PRACTICAL UNDERSTANDING OF TDS RETURNS AND INDIVIDUAL INCOME TAX RETURNS: A CASE STUDY OF A CHARTERED ACCOUNTANCY FIRM

Author

Shreya Kale


Abstract

 This paper examines the practical processes involved in Tax Deducted at Source (TDS) compliance and Individual Income Tax Return (ITR) preparation during a two-month On-the-Job Training (OJT) programme at SPCM & Associates, a Chartered Accountancy firm in Pune, India. The study aims to understand the workflow of individual tax-return preparation, examine TDS computation and return-related activities, and identify the role of accounting and tax-compliance platforms in these processes. A descriptive case-study approach was adopted using observation, supervised participation, task records and review of work formats used during the training period. The work involved verification of books of accounts, reconciliation of tax information, review of Form 16, Form 26AS and the Annual Information Statement (AIS), TDS return work, assistance with individual ITRs, and exposure to Tally, Winman and TRACES. The task log recorded the largest category as TDS computation, reconciliation and filing. The observations indicate that accurate tax compliance depends on complete documentation, cross-verification across records, familiarity with digital systems and timely review by qualified professionals. Individual ITR preparation was particularly dependent on reconciling information from multiple sources, while TDS compliance emerged as a continuing cycle of data collection, computation, filing and post-filing reconciliation. The study is limited to one firm and a short training period; client-confidential information was not reproduced. The paper concludes that structured checklists, systematic reconciliation and practical software training can strengthen the quality and efficiency of entry-level tax-compliance work.



Keywords

accounting software; AIS; income tax return; tax compliance; TDS; TRACES



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References


  • Central Board of Direct Taxes. (n.d.). Income Tax Department e-Filing Portal. Government of India. https://www.incometax.gov.in/
  • Income Tax Department. (n.d.). Annual Information Statement (AIS) and taxpayer services. Government of India. https://www.incometax.gov.in/
  • Income Tax Department. (n.d.). TDS Reconciliation Analysis and Correction Enabling System (TRACES). Government of India. https://www.tdscpc.gov.in/
  • Institute of Chartered Accountants of India. (n.d.). Professional resources and guidance. https://www.icai.org/
  • SPCM & Associates. (n.d.). Firm profile and professional services. https://www.spcm.in/ (Verify the current official URL before submission.)
  • Kale, S. (2026). Practical understanding of TDS returns and individual tax returns [Unpublished OJT report]. School of Business, Indira University.
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