THINK INDIA (Quarterly Journal)

ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

“Study Of Tax Planning Of Individual Assessee And Huf”

Dr . Rishikaysh Kaakandikar
( Associate Professor. Department Of Management, Zeal College Of Engineering and R esearch,
Narhe, Pune.)
And
Ms. Mukta Ghongade
( PG Student, Department Of M anagement, Zeal College Of Engineering and R esearch, Narhe
, Pune.)

ABSTRACT

This paper analyze the Tax saving is one of the important goal of every individual ,HUF and
business person .they want to save the tax using different technique like life insurance,
mediclaim student education this are the some of the examples of the Tax saving.to paying tax is
big advantage of the country people as well as government. Every individual as well as business
person need to pay the tax for social welfare as well as economic growth . many exemption’s are
also available in tax saving like agriculture income ,income of Politian’s in some percentage.

INTRODUCTION

In Every country taxation is useful for its economic development. This policy is guided by the
aspirations and goals of the people. It is recognized that taxation is a multi-purpose instrument.
To collect Revenues to finance development and non-development expenditure is the major
objective of taxation. In such a way that i t encoura ges grea te r production, large r e mployment
and be tte r income and wealth distributi on.

Taxation as an instrument of distributive justice. Since taxation is a powerful incentive or

disincentive weapon to stimulate economic growth it has to be used with direction and judgment
in the larger interest of overall rapid development of the country.

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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

OBJECTIVES OF THE STUDY

1. To Study and Understand the Tax Structure in India.
2 .To Study the Tax Planning of Individual Assessee and HUF.

RESEARCH METHODOLOGY
The following methodology has been used in this study.
Type Of Research:
Descriptive Research:
Descriptive research is defined as a research method that describes the characteristics of the tax
saving of individual assesse and HUF is being studied. A descriptive study is one in which
information is gathered from the group of people without changing the surroundings. It is use to
acquire information concerning current state. It also called as survey research, which pointed at
characterizing situation and identifying alliance among selected variables.
Convenience S ampling:
Convenience sampling is a type of non probability sampling method where the sample is taken
from a group of people. It is also known as grab sampling, accidental sampling or opportunity
sampling. This type of sampling is most useful for pilot testing. It is a type of non probability
sampling method where the sample is taken from a majority of people. This type of sampling is
most useful for pilot testing.
DATA COLLECTION
The purpose of research was explained to the employees and questionnaire was administered
to them.
1) PRIM ARY DATA: The data is gathered from first hand information source, this data
collected from employee form 16, ITR of the businessman etc. by conducting the questionnaire
having one on one interaction with employees.
SAMPLING SIZE: A survey of 10 employees working in the organization provided the data
base for this study.

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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

ANALYS IS AND INTERPRETAT ION OF DATA

Report of Respondent:-
“A study of Tax planning of Individual assesses and HUF to study this subject it is necessary to
collect the information of the peoples who were paying the tax. Hence, I survey over the primary
School, medical practitioner, Huffs & Business M an who was paying the tax and I had found
sufficient information about tax planning. i.e. how many tax they are paying and what’s benefit
they could get by paying the tax what are rules of their investment how much investment they
have made this and other more information I have collected by interview.
There are several peoples who were paying the tax, but I choose only 10 peoples for my study of
tax planning. Out of 10 peoples 2 are the serviceman and 8 are Businessman. Total of their
income is Rs.4,415,613.00 and the total of their tax is Rs.111877.00. Maximum income out of 10
people is Rs.630553.00 and the person paying tax is Rs.38022.00 per year. He has a serviceman,
& Businessman he is get tax deduction U/s.80C for paying tax. After that category the minimum
income is accordingly Rs.198522.00 and they have not paid tax these are the Huffs. They also
gets deduct U/s. 80C.

All the ten persons (INDIVIDUAL AND HUF) calculation of tax is as follows:
1) M r. Shrirang Nanabhau Mandge is clerk in The new india assurance co., His gross
salary is Rs.504911.00 He gets deduction U/s. 80C of Rs.120000.00 after deduction all the
investment his total taxable income is Rs.337860.00 & tax is Rs. 3900.00
2)M r. Nivrutti Prabhakar Gopale he is a Teacher in Modern High school ,Shivaji Nagar Pune.
His gross salary is Rs.461003.00 he get deduction U/s 80C of Rs.125000.00 deduction us
80DD(physical Handicap) Rs. 75000 so total taxable income is Rs.261000.00 and total tax paid
Rs..55 .tax rebate us 87 (2500.00)
3)M r. Murad Salim M omin he is a Wireman in Kohinde. His gross income is Rs.750000.00
He get deduction U/s. 80C To 80U of Rs.65000.00 after deduction all the investment his total
taxable income is Rs.68500.00 & tax is Rs. 49500.00.Education cess is Rs. 1980.00
4) Mrs. Kalpana Shashikant Kale he is a Business Women in kothrud , His gross total income is
Rs.520654.00 he get interest on saving bank account deduction U/s 80TTA of Rs.10000.00 his
gross total income of Rs.510654.00 He get deduction U/s. 80C 15000.00 after deduction all the
investment his total taxable income is Rs.505650 & tax is Rs. 14630.00 & Education cess 585.00
5)Mr. Suhas Dadabhau Dukare he is a Business man in Kothrud, His total income is
Rs.400000.00 his He get deduction U/s. 80C of Rs.125000.00 after deduction all the investment
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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

his total taxable income is Rs.275000.00 after deduction total tax paid is Rs. nil Tax rebate US
87A 2500.00

6)Mr. Rajendra Balasaheb Takalkar he is a Businessman in Kothrud, His total income is

700000.00.00 He get deduction U/s. 80C of Rs.140000 (i.e. LIC Rs. 11765.00, 80TTA
Rs.10000.00,) after deduction all the investment his total taxable income is Rs.550000.00 tax
payable is Rs. 22500.00 Ded. tax payable 225000.00 & education cess 9000
7)Mr. M ahadev Prabhakar Gopale. he is Engineer in JCB company at Talegoan, His gross total
income is Rs.448992.00 & He get deduction U/s. 80C To 80U of Rs.150000.00, after deduction
all the investment his total taxable income is Rs.298920.00 & tax is Rs.4892.00. ded. Us 87 tax
rebate is Rs. 2500.00
8)Mr. Balasaheb Sitaram Jare. he is a Businessman his gross total income Rs.462731.00 He get
deduction U/s. 80C of Rs.11022.00 (i.e. LIC Rs.11022.00)so total taxable income is
Rs.451710.00 and total tax paid Rs.20171.00 Tax rebate 5000.00 us 87.& Education cess is Rs.
455.00 total tax 15626.00
9)Mr. Ganesh Jayawant Talekar is a Businessman in kothrud. Firms gross total income of
Rs.2500000 he have no deduction and tax also nil.
10)Mrs. Poonam Rahul Kamble is A Business women. his gross total income is Rs. 278670.00.
She has no deduction & tax is also nil.
Out of 10 people the businessman income per year is more but them paying tax minimum. It is
impossible but it is a true thing. Finally found that while comparing with both the serviceman
paying tax regularly while businessman didn’t pay tax according their Income and there is lower
figure of businessman for paying the tax. Because they did not show their true income but the
serviceman income is registered or open income hence they pay Tax regularly. Also the Huffs
are pay tax regularly.
Thinking of their investment patterned the businessman’s is more but the Huffs saving in a limit
is more it’s compared with serviceman saving that of businessman saving.
This person is Huffs & Individual hence it is to be understood that mostly the Huffs are investing
very much but thinking of Business man’s. Their fields of saving some i.e. L.I.C., P.P.F., P.F.,
V.P.R., and out of them two persons saving in properly and everyone saving for self while and
their children’s namely because they should get some benefit for saving the Tax. It they are
saving wife or children’s namely because they should get some benefit for saving the Tax if they
are saving wife or children’s name in the 100 % tax free Income.
The rate of their Investment is minimum 10% and the maximum is 12% among the 10 peoples of
them is saving by the rate of 10% i.e. more figure for saving by this rate and other rate of
investment is 6% to 10% and 7% to 11% or only 8% but last rate is 12% all salary peoples get
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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

Government Rebate U/s 89 for paying Tax and they are also getting another facilities. But the
business man gets only government rebate for paying the Tax. The people for saving the tax
hence they choose the way of LIC for saving their Income. It is a great remedy for saving the tax.
Because the tax planning changes is not always favorable for individual peoples. It is always
changing they wants change according to the income. The entire persons demand investment
limit is incurred up to Rs. 150000.00.
Their opinion for Basic Exemption Limit is to be inserted and the tax free income limit is to be
increased up to Rs. 500000.00 and the rate of tax is to be decreased. The rate should be
decreased for both persons that salary people and the businessman or the rate of tax should not
be more than 20% for salary people or the rate is changed according their income.
Their opinion for farmer is very good. Because except two or three peoples these all were want
that do not charge the tax on agricultural income. Because the farmers income is very low and
they can’t pay tax. But only two, three persons want to charge the tax on agriculture income if
their income is more than Rs. 500000.00.
After having been all the date seen that all 10 peoples Income, tax their investment is separate
but their investment fields and their opinion for any problem is looking some.

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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

FINDINGS
Wi th the help of prima ry & seconda ry da ta i .e . structured questionnai res conclusion or
summa ry can be dra wn in following wa ys.

1) It is ne cessa ry to e ve ry assesses to pay ta x to the gove rnment.

2) It is requi red to the assesses to prepa re prope r ta x planning for the purpose of sa ving the
ta x.
3) For the purpose ta x planning the assesses made investment in spe cifi c se curi ties.
4) Eve ry assesses whe ther he is gove rnment employee or pri ve t e mployee or business man he
should file the re turn.
5) All the assesses made investment i n L.F.C., U.T.F., P.P.F., Medi claim, Fi xe d De posit, Housing
Loans etc. for the purpose of ta x sa ving.
6) The individual assesses feel tha t the ta x planning is ve ry ne cessa ry.
7) For the purpose of ta x planning assesses ti res the re le ve r bes t to save ta x.
8) The assesses get re bate on thei r investment in spe cifi c limi t.
9) By prope r ta x planning the assesses could save thei r ta x.
10) The assesses feel tha t present ra te of ta x is go high.
11) For the purpose of prope r ta x planning the assesses kept aside some porti on of mone y
at ti me to time i.e . monthl y or six monthl y.
12) The assesses has thei r own PAN ca rd.
13) Va rious types of ca te gories of indi vidual assesses a ccording to thei rincome group.

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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

14) The awareness of indi vidual assesses in thei r income ta x assessment is ve ry high.
15) Awareness is higher among the teacher as compared to other employees.

S UGGES TION
1) For proper tax planning the assesses is required to get proper guidance.
2) To save the tax assesses should in their money in specified investment which is specified
in under the income tax law.
3) Every assesses should have their own PAN card if there is not they required to get
immediately.
4) Suggest training programmer or any other measure for improving the tax planning
awareness of in divided assesses.
5) Amount of investment limit should be increased so that can use it for development
purpose.
6) Rebate on repayment of principle amount of housing loan should be concerted.
7) Amount of tax free income should be increased up to Rs. 250000/-
8) Income tax rate should be decreased.
9) Proper policy should be turned by the government of assesses the tax of businessman
property.
10) Every businessman should have to register his business will proper govt. authority and
the amount should he made compulsory to each businessman.
11) Tax on agriculture business should be not he charged as is uncertain income.
12) Tax on agriculture business should be properly exempted from tax income tax.

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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

13) Tax assessment procedure should made very simple so that individual assesses can file
his return which the govt. authorities.

CONCLUSION
It is necessary to every assesses to pay tax to the government.It is required to the assesses to
prepare proper tax planning or saving.Tax planning is assesses made investment in specific
securities.Every assesses whether he is government employee or privet employee or business
man he should file the return.All the assesses made investment in L.F.C., U.T.F., P.P.F.,
M ediclaim, Fixed Deposit, Housing Loans etc. for the purpose of tax saving.The individual
assesses feel that the tax planning is very necessary .For the purpose of tax planning assesses tires
there lever best to save tax.The assesses get rebate on their investment in specific limit.By proper
tax planning the assesses could save their tax.The assesses feel that present rate of tax is go high.
For the purpose of proper tax planning the assesses kept aside some portion of money at time to
time i.e. monthly or six monthly.The assesses has their own PAN card.Various types of
categories of individual assesses according to their income group.The awareness of individual
assesses in their income tax assessment is very high.Awareness is higher among the teacher as
compared to other employees.

REFERENCE
BOOK:

Research Methodology –C.R.Kothari

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THINK INDIA (Quarterly Journal)
ISSN:0971-1260
Vol-22-Issue-4-October-Decem ber-2019

WEBS ITES:

1. www.researchgate.net

2. www.google.com

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