GST Tax 2

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION, PUNE
A
PROJECT
REPORT ON
A STUDY ON THE FINALCIAL MARKETS
SUBMITTED TO
“SAVITRIBAI PHULE PUNE UNIVERSITY”
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS
ADMINISTRATION SUBMITTED BY
GAURAV HARISHCHANDRA UNTWAL
MBA, FINANCE
UNDER THE GUIDANCE OF
DR. SEEMA CHAURE MADAM
SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION,
NARHE -411041, PUNE.
ACADMIC YEAR
2023-2025
1
DE
CLARATION
I, the undersigned, hereby declare that the Project Report entitled “A STUDY
ON THE FINANCIAL MARKET” written and submitted by me to the
Savitribai Phule Pune University Pune, in partial fulfillment of the
requirement for the award of the degree of Master of Business Administration
under the guidance of Prof. DRUGA BANSODE is my original work except for
the topics on organizational profile and the conclusion drawn therein are based
on the material collected by myself.
PLACE: PUNE SIGNATURE OF STUDENT

DATE:
Gaurav Harishchandra untwal
2
GUIDE CERTIFICATE
This is to certify that the Project Report entitled “A STUDY ON THE

FINANCIAL MARKET” which is being submitted here with for the award
of the degree of Master of Business Administration of University of Pune is
the result of the original research work completed by GAURAV
HARISHCHANDRA UNTWAL my supervision and guidance.
To the best of my knowledge and belief the work embodied in this Project
Report has not formed earlier the basis for the award of my degree or similar
title of this or any other University or examining body.
PLACE: PUNE DR. SEEMA CHAURE MADAM

DATE:
3
I take this opportunity to express my profound gratitude and deep regards to

my guide DR. SEEMA CHAURE MADAM for his/her exemplary guidance,
monitoring, and constant encouragement throughout the course of this project. The
blessing, help and guidance given by His/her time to time shall carry me a long way in
the journey of life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to
MANAGER / REPORTING AUTHORITY IN ORGANIZATION for his/her cordial
support, valuable information and guidance which helped me in completing this
project through various stages.
I wish to express a special thanks to all teaching and non-teaching staff
members of SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER
APPLICATION, Pune their continuous support. I would like to acknowledge all my
family members, relatives and friends for their help and encouragement.
PLACE: PUNE SIGNATURE OF STUDENT
DATE: Gaurav Harishchandra untwal
4
SR. NO TITLE PAGE.NO
Executive Summary of The Project 7
1 Introduction 8
Introduction To FINANCIAL MARKET 9- 12

Objectives Of the Study
Scope of The Study
Limitations Of The Study
2 Organizational Profile 13
Industry Profile 14 – 15
Vision, Mission
History
Product Profile
3 Research Methodology 16
Data Collection 17
4 Conceptual Background 18
Literature Review 19 – 36
5 Data Analysis and Interpretation 37 – 47
6 Finding, Conclusions, Suggestion, Learning 48 – 51

Outcome and Contribution to Organization
7 Bibliography 52 – 53
8 Appendix/Annexure 54 – 57
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 Executive Summary of The Project
This project aims to explore the key financial market. There are two types of financial
market are there 1. Capital market 2. Money market
The below diagram showing the more details about financial market
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INTRODUCTION
A Study on the Difference Between Income Tax and GST

India's tax structure plays a pivotal role in its economic framework, ensuring the
government generates revenue to fund public services and development projects. Among
the various taxes, Income Tax and Goods and Services Tax (GST) stand out as two of
the most important levies, each serving distinct purposes in shaping the country’s fiscal
policies.
While both taxes contribute significantly to the government’s revenue, they are
fundamentally different in terms of who bears the tax burden and how they are applied.
Income Tax is directly paid by individuals and corporations based on their earnings,
while GST is borne by consumers indirectly, being included in the price of goods and
services. This study focuses on examining these differences, analyzing their effects on
taxpayers, businesses, and the economy, and understanding the roles they play in India's
overall tax ecosystem.
Income Tax:
Income Tax is a direct tax levied on the income earned by individuals, Hindu
Undivided Families (HUFs), companies, and other entities during a financial year. The
primary legislation governing this tax is the Income Tax Act, 1961. It is progressive in
nature, meaning higher-income earners pay a higher percentage of their income as tax,
while lower-income earners pay a smaller percentage.
Types of Income Tax:

1. Personal Income Tax: Paid by individuals and HUFs based on their personal
income. It includes income from sources like salaries, investments, property,
business, and more.
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2. Corporate Tax: Paid by companies on their net profit, this includes domestic
companies, foreign companies operating in India, and some special entities like
LLPs (Limited Liability Partnerships).
Tax Rates and Structure:

Income tax is levied based on tax slabs that vary according to
income levels, and they differ for individuals, senior citizens, and companies. Deductions
under various sections of the Income Tax Act, like Section 80C, 80D, etc., help reduce
the tax liability.
Key Points of Income Tax:

 Progressive Tax System: Higher earnings lead to higher tax rates.
 Direct Tax: The tax is paid directly by the taxpayer to the government.
 Filing Requirement: Every eligible individual or business must file an income
tax return annually.
 Revenue Distribution: Income Tax is shared between the central and state
governments in accordance with constitutional provisions.
Goods and Services Tax (GST):

GST is a comprehensive indirect tax levied on the manufacture, sale, and
consumption of goods and services in India. Introduced on July 1, 2017, GST replaced a
host of indirect taxes, including VAT, service tax, excise duty, and other local levies,
creating a unified tax system across the country.
Types of GST:
1. CGST (Central GST): Collected by the central government on intra-state
transactions.
2. SGST (State GST): Collected by state governments on intra-state transactions.
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3. IGST (Integrated GST): Collected by the central government on inter-state

transactions and imports.
Key Features of GST:
 Destination-Based Tax: The tax is levied at the point of consumption rather than
the point of origin. The state where goods or services are consumed receives the
tax revenue.
 Input Tax Credit Mechanism: Allows businesses to claim a credit for taxes paid
on inputs, reducing the cascading effect of taxation.
 Simplified Tax Structure: GST has eliminated the need for multiple indirect
taxes, streamlining the process for businesses.
 Compliance: GST has a digital compliance framework where businesses need to
file returns through the GST portal.
Through this project, we aim to provide a detailed understanding of the key

distinctions between Income Tax and GST, their historical context, regulatory
frameworks, and the implications each tax has on economic growth and fiscal policy.
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 OBJECTIVES OF THE STUDY
 To understand the basic concepts of Income Tax and GST.

 To analyse the key differences between Income Tax and GST.
 To explore the economic impact of both taxes on revenue and growth.
 To examine the historical evolution of Income Tax and GST in India
 To assess the role of GST in reducing the cascading effect of multiple taxes.
 To compare global practices in income tax and GST systems.
 SCOPE OF THE STUDY

Conceptual Analysis: Examination of the fundamental principles, definitions, and legal
frameworks governing Income Tax and Goods and Services Tax (GST) in India.
Tax Structures: Analysis of the structure, types, and classification of Income Tax
(individuals, corporations) and GST (CGST, SGST, IGST).
Impact on Individuals and Businesses: Study of how Income Tax directly affects
individuals' and corporations' earnings, and how GST impacts consumers, businesses, and
the supply chain.
Economic Influence: Evaluation of the effects of Income Tax and GST on government
revenue, consumption, investment, and economic growth.
Fiscal Policy: Exploration of the roles that Income Tax and GST play in shaping India’s
fiscal policy and influencing resource mobilization.
 LIMITATIONS OF THE STUDY
The limitations of the study are as follows:

• The scope may not cover all exemptions and deductions in detail.
• Frequent changes in tax policies complicate stability in analysis.
• Limited perspectives from stakeholders may affect comprehensiveness.
• Limited access to reliable and updated data.
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CHAPTER 2
ORGANISATIONAL PROFILE
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 INDUSTRY PROFILE
Name – BHAKTI ASSOCIATES TAX CONSULTANT & GST PRACTITIONER

Address – 570, Budhwar Peth, Tapkir Lane, Pune- 411002
Mail – . [email protected]
LOGO
 VISION
“To be a leading provider of tax consulting and GST services,
empowering clients with comprehensive, innovative, and effective tax solutions while
ensuring compliance, fostering trust, and contributing to their financial growth and
success”
 MISSION
“To deliver expert tax consultancy and GST services with integrity and
professionalism, ensuring our clients receive personalized solutions that enhance
their financial well-being, optimize tax liabilities, and navigate the complexities
of the tax landscape efficiently. We aim to build lasting relationships through
transparency, education, and proactive support, helping clients achieve their
business goals."
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 Historical Background of the Organization
Bhakti Associates was established with a vision to provide specialized tax

consulting and GST services in response to the evolving landscape of taxation in India.
Founded by a team of experienced professionals, the firm recognized the complexities
and challenges businesses face in navigating tax regulations.
Initially focusing on traditional tax advisory services, Bhakti Associates quickly

adapted to the introduction of GST in 2017, which transformed the indirect tax structure
in India. This transition required businesses to adjust to new compliance requirements,
and Bhakti Associates positioned itself as a trusted partner in helping clients understand
and implement GST effectively.
Over the years, the firm has expanded its services to include comprehensive tax
planning, compliance support, and advisory services tailored to the unique needs of
various industries. With a commitment to excellence and client satisfaction, Bhakti
Associates has built a reputation for delivering high-quality solutions and fostering long-
term relationships with its clients.
Today, Bhakti Associates continues to evolve, staying updated with the latest tax
regulations and leveraging technology to enhance service delivery, ensuring clients are
well-equipped to meet their tax obligations and maximize their financial potential.
 OUR SERVICES
 Tax Consultancy
 Goods and Services Tax (GST) Services
 Tax Planning and Optimization
 Representation Before Tax Authorities
 Corporate Tax Services
 Bookkeeping and Accounting Services
 Training and Workshops
 Business Advisory Services
 Financial Planning
 Specialized Industry Services
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CHAPTER 3
RESEARCH METHODOLOGY
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 RESEARCH METHODOLOGY
A Research design is a method and procedure for acquiring information
needed to solve the problem. A research design is the basic plan that helps in the data
collection or analysis. It specifies the type of information to be collected the sources
and data collection procedure. The present study is descriptive and it is a fact-finding
investigation with adequate interpretation. It is undertaken in many circumstances.
When the researcher is interested in knowing, the characteristics of certain groups such
as age, educational level, occupation or income, interested in knowing the proportion
of in a given population who have behaved in particular manner, making the
projections of certain things, or determining the relationships between two or more
variables, descriptive study may be necessary. Descriptive data are commonly used as
directed bases of marketing decisions; these studies are well structured.
 DATA COLLECTION
In order to information from the respondent survey method has been
adopted. A neatly constructed questionnaire was prepared to collect information
from the respondents regarding information about the mutual fund. It contains both
open- ended and close-ended questionnaire.
 PRIMARY DATA
Primary data is the first-hand data collected by the researcher directly it’s the
fresh data. Primary data was obtained through direct communication with respondents
 SECONDARY DATA
Secondary data is the already available information collected someone
hence for their own study purpose and it is the published sources of information.
The secondary data sources for this study purpose are:
• Reference books
• Company broachers, documents & other related materials
• Websites
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CHAPTER 4
CONCEPTUAL BACKGROUND
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 Literature Review
1. Introduction to Taxation
Taxation is essential for government revenue, categorized into direct (Income
Tax) and indirect (Goods and Services Tax - GST) taxes. Musgrave and Musgrave (1989)
highlight how these taxes impact economic behavior.
2. Income Tax
Income Tax is a direct tax on earnings, influencing financial decisions and public
goods financing. Auerbach (2002) notes its progressive nature, while Slemrod (2004)
emphasizes compliance challenges due to its complexity.
3. Goods and Services Tax (GST)
GST simplifies the indirect tax system, promoting efficiency and reducing the
cascading effect of taxes. According to the Economic Survey of India (2018), it enhances
business ease but presents compliance challenges, especially for SMEs (Bhatia & Singh,
2019).
 Auerbach, A. J. (2002). Taxation and Economic Efficiency. In Handbook of

Public Economics.
 Bendat, J., & Newmarch, D. (2018). GST and Business: A Comparative Study.
Taxation Review Journal.
 Bhatia, R., & Singh, A. (2019). The Impact of GST on Small and Medium
Enterprises in India. Journal of Economic Perspectives.
 Economic Survey of India. (2018). Annual Report on the Economic State of
India.
 Gupta, A. (2017). A Comparative Study of GST and Income Tax Compliance
Burden in India. International Journal of Taxation.
 Jha, R. (2019). Reforming the Tax System in India: Challenges and
Opportunities. Indian Tax Journal.
 Kumar, S., & Jain, P. (2018). GST Implementation: Compliance Challenges and
Solutions. Journal of Business Law.
Musgrave, R. A., & Musgrave, P. B. (1989). Public Finance in Theory and Practice.
McGraw-Hill.
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 DIFFERENCE -
Income tax and the Goods and Services Tax (GST) are two distinct tax regimes
with distinct goals. Aiming to streamline the tax system by replacing a number of other
indirect taxes, the Goods and Services Tax (GST) is an indirect tax on the supply of
goods and services based on consumption. On the other hand, income tax is a kind of
direct tax that is imposed on individuals and companies according to their profits. It is
enforced by the government to generate funds for public service and social welfare
initiatives. Compared to GST, which focuses on taxing consumption and focusses on the
earning potential of individuals and businesses, income tax is more personalised and
based on income levels. In this article, we will compare and differentiate these two tax
regimes In detail.
 A Detailed Overview-
India's tax system was completely transformed by the Goods and Services Tax
(GST), which combined several indirect taxes into a single structure. It was put into
effect on July 1, 2017, and it ensures efficiency by streamlining taxes through staged
levies on products and services. This coordinated strategy promotes a smooth market and
gets rid of tax cascades. GST improves individual tax compliance and corporate
operations by displacing taxes such as VAT and Central Excise. Benefits include
consistent tax rates, streamlined administration, and service accessibility through the GST
site. In general, GST encourages economic growth by formalising firms, lowering tax
costs, and promoting transparency.
 Types of GST Returns

• GSTR-1: Reporting outward supply of goods and services, it is filed by all
regular taxpayers. Monthly by the eleventh for over Rs. 5 crore in turnover, or
quarterly by the thirteenth for members of the QRMP plan.
• GSTR-2A: An recipients-only view-only return that automatically populates with
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inbound supply from suppliers To claim the Input Tax Credit (ITC), use GSTR-1.
• GSTR-2B: Provides monthly ITC data and is static, akin to GSTR-2A. Every
month on the 12th, it is available.
• GSTR-3B: A self-declaration detailing out-of-country supplies, claimed ITC, and

paid taxes that are submitted on a monthly or quarterly basis. Deadline: quarterly
for participants in the QRMP scheme, or on the 20th for turnover exceeding Rs. 5
crore.
• GSTR-4: An annual return for taxpayers with compositions that took the place of
GSTR-9A as of FY 2019–20. Deadline: April 30th of the upcoming year.
• GSTR-5: Monthly report on inward and outward supplies filed by non-resident

foreign taxpayers.
• GSTR-6: Input Service Distributors (ISD) monthly return that describes the input
tax credit that is received and disbursed.
• GSTR-7: Monthly report on TDS deducted and claimed, filed by individuals

subject to GST.
• GSTR-8: A monthly return with details on suppliers and TCS collected that is
filed by e-commerce businesses that collect TCS.
• GSTR-9A: A consolidated annual return that combines monthly or quarterly

returns for all taxpayers with a few exceptions. Deadline: December 31st of the
subsequent year.
• GSTR-9C: Taxpayers having a turnover over Rs. 5 crore are required to file
GSTR-9C, a reconciliation statement, by December 31 of the subsequent year.
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• GSTR-10: Filed within three months after cancellation by individuals whose

registration is cancelled or surrendered.
• GSTR-11: A form that lists inbound supplies and claimed refunds that is filed by
people who have been given a Unique Identity Number (UIN) for refund reasons.
 GST Deadlines and Penalties
Depending on the kind of return and the taxpayer's annual revenue, there
are differences in the filing and due dates for other GST files. For example, GSTR-1 is
due on the eleventh day of the next month, and GSTR-3B is due on the twentieth day.
The following fiscal year's annual return, GSTR-9, is due on December 31. A taxpayer
may choose to submit GSTR-1 and GSTR-3B on a quarterly basis instead of monthly if
their revenue is up to Rs. 5 crores. In order to avoid late fines and interest, taxpayers must
adhere to the deadlines.
Penalties for inaccurate or incomplete filings, fines, interest, and even jail
time for tax evasion may be levied if the GST requirements are not fulfilled. With a
cap of 0.25% of the taxpayer's revenue, late fees for late GST returns are
assessed at a rate of Rs. 50 per day (or Rs. 20 for taxpayers who are not required to file).
An additional 18% yearly interest rate is applied to any underpaid or past-due taxes. To
cancel transferring their GST registration, compliant taxpayers must follow compliance
guidelines and file their returns on time.
 Income Tax: A Detailed Overview

All Indian earnings are subject to income tax, a direct tax, regardless of
where they live. The earner is responsible for paying these taxes, which cannot be
transferred. Individuals, HUFs, BOIs, AOPs, local governments, and businesses are all
considered taxable entities. It is paid yearly and is computed as a proportion of taxable
income. Presently, India has two tax systems: the new one, which was unveiled in the
Union Budget of 2020, and the old one. HUFs and individuals can choose between these
two regimes according to their preferences and financial circumstances.
 Types of Income Tax Returns

Individual Income Tax: Determined by residency status and source of
income, this tax is levied on an individual's yearly earnings. Income brackets influence
tax rates. For those who choose not to choose between the old and new regimes, a new
default taxation mode will be implemented in 2021.
Business Income Tax: This tax is levied on the yearly income of
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enterprises and is determined by either presumptive taxation or standard rules. Taxable

income is determined by deducting total sales under standard conditions. For companies
with annual revenues of more than Rs. 2.00 crores, presumed taxation is applicable.
State and Local Income Tax: Stamp duty, state excise tax, and agricultural
income tax are among the taxes imposed by the state government. In addition to service
usage fees like water and drainage supply taxes, local governments also collect property
taxes.
 Income Tax Deadlines and Penalties

Individuals and corporations must file their income tax returns (ITRs) by
the deadline to avoid fines. Normally, individual returns must be filed by July 31st of the
assessment year; however, for the assessment year 2021–2022, the
deadline has been extended to September 30th. Corporate and partnership

firms alike are required to file their ITR by September 30th of the assessment year.
Taxpayers have two options for submitting their ITRs: either via the Income Tax
Department's e-filing website or by mailing a paper copy of the form to the tax division.
Income tax laws can be broken, with penalties ranging from 50% to
200% of the avoided tax, interest on overdue taxes, and fines of up to Rs 10,000 for late
filing. There are situations where evading taxes or fabricating paperwork might land you
in jail. To avoid these fines, income tax returns must be accurately filed and submitted on
time.
 GST vs. Income Tax: Scope and Application
GST (Goods and Services Tax):

GST is a comprehensive indirect tax levied on the manufacture, sale, and
consumption of goods and services across India. It is applicable at every stage of the
supply chain, from production to consumption, with tax credits available for any tax paid
on inputs. The GST system is designed to eliminate the cascading effect of taxes and to
simplify the tax structure by consolidating multiple indirect taxes into one.
Applicability:
GST applies to both goods and services, covering all transactions including sales,
transfers, barter, lease, or import of goods and services.
Different Rates:
GST has different rates depending on the category of goods or services. Essential
items, such as food grains, often attract a lower GST rate or are exempt, while luxury
items and certain services may attract higher rates. The standard GST rates in India are
5%, 12%, 18%, and 28%, which are applied based on the classification of the goods or
services involved.
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Income Tax:
Income Tax is a direct tax levied on the total income of individuals, Hindu
Undivided Families (HUFs), companies, firms, and other entities. The tax is calculated
based on the income earned during a financial year, after considering various deductions
and exemptions allowed under the Income Tax Act.
Applicability:
Income Tax applies to the total income, including salary, business profits, capital
gains, rent, and other sources of income. It is mandatory for individuals and entities with
income above a certain threshold to file an income tax return and pay the applicable tax.
Different Tax Slabs and Rates:

Income Tax is progressive in nature, meaning that the tax rate increases as the
taxable income increases. There are different tax slabs for individuals based on their
income levels, and different rates for other entities like companies and firms. For
instance, individuals may be taxed at 5%, 10%, 20%, or 30% depending on their income
bracket, while companies may have a flat rate.
 Calculation and Rates
GST:
The calculation of GST is based on the value of goods or services supplied. The
tax is levied at multiple rates depending on the category of goods or services. For
example:
 5% GST: Applicable to basic necessities and certain food items.
 12% GST: Applicable to processed foods and some manufactured goods.
 18% GST: Applicable to most goods and services, including electronics,

restaurants, and services.
 28% GST: Applicable to luxury items, such as luxury cars, premium

consumer goods, and certain sin goods like tobacco and aerated drinks.
The tax rate applicable to a product or service determines the GST amount, which
is collected from the consumer and remitted to the government.
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 Income Tax:
Income Tax is calculated based on the taxable income of the individual or entity.
Taxable income is the gross income minus any deductions and exemptions allowed under
the law. The tax rate varies according to the income level and type of taxpayer:
 Individuals:
Tax slabs for individuals are progressive, meaning higher income leads to higher
tax rates. For example, an individual with an annual income up to Rs. 2.5 lakh may not
pay any tax, while those earning more than Rs. 10 lakh could be taxed at 30%.
 Companies:
Companies are taxed at a flat rate, which may vary depending on the type and size
of the company. For instance, domestic companies may be taxed at 25% or 30%, while
certain concessional rates are available for new manufacturing companies.
 Filing and Payment
GST:
GST requires businesses to file periodic returns to report their sales, purchases, and
tax paid. The main returns include:
GSTR-1:
Monthly or quarterly return detailing all outward supplies (sales) made by the
business.
GSTR-3B:
A summary return filed monthly, showing the tax liability, ITC claimed, and net tax
payable.
GSTR-9:
An annual return summarizing all the monthly returns filed during the financial
year.
Businesses must calculate their GST liability monthly based on self-assessment

and pay the tax by the due date to avoid penalties and interest charges.
Income Tax:
Income Tax filing is an annual process, where individuals and businesses must
file their returns for the previous financial year using the appropriate ITR (Income Tax
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Return) forms. Key aspects include:
Annual Filing:
All taxpayers must file their returns by the specified due date, typically by July
31st for individuals and September 30th for companies, unless extended by the
government.
Payment of Taxes:
Taxpayers may need to pay advance tax during the year if their tax liability
exceeds Rs. 10,000. Self-assessment tax and any balance tax liability must be paid before
filing the return.
 Compliance and Documentation
GST:
Compliance under GST involves several key components:
 Invoicing: Issuing GST-compliant invoices that include specific details such as
GSTIN, HSN/SAC codes, and GST rates applied.
 GST Registration: All businesses meeting the turnover threshold or engaged in

specific activities must register for GST.
 Maintenance of Records: Businesses must maintain records of all transactions,

including sales, purchases, and tax payments, for at least six years.
 Input Tax Credit (ITC): The ITC mechanism allows businesses to claim credit
for GST paid on inputs and adjust it against their output tax liability. Accurate
matching of invoices is necessary to claim ITC.
 Income Tax:
Income Tax compliance requires:
 Maintenance of Books of Accounts: Businesses must maintain detailed records

of all financial transactions, including income, expenses, and investments.
 Form 16/16A: Employers must provide Form 16 to employees, detailing the
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income earned and tax deducted at source (TDS). Form 16A is provided for non-
salary income.
 Tax Audit Requirements: Certain businesses must undergo a tax audit if their
turnover exceeds specified limits.
 Documentation for Deductions and Exemptions: Taxpayers must retain

documentation for all deductions and exemptions claimed, such as proof of
investments under Section 80C, interest on housing loans, and donations.
 Difference Between GST and Income Tax
GST Income Tax
Indirect tax. Direct tax.

Imposed on the consumption of goods Imposed on income from annual salary,
and services. capital gains, house property, etc.
Levied and collected by both the Levied and collected only by the central
central and state governments government
Levied on different levels, but the Tax burden cannot be transferred from one
ultimate burden of the tax borne by the person to the other.
final consumer.
Mandatory registration required for Anyone with annual income above
businesses exceeding an annual Rs.2.5 lakhs will have to pay the tax
turnover above Rs.40 lakh. under the old regime
 The threshold increases to Rs.3 lakh
in case of the new regime
The goal is to simplify indirect taxes The goal is revenue generation for the
and limit the cascading effect of government.
multiple indirect taxes.
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 ADVANTAGES AND DISADVENTAGE OF GST AND INCOME

TAX
 Goods and Services Tax (GST)
Advantages:
1. Simplification of Tax Structure:

o Replaces multiple indirect taxes with a single tax, simplifying compliance.
2. Input Tax Credit:

o Businesses can claim credits for taxes paid on inputs, reducing the overall
tax burden.
3. Boost to Economy:
o Encourages more formal economic transactions, increasing tax revenue for
the government.
4. Uniform Tax Rates:

o Standardizes tax rates across the country, promoting a more level playing
field for businesses.
5. Reduction in Tax Evasion:

o Digital tracking of transactions makes it harder to evade taxes.
6. Increased Transparency:
o Helps in reducing corruption and improving compliance through clearer
rules.
Disadvantages:
1. Complex Compliance:
o Initial challenges in understanding and complying with the GST
framework, especially for small businesses.
2. Technical Issues:
o Reliance on technology can lead to challenges, such as server downtimes
and filing errors.
3. Increased Costs for Small Businesses:

o Costs associated with upgrading accounting systems and hiring tax
professionals.
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4. Impact on Cash Flow:

o Timing differences in tax credits can affect cash flow, particularly for
smaller firms.
5. Confusion Over Multiple Rates:

o The existence of multiple GST rates can lead to confusion and
misclassification of goods and services.
 Income Tax
Advantages:
1. Progressive Tax Structure:

o Higher income earners pay a higher percentage, promoting equity in
taxation.
2. Stable Revenue Source:

o Provides a consistent revenue stream for the government, crucial for
funding public services.
3. Encouragement of Savings:
o Deductions and exemptions can incentivize individuals to save and invest.
4. Simplicity in Compliance:
o Generally, a more straightforward filing process for individuals compared
to business taxes.
5. Support for Social Programs:

o Revenue from income tax can be directed toward social welfare programs
and public services.
Disadvantages:
1. Complexity in Filing:
o Deductions, exemptions, and varying rates can complicate the filing
process for individuals and businesses.
2. Tax Evasion and Avoidance:

o Higher tax rates can encourage tax evasion or aggressive tax avoidance
strategies.
3. Impact on Economic Growth:

o High income tax rates can discourage investment and entrepreneurship.
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4. Inequality in Enforcement:
o Disparities in enforcement can lead to unequal tax burdens among
different income groups.
5. Administrative Costs:
o Significant costs involved in tax administration and enforcement can
reduce overall efficiency.
 Types of GST AND INCOME TAX schemes
Types of GST
1. CGST (Central Goods and Services Tax):

o Collected by the Central Government on intra-state sales (e.g., within a
state).
2. SGST (State Goods and Services Tax):

o Collected by the State Government on intra-state sales.
3. IGST (Integrated Goods and Services Tax):

o Collected by the Central Government on inter-state sales (e.g., between
states). It ensures seamless flow of tax credits between states.
4. UTGST (Union Territory Goods and Services Tax):

o Applicable to transactions in Union Territories. It is similar to SGST and
is applied along with CGST.
5. Composition Scheme:
o A simplified scheme for small taxpayers with a turnover below a specified
limit. It allows them to pay a fixed percentage of turnover as tax rather
than the regular GST rates.
Types of Income Tax Schemes
1. Individual Taxation:
28
o Slab Rates: Income tax for individuals is based on different income slabs,
with progressive rates.
o New Regime: Introduced in FY 2020-21, this allows taxpayers to pay
lower rates but without most exemptions and deductions.
2. Corporate Taxation:
o Domestic Companies: Different tax rates apply depending on the
company's turnover and whether they opt for the old or new tax regime.
o Foreign Companies: Taxed at a different rate based on their income
earned in India.
3. Tax Deductions and Exemptions:

o Under sections like 80C (for investments in specified savings), 80D (for
health insurance premiums), etc., taxpayers can claim deductions to reduce
their taxable income.
4. Minimum Alternate Tax (MAT):

o Applicable to companies that do not pay taxes due to exemptions. MAT
ensures that companies pay a minimum tax based on their book profits.
5. Presumptive Taxation Schemes:

o For small businesses and professionals (e.g., under sections 44AD and
44ADA), where a fixed percentage of turnover is considered income,
reducing compliance burden.
6. Residential Status:
o Taxation also depends on the taxpayer's residential status (resident, non-
resident, or resident but not ordinarily resident), affecting the scope of
income subject to tax in India.
 GST Schemes According to Investment Objective
1. Compliance and Administrative Objective:

o Regular Scheme: This is for regular taxpayers whose turnover exceeds
the prescribed limit. It allows for input tax credits and compliance with
standard GST regulations.
o Composition Scheme: Designed for small taxpayers, this simplifies
compliance and reduces the tax burden, making it easier to manage their
finances.
2. Cost Reduction Objective:

o Input Tax Credit (ITC): This mechanism allows businesses to reduce
their GST liability by claiming credits for taxes paid on inputs, effectively
lowering overall costs.
29
3. Cash Flow Management Objective:

o Quarterly Return Filing: For smaller businesses, this helps manage cash
flow by allowing them to file GST returns quarterly rather than monthly.
4. Growth and Expansion Objective:

o GST Exemption Notifications: Certain sectors or regions may be exempt
from GST, which can be leveraged for expansion in these areas without a
tax burden.
 Income Tax Schemes According to Investment Objective
1. Tax Saving Objective:

o Equity Linked Savings Scheme (ELSS): Investments in ELSS mutual
funds allow for tax deductions under Section 80C while aiming for capital
appreciation.
o Public Provident Fund (PPF): This government-backed savings scheme
provides tax benefits along with attractive interest rates.
2. Retirement Planning Objective:

o National Pension System (NPS): A long-term investment option with tax
benefits, aimed at building a retirement corpus.
o Employee Provident Fund (EPF): Mandatory savings for employees that
grow over time, providing tax benefits.
3. Income Generation Objective:

o Fixed Deposits (FDs): While they do not provide tax benefits, they offer
guaranteed returns and can serve as a reliable income source.
o Dividend-Paying Stocks: Investing in companies that regularly pay
dividends can generate a steady income stream.
4. Wealth Creation Objective:

o Growth-Oriented Mutual Funds: These aim for high capital
appreciation over the long term, suitable for individuals looking to build
wealth.
o Stocks and Equity Investments: Direct investment in shares of
companies can lead to significant wealth creation, albeit with higher risk.
5. Education and Child Future Objective:

o Sukanya Samriddhi Yojana: A savings scheme specifically designed for
the girl child, offering tax benefits and attractive interest rates.
o Child Education Plans: Insurance-linked investment products that
provide savings for children’s education, along with life coverage.
30
31
Showing on GST AND TAX
32
 RISK V/S REWARD
GST (Goods and Services Tax)
 Rewards:
1. Simplified Tax Structure:

o Streamlines multiple indirect taxes into one, making compliance easier for businesses.
2. Input Tax Credit:

o Allows businesses to claim credit for taxes paid on inputs, reducing overall tax liability
and costs.
3. Increased Transparency:
o Digital tracking reduces corruption and tax evasion, leading to a fairer tax
environment.
4. Boost to Business:
o
P
romotes a unified market across states, encouraging trade and business expansion.
5. Revenue Growth for Government:
33
o Potential for increased revenue collection due to better compliance and reduced
evasion.
 Risks:
1. Complex Compliance:
o Initial implementation can be challenging, especially for small businesses without
adequate resources.
2. Technical Challenges:
o Dependence on technology can lead to issues like server downtime or data
discrepancies.
3. Cash Flow Impact:

o Timing differences in input tax credit can affect cash flow, particularly for smaller
firms.
4. Multiple Rates Confusion:

o The existence of various GST rates can lead to misclassification and compliance
errors.
5. Potential for Increased Costs:

o Small businesses may incur higher costs due to the need for professional advice and
technology upgrades.
34
Income Tax
 Rewards:
1. Progressive Taxation:
o Higher income earners pay a larger percentage, promoting equity in the tax system.
2. Stable Revenue Stream:

o Provides consistent funding for government services and infrastructure development.
3. Incentives for Savings:

o Tax deductions and exemptions encourage individuals to save and invest in various
instruments.
4. Support for Social Programs:

o Revenue can be directed toward public services, welfare programs, and economic
development.
5. Simplicity for Individuals:

o Generally straightforward filing process for individual taxpayers compared to business
taxes.
 Risks:
1. Complexity and Compliance Burden:

o Numerous deductions and exemptions can complicate the filing process and increase
the risk of errors.
2. Tax Evasion and Avoidance:

o Higher tax rates may lead to aggressive tax avoidance strategies or illegal tax evasion.
3. Economic Impact:
o High income tax rates can discourage investment and entrepreneurship, potentially
slowing economic growth.
4. Administrative Costs:
o Significant resources required for tax administration can reduce overall efficiency.
5. Inequality in Enforcement:
35
o Disparities in enforcement can lead to unequal tax burdens, causing frustration among
compliant taxpayers.
 CASCANDING
The Goods and Services Tax (GST) plays a crucial role in reducing the cascading
effect of multiple taxes. The cascading effect, often called "tax on tax," occurs when a tax
is levied on a product at every stage of the production and distribution chain without
providing any credit for the tax paid at earlier stages. Here’s how GST addresses this
issue:
1. Unified Tax Structure:
GST is a comprehensive, destination-based tax levied on the supply of goods and
services. It has subsumed multiple indirect taxes like VAT, Central Excise, Service Tax,
etc., which used to be applied separately at different stages. Under GST, there is one
single tax from the manufacturer to the consumer, which reduces the layers of taxes.
2. Input Tax Credit (ITC):
GST allows businesses to claim input tax credit on taxes paid at previous stages of
production or services. For example, a manufacturer who purchases raw materials can
offset the GST paid on those materials against the GST to be paid when selling the
finished product. This mechanism ensures that tax is levied only on the value addition at
each stage, significantly reducing the tax burden on end consumers.
3. Elimination of Tax on Tax:
In the previous regime, taxes were levied on the total price, including taxes paid at
earlier stages, leading to a cascading effect. Under GST, tax is only charged on the value
added at each step. This has eliminated the compounding tax effects and reduced the
overall cost of goods and services.
4. Streamlined Compliance and Administration:
The simplification of tax rates and procedures under GST has led to easier
36
compliance for businesses. A more streamlined tax system, with fewer complexities,
helps reduce the chances of taxes being applied inefficiently, preventing double taxation
and cascading.
5. Reduction in Cost of Goods and Services:
By mitigating the cascading effect, GST has lowered the overall tax burden on
goods and services, which in turn helps reduce prices for consumers. This creates a more
efficient and competitive market.
CHAPTER 5
DATA ANALYSIS &
INTERPRETATION
37
1. What is your level of understanding of Income Tax?
Level of Understanding Response Count
Very High 20
High 30
Moderate 25
Low 15
None 10
Response Count
10%
20% Very High
High
15% Moderate
Low
None
30%
25%
DATA ANALYSIS
The data indicates that 50% of respondents have a strong understanding of Income Tax,
with 20% rating their knowledge as "Very High" and 30% as "High." However, 25% of
respondents reported a "Moderate" understanding, suggesting a need for improved
educational initiatives. Notably, 25% indicated a "Low" or "None" level of
understanding, highlighting a segment at risk of non-compliance.
38
2. What is your level of understanding of GST (Goods and Services

Tax)?
Level of Understanding Respondent Count
Very High 25 respondents (25%)
High 35 respondents (35%)
Moderate 20 respondents (20%)
Low 15 respondents (15%)
None 5 respondents (5%)
respondent count
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very High High Moderate Low None
respondent count
DATA ANALYSIS
The data shows that 60% of respondents have a "High" or "Very High" understanding
of GST, indicating a strong general awareness. About 20% have a "Moderate"
understanding, while 15% report a "Low" level of knowledge. Only 5% of
respondents have no understanding of GST. Overall, the majority seem to be well-
informed, with relatively few lacking awareness.
39
3. In your opinion, which tax is more significant for the economy?
Level of Understanding Respondent Count

Income Tax 30 respondents (30%)
GST 40 respondents (40%)
Both are equally significant 20 respondents (20%)
Unsure 10 respondents (10%)
Chart Title
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Income Tax GST Both are equally significant Unsure
Income Tax 30%
DATA ANALYSIS
The data shows that 40% of respondents believe GST is more significant for the
economy, while 30% think Income Tax is more important. Another 20% consider both
taxes equally significant, and 10% are unsure. This suggests that GST is viewed as
slightly more impactful, but a sizable portion also sees the importance of Income Tax or
both taxes combined.
40
4. Do you believe that Income Tax and GST serve different purposes?
Level of Understanding Respondent

Yes 70 respondents (70%)
No 20 respondents (20%)
Not Sure 10 respondents (10%)
Respondent
Yes No Not Sure
DATA ANALYSIS
The data shows that 70% of respondents believe Income Tax and GST serve different
purposes, while 20% think they do not. Only 10% are unsure. This suggests that most
people recognize the distinct roles these taxes play in the economy.
41
5. How familiar are you with the concept of direct and indirect
taxes?

Very Familiar 30 respondents (30%)
Familiar 40 respondents (40%)
Somewhat Familiar 20 respondents (20%)
Not Familiar 10 respondents (10%)
Chart Title
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Familiar Familiar Somewhat Familiar Not Familiar
Respondent Series2 Series3
DATA ANALYSIS
The data shows that 70% of respondents are either "Familiar" or "Very Familiar" with
the concept of direct and indirect taxes, indicating widespread understanding. Around
20% are "Somewhat Familiar," while only 10% are not familiar, suggesting that the
majority have at least some knowledge of these tax types.
42
6.Which type of tax do you think is more transparent in its collection

and usage?

Income Tax 45% of respondents
GST 30% of respondents
Both 20% of respondents
Unsure 5% of respondents
Respondent
Income Tax GST Both Unsure
DATA ANALYSIS
The data indicates that 45% of respondents believe Income Tax is more transparent,
likely due to the direct involvement in filing and payment. GST is seen as transparent by
30% of respondents, though it’s less visible since it's embedded in prices. Another 20%
find both taxes equally transparent, suggesting they perceive clarity in both systems,
while 5% remain unsure. Overall, Income Tax is viewed as more transparent in its
collection and usage.
43
7.How do you think Income Tax affects individual financial planning?

Very Positively 10% of respondents
Positively 25% of respondents
Negatively 40% of respondents
Very Negatively 20% of respondents
No Impact 5% of respondents
Chart Title
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Positively Series2
Positively
Negatively Respondent
Very Negatively
No Impact
Respondent Series2
DATA ANALYSIS
The survey data shows that 40% of respondents feel Income Tax negatively impacts
their financial planning, likely due to reduced disposable income or complexities in
managing taxes. 20% view it very negatively, citing a significant burden on earnings.
Meanwhile, 25% see a positive impact, perhaps from tax-saving opportunities, and 10%
find it very positive due to incentives for savings and investment. Only 5% believe it has
no impact, suggesting that tax planning or income levels may shield them from its effects.
Overall, Income Tax is seen more negatively in terms of financial planning.
44
8. How do you think GST impacts small businesses?

Very Positively 15% of respondents
Positively 30% of respondents
Negatively 35% of respondents
Very Negatively 15% of respondents
No Impact 5% of respondent
Chart Title
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Positively Positively Negatively Very Negatively
Respondent Series2 Series3
DATA ANALYSIS
The survey data shows that 35% of respondents feel GST negatively impacts small
businesses, likely due to the complexity of compliance and cash flow issues caused by
delayed input tax credits. 15% view the impact as very negative, citing increased
operational burdens. On the positive side, 30% believe GST benefits their business by
simplifying the tax structure and improving transparency, while 15% see a very positive
impact due to easier compliance. Only 5% feel GST has no impact, likely because they
fall below the threshold or have adapted well. Overall, opinions are mixed, but the
negative view dominates slightly.
45
9. Which tax do you find easier to comply with?

Income tax 40% of respondents
GST 25% of respondents
Both are equally easy 20% of respondents
Both are equally difficult 10% of respondents
Respondent
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
x T s y lt re
e
ta GS ea cu
nsu
m lly iffi U
co ua l l yd
In eq ua
e eq
ar e
th ar
Bo th
Bo
Respondent
DATA ANALYSIS
The survey data reveals that 40% of respondents find Income Tax easier to comply with,
likely due to clearer guidelines and a more straightforward filing process. 25% feel that
GST is easier, appreciating its online filing systems. Additionally, 20% believe both
taxes are equally easy, indicating satisfaction with compliance for both. However, 10%
find both taxes equally difficult, suggesting challenges in navigating the complexities
involved. Only 5% are unsure, indicating a limited familiarity with the tax systems.
Overall, Income Tax is perceived as the easier option for compliance.
46
10. Do you feel that the tax system in your country is fair?

Yes 30% of respondents
No 40% of respondents
Somewhat 25% of respondents
Respondent
40%
35%
30%
25%
20%
15%
10%
5%
0%
Yes No Somewhat Unsure
Respondent
DATA ANALYSIS
The survey data shows that 40% of respondents believe the tax system in their country is
unfair, indicating significant dissatisfaction with aspects like high rates or perceived
inequities. 30% feel the system is fair, suggesting some appreciation for its benefits,
while 25% think it is somewhat fair, reflecting a mix of opinions on the system's
strengths and weaknesses. Only 5% are unsure about its fairness, pointing to a lack of
confidence or knowledge regarding tax policies. Overall, a majority perceive the tax
system as unfair, highlighting the need for reform or improvement.
47
CHAPTER 6
FINDINGS, SUGGESTIONS, MY
LEARNING,
CONTRIBUTION TO THE
ORGANIZATION
&
CONCLUSION
48
 FINDINGS
Understanding of Tax Systems:

Respondents demonstrated varying levels of familiarity with both Income Tax
and GST, with many indicating that they are more comfortable with the processes and
implications of Income Tax.
Perception of Transparency:
Income Tax is perceived as more transparent in its collection and usage, with a
significant majority of respondents believing that taxpayers have a clearer understanding
of how much they owe compared to GST, which is often embedded in the prices of
goods and services.
Impact on Financial Planning:

While Income Tax is generally seen as having a negative impact on financial
planning for many individuals, some recognize its role in encouraging savings through
tax-saving instruments. In contrast, GST is viewed more neutrally, with mixed feelings
regarding its compliance burden on small businesses.
Ease of Compliance:
A larger percentage of respondents find Income Tax easier to comply with
compared to GST, suggesting that the filing process for Income Tax is perceived as
clearer and more straightforward.
Fairness of the Tax System:

The survey revealed a notable dissatisfaction with the fairness of the tax system
overall, particularly with GST, which many small businesses feel burdensome.
49
 CONCLUSION
GST vs. Income Tax Impact:

While Income Tax directly impacts personal finances and encourages savings
through tax exemptions, GST impacts consumers indirectly and businesses more
significantly, especially small enterprises facing compliance challenges.
Perceived Complexity:
GST is often viewed as more complex than Income Tax, especially for small
businesses, leading to higher compliance costs and administrative burdens.
Equity in Taxation:
The perception of fairness leans towards Income Tax being more equitable for
individuals, while GST is seen as disproportionately affecting small businesses and
lower-income groups due to its nature as a consumption tax.
Transparency and Trust:

The higher transparency associated with Income Tax likely fosters more trust in
the system, whereas the less visible nature of GST collection might contribute to
skepticism about its fairness.
These conclusions highlight the need for targeted reforms to address the specific
challenges faced by taxpayers under both systems.
50
 SUGGESTIONS
Improved Education and Awareness:

Tax authorities should focus on improving education about both Income Tax and
GST, helping taxpayers understand their obligations and benefits. This can include
workshops, seminars, and easily accessible online resources.
Simplification of GST Compliance:

The GST compliance process should be simplified to reduce the burden on small
businesses. This could involve streamlined filing processes, clearer guidelines, and
potential reductions in compliance costs.
Regular Review of Tax Policies:

Policymakers should regularly review tax policies to ensure they are fair and
equitable, considering feedback from the public and stakeholders. Adjustments may be
necessary to address the perceived unfairness in the current system.
Feedback Mechanism:
Establishing a feedback mechanism for taxpayers to voice their concerns and
suggestions can lead to improvements in tax policies and compliance measures. This will
enhance taxpayer engagement and satisfaction.
Encouragement of Tax-Saving Instruments:

Further promoting tax-saving instruments associated with Income Tax can help
individuals better manage their financial planning and encourage savings. This could
include expanding the range of eligible investment options.
By implementing these suggestions, the tax system can be made more equitable,
transparent, and easier to navigate for individuals and businesses alike.
51
CHAPTER-7
BIBLIOGRAPHY
52
 BIBLIOGRAPHY
WEBSITES:
 www.google.com
 www.wikipedia.com
 [email protected]
 www.ascent-online.com
 www.amfiindia.com
 www.sebi.org.in
 www.mutualfundsindia.com
 www.investsmartindia.com
53
CHAPTER-8
ANNEXURE
54
ANNEXURE
Dear Sir/Madam,
I am Kunal Ramchandra Maradkar a student of “Sinhgad Institute of
Management and Computer Application” – MBA Program, final year MBA
(Finance) doing a project in Bhakti Associates Tax Consultant and GST
Practitioner, Pune. The topic of my project is “A STUDY ON DIFFERENCE
BETWEEN INCOME TAX AND GST” in India with reference to Bhakti
Associates Tax Consultant and GST Practitioner, Pune. I need some important
information from you for the completion of my project.
Would you please spare sometime to answer my queries? I assure you that
your answers will be kept confidential and will be used for the academic
purpose only.
NAME: Kunal Ramchandra Maradkar
PHONE NO: 9359767103
AGE: 22
55
 QUESTIONNAIRE
1. What is your level of understanding of Income Tax?

o Very High
o High
o Moderate
o Low
o None
2. What is your level of understanding of GST (Goods and Services Tax)?

o Very High
o High
o Moderate
o Low
o None
Perception and Importance
3. In your opinion, which tax is more significant for the economy?

o Income Tax
o GST
o Both are equally significant
o Unsure
4. Do you believe that Income Tax and GST serve different purposes?
o Yes
o No
o Not Sure
Knowledge of Taxation
5. How familiar are you with the concept of direct and indirect taxes?
o Very Familiar
o Familiar
o Somewhat Familiar
o Not Familiar
6. Which type of tax do you think is more transparent in its collection and
usage?
o Income Tax
o GST
o Both
o Unsure
56
57
Impact on Individuals and Businesses
7. How do you think Income Tax affects individual financial planning?

o Very Positively
o Positively
o Negatively
o Very Negatively
o No Impact
8. How do you think GST impacts small businesses?

o Very Positively
o Positively
o Negatively
o Very Negatively
o No Impact
Compliance and Administration
9. Which tax do you find easier to comply with?

o Income Tax
o GST
o Both are equally easy
o Both are equally difficult
o Unsure
10. Do you feel that the tax system in your country is fair?
o Yes
o No
o Somewhat
o Unsure
58

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SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION, PUNE

“SAVITRIBAI PHULE PUNE UNIVERSITY”

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

GAURAV HARISHCHANDRA UNTWAL

UNDER THE GUIDANCE OF

DR. SEEMA CHAURE MADAM

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION,

NARHE -411041, PUNE.

PLACE: PUNE SIGNATURE OF STUDENT

This is to certify that the Project Report entitled “A STUDY ON THE

PLACE: PUNE DR. SEEMA CHAURE MADAM

I take this opportunity to express my profound gratitude and deep regards to

PLACE: PUNE SIGNATURE OF STUDENT

DATE: Gaurav Harishchandra untwal

SR. NO TITLE PAGE.NO

Executive Summary of The Project 7

Introduction To FINANCIAL MARKET 9- 12

5 Data Analysis and Interpretation 37 – 47

6 Finding, Conclusions, Suggestion, Learning 48 – 51

 Executive Summary of The Project

A Study on the Difference Between Income Tax and GST

Types of Income Tax:

Tax Rates and Structure:

Key Points of Income Tax:

Goods and Services Tax (GST):

3. IGST (Integrated GST): Collected by the central government on inter-state

Through this project, we aim to provide a detailed understanding of the key

 OBJECTIVES OF THE STUDY

 To understand the basic concepts of Income Tax and GST.

 SCOPE OF THE STUDY

 LIMITATIONS OF THE STUDY

The limitations of the study are as follows:

Name – BHAKTI ASSOCIATES TAX CONSULTANT & GST PRACTITIONER

 Historical Background of the Organization

Bhakti Associates was established with a vision to provide specialized tax

Initially focusing on traditional tax advisory services, Bhakti Associates quickly

 Auerbach, A. J. (2002). Taxation and Economic Efficiency. In Handbook of

 Types of GST Returns

• GSTR-2A: An recipients-only view-only return that automatically populates with

• GSTR-3B: A self-declaration detailing out-of-country supplies, claimed ITC, and

• GSTR-5: Monthly report on inward and outward supplies filed by non-resident

• GSTR-7: Monthly report on TDS deducted and claimed, filed by individuals

• GSTR-9A: A consolidated annual return that combines monthly or quarterly

• GSTR-10: Filed within three months after cancellation by individuals whose

 GST Deadlines and Penalties

 Income Tax: A Detailed Overview

 Types of Income Tax Returns

Business Income Tax: This tax is levied on the yearly income of

enterprises and is determined by either presumptive taxation or standard rules. Taxable

 Income Tax Deadlines and Penalties

deadline has been extended to September 30th. Corporate and partnership

 GST vs. Income Tax: Scope and Application

GST (Goods and Services Tax):

Different Tax Slabs and Rates:

 Calculation and Rates

 12% GST: Applicable to processed foods and some manufactured goods.

 18% GST: Applicable to most goods and services, including electronics,

 28% GST: Applicable to luxury items, such as luxury cars, premium

 Filing and Payment