Impact of Accountancy & Taxation on Economic Development

A
SUMMER TRAINING REPORT
ON
IMPACT OF ACCOUNTANCY & TAXATION ON ECONOMIC
DEVELOPMENT
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION
(2020-2022)
SUBMITTED TO :-
INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
(IMSAR)
SUBMITTED BY:-
DEEPANSHU
Roll No: 716
Registration no.:-17R6400523
University Roll no. :-9022297
MBA 2.3 (G)
MAHARSHI DAYANAND UNIVERSITY, ROHTAK

DECLARATION
I, DEEPANSHU, student of Masters of Business Administration (MBA) at Maharshi
Dayanand University, Rohtak the undersigned hereby declare that the project report
entitled Impact of Accountancy & Taxation for economic development in HMP
LEGALEASE CORPORATE CONSULTANTS PVT. LTD., having their Head Office at
C-1/169 SECTOR-16 ROHINI, DELHI-110085 written and submitted by me to Maharshi
Dayanand University, in partial fulfillment of the requirements for the awards of Master of
Business Administration under the guidance of Mr. HARSHIT MUDGIL, (Head-
FINANCE Department.). This report is my original work and conclusion drawn there in are
based on the information collected by me.
DEEPANSHU
MBA GENERAL ( 2.3)

EXECUTIVE SUMMARY
Books are the treasure of knowledge and a theoretical base is important for understanding the
realities of practical field. But at the same time, practical knowledge is critical for having an
insight into the implementation of the theory in corporate world.
With the privilege of an opportunity provided to me by HMP LEGALEASE CORPORATE
CONSULTANTS PVT. LTD. for the fulfillment of our purpose of “bridging the gap between
theory and practical”. I undertook a summer training project at finance department of HMP
LEGALEASE CORPORATE CONSULTANTS PVT. LTD. This report is a product of a
training undertaken from 01th
OCTOBER, 2021 to 30th
NOVEMBER, 2021.
The main objective for preparing this project report is to understand the whole scenario of
Accounts & Tax system. The analysis of this report enables us to understand how HMP
LEGALEASE CORPORATE CONSULTANTS PVT. LTD. provides services.

ACKNOWLEDGEMENT
I would like to thank all those who has helped me directly or indirectly and whose attentive
efforts made this report possible. To start with, I would like to thank HMP LEGALEASE
CORPORATE CONSULTANTS PVT. LTD. for providing me the chance to undertake this
internship study and allowing me to explore the field of Finance.
I would then like to thank CA MANISH GUPTA, (Partner of the firm) who gave me
chance to bea part of their firm HMP LEGALEASE CORPORATE CONSULTANTS PVT.
LTD. and to undergo Summer training under Finance Department. Mr. HARSHIT
MUDGIL, (Head- FINANCE Department.). Whose initiative and guidance enabled me to
conceptualize and construct the project.
I am thankful to the entire team of HMP LEGALEASE CORPORATE CONSULTANTS
PVT. LTD. who provided their valuable suggestions and precious time in accomplishing my
project report.
Then I would like to express my profound gratitude towards my INSTITUTION for his
valuable suggestions, comments, feedback and support throughout the internship. It has been
great to work under her guidance.
- DEEPANSHU

S. No Contents Pages
1) Introduction 04
2) Organizational Structure 05-08
 Audit and Assurance Department
 Tax & Corporate Department
 HR Department
3) Company Profile 09-11
4) Objective Of The Study 12
5) Job Description 13
6) Theoretical Review 14-27
 TDS
 VAT
 Tally ERP 9
 Taxation System
7) Research Methodology 28-52
 Research Design
 Data of Accountancy
 Data of taxation
8) Achievements & Learning 53
9) Suggestions 54
10) Limitations 55
11) Conclusion 56
12) Reference 57

4 | I m p a c t o f A c c o u n t a n c y & T a x a t i o n o n E c o n o m i c D e v e l o p m e n t
Introduction
Introduction of the Organization’s Business Sector Organization is working as a Chartered
Accountants firm under the rules and regulations and code of ethics designed for CA firms by ICAI
(The Institute of Chartered Accountants of India).
The Institute of Chartered Accountants of India (ICAI or the Institute) was establishedas statutory
body on July 1, 1961 under Chartered Accountants Ordinance, 1961 to regulate the profession of
accountancy in the country. ICAI is governed by the Councilwhich consists of nineteen members.
Fifteen members are elected from amongst themembers for a period of four years. The remaining
four of the Council members are nominated by the Government of India. Vision of the ICAI is: The
profession ofChartered Accountants in India should be the benchmark of professional excellence
upholding the principles of integrity, transparency and accountability. Mission of ICAI:Is to achieve
excellence in professional competence, add value to businesses and economy, safeguard public
interest; ensure ethical practices and good corporate governance while recognizing the needs of
globalization.
These kinds of firms provide different kinds of professional services like audit, taxation and
management consultancy to its clients.

Organizational Structure
Most of the Startups and Business in India are facing few common challenges, i.e.
 Lack of one stop platform for startup services
 Lack of Professional and knowledgeable advisors
 Lack of a Good Branding & Marketing Strategy.
To accomplish the mission providing the largest startup consultancy platform with a range of business
services which includes:
BUSINESS LICENSES
 GST Registration
 FSSAI License (Food Industry)
 PSARA License (Security Agency)
 Import Export code
 MSME Registration
 Digital signature certificate
 ESI Registration
 EPF Registration
 ISO Certification
 FFMC License (Foreign Exchange)
 TradeMark Registration
 Patent/ Copyright filing
 NBFC Registration
STATUTORY COMPLIANCES
 Accounting/Bookkeeping
 GST Return Filing
 Income Tax Return
 TDS Returns
 Tax Consultancy
 LLP ROC Compliances
 Pvt. Ltd. Co. ROC Compliances
 Winding Up of a Company
 SOP Designing/Testing
 Internal Audit
 Stock Audit
 Surprise Audit

Audit and Assurance Department:
Firm provides audit and assurance services to wide range of clients which include performing audits
of financial statements of limited companies, NGOs and partnerships. Firm also performs special
assignments which include management audits, internal audits and investigations. Audit focuses on
business issues and the matters that can impact on the financial statements, whilst also retaining the
basic audit procedures that test the information contained in the financial statements. In doing so
firm not only identify the non-compliances but also assists clients in its rectification, designing
remedial measures and provides guidance to adhere with the laws and regulations. Firm always
endeavor to meet reporting deadlines as set out bythe laws and regulations or as mutually agreed with
clients, without compromising the professional, legal and ethical requirements. Firm emphasis on
delivering high quality services to clients, adding value to their business through identification of
existing andpotential control risks and suggesting best possible measures in the given circumstances.
Firm always place priority in deploying audit teams to clients who are well equipped with the
specific industry knowledge, experience and are professionallysound.
The major clients of Auditing & Assurance are:
1. VIVANTA HOTELS & RESORTS
2. STEEL AUTHORITY OF INDIA PRIVATE LIMITED
3. INDIRAPURAM HABITAT CENTRE
4. IIFL GOLD LOANS
5. ARUN VASTAR BHANDAR PVT. LTD.
6. OYO
7. GUJARAT CO- OPERATIVE MILK MARKETING FEDERATION LTD.
8. INDIAN OIL LTD.
9. GOIP Global Services Pvt. Ltd.
10. Shree Krishna Paper Mills & Industrial Ltd. (BSE Listed Company)
11. Panafic Industrials Ltd., New Delhi (BSE Listed Company)

Tax & Corporate Department
Firm delivers taxation services to clients and assists them in obtaining optimal tax benefits available
under the laws. Firm also assist clients to comply with the tax rules and regulations and always keep
them updated with the latest developments and amendments. Tax personnel are qualified
professionals, experienced and knowledgeable. We maintain a comprehensive tax library which
always provides ready references and timely solution in complex situations. Firm provides a
comprehensive range of tax services which includes; Preparation and submission of annual tax returns
Compliance services Tax advisory services Representation and litigation with tax authorities
Personal income tax services In HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD.
same staff is handling with tax matters as well as corporate sector. While in corporate firm provides
different kinds of services relating to corporate sector from incorporation to winding up of a
Company.
Working Area:
1. Tax Audits (u/s 44 AB of Income Tax Act, 1961)
2. Assessments (Income tax, VAT, service tax, ESIC, PF etc.)
3. Filing of ITR’s (Individual, AOP, BOI, Firms Trust, Company etc.)
4. Returns (VAT, Service Tax, TDS, GST etc.)
5. Registration & Migration to GST Enrollment

HR Department
This department is mainly concerned with the recruitment, hiring of the firm and this department
presents the timely reports on effective utilization of the resources by thefirm. A purpose of the human
resource is to keep the trained employees and recruit new energetic staff to work. Another purpose of
this department is to provide a goodworking environment for staff and try to make by facilitating them
and arranging somerecreational activities for them. HR knows the real worth of its employees so cares
forthem and motivate them to work more efficiently and diligently.
The hierarchy adopted by HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. is in
accordance with the legal structure a CA firm shall have. Although the ICAI rules permit of not
having the supervisors and does not make it mandatory having senior manager and manager, yetthis
goes as additional benefit for the firm of having such an extensive hierarchy.

COMPANY PROFILE
COMPANY PROFILE HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. was
established in the year 2018. It is a leading chartered Accountancy company rendering
comprehensive professional services which include audit, management consultancy, tax consultancy,
accounting services, manpower management, secretarial services etc.
HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. is a professionally managed
company. The team consists of distinguished chartered accountants, corporate financial advisors and
tax consultants. The company represents a combination of specialized skills, which are geared to
offers sound financial advice and personalized proactive services. Those associated with thecompany
have regular interaction with industry and other professionals which enables thefirm to keep pace
with contemporary developments and to meet the needs of its clients.
The Company consists of following Directors:
1. CA MANISH GUPTA (MANAGING DIRECTOR)
2. CA PRINCE GUPTA (MANAGING DIRECTOR)
WHEREAS the parties 1 AND 2 were carrying on the profession of Chartered Accountants in the
name and style of LEGALEASE PVT. LTD. in terms of COMPANIES ACT amended from time to
time and last amended dated 01.05.2019, have decided to change the name of the firm from
LEGALEASE PVT. LTD. to HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD.
which has also been approved by the MINISTRY OF CORPORATE AFFAIRS vide letter dated
02/07/2020.

CORPORATE SERVICES
 Incorporation of company
 Consultancy on Company Law matters.
 Planning for Mergers, Acquisitions, De-mergers, and Corporate re-
organizations.
 Filing of annual returns and various forms, documents.
 Clause 49 review for compliance with fiscal, corporate and tax laws.
 Secretarial Matters including share transfers.
 Maintenance of Statutory records.
 Consultancy on Public/Rights/Bonus Issue of shares.
 Change of Name, Objects, Registered Office, etc.
START BUSINESS
 Private Limited company Registration
 Limited Liability Partnership
 Society Registration
 One person Company
 Partnership Firm
 Sole Proprietorship Registration
 Nidhi Company Registration
 Producer Company Registration
 Trust Registration
 12A and 80G Registration
 Section 8 Company Registration

AUDIT
Broadly, Audit involves the following:
 In-depth study of existing systems, procedures and controls for proper understanding.
Suggestions for improvement and strengthening.
 Ensuring compliance with policies, procedures and statutes.
 Comprehensive review to ensure that the accounts are prepared in accordancewith Generally
Accepted Accounting Policies and applicable AccountingStandards/IFRS.
 Checking the genuineness of the expenses booked in accounts.
 Reporting inefficiencies at any operational level.
 Detection and prevention of leakages of income and suggesting correctivemeasures to
prevent recurrence.
 Certification of the books of account being in agreement with the Balance Sheetand Profit and
Loss Account.
 Issue of Audit Reports under various laws.
Types of Audits conducted :
 Statutory Audit of Companies
 Tax Audit under Section 44AB of the Income Tax Act, 1961.
 Audit under other sections of the Income Tax Act, 1961 such as 80HHC, 80-IA,etc.
 Concurrent Audits.
 Revenue Audit of Banks.
 Branch Audits of Banks.
 Audit of PF Trusts, Charitable Trusts, Schools, etc.
 Audit of Co-operative Societies.
 Information System Audit
 Internal Audits.

Objective of the Study :
I choose to work with HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. During this
internship I have learnt manynew skills. Before internship I have only theoretical knowledge about
work in organization but now I have some practical experience of working in organization. NowI have
knowledge about the organization’s working environment and how organizations work and achieve
their goals and objectives.
This internship has to gives me the understanding of business and also about the elements of strategic
thinking, planning and implementation, and how these things areapplied in a real world organization
environment. Following are the objectives that I have in my mind before working as an internee.
 To improve communication skills.
 To analyze the business situation.
 To establish high standard in professionalism.
 To learn more than the theoretical knowledge.
 To learn book keeping practices of different companies.
 To apply the theoretical knowledge in actual organization.
 To compare practical aspects with theoretical aspects.
 To make quick decision in real situation.
 To learn how to promote and to conduct research in business area.
 To promote my personal knowledge and professional preparation for future. Toproperly
integrate my theoretical knowledge and practical work.
 To plan for the future of oneself and learn how to adjust in an organization.
 To know how to present your recommendations in front of your boss.
 To get knowledge of opportunities and threats while entering into anorganization.
 To get exposure to do a work in an organization and also known aboutorganizational
behavior, ethical rules and regulations.

JOB DESCRIPTION
I have tried my best to enhance my abilities and apply the knowledge that I gained during the studies.
On my first day at firm, Company Manager CA HARSHIT MUDGIL gave me training session about
VAT returns and computerized accounting in tally software.
Mr. GAGAN KOCHER (senior assistant) also shared his practical experience with me and gave me
some techniques of this process. He also guided me that how to prepare GST return and creating data
in income tax return preparation software.
Different task that I performed during my internship:
1. Maintenance of accounts/ book keeping.
2. GST return preparation.
3. TDS returns preparation.
Software used during internship:
TALLY SOFTWARE
BUSY SOFTWARE
MARG SOFTWARE
ZOHO SOFTWARE
QUICK BOOKS
CLEAR TAX
TAX CLOUD

Theoretical Review:
Overview of TDS:
Tax deducted at source (TDS) is a tax that is deducted from income that a company inIndia pays to a
recipient or supplier if the income amount exceeds a specific statutorylimit in a financial year.
The types of income that are subject to TDS include:
Salary.
Interest and dividends.
Winnings from the lottery.
Insurance commission.
Rent.
Fees from professional and technical services.
Payments to contractors and subcontractors.
The withholding amounts for TDS can be deducted from an invoice submitted by a supplier or from
the payment that is issued to the recipient or supplier. Examples of recipients and suppliers include
contractors, providers of professional services, employees, and real estate landlords. Companies
submit a TDS certificate to each supplier on a monthly or yearly basis. The certificate includes the
payments, as well asinformation about the company and supplier. Companies must also submit an
annualreturn to the government for each recipient or supplier for the financial year. TDS certificate
can be either Form 16 or Form 26Q or Form 24Q . Form 16 is the TDS certificate which an
individual submits and Form 26Q is the TDS certificate which a company submits to the tax authorit

Preparation of VAT returns
At the end of the month or each quarter, you file a VAT return with the tax office, and remit the
VAT due.
Prerequisites
You have carried out the activities described in closing for VAT.
Process
1. You prepare a copy of the sales ledger and purchase ledger. The ledgers show the
invoices that have been paid and on which VAT is thus due. Theledgers are for your
own reference in the event of checkup by the tax office.
2. You prepare VAT return. The consist of two steps.
 You calculate the total amounts of VAT for each tax code.
 You print the VAT return.
The system fills out the fields in the vat return using the totals that youcalculated in
the first step.

Comp office online software:-
Tax Solution for professionals to provide end-end management of every stage of the tax life cycle -
from provision to estimates and extensions. returns, audit, amendmentand planning.
A solution for :
Income Tax Return
TDS return
Service tax return
Balance sheet & audit report
VAT returns (Raj./UP/MP)
Checking of assessment orders
ROC form and filling
CMA
AIR return
Document Management
Challan
All other required forms
Standard letters to clients
Standard formats of departmental letters
Office assistance works & mechanism.
Various types of reporting.
Features:-
Single switch board for all software
Common client information for all software
Searching of records by Code No., Name PAN, etc.
Online auto-update of software
Defining user rights with grouping facility.
Password protection for individual clients
Active/De-active of individual party from particular/all software
Single window/screen to input, edit, view and print.

Overview of Tally ERP 9
Journal entry
Journal Vouchers are used to adjust the debit and credit amounts without involvingthe cash or bank
accounts. Hence, they are referred to as adjustment entries.
Creating a Journal Entry
Journal entries are usually used for finalization of accounts.To pass a
Journal Voucher,
Go to Gateway of Tally > Accounting Vouchers · Click on
F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or interest due. If youhave to receive
Interest from a party, the same can be entered using Journal Voucher.
1. Debit the Party
2. Credit the Interest Receivable AccountThe
Journal entry is displayed as shown:

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
 ALT+R: Recalls the Last narration saved for the first ledger in the voucher,irrespective
of the voucher type.
 CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespectiveof the
ledger.
Allowing Cash Accounts in Journals
Journals are adjustment entries, which do not involve Cash account and Bank account. However in
exceptional cases where the user would like to account Journalentries involving Cash/Bank
Account, Tally. ERP 9 has the flexibility of passing such entries by enabling the option under F12
configuration.
To enable Cash Accounts in Journal voucher, · Set Allow Cash Accounts in Journals toYes in F12:
Configure (Voucher Entry Configuration).

To pass a Journal voucher with Cash/Bank Ledger,
1. Go to Gateway of Tally > Accounting Vouchers > Select F7: Journal
2. Press the spacebar at the Debit or Credit field.
The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown :

Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting their Account in your
Books of Accounts for the stated reason or vise versa. It is commonly used in case of Purchase
Returns, Escalation/De-escalation in price, anyother expenses incurred by you on behalf of the
party etc.
Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory features.
To use it in Voucher mode you need to enable the feature in F11 :AccountingFeatures -
Use Debit / Credit Notes.
To make the entry in Invoice mode enable the option F11: Accounting Features -Use invoice
mode for Debit Notes.
To go to Debit Note Entry Screen, Go to Gateway of Tally > Accounting Vouchers
Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking Ctrl+V.
Pass an entry for the goods purchased returned to Supplier A:
Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher,irrespective
of the voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespectiveof the
ledger.
Credit Note Entry
Credit Note is a document issued to a party stating that you are crediting their Accountin your Books
of Accounts for the stated reason or vise versa. It is commonly used in case of Sales Returns.
A Credit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory features.
To use it in Voucher mode you need to enable the feature in F11 :AccountingFeatures -
Use Debit / Credit Notes.
To make the entry in Invoice mode enable the option
F11: Accounting Features - Use invoice mode for Debit Notes.
To go to Credit Note Entry Screen:
Go to Gateway of Tally > Accounting Vouchers
Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8. You can togglebetween
voucher and Invoice mode by clicking Ctrl+V. Pass an entry for goods sold returned from
Customer A:

TAXATION SYSTEM
Introduction
Today Indian taxing system is going a revolutionary change owing to spreading the wings of Indian
business into global market. Indian Government is paying its full attention to liberalize the taxing
system and at the same time closing the loopholes todisable the intruders to evade the taxing system
so as to enlarge the revenue to Government exchequer and flourish the overall business scene.
Resent Budget 2022 has also played important role in this direction.
Broadly taxing system may be classified into three parts:
Progressive taxation system
Regressive taxation system
Proportional taxation system
Progressive taxation implies a taxing system where tax rate increases with increase inincome, thus if
a person has higher income, he will bear more tax burden due to increased tax rate than person
having lesser income.
Regressive taxation means a taxing system where tax rate reduces with increase in income and thus
a person having lesser income faces lesser tax burden due to facing lesser tax rates.
Proportion tax means a taxing system of charging tax on a fixed proportion irrespective of level of
amount on which tax is to be levied. Thus, the same tax rate applies to different persons having
different taxable amounts.
Tax may be levied on natural persons like individual, Hindu undivided family artificial entities like
Firm, association of persons, company, society etc. and also on goods and services. Thus, another
classification of tax we found into direct tax and indirect tax.

Direct tax means a type of tax which is paid by a person directly to the Government. For example
income tax and wealth tax in India.
Indirect tax means tax on goods and services which are paid by a person to the producer, seller or
service provider who is liable to pay the same to the account of Government. For example customs
duty, excise duty, VAT, service tax, entertainmenttax etc. in India. Now a modern system of taxing
all goods and services ―goods and services tax‖ is about to be introduced. This will replace all existing
enactments relatingto goods and services.
Taxing system in India
In India, progressive and proportional taxing systems are followed. In Indian tax law, slab wise
taxability arises somewhat for income tax while proportional tax is applicable for other taxes, for
example excise duty, customs duty, VAT, service tax, wealth tax etc. Further under income tax,
lottery income, long term capital gain, and in some cases short term capital gain is taxed under
proportional taxation system. Again the income of assesses such as for companies, firms etc.
proportional taxation system is applied while for individual and cooperative society, progressive
taxation system is followed.
Among direct tax only two types of taxes are in existence today, namely income tax and wealth tax
Income tax: Under Indian income tax law both flat rate (proportional tax) and slab rate(progressive
tax) applies. Tax is computed on total income. On lottery income, long term capital gain, and in some
cases short term capital gain is taxed under proportionaltaxation system. Again the income of assesses
such as for companies, firms etc. proportional taxation system is applied while for individual and
cooperative society, progressive taxation system is followed.

Wealth tax: wealth tax is levied at 1% on the net wealth of individual, Hindu undividedfamily and
company if net wealth exceeds Rs.30 lakhs on the valuation date. It is payable in every assessment
year based on valuation of net wealth on the respective valuation dates. Valuation date means last
day of the corresponding previous year relating to each assessment year. Net wealth is computed as
the difference between value of assets and the value of liabilities. Assets include House, Motor car,
Jewellery,Urban land, Cash in hand and yatch, boat and air craft.
Among the indirect taxes regime important ones are Excise duty, service tax, customsduty and sales
tax,
Excise duty: Excise duty is levied on manufacture or production of excisable goods in India at the
rates specified in Central excise tariff act. It is based on value added concept since it includes the
provision of input tax credit covered under CENVAT creditrules.
Customs duty: Customs duty is levied on goods imported or exported from India at therates specified
in Customs tariff act. Import means bringing into India from a place outside India while export
means taking out of India from a place outside India. India includes territorial waters of India which
extends up to 12 nautical miles from the baseline.
Service tax: Service tax is a type of indirect tax which levied on services. It is consumption based
destination tax. It is governed by chapter V and chapter V-A of thefinance act 1994 as amended to
finance act 2012. Service tax is levied @12% of gross value of taxable service. Additionally
education cess @ 2% and higher education cess @ 1% is also payable. Thus, the effective rate of tax
comes out to 12.36%.
Sales tax: Sales Tax is the older version of VAT. Under Sales Tax system, Tax was leviedon entire
selling price and not on value added. Thus, there was double taxation effectunder sales tax system.
Even now sales tax is prevalent in inter-state sales.

VAT: VAT is the short version of value added tax. It is a type of indirect tax which is levied on sale
of goods within a state. VAT is a modern system of taxing goods which has been introduced to
replace the existing sales tax system. Under VAT system tax islevied on the value added at each stage
of production or distribution Thus, it is a multi-point taxation system on value addition. It has been
introduced to avoid cascading (double taxation) effect and to check tax evasion.
Goods and Services Tax (GST)
Till now in India, there are separate enactments for goods and services. Efforts are being made to
consolidate the taxing system for entire goods and services.
Goods and service Tax has evolved as a modern Taxing system. It is a composite Taxingsystem which
covers all goods and services for specified transactions. This New Act willreplace all indirect Taxes
being presently levied on all goods and services by central aswell as state government. However, this
new act is yet to be implemented in India.
Tax Collection pattern in India
Gross tax collection in India is more or less stagnant after financial year 2014-15, if wetake it as % of
GDP (Table-I). To meet the challenges, the Government is financing its fiscal deficit by cutting down
its expenditure. This is not only lowering down the capitalformation in the country but also adversely
affecting the overall economic growth. The pattern of indirect collection is also not showing any
favourable growth (Table-II). Shortfall has not only incurred in tax collection but also in non-debt
receipts.

The impact of direct tax on economic growth
The direct tax is one of the important sources of government revenue. Further it also impacts directly
the disposable income of individuals. If direct tax rate is increased bythe Government, people start
saving for investment purposes. Due to this behavior ofindividual’s income generation process of
economy is hampered. Particularly this is true for luxury commodities. This decreases the production
of luxury commodities in the economy and as a result also adversely affects the GDP and standards
of living. However on the positive sides, if proper deductions are allowed based on investments,it leads
to capital formation in the country. Thus, broadly following are the positive sides of direct taxes on
the economic growth:
Better capital formation
Inducement of saving and investment
Surety of Government’s revenue growth
Increase in planned expenditure of government
Decrease in inflation rate due to lesser availability of disposable income topersons
Timely availability of revenue to the Government

Impact of indirect tax on economic growth
Since the burden of Indirect taxes directly fall on the consumers, it directly impacts thecost of goods
and services. Thus, indirect tax increases the efficiency of the producers, since to maintain their
demand they will have to put their full efforts towards cost cutting measures. Further, this effort of
producers also brings proper utilization of resources in the economy. The consumers are at freedom
to select products at their choice, thus healthy competition also grows in the economy. Thus, broadly
following are the positive sides of indirect taxes on the economic growth:
Better utilization of resources
Increase in efficiency of producers
Growth of healthy competition in the market
More freedom of choice to the consumers
Increase in demand for luxury goods
Increase in standard of living of people

RESEARCH METHODOLOGY
Research Design
The research plays an important role for providing the read right information to investor, which helps
the management in making better decisions. Research is systematic attempt to obtain answer to
meaningful a question about phenomena or event through the application of scientific farm
procedure. In other words research can be defined as methodical, unbiased and complete
investigation of subject matterto establish principles. The main research has special significance in
identifying and solving various type of operational and business problems of business and industry.
Research is other directed towards the solutions of problems.
The purpose of the research is to discover the answer to questions through the application of
scientific procedures. Through each research study has its own scientificobjectives, we may think of
research of objectives as falling in to the number of following broad groupings.
To get comprehensive knowledge about the financial position of the firm.
To measure the positive or negative of impact of planning budget.

DATA OF ACCOUNTANCY
ACCA (Association of Chartered Certified Accountants) is a strong supporter of the work of
UNCTAD’s Intergovernmental Working Group of Experts on International Standardsof Accounting
and Reporting (ISAR). Both organizations believe strongly in the importance of the role that high-
quality accounting, financial reporting and auditing can play in improving economic performance.
This paper, prepared for the High-Level Meeting on Accounting for Development in Doha, Qatar, on
22 April 2012, sets out key areas where ACCA believes professional accountancy can contribute to
sustained economic development. It suggests areas in which international accountancy bodies such
as ACCA, UNCTAD- ISAR and the International Federation of Accountants (IFAC) can collectively
promote an enhancedcontribution to economic success.
The issues covered here include many of those closest to the heart of ACCA. Firstly, capacity-
building initiatives to enhance the accountancy profession and, in turn, the wider economies in
emerging nations have been central to ACCA’s strategy for more than 25 years. Giving career
opportunities to people of talent, whatever their background, is in our DNA, and working with local,
regional and global bodies to buildcapacity has always been central to our approach. Put simply,
strong national professions are required to develop a strong global profession. Even where professions
are mature, there is always room to improve quality, and an urgent need to ensure wecommunicate the
value we bring to business, government and regulators.
As an international body with members in over 170 countries, ACCA has always taken a global
approach to major issues; ACCA was the first body to train its students in international financial
reporting standards. So promoting the benefit of global standards has always been important to us –
we firmly believe that the accountancy profession can enhance its contribution to world trade by
establishing globally crediblestandards that allow comparability of information and hence facilitate
capital flows.
Sustainability is the theme of the UNCTAD XIII ministerial conference. ACCA is widely known for
its long-standing commitment in this area. We were researching and advising on environmental
reporting in 1990, long before it became an established area for accountants. This commitment
remains today and we are pleased to be working with like-minded organizations who are signatories
to the Corporate Sustainability Reporting Coalition led by Aviva Investors – such as the Global
Reporting

Initiative (GRI), the UN Global Compact, UNCTAD and WWF-UK – in attempting to secure clear
commitments for action at the UN Rio+20 event in June.
If companies were to integrate sustainability information into their corporate reporting it would be
a major step forward. More generally we would welcome efforts to enhance ESG (environmental,
sustainability and governance) capacitysimilar to those for capacity building for more traditional
corporate reporting and accounting. We hope that the momentum generated by the integrated
reporting initiative will lead to a renewed focus on ESG issues.
Lastly, we do believe that while standards can play a crucial role in enhancing reporting, the
standard-setting process itself currently suffers from duplication and lack of coordination. In this
confused setting, the voice of the investor, which should be at the heart of financial reporting, is all
too often unheard. While standards and governance should and must be set with the ultimate view of
protecting the public interest, standards themselves will be most effective, in our view, when they
work forbusiness and to enhance investor confidence.
ACCA wishes all delegates a happy and informative conference; we would be pleasedto discuss the
issues contained in this paper with any interested party.
1. Capacity-building
Accounting plays an essential role in economic development. High-quality corporate
reporting is key to improving transparency, facilitating the mobilization of domestic and
international investment, creating a sound investment environment and fostering investor
confidence, thus promoting financial stability. A strong and internationally comparable
reporting system facilitates international flows of financial resources while at the same time
helping to reduce corruption and mismanagement of resources. It also strengthens
international competitiveness of enterprises in attracting external financing and taking
advantage of international market opportunities.
In the wake of various financial crises continued efforts are being made towards improving
the quality of corporate reporting as an important part of measures towards strengthening
the international financial architecture. In this regard the implementation and application of
internationally recognized standards, codes and good practices in the area of corporate
reporting has been strongly encouraged as a reflection of the increasing pace of globalization
and international economic integration. However, the effective adoption and implementation
of such standards and codes remains a challenge for many developing countries and
economies in transition as they lack some of the

critical elements of corporate reporting infrastructure – from weaknesses in their legal and
regulatory frameworks, to lack of human capacity and relevant support institutions. In the face of
these challenges there is a need for a coherent approach to building capacity in this area, as well as
for tools to measure and benchmark progress and identify priorities for further actions.
Mike Walsh of ACCA, who is also a resource support to the UNCTAD-ISAR project, says:
‘ACCA has also been instrumental in drafting IFAC’s International Education Standards, which
form the basis of the education and training component of ISAR’scapacity-building framework’.
Building an accountancy infrastructure is a complex process because it is part of an economy’s legal
and regulatory system. It needs to be attuned to the interests of many stakeholders and the
availability of financial, educational and human resources.Capacity building helps reinforce proper
legal frameworks and institutional arrangements. It is concerned with developing and upgrading
certain skills,competencies and performance. It is also about enhancing the capacity of individuals,
groups or institutions that are to carry out corporate reporting, for it is reporting (which is covered in
more depth below in the section on global standards) and transparency that often drive
improvements.
The Asia–Pacific crisis in 1997/8 gave huge impetus to the spread of international financial
reporting standards as international investors demanded moretransparency in company reports and
easily comparable data. These countries largely had the accountancy infrastructure to introduce
them. While the US implemented Sarbanes– Oxley and Europe introduced reform through the
Eighth Directive as a response to this and other crises, notably the corporate scandals in the US in
the early 2000s, it was not clear what action should be taken by the rest of the world.
The World Bank introduced Reports on the Observance of Standards and Codes (ROSCs) for audit
and accounting, which take into account the different levels of development and varying priorities in
different countries and regions. Produced as a joint initiative with the International Monetary Fund,
the reports assess the strengths and weaknesses of existing frameworks and accounting practices,
including the degree of compliance with and enforcement of national regulatory systems. ACCA
believes they provide a sound measure of the robustness of countries’ accounting systems. Many
developing countries, however, face a challenge in coping with implementation of the international
accounting and auditing standards, and lack sufficient regulatory resources and qualified
professionals.
The spread of IFRS had taken it to over 100 nations by 2009, and many more countries(including
those seeking accession to the European Union, which adopted IFRS in 2005)were also keen to join
the same accounting regime, so UNCTAD was asked to work

towards a capacity-building framework to underpin the new reporting requirements. As head of
enterprise development, Tatiana Krylova, has said: ‘IFRS is the tip of the iceberg. It needs to be
supported by different in institutional and technical capacities,which are lacking in some countries.’
ACCA is proud to be playing an active role in UNCTAD’s efforts, providing technical resources and
support for the questionnaires and round-table discussions that form part of the worldwide capacity-
building project. The main pillars of this are:
the legal and regulatory structure
the institutional framework
human capacity, and
the capacity-building process itself
2. GLOBAL STANDARDS
As shown in the above section, the requirements and demands of quality reporting can drive other
improvements in countries’ accounting capability. The global spreadof IFRS over the past decade
has been the most dramatic example of this. ACCA hasalways been a firm supporter of the regime
and was the first international accountancy professional body to introduce IFRS into its own
qualification.
We are also strong believers in the benefits of global standards. We have already seen that a
sound financial system, supported by high-quality accounting and auditing standards and backed
by a solid regulatory, governance and ethical framework is a prerequisite for economic
development. But international investorsprefer dealing in standards that they know, and so greater
cross-border trade will take place with the underpinning of global standards, which will in turn
increase prosperity.
In summary, the advantages of global standards are that:
they encourage transparency and easy comparison in transactions that crossborders and
jurisdictions
translation and reconciliation costs are removed
all companies have improved ability to attract capital from a larger pool ofinvestors,
driving down costs of capital

opportunities for regulatory arbitrage are eliminated.
In 2007, a survey of CFOs in Malaysia, Singapore, Hong Kong and mainland China strongly
supported the adoption of IFRS, believing it added value to the Asian capital markets by
creating easy comparability for Western investors and by allowing a principles-based
approach. And a follow-up survey ACCA carried out in late 2008 showed that 500 CFOs
across Europe, Asia and the US agreed on the benefits of global reporting standards.
A separate study commissioned by ACCA at the same time also revealed that UK companies
had seen a reduction in costs of capital of between 1% and 2% since the introduction of
IFRS in 2005, while for the EU as a whole, the figure was 1%. It appears that in countries
where equity-based financing dominates, and corporate disclosure quality is already high,
the implementation of IFRS leads to greater rewards.
Most recently, ACCA carried out a survey in August 2011 of 163 senior executives (CFOs
and investors) across the US, Europe, Middle-East and Asia, which found evidence that
access to capital for companies was indeed increased and its cost reduced by IFRS adoption
and, notably, that as countriesgained experience in using global standards so their support
for the system tended to increase.
We hope that the US will bear this in mind as it continues to deliberate over whether to join
the IFRS system. A full US commitment would be a tremendousboost to the cause of global
financial reporting and, more importantly, to the world economy. For as global trade talks
stutter, we cannot afford to see fracturing of the global accounting system, which an ultimate
‘no’ from the US could trigger. Already there are too many ‘carve-outs’ by governments from
theIFRS system – we would urge national policymakers to resist this as far as possible, for
this is a direct threat to the integrity of the regime.
Policymakers have given global standards their blessing since 2009 when G20 summits
began calling for one set of accounting standards. ACCA believes it iscrucial for the world
economy that this happens.
3. Sustainability
ACCA has been a long-term supporter and promoter of sustainability reporting and corporate
transparency. We established the world’s first environmental reporting awards in 1991, became a
member of the GRI Steering Committee in 1998, and helped write the first GRI set of Guidelines,
which were launched in 1999. We have

been involved in the GRI Governance since then, as well as becoming involved in other global
and highly respected reporting initiatives such as the Prince of Wales’ Accounting for
Sustainability (A4S) program and the Climate Disclosure Standards Board framework. ACCA
has also undertaken a number of detailed surveys on specific non-financial disclosures, such as
bribery and corruption, human rights, andhuman capital management.
ACCA is involved in the GRI’s G4 process, a two-year revision program of the GRI’s 3.1Guidelines,
to be launched in 2013 and initiating a new era of sustainability reporting.
We believe long-term value is enhanced when companies embed sustainability into their business
strategy and key processes, rather than treating it as an add-on activity.
We also believe that this needs to be reported and fully disclosed to stakeholders. The future
sustainability of the company has to be at the heart of corporate decision making and this should
enhance not only the individual business but also the quality of the stock market as a whole, as
superior information, rather than short-term, incomplete data, will begin to define markets.
4. Integrated reporting
Having emphasized our belief in the importance of sustainability issues and reporting,we nonetheless
have to accept that the scale of the global financial crisis has led to adecline in interest in these
issues, at least in the short term, among some stakeholders. A recent report published by ACCA on
the future of corporate reporting(January 2012) showed that many investors were less focused on
sustainability matters since the onset of the crisis and other issues such as risk were now more
important to them.
Yet, importantly, the same survey showed that if sustainability data could be integrated into the
report as a whole, then it would be valued more highly. The ACCA survey on global standards
(August 2011) also found considerable interest in the potential benefit of integrated reporting. More
than two-thirds of respondents said there was much to be gained – both in enabling better decision
making and in providing a more accurate picture of overall performance – from the presentation of
financial, governance and sustainability information in an integrated format.
Integrated reporting has emerged as an important development in corporate reportingsince the GFC.
The essential drive behind integrated reporting is that there are currently myriad corporate reports
(the annual review, the management commentary,the chairman’s review, CSR reports, etc.) that all
contain valuable information but areaimed at different audiences and are usually unconnected. While
they tell us a lot individually, they are prepared in silos and fail to spell out clearly how the
company’s performance relates to the business model. So there appears to be a need for the

corporate strategy and business model to become integrated and inclusive of all material issues, and
the aim is that an integrated report will bring all this information together in a coherent way.
This is why ACCA has been an enthusiastic and active supporter of the International Integrated
Reporting Council. ACCA CEO Helen Brand is a member of the IIRC strategicsteering committee,
which issued a consultation document on a draft framework in September 2011.
The emerging Integrated Reporting model is intended to reflect the interconnected nature of
environmental, social and governance factors in organizations’ annual reporting. The IIRC describes
IR as being:
a holistic approach to enable investors and other stakeholders to understand howan
organization is really performing. Addressing the longer-term consequences ofdecisions and
actions, an integrated report makes clear the link between social, economic and environmental
value.
5. Standards for business
The case for global standards is examined in section 2. ACCA believes the standard- setting and
regulation-forming processes themselves need further examination.
At the moment, there are myriad national and international inquiries/investigations into areas such as
audit, with little apparent coordination. As there are variousstandards boards, issues can often be
looked at in silos, rather than the interrelated way that is necessary. Audit and corporate reporting are
wholly related yet no single body looks at both. In addition, there is no formal process for the
promulgation of consistent standards for corporate governance – yet governance failures were at the
heart of the global financial crisis. The ACCA report on global standards also found considerable
interest among CFOs and investors for possible global standards or benchmarks, with 70% of
respondents saying they would encourage more long-term thinking in the boardroom.
There is another fundamental problem – the voice of the investors is not being clearly heard.
Consistent engagement with them has proved difficult and theirs is rarely thestarting point for any
debates on accounting, and yet they should be at the heart of it, given that accounts are intended
primarily for shareholders.
ACCA, in a joint initiative with Grant Thornton, has sought to address this issue in recent months by
co-hosting global investor panel discussions, which have captured some of the needs and priorities
of investors on financial reporting issues.

The two organizations believe that a continuing campaign to put investors’ needs at the heartof the
agenda would enhance the accounting and wider financial spheres.
We both believe that enhanced engagement with stakeholders, especiallyinvestors, would help in:
 developing a positive agenda for change
 recognizing the real impact on business of any change
 placing investors’ needs and concerns at the heart of the system
 helping policymakers in identifying issues and priorities
 generating a more integrated and coherent view of interrelated issues
 obtaining evidence on which to base policy.

Data of taxation
The Road Map of new budget 2022-23
INTRODUCTION
 In the last two and half years administration has moved from discretionary,
favouritism based to system and transparency based
 Inflation brought under control. CPI-based inflation declined from 6% in
July 2022 to 3.4% in December, 2022
 Economy has moved on a high growth path. India’s CurrentAccount Deficit
declined from about 1% of GDP last year to 0.3%of GDP in the first half of
2022-23. FDI grew 36% in H1 2022-23 over H1 2021-22, despite 5%
reduction in global FDI inflows. Foreign exchange reserves have reached
361 billion US Dollars ason 20th
January, 2023
 War against black money launched
 Government continued on path of fiscal consolidation, without
compromising on public investment.
 The Indian economy has been robust to mild shocks and IMF forecasts,
India to be one of the fastest growing major economiesin 2023

CHALLENGES IN 2022-23
 World economy faces considerable uncertainty, in the aftermath of major
economic and political developments during the last year
 The US Federal Reserve's , intention to increase policy rates in 2022, may
lead to lower capital inflows and higher outflows from the emerging
economies
 Uncertainty around commodity prices, especially that of crude oil, has
implications for the fiscal situation of emerging economies
 Signs of retreat from globalisation of goods, services and people, as
pressures for protectionism are building up

TRANSFORMATIONAL REFORMS IN LAST YEAR
 Passage of the Constitution Amendment Bill for GST and the progress for
its introduction
 Demonetisation of high denomination bank notes
 Enactment of the Insolvency and Bankruptcy Code; amendment to the RBI
Act for inflation targeting; enactment of the Aadhar bill for disbursement of
financial subsidies and benefits
 Budget 2022-23 contains 3 major reforms. First, presentation ofBudget
advanced to 1st
February to enable the Ministries to operationalise all
activities from the commencement of the financial year. Second, merger of
Railways Budget with General Budget to bring Railways to the centre stage
of Government’s Fiscal Policy and Third, removal of plan and non-plan
classification of expenditure to facilitate a holistic view of allocations for
sectors and ministries
DEMONITISATION
 Bold and decisive measure to curb tax evasion and paralleleconomy
 Government’s resolve to eliminate corruption, black money, counterfeit
currency and terror funding
 Drop in economic activity, if any, to be temporary
 Generate long term benefits including reduced corruption, greater
digitisation, increased flow of financial savings and greater formalisation
of the economy

 Pace of remonetisation has picked up and will soon reach comfortable
levels
 The surplus liquidity in the banking system will lower borrowingcosts and
increase the access to credit
 Announcements made by the Honourable Prime Minister on 31st
Dec, 2021
focusing on housing for the poor; relief to farmers; credit support to
MSMEs; encouragement to digital transactions; assistance to pregnant
women and senior citizens;and priority to dalits, tribals, backward classes
and women underthe Mudra Yojana, address key concerns of our economy

ROADMAP & PRIORITIES
 Agenda for 2022-23 is : “Transform, Energise and Clean India” – TECIndia
 TEC India seeks to
Transform the quality of governance and quality of life of ourpeople;
Energise various sections of society, especially the youth and the
vulnerable, and enable them to unleash their true potential; and
Clean the country from the evils of corruption, black moneyand non-
transparent political funding
Ten distinct themes to foster this broad agenda:
Farmers : committed to double the income in 5 years;
Rural Population : providing employment & basic infrastructure;
Youth : energising them through education, skills and jobs;
The Poor and the Underprivileged : strengthening the systems of
social security, health care and affordable housing;
Infrastructure: for efficiency, productivity and quality of life;
Financial Sector : growth & stability by stronger institutions; Digital
Economy : for speed, accountability and transparency;
Public Service : effective governance and efficient service delivery
through people’s participation;
Prudent Fiscal Management: to ensure optimal deployment of
resources and preserve fiscal stability;
Tax Administration: honoring the honest.

FARMERS
a) Target for agricultural credit in 2022-23 has been fixed at a record level of ` 10 lakh
crores
b) Farmers will also benefit from 60 days’ interest waiver announced on 31 Dec2021
c) To ensure flow of credit to small farmers, Government to support NABARD for
computerization and integration of all 63,000 functional Primary Agriculture Credit
Societies with the Core Banking System of District CentralCooperative Banks. This will
be done in 3 years at an estimated cost of ` 1,900crores
d) Coverage under Fasal Bima Yojana scheme will be increased from 30% of cropped area
in 2022-23 to 40% in 2022-23 and 50% in 2023-24 for which a budget provision of `
9000 crore has been made
e) New mini labs in Krishi Vigyan Kendras (KVKs) and ensure 100% coverage of all 648
KVKs in the country for soil sample testing
f) As announced by the Honorable Prime Minister, the Long Term Irrigation Fund already
set up in NABARD to be augmented by 100% to take the total corpus of this Fund to `
40,000 crores.
g) Dedicated Micro Irrigation Fund in NABARD to achieve ‘per drop more crop’with an
initial corpus of ` 5,000 crores
h) Coverage of National Agricultural Market (e-NAM) to be expanded from 250markets to
585 APMCs. Assistance up to ` 75 lakhs will be provided to every e-NAM
i) A model law on contract farming to be prepared and circulated among the States for
adoption
j) Dairy Processing and Infrastructure Development Fund to be set up in NABARD with a
corpus of ` 2000 crores and will be increased to ` 8000 croresover 3 years
RURAL
POPULATION
a) Over ` 3 lakh crores spent in rural areas every year, for rural poor from CentralBudget, State
Budgets, Bank linkage for self-help groups, etc.
b) Aim to bring one crore households out of poverty and to make 50,000. GramPanchayats
poverty free by 2022, the birth anniversary of Gandhiji

c) Against target of 5 lakh farm ponds under MGNREGA, 10 lakh farm ponds would be
completed by March 2022. During 2022-23, another 5 lakh farm ponds will be taken up
d) Women participation in MGNREGA has increased to 55% from less than 48%
e) MGNREGA allocation to be the highest ever at ` 48,000 crores in 2022-23.
f) Pace of construction of PMGSY roads accelerated to 133 km roads per day in 2022-23,
against an avg. of 73 km during 2011-2014
g) Government has taken up the task of connecting habitations with more than 100 persons in
left wing extremism affected Blocks under PMGSY. All such habitations are expected to be
covered by 2019 and the allocation for PMGSY, including the State's Share is ` 27,000
crores in 2022-23
h) Allocation for Pradhan Mantri Awaas Yojana – Gramin increased from ` 15,000crores in BE
2022-23 to ` 23,000 crores in 2022-23 with a target to complete 1crore houses by 2022 for
the houseless and those living in kutcha houses.
i) Well on our way to achieving 100% village electrification by 1st
May 2018.
j) Allocation for Prime Minister's Employment Generation Program and Credit Support
Schemes has been increased three fold
k) Sanitation coverage in rural India has gone up from 42% in Oct 2022 to about60%. Open
Defecation Free villages are now being given priority for piped water supply.
l) As part of a sub mission of the National Rural Drinking Water Programme (NRDWP), it is
proposed to provide safe drinking water to over 28,000 arsenic and fluoride affected
habitations in the next four years.

m) For imparting new skills to people in rural areas, mason training will beprovided to
5 lakh persons by 2022
n) A programme of “human resource reforms for results” will be launched during2022-23 for
human resources development in Panchayati Raj Institutions
o) Total allocation for Rural, Agriculture and Allied sectors is ` 187223 crores
YOUTH
a) To introduce a system of measuring annual learning outcomes in our schools
b) Innovation Fund for Secondary Education proposed to encourage local innovation for
ensuring universal access, gender parity and quality improvement to be introduced in 3479
educationally backward districts.
c) Good quality higher education institutions to have greater administrative and academic
autonomy
d) SWAYAM platform, leveraging IT, to be launched with at least 350 online courses. This
would enable students to virtually attend courses taught by thebest faculty
e) National Testing Agency to be set-up as an autonomous and self-sustained premier testing
organisation to conduct all entrance examinations for higher education institutions
f) Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the
country. 100 India International Skills Centres will be established across the country.
g) Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme
(SANKALP) to be launched at a cost of ` 4000 crores. SANKALP will provide market
relevant training to 3.5 crore youth

h) Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also
be launched in 2022-23 at a cost of ` 2,200 crores
i) A scheme for creating employment in the leather and footwear industries along the lines in
Textiles Sector to be launched
j) Incredible India 2.0 Campaign will be launched across the world to promotetourism and
employment.
THE POOR AND THE UNDERPRIVILEGED
a) Mahila Shakti Kendra will be set up with an allocation of ` 500 crores in 14 lakh ICDS
Anganwadi Centres. This will provide one stop convergent support services for
empowering rural women with opportunities for skill development, employment, digital
literacy, health and nutrition
b) Under Maternity Benefit Scheme ` 6,000 each will be transferred directly to the bank
accounts of pregnant women who undergo institutional delivery andvaccinate their children
c) Affordable housing to be given infrastructure status
d) National Housing Bank will refinance individual housing loans of about `20,000 crore in
2022-23
e) Government has prepared an action plan to eliminate Kala-Azar and Filariasis by 2021,
Leprosy by 2022, Measles by 2023 and Tuberculosis by 2025 is also targeted
f) Action plan has been prepared to reduce IMR from 39 in 2014 to 28 by 2019 andMMR from
167 in 2011-13 to 100 by 2022-2020
g) To create additional 5,000 Post Graduate seats per annum to ensure adequateavailability of
specialist doctors to strengthen Secondary and Tertiary levels ofhealth care

h) Two new All India Institutes of Medical Sciences to be set up in Jharkhand andGujarat
i) To foster a conducive labour environment, legislative reforms will be undertaken to
simplify, rationalise and amalgamate the existing labour laws into 4 Codes on (i) wages;
(ii) industrial relations; (iii) social security and welfare; and (iv) safety and working
conditions.
j) Propose to amend the Drugs and Cosmetics Rules to ensure availability of drugs at
reasonable prices and promote use of generic medicines
k) The allocation for Scheduled Castes has been increased by 35% compared to BE 2022-23.
The allocation for Scheduled Tribes has been increased to ` 31,920crores and for Minority
Affairs to ` 4,195 crores
l) For senior citizens, Aadhar based Smart Cards containing their health details willbe
introduced.
INFRASTRUCTURE
a) For transportation sector as a whole, including rail, roads, shipping, provisionof ` 2,41,387
crores has been made in 2022-23.
b) For 2022-23, the total capital and development expenditure of Railways has been pegged at
` 1,31,000 crores. This includes ` 55,000 crores provided by theGovernment
c) For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a corpus of ` 1
lakh crores over a period of 5 years
d) Unmanned level crossings on Broad Gauge lines will be eliminated by 2023
e) In the next 3 years, the throughput is proposed to be enhanced by 10%. This will be done
through modernisation and upgradation of identified corridors.

f) Railway lines of 3,500 kms will be commissioned in 2022-23. During 2022-23,at least 25
stations are expected to be awarded for station redevelopment.
g) 500 stations will be made differently abled friendly by providing lifts and escalators.
h) It is proposed to feed about 7,000 stations with solar power in the medium term
i) SMS based Clean My Coach Service has been started
j) ‘Coach Mitra’, a single window interface, to register all coach related complaints and
requirements to be launched
k) By 2022, all coaches of Indian Railways will be fitted with bio toilets. Tariffs ofRailways
would be fixed, taking into consideration costs, quality of service andcompetition from other
forms of transport
l) A new Metro Rail Policy will be announced with focus on innovative models of
implementation and financing, as well as standardisation and indigenisation of hardware
and software
m) A new Metro Rail Act will be enacted by rationalising the existing laws. This will
facilitate greater private participation and investment in construction and operation.
n) In the road sector, Budget allocation for highways increased from ` 57,976crores in BE 2022-
23 to ` 64,900 crores in 2022-23
o) 2,000 kms of coastal connectivity roads have been identified for construction and
development

p) Total length of roads, including those under PMGSY, built from 2014-15 till thecurrent year
is about 1,40,000 kms which is significantly higher than previousthree years
q) Select airports in Tier 2 cities will be taken up for operation and maintenancein the PPP
mode.
r) By the end of 2022-23, high speed broadband connectivity on optical fibre willbe available
in more than 1,50,000 gram panchayats, under BharatNet. A DigiGaon initiative will be
launched to provide tele-medicine, education and skills through digital technology
s) Proposed to set up strategic crude oil reserves at 2 more locations, namely, Chandikhole in
Odisha and Bikaner in Rajasthan. This will take our strategic reserve capacity to 15.33
MMT
t) Second phase of Solar Park development to be taken up for additional 20,000MW capacity.
u) For creating an eco-system to make India a global hub for electronics manufacturing a
provision of ` 745 crores in 2022-23 in incentive schemes likeM-SIPS and EDF.
v) A new and restructured Central scheme with a focus on export infrastructure, namely, Trade
Infrastructure for Export Scheme (TIES) will be launched in 2022-23.
FINANCIAL SECTOR
a) Foreign Investment Promotion Board to be abolished in 2022-23 and further liberalization
of FDI policy is under consideration
b) An expert committee will be constituted to study and promote creation of an operational
and legal framework to integrate spot market and derivatives

market in the agricultural sector, for commodities trading. e- NAM to be anintegral part of
the framework.
c) Bill relating to curtail the menace of illicit deposit schemes will be introduced. A bill
relating to resolution of financial firms will be introduced in the current Budget Session of
Parliament. This will contribute to stability and resilience ofour financial system
d) A mechanism to streamline institutional arrangements for resolution of disputes in
infrastructure related construction contracts, PPP and public utility contracts will be
introduced as an amendment to the Arbitration and Conciliation Act 1996.
e) A Computer Emergency Response Team for our Financial Sector (CERT-Fin) will be
established.
f) Government will put in place a revised mechanism and procedure to ensure time bound
listing of identified CPSEs on stock exchanges. The shares of Railway PSEs like IRCTC,
IRFC and IRCON will be listed in stock exchanges.
g) Propose to create an integrated public sector ‘oil major’ which will be able to match the
performance of international and domestic private sector oil and gas companies
h) A new ETF with diversified CPSE stocks and other Government holdings will belaunched in
2022-23
i) In line with the ‘Indradhanush’ roadmap, ` 10,000 crores for recapitalization of Banks
provided in 2022-23
j) Lending target under Pradhan Mantri Mudra Yojana to be set at ` 2.44 lakhcrores.
Priority will be given to Dalits, Tribal, Backward Classes and Women.

DIGITAL ECONOMY
a) 125 lakh people have adopted the BHIM app so far. The Government will launch two new
schemes to promote the usage of BHIM; these are, Referral Bonus Scheme for individuals
and a Cashback Scheme for merchants
b) Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched
shortly
c) A Mission will be set up with a target of 2,500 crore digital transactions for 2022-23
through UPI, USSD, Aadhar Pay, IMPS and debit cards
d) A proposal to mandate all Government receipts through digital means, beyonda prescribed
limit, is under consideration
e) Banks have targeted to introduce additional 10 lakh new POS terminals by March 2022.
They will be encouraged to introduce 20 lakh Aadhar based POSby September 2022
f) Proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing
the existing Board for Regulation and Supervision of Payment and Settlement Systems.
PUBLIC SERVICE
a) The Government e-market place which is now functional for procurement of goods and
services
b) To utilise the Head Post Offices as front offices for rendering passport services

c) A Centralised Defence Travel System has been developed through which travel tickets can
be booked online by our soldiers and officers
d) Web based interactive Pension Disbursement System for Defence Pensioners will be
established
e) To rationalise the number of tribunals and merge tribunals wherever appropriate
f) Commemorate both Champaran and Khordha revolts appropriately
PRUDENT FISCAL MANAGEMENT
a) Stepped up allocation for Capital expenditure by 25.4% over the previous year
b) Total resources being transferred to the States and the Union Territories withLegislatures is
` 4.11 lakh crores, against ` 3.60 lakh crores in BE 2021-22
c) For the first time, a consolidated Outcome Budget, covering all Ministries andDepartments,
is being laid along with the other Budget documents
d) FRBM Committee has recommended 3% fiscal deficit for the next three years,keeping in
mind the sustainable debt target and need for public investment, fiscal deficit for 2022-23
is targeted at 3.2% of GDP and Government remains committed to achieve 3% in the
following year.
e) Net market borrowing of Government restricted to ` 3.48 lakh crores after buyback in
2022-23, much lower than ` 4.25 lakh crores of the previous year
f) Revenue Deficit of 2.3% in BE 2022-23 stands reduced to 2.1% in the Revised Estimates.
The Revenue Deficit for next year is pegged at 1.9% , against 2% mandated by the FRBM
Act

PERSONAL INCOME-TAX
a) Existing rate of taxation for individual assesses between income of `2.5 lakhs to5 lakhs
reduced to 5% from the present rate of 10%
b) Surcharge of 10% of tax payable on categories of individuals whose annualtaxable
income is between `50 lakhs and ` 1 crore
c) Simple one-page form to be filed as Income Tax Return for the category ofindividuals
having taxable income upto ` 5 lakhs other than business income
d) Appeal to all citizens of India to contribute to Nation Building by making a smallpayment of
5% tax if their income is falling in the lowest slab of 2.5 lakhs to 5 lakhs.
GOODS AND SERVICES TAX
a) The GST Council has finalized its recommendations on almost all the issuesbased on
consensus on the basis of 9 meetings held
b) Preparation of IT system for GST is also on schedule.
c) The extensive reach-out efforts to trade and industry for GST will start from 1stApril, 2017 to
make them aware of the new taxation system.
RAPID (Revenue, Accountability, Probity, Information and Digitisation)
a) Maximize efforts for e-assessment in the coming year.
b) Enforcing greater accountability of officers of Tax Department for specific act ofcommission
and omission.

53 | I m p a c t o f A c c o u n t a n c y & T a x a t i o n o n E c o n o m i c
D e v e l o p m e n t
LEARNING
I learned through my training program, that how I can
 Improve communication skills.
 Analyze the business situation.
 Establish high standard in professionalism.
 Learn more than the theoretical knowledge.
 Learn book keeping practices of different companies.
 Apply the theoretical knowledge in actual organisation.
 Compare practical aspects with theoretical aspects.
 Make quick decision in real situation.
 Learn how promote and conduct research in business area.
Promote my personal knowledge and professional preparation for future.To properly
integrate my theoretical knowledge and practical work.
 Plan for the future of oneself and learn how to adjust in an organisation.Know how to
present your recommendations in front of your boss.

Suggestions
• They have good opportunity to introduce the ISO standards trainingprogram which no
other firm is giving to customer.
• Try to adopt new technologies that their competitors are not using.
• Make a network that allows its customers to negotiate with them easily.
• The HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. Has the facility
to give coverage even the smallretailers for income estimation who want to take loan
from bank.
• HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. strongly needs to
improve its network firms so asto be counted among one of the extensively know firms
in UP. The partnerneeds to make the best use of their goodwill to bring more clientage
andreputation to firm. They need to offer the audit services at most economical cost
with the assured quality services to retain and expand clients.
• The infrastructure and working condition reviews can improve the working efficiency
of the trainees. Audit and Assurance is the tough job. Some motivational meetings
and mentoring exercises would bring good feel among employees for their work.
Time to time financial bonuses or performance incentives will energize the staff.
• The trainees are not offered extra financial or any other incentive for theextra work or
over time. This causes some sort of mental stings which immediately needs to be
overcome by the management. The firm, to be more competitive in days to come, still
has room for improvement in Information Technology. As firm don’t have any of its
website to attract customer and their timely feedback as most of the good firms have
their own web and well organized.

Limitations
• They have a small staff with shallow skills base in many areas.
• Less number of staff members.
• Developments in technology change this market beyond HMP LEGALEASE
CORPORATE CONSULTANTS PVT. LTD. Ability to adopt.
• Change in government policies and procedures may act as threat for company.
• A small change in focus of large competitor might wipe out any market position HMP
LEGALEASE CORPORATE CONSULTANTS PVT. LTD. achieve.
• HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. Has many
competitors. Under certain circumstances these competitors may act as a major threat
for the organisation.

Conclusion
• HMP LEGALEASE CORPORATE CONSULTANTS PVT. LTD. is overall one of
the profit making and reputed COMPANY of C-1/169 SECTOR-16, ROHINI,
DELHI-110085. The organization since its very first day is devoted to providing
quality services. The detailed and through reviewof work and clients’ trust shows the
perfection with which it is working.
• The Institute of Chartered Accountants of India has also carried out the Quality
Control Review and has issued satisfactory QCR report stating that the firm has
conducted the audits of the clients in accordance with International Standards on
Auditing.

Reference & Sources
In my work I used different webs to collect information/data which includes.
• WWW.ICAI.ORG
• WWW.WIKIPEDIA.COM
• WWW.INVESTOPEDIA.COM
• www.computaxonline.com
• www.accaglobal.com
• www.ssarsc.org
• WWW.CLEARTAX.IN
• TAXCLOUD

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