upcoming batch of an intern for the
H&R Block’s e-filing software i.e. “INTAX”. Prior, I handled the batch of 5 interns,
then in 2nd Batch, I handled 6 interns, lastly, I was assigned a batch of 8 interns. It was
proud for me that it has given me a great opportunity to train the students of other
colleges. It helped me to understand them whenever they find any difficulty while
doing the work.
5. Before starting with the actual work i.e. e-filing the returns of the client, in order to
gain the confidence and communication skills, I made calls to 200 Clients to inform
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about the new prevailing offer of H&R Block to attract the clients as early as possible.
This activity was done within 2 days.
7. As well as Being a senior with the client, I successfully handled many escalations.
When the client is not satisfied with the service provided an advisor, then in order to
save the image of the company, I need to handle these escalating clients.
As being an Intern, I had experience of the various task assigned which I achieved
success as listed below:
1. As an Intern, I was mainly working for the profile of ‘Tax Expert / Advisor’. As this
is the major revenue-generating activity of H&R Block. So, I successfully e-filed the
returns of clients for Financial Year 2018-19. Prior I didn’t receive an opportunity to
assess clients directly as I had many other responsibilities like handling the teams and
resolving their queries. Within the last 20 days, I have e-filed around 280-300 clients.
3. As we joined H&R Block early than other college interns. After the effective
presentation of understanding of Taxation and H&R Block’s e-filing software i.e.
“INTAX”. Since it was not possible for our H&R Block’s seniors to train the
upcoming college interns directly, I was given the responsibility to train the upcoming
batches of an intern for the INTAX software. I trained around 15-20 interns who
successfully e-filed the returns of more than thousands of clients altogether.
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4. Apart from all this responsibility I was assigned to do “Relief 89” cases. So, in entire
floor apart from me, there was no any candidate working for such type of cases
because the calculation for this arrear is different and I was able to calculate that
calculation and also to understand the logic behind it. This arrear is basically regarding
salary and pension arrear.
1. For successfully handling the team of 15 people, as a team leader, I kept a check on
following and balanced the work My working pending cases, Ready to e-file cases,
Inbox message, resolved their all queries consulting with seniors.
2. In order to give an overview of the front end of H&R Block effectively, that is client
account, I had dummy Login credential of my own login account so that I can teach
them how it works from a clients perspective. So, my dummy account was created by
keeping trust in me by my seniors.
3. To train the upcoming batches for Intax software, I prepared myself for all the possible
questions related to taxation and Intax software. I made all the trainee interns
comfortable by introducing each other so that they can freely ask the questions.
Thereafter, as decided with other team-leaders, we trained the Intax software in
portions within specified days limit. Also, gave them dummy cases to practice the
preparation of tax summary.
4. While working on Relief cases there was some documents or information which was
required from the clients because without documents it was difficult to do the
calculations. So most of the time I was dealing with such clients, asking them relevant
questions and then only start working on his case. It was time-consuming so before
working on the case we were requesting our clients to please pay the additional fees so
that we can start on their case.
It was an unbelievable situation for me that I was selected as a trainer. Initially, five
people were selected as a trainer in that my name was also there. It was the first time where I
was going to teach other students and my situation was how I am going to teach them I have
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no idea. I was sure that if my knowledge is correct as the senior has taught me, if I know
everything proper then I will pass on the same knowledge. It was a great experience teaching
them. After that, I have taught three more batches. So basically, I want to teach them the
software i.e. ‘INTAX’ how its work what the mechanisms are, ask them questions
understanding them how much they know about tax. Ask them tricky questions so that they
will get confused, because later while dealing with the clients if they make mistakes it will
impact a bad image for a company. Giving them dummy Form 16 so that it will be easy for
them how to identify the data, giving them questions to solve so that by practicing the sums
they will not forget the basics. I have trained around Thirty to Forty students under my
guidance.
As I was the Trainer as well as Team Leader, so I was at the upper position from them,
so I have to act accordingly because how you behave are being noticed by everyone and they
also start acting accordingly. If the Trainer or Team Leader is not following the ethics of
professionalism, then they will take the work lightly and will mess all the work. I was also
having the responsibility of handling the multiple accounts, first of my own account from
which I have to interact with the clients and Second of the Operation Head Account whose
name was “CA Vaibhav Sarode” this account was used to do internal activities because that
account was having overall access to each and every account and clients. I can access any of
the accounts through that login So that login credentials were most important. Anyone was
not having the authority to use that account apart from the senior and including me.
Now we will try to understand how income tax is filled through certain case studies. In case
of studies the ‘Form 16’ and ‘Form 26AS’ which is being used is real, taken from the A.Y.
2018-19 but due to some reasons, the name and address of the client are not shown. Apart
from client personal information, you can see his actual salary or investments.
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3.4.1 Case Study 1
If you observe that Form 16 all the available information you will get from the given
document. There are four parts in Form 16:
1) Form 16 “Part A” where TDS details have been given relating to the salary.
2) Form 16 “Part B” says that how much income you earn and what all investments
are shown to the company.
3) Form 16 “Annexure to Form 16” which tells you about the break-up of your salary
which will tell you your Basic Pay, HRA, D.A, etc.
4) Form 16 “Form 12BA” will tell you if you have received any perquisites like
Accommodation or Gifts or ESOP (Employee Stock Ownership Plan) etc.
If you look at his Form 16 you can observe that he has earned a salary in the Financial Year
1st April 2017 to 31st March 2018 of Rs. 5,08,143 on which his employer has deducted tax
(TDS) of Rs. 9,352. So here we will see how the client will save his tax by making a
different investment.
His salary as per Section 17(1) is Rs. 5,08,143 and the breakup of this salary you will be able
to see in the third part. Here one thing you can notice that the Income which is showing in
Form 16 “Part A” and “Part B” is not reflecting the same the reason is that he has received
HRA and it is not taxable. So there a difference of Rs. 55,656 is because of the HRA
component. He might be staying on rent that’s why the company has given him HRA.
Second, in Form 16, they have not considered Rs. 40,000 of Standard Deduction because the
Govt. of India has changed the polices this year that from this Assessment Year, he will get
Standard Deduction of Rs. 40,000 in case of Medical and Conveyance Allowances.
The client has PPF (Public Provident Fund) of around Rs. 20,887 which is a part of Chapter
VI A Deduction. The PPF is a part of Sec 80C and the maximum bottleneck of this section is
Rs. 1,50,000. So, under this section, you can claim maximum benefit up to Rs. 1,50,000, he
can make his investment in excess of Rs. 1,50,000 but under the clause of IT Act, he can
claim the benefit of maximum up to Rs. 1,50,000. In his case, he was having a chance to
make an investment up to Rs. 1,50,000 so that it would help him to reduce his taxes. The
investments like ELSS (Equity Linked Saving Scheme), National Saving Certificate (NSC),
Provident Fund (PF), Life Insurance Policies (LIC), etc. He can also invest in the National
Pension Scheme (NPS) up to Rs. 50,000 he can invest in NPS u/s 80CCD(1b).
Another option is to save your money by taking your health insurance which comes u/s 80D.
So, if your age is below 60 years, he can take insurance up to Rs. 25,000 inclusive of
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Preventive medical health checkup. For preventive medical health checkup, the maximum
limit is up to Rs. 5,000 only. So preventive medical health check-up covers all your family
members as well as your parents. Here if sometimes if the client were having the payable
situation, we were asking them, are their parent's age above 60 years of age. If yes, please
provide us the medical bills so that it will help us to reduce your taxes. Because after the age
of 60 years most of them don’t have their health insurance and at that age, the medical
expenses increase so in such scenario we were suggesting our client to provide the medical
bills of their parents so that we can help you to reduce their taxes.
Here the major of their taxes were being saved because any individual doesn’t want to pay
more taxes to the government so for that reason there were some ways where we can save
their taxes or if not try to reduce their liability to pay taxes. The major of the component was
HRA, Section 80C and Section 80D where most of their taxes can be saved. But after a
certain point of time, it was not possible for us to save their taxes in a legal manner because
if their income is higher and all the allowances and deductions are claimed so the remaining
payable amount has to pay by the client there is not any option left to escape from the taxes.
Most of the time their payable situation was arising because of Multiple Form 16 due to
change of employment, Income earning from Let-out House Property, Income from Capital
Gains, and also Other Sources is higher so that on that no taxes have been paid, etc.
In this case study if you observe properly tax advisor/ consultant can easily save his taxes
(client) only he must have the knowledge where to save his taxes in legal ways so that
further in future he must not receive notice from the income tax department.
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3.4.2 Case Study 2
In the previous case study, we learn how to read “Form 16” and how we can save his taxes in
different ways. Now in this case study, we will learn how to read “Form 26AS” Apart from
salary income what other details does it show. We have seen that in Form 16 ‘Part A’ you
can see the TDS deducted on a salary which is extracted from the Form 26AS. So, in Form
16 ‘Part A’ apart from salary income, there is no additional details mentioned. So, we ask the
client to please provide their Form 26AS which they will get from Income Tax portal
because this document is not being given by his employer, he has to manually download
from the IT website.
In this case study if you see the Form 26AS there are nine parts. Each and every part plays a
different role. We will discuss in each part which income is reflected.
In this case study, you can see that the individual is working in “INFOSYS LIMITED” and
his salary is Rs. 18,46,870 and on his income, he has paid taxes around Rs. 3,22,760 If you
go with reverse calculation method you will see that there was scope for him to save his
taxes which tax advisor can recommend him. As well as he is receiving income from Fixed
Deposit of Rs. 1,08,988 on which the bank has deducted his TDS as per 10% according to
their rules but in the actual scenario, his tax liability will be increased because he has already
crossed 30% slab rate and, on that income, additional 20% Tax will be charged with 4%
Education Cess. So, he will be having the additional liability of Rs. 34,000 which he needs to
pay to the government.
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In that Form 26AS, you can observe that he has house property which is being reflected.
In short, you can say that any income arising from any Heads and on that income if TDS has
been deducted then it will reflect in Form 26AS.
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Chapter – 4
Conclusions
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4.1 Findings
➢ Clients e-file income tax return in hope to get a refund from the income tax department.
➢ It was found that the number of clients files an income tax return for documentation
purpose.
➢ From observation and practical experience, it was known that e-filing is convenient than
physical tax filing.
➢ It was also found that a number of clients are aware of basic deductions and
exemptions.
➢ It was found that most people claim LIC, children tuition fee, medical bills.
➢ It was found that the major portion of people is not interested in tax filing before July.
➢ The clients whom I encounter with for the tax filing had very less information above
the tax preparation.
➢ Most of the clients, who had a tax liability, were due to FD interest.
➢ If individuals hold more than 2 HP, the interest paid whichever is higher that HP
should be considered as deemed let out or let out accordingly in order to claim the
entire interest component paid on the same.
4.2 Observations
➢ After studying the income tax act and working as a tax advisor it has been observed that
the act has given many provisions which can help reduce the tax liability of taxpayers.
➢ Although there are so many provisions still only 3% of the population pay their taxes in
India. They find loopholes in the system and do tax evasion.
➢ There is a thin line between tax evasion and tax planning which the taxpayers need to
be explained and make them realize to be a responsible citizen of this country.
➢ While filing online returns there was too much dependence on the internet and the
application. Thus, if there was technical breakdown or problem it caused as a hindrance
to the entire process of tax filing which delayed the process and could not fulfill
customer expectations as they expected to file within 24 hours as per company’s policy.
➢ Sometimes technical issues also had to be resolved by the tax advisors. This made the
tax advisors spend too much time on one case decreasing their efficiency and
productivity.
➢ Many people still prefer filing taxes by visiting a local Chartered Accountant as the
concept of filing online taxes is relatively new people are not yet confident about it as
taxes are something which people are afraid of and it deals with their income which
they expect to be confidential.
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4.3 Gain of the Study
➢ A deeper understanding of Company services (H & R Block) and their business model
especially Online Assisted Business channel (OA) due to effective presentation.
➢ Increase in the technical knowledge of Income-tax act and their provisions
➢ Improvisation in communication skills due to the proper training of how to talk with
the client orally as well as in a written manner.
➢ Upgradation in the knowledge of Tax return filing software i.e. Intax.
➢ Enhancement in the qualities of Team Leader due to successfully leading my team to
train the Intax software as well as client experience.
➢ Dealing with actual clients has brought in convincing skills and additional politeness
towards all.
➢ Built-up confidence to deliver the values by way of training which helped me to
overcome my stage fear.
➢ Delegation of various task enhanced my responsibilities of fulfilling them
professionally and completion of each task built up my confidence taking towards the
path of success.
4.4 Conclusion
At the end of this study, we can say that given the rising standards of Indian individuals and
upward economy of the country, prudent tax planning before-hand is must for all the citizens
to make the most of their incomes. However, the mix of tax-saving instruments, planning
horizon would depend on an individual’s total taxable income and age in a particular financial
year.
And also, it is noticed that increasing population has made the internet one of the necessities
for an individual, which gives boot for online filing of tax returns which can be a boon for
H&R Block and other tax consultancy firms.
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Chapter – 5
Recommendations
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➢ For the betterment of the website, the government must focus on the website server that
the website properly works in the peak months and make sure to use more and more
advanced technology for making an easy website for the income taxpayers for filing the
income tax returns.
➢ H&R block should increase awareness among their customer as to how and when to
update their tax-related document, as many clients are not aware of Aadhar linking and
due to this they are facing problem during peak time.
➢ Messages need to be sent via text format to the client, not on the website portal
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BIBLIOGRAPHY
➢ https://myblock.hrblock.in/LMS/login
➢ https://www.hrblock.in/guides/?utm_source=homepage&utm_medium=top_menu&ut
m_campaign=fy_19_20
➢ https://www.hrblock.in/
➢ https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
➢ https://www.incometaxindiaefiling.gov.in/home
➢ https://cleartax.in/s/income-tax
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