Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
“TAXATION”
Submitted By
PRADEEP N. PATIL
With Reference To
Submitted To
DECLARATION
(Pradeep N. Patil)
CERTIFICATE
ACKNOWLEDGEMENT
MANAGEMENT who spared his Valuable time and effort to guide me in the
Last but not least I would like to thank all my friends who stood by my
Side through times and helped me tide over many obstacles during the
CONTENTS
No. No.
4 Company Profile
History of The Company
Company Structure
Organization Structure
5 My job profile
8 Direct Taxes
Income Tax
Form 16(A)
TDS (Tax Deduction At Source)
Wealth Tax
Corporate Tax
Professional Tax
9 Indirect Taxes
VAT
VAT form 231
Excise Duty
Custom Duty
Service Tax
Entertainment
10 Conclusion & suggestions
Bibliography
Webliography
EXECUTIVE SUMMARY
Service Tax :
Service means any activity carried out by a person for another person
for consideration and includes a declared service.
But 1) It must be activity.
2) It must be done by a person for another person.
3) There must be a consideration for provision of service.
4) Includes a declared service.
Excise Duty :
COMPANY PROFILE
History of Company
On June 20, 1911, Idemitsu Shokai, the predecessor of Idemitsu Kosan, took
its first steps in the oil sales business at the trading port of Moji in Kitakyushu,
Japan. In 1940 Idemitsu Kosan Co., Ltd. Incorporated.
On dated 30th Oct., 2013 Idemitsu Kosan Co., Ltd. (Head office: Chiyod-
ku, Tokyo; Representative Director and CEO: Takashi Tsukioka) announces that its
wholly owned subsidiary Idemitsu Lube India Pvt Ltd. (head office: New Delhi,
India; representative: Takeyoshi Miki) today has begun sale of genuine oil to
dealers of Japanese motorcycles and automobiles, following completion of
lubricants plant in August 2013.
Demand for lubricants in India in fiscal 2012 has increased with the advance
of Japanese motorcycle and automobile makers into the market accompanying
India's motorization. India already has the world's third-highest level of lubricant
demand, after China and the United States.
Company Structure:
This is first plant in India. And second in Japan of Idemitsu.
Overview of Plant
Organization Structure:
Managing
Director
Directors
MY JOB PROFILE
After some days they allotted as well showed me some and work on Service tax
Credits.
TAXATION IN INDIA
Entertainment Tax
DIRECT TAX
Direct tax is referred to as the tax, which is paid by the person to the
government to whom it is levied and charged on the income and wealth of
persons and any levy that is both imposed and collected on a specific group of
people or organizations. The person on whom it is levied bears its burden i.e.
it increases with an increase in income or wealth and vice versa. It levies
according to the paying capacity of the person, i.e. the tax is collected more
from the rich and less from the poor. The burden of tax cannot be shifted.
Direct tax helps in reducing inflation. The tax progressive in nature. Tax
evasion is possible.
Direct taxation would be income taxes that are collected from the people who
actually earn their income.The tax is levied and collected either by the Central
government or State government or local bodies. The plans and policies of the
Direct Taxes are being recommended by the Central Board of Direct Taxes
(CBDT) which is under the Ministry of Finance, Government of India.
Corporate tax rate for the 2015-2016 fiscal to domestic companies are levied
with an income tax at the rate of 30%. Surcharge is applicable in following cases:
Description Condition Range Tax Rate %
Company Total Income up to 1 Crore Nil
Net Income of Company 1 Crore to 10 Crores 5%
Net Income of Company Exeeds 10 Crores 10%
Charge to Income-tax:
Every Person whose total income exceeds the maximum amount which is not
chargeable to the income tax is an assesse, and shall be chargeable to the income
tax at the rate or rates prescribed under the finance act for the relevant assessment
year, shall be determined on basis of his residential status.
Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act)
for every Assessment Year, on the Total Income earned in the Previous Year by
every Person.
Residential Status:
RESIDENCE IN INIDA
Basic Conditions:
1) Person must be living in India at least 182 days during previous year.
2) Must be present in India for period of 60 days or more during the
previous year and 365 days or more during the 4 years immediately
preceding to that financial year.
Additional Conditions:
Income tax is payable by an assessee on his total income from all the source
of income. Each source has its own unique features and requires specific treatment
for correct computation of income from that particular source. Naturally, rules and
method for computation of income from each such source are different according
to the nature of the source.
CLASSIFICATION OF INCOMES
Section 14 of the Income Tax Act, 1961 deals with the classification of
income under five heads of income. The five heads of income listed in S 14 are:
1) Income under the head salaries (Section 15 – 17)
2) Income from house property (Section 22 – 27)
3) Profits and gains from business or profession (Section 28 – 44)
4) Capital gains (Section 45 – 55)
5) Income from other sources (Section 56 – 59)
Meaning
Employer-Employee Relationship:
Assessee should receive the income from his employer only. Any income
which is received by assessee (employee) from his employer should be taxable
under section. If income not received from his employer then such employer is not
taxable under this head.
Salary to partner by firm:
If partner received salary from the firm this salary is not taxable under this
head but taxable head from business.
Received salary form two or more employer:
If an assessee received salary from two or more employer then income
received from all employer is taxable under this head.
Real intention to pay:
Salary income must be real and not fictitious. There must exist an intention/
obligation to pay and receive salary.
Salary or Bonus to Director:
If Director received any salary / bonus / commission as an employee is
taxable under this head.
Salary received by individuals only:
Salary is a compensation for personalized services, which can obviously be
rendered by a normal human being and not a body corporate. Salary income is
taxable in the hands of individuals only. No other type of person such as a firm or
HUF, companies can earn salary income.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 19
TAXATION
Salary:
The salary earned of current year or arrear salary of last year or salary
received in advance are taxable but the salary on which tax is paid in previous year
such salary should not be added in current year Because he cannot paid tax twice
on same income.
Key Points
Basic Salary:
Basic salary is fixed as per their respective terms of employment. But some
employee received their salary on graded system. Under the graded system, apart
from starting basic, salary annual increments are pre-fixed. Increment is given
thereafter till next date of increment or the date when he is promoted and placed in
other grade.
Fees, Commission and Bonus :
Any fees, commission or bonus or incentive paid or payable to an employee
by an employer is fully taxable and is included in salary.
Arrears of salary:
Arrears of salary are taxed on receipt basis, if the same has not been taxed
earlier. However, relief u/s 89 will be allowed in respect of such arrears.
Advance Salary:
Advance Salary is taxable on receipt basis in the year of receipt; however
there will be no tax in the year of actual accrual of such salary again. Further
assessee shall be entitled to relief u/s 89 in respect of advance salary. Loan to
employee is not treated as advance of salary and the same is not taxable.
Gratuity - Section 10(10):
Gratuity is a lump-sum payment to reward an employee for his past services,
on his retirement or termination. Sec .10 gives tax of treatment of gratuity as
under-
1. Amount received as gratuity on termination as per service rules is Fully
EXEMPT in case of employees of Central or State governments or local
authorities.
26
3. In case of employees not covered by the Payment of Gratuity Act, 1972.
EXEMPTED amount would be lowest of the following:
A. Uncommuted Pension : -
Uncommuted pension is monthly / Quarterly / some other interval
periodical pension. This pension for taxable all employees therefore whether
is Govt. employee of Non-Govt. employee it is not material. Such pension
directly added in salary.
B. Commuted Pension : -
This amount paid by assessee in Lump sum. It depends upon type of
assessee.
Pension 10(10A)
Commuted Uncommuted
A) Meaning of Perquisites:
Section 17(2), Any benefits given by employer to employee in addition to
his salary. E.g. free accommodation facility, Lunch and Diner facility
B) Taxable perquisites in case of all tax:
1) Value of Rent free accommodation
2) Value of concession in Rent.
3) Provident fund paid by employer on behalf of employee.
C) Perquisites taxable in case of specified employee:
i) Meaning:
Specified employee means a director who is an employee of a
company, an employee having substantial interest in the company by
share more than 20% paid up capital.
ii) For him following perquisites are taxable
- Free domestic servant (Sleeper, Watchman, and Gardner)
- Free education facility for his family
- Gas, electricity and water supply free of cost
D) Valuation of Perquisites:
a. Accommodation & Furniture
b. Transport
c. Domestic servant
d. Gas, water or electricity
e. Educational facilities
f. Medical facilities
7. Transferred Balance.
Deductions from Salaries Sec.-16
Aggregate of taxable amount in respect of salary, various allowances and
perquisites is called the Gross Salary. From the Gross Salary so arrived,
Deductions are allowed u/s 16. Other than that, no further deductions are
allowed under this head. The following are the deduction available to the
employee U/s 16:
1. Entertainment Allowance- Sec. 16(ii)
Income from house Property” is significantly different than the other heads
of income unlike the other heads as it covers not only the actual income but also
the notional income.
Basis of Charges – (Sec. 22)
The owner of the house property is taxed on the income from the house
property. Income from the house property is ascertained on the basis of annual
value. According to section 22, the annual value of property consisting of any
buildings or lands appurtenant thereto, of which assessee is the owner, other than
such portions of such property as he may occupy for the purpose of any nosiness or
profession, shall be chargeable to tax under this head, following conditions are
satisfied namely –
(a) Income chargeable to tax is ascertained on the basis of annual value of
property consisting of Buildings and Lands attached thereto of which
assessee is the owner. This means any income from vacant land or open
plot is not to be charges under the head Income form House Property.
(b) The legal owner of the house property is charged to tax in respect of
income from House Property.
(c) Property may be either let out or occupied by the assessee himself i.e.
Self-occupied. Property may be partly self-occupied or partly let out. In
both the circumstance, income is ascertaining on the basis of annual
value. However, the mode of ascertaining the income from house
property is different in case of property which is either let out or self-
occupied.
(d) Certain deductions, as discussed hereinafter under this topic, are allowed
form annual value in order to arrive at the taxable income under this
head. If such deductions are in excess of the annual value, the resultant
figure is termed as loss from house property. Such loss can be set off
against the income under other heads.
Building Defined:
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 26
TAXATION
The word “Building” id not defined under the Act. Many courts have
given judicial interpretation of the word, building as follows:
Building is an enclosure of the brick or stone work covered by roof.
Building is an enclosure which may even consist of mud walls.
Building may be occupied or intended for residence, Office use,
storage, warehousing etc.
Land Appartenant There To:
It is the land occupied along with a building. It includes approach
roads, compounds, courtyards Kitchen garden, Car parking space, Play
grounds. Cattle Shed etc.
Annual Value of House Property( Sec. 23)
Since, there is no definitive meaning of the term annual value defined in Sec
2(22) “as the annual value determined under Sec. 23, meaning of annual value has
to be seen in common parlance.
‘Annual value’ may be defined as the inherent capacity of a property to earn
income or the amount for which the property may reasonably be expected to be let
out from year to year. It is not the actual rent but the capacity to fetch rent that is
important. It implies that a property need not necessarily be let out.
The annual value of a property will, therefore, depend upon the use of the
property- self occupied, let out or partly vacant etc. The provisions of section 23
for determination of annual value are given below:
A) The sum for which is property might reasonably be expected to let our from
year to year; i.e. Reasonable Letting Value. It can be ascertained having
regards to Fair Rent Municipal Rateable Value of the house property.
The Fair Rent can be ascertained by taking the following factors into
consideration:
a) Locality in which property is situated:
b) Rent Payable for similar property in the same or similar locality:
c) Owner’s obligations discharged by the tenant:
d) Tenant’s obligations discharged by the owner:
e) If Rent Control Act is applicable, the standard rent as fixed by the Rent
Controller.
After taking into consideration the above factors relating to the house
property the fair rent is determined.
The Municipal Rateable Value is one of the important tests to be taken
into consideration for determining the annual value. Municipal Rateable
Value is being ascertained by the local authorities such as Municipal
Terms:
1) F.V. - Face value
2) M.V.- Municipal value
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 28
TAXATION
This is one of the most important heads of Income. Under this head we are
required to take into consideration the profits and gains of a business or profession
including vocation carried on by the assessee.
The term business is defined in section 2 (13) “includes ay trade, commerce
or manufacture or any adventure in the nature of trade, commerce or manufacture.”
Though the definition is not exhaustive, it covers all types of occupation carried on
by a person with a view to earn profit. Production of goods from raw material,
buying and selling of goods with the intention to make profit and providing
services to others are different forms of business. The profit earned from these is
chargeable to tax under the head. “Profits and Gains of Business or Profession”. In
simple words, any activity carried on with a view to earn profit is called as
business. It is not necessary to carry on business continuously. Even a single
transaction conducted during the year, with a view to earn profit is business.
Profession means an occupation requiring using intellectual skill or manual
skill or both, e.g. a chartered accountant, a lawyer, an engineer, a doctor. It may be
noted that if these persons are employed by any association and they receive
monthly remuneration by way of salary. It is taxed under the head ‘Income from
salary’ and not as income from business or profession.
Vocation is an activity in which an assessee has developed a special skill
and makes use of such skill for earing income, for example, a singer, a dancer, a
painter, a magician. It may be noted that the persons who are practicing vocation
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 31
TAXATION
are generally not liable to any action from any organized association. It is not so in
case of a professional person, for example, a doctor is subject to disciplinary action
by the Medical Council of India.
INCOME CHARGEABLE UNDER BUSINESS/PROFESSION
The following are few examples of incomes which are chargeable under this head:-
1. Normal Profit from general activities as per profit and loss account of
business entity.
2. Profit from speculation business should be kept separate from business
income and shown separately.
3. Any profit other than regular activities of a business should be shown as
casual income and will be shown under “income from other sources” head.
4. Profit earned on sale of REP License/Exim scrip, cash assistance against
export or duty drawback of custom or excise.
5. The value of any benefits whether convertible into money or no from
business/profession activities.
6. Any interest, salary, commission etc. received by the partner of a firm will
be treated as business/professional income in hand of partner. However, the
share of profit from partnership firm is exempt in hand of partner.
7. Amount recovered on account of bad debts which were already adjusted in
profit in earlier years etc.
EXPENSES DEDUCTIBLE FROM INCOME FROM BUSINESS /
PROFESSION
All the expenses relating to business and profession are allowed against income.
Following are few examples of expenditures which are allowed against income:-
Rent rates and insurance of building.
Payment for know-how, patents, copy rights, trade mark, licenses.
Depreciation on fixed assets.
Payment for professional services.
Expenditures on scientific research for business purposes.
Preliminary Expenses in case of Limited companies.
Salary, bonus, commission to employees.
Salary, interest and remuneration to working partners subject to certain
conditions.
Communication expenses.
Traveling and conveyance expenses.
Membership fees etc.
B) EXPENSES ON TRANSFER
Expenses on transfer include any expenditure incurred, whether
directly or indirectly for the purpose of transfer like Advertisement
Expenses, Brokerage Expenses, Stamp duty, Registration Fees and Legal
Expenses etc. However, any expense which has been claimed deduction
under any other provision of the Income Tax Act cannot be claimed as a
deduction under this Clouse.
C) COST OF ACQUISITION
Cost of acquisition is the price which the assessee had paid, or the
amount which the assessee as incurred, for acquiring the property / assets.
The expenses incurred at the time of completing the title are a part of the
cost of acquisition.
In cases where the capital assets become the property of assessee in
any of the manners mention below the cost of acquisition shall be deemed to
the cost for which previous owner of the property acquired it :
1) On the Distribution of Assets / Total Partition of HUF
2) Under a Gift or Will
3) By Succession, Inheritance or Devolution
4) On Distribution of Assets on Liquidation of a Company
Where the cost for which the previous owner of the capital asset
acquired the property cannot be ascertained, the cost of acquisition to the
previous owner shall be the fair market value of the asset on the date on
which the asset became the property of the previous owner. The Interest on
money borrowed for acquiring the capital asset will also form a part of the
cost of Asset.
D) COST OF IMPROVEMENT
All Capital Expenditures incurred in making any additions or
alterations to the Capital Asset by the Assessee after it became his property
or alterations to the capital asset by the assessee after it became his property
shall be deductible as the Cost of Improvement. If the Asset was transferred
to the assessee under the cases specified immediately above, the capital
expenditure incurred by the previous owner shall also be treated as cost of
improvement. However, the Cost of Improvement does not include any
capital asset which is deductible in computing the chargeable under head-
“Income from House Property”, Profits or Gains of Business or Profession”,
or “Income from Other Sources”. Only the Capital Expenses are considered
as a cost of Improvement and routine expenses on Repairs and Maintenance
do not form part of cost of improvement.
For the purpose of Computation of Long Term Capital Gain,
Indexation using the Cost Inflation Index shall be done to the Cost of
Acquisition & Cost of Improvement and the resultant figure shall be the
Indexed Cost of Acquisition & Indexed Cost of Improvement for the
purpose of computation of LTCG
The Assessee also has the option of not opting for Indexation and the
Long Term Capital Gain Tax Rate in this case shall be 10%
The nature of income earned will decide whether income has to be shown
under this head. However, there are some standard inclusions as outlined below.
Gifts are taxed only if the total amount received during the previous year is more
than Rs.50,000 and applies only to those gifts individuals or HUFs received after
Oct.1st 2009. This doesn’t apply if the assessee receives money
Immovable property as gifts - Property value will be the stamp duty value.
Inadequate consideration will be if the property value is lower than stamp duty
value.
CLUBBING INCOME
Generally an assessee is tax in respect of his own income. But as per section
64 the income legally belonging to other person. Spouse or minor child alos
including in the income of assessee it is called as clubbing income.
These following incomes are clubbed.
1) Remuneration of spouse-
An individual is chargeable to tax in respect of any surgery, fees,
commission or remuneration received by spouse from the business in which
he has substantial Interest
2) Income from asset gifted to spouse.
3) Income from asset gifted to son’s wife.
4) Income from assets transfer for the benefit of spouse
5) Income from asset transfer for the benefit of son’s wife.
6) Income of Minor child.
7) Income from own property converted into property of H.U.F
The following essential rules have to be kept in mind while calculating deductions
under sec. 80C to 80U. :
1. The aggregate amount of the deductions under this Chapter shall not, in
any case, exceed the gross total income of the assessee.
2. No such deduction shall be allowed to him unless he furnishes a return of
his income for such assessment year on or before the due date
These Deductions are divided into 3 categories:
1. Deductions in respect of certain PAYMENTS.
2. Deductions in respect of certain INCOMES.
3. Other Deductions.
A) DEDUCTIONS IN RESPECT OF CERTAIN PAYMENTS :
Deduction In Respect Of Life Insurance Premia, Deferred Annuity,
Contributions To Provident Fund, Subscription To Certain Equity
Shares Or Debentures, Etc. [SEC. 80 C ]
In computing the total income of an assessee, being an individual or a Hindu
undivided family, there shall be deducted the whole of the amount paid or
deposited in the previous year, being the aggregate of the sums as does not exceed
one lakh rupees (Rs 1,00,000/-).
- Rs. 1,00,000/-
whichever is LESS.
1. Where an assessee paid or deposited any amount out of his income chargeable to
tax for any annuity plan of Life Insurance Corporation of India or any other
Insurance Company for receiving pension from the fund, he shall be allowed a
deduction in the computation of his total income, of the whole of the amount paid
or deposited (excluding interest or bonus accrued or credited to the assessor’s
account, if any) as does not exceed the amount of (Rs. 1,00,000) one lakh rupees in
the previous year.
(a) on account of the surrender of the annuity plan whether in whole or in part, in
any previous year, or
the whole of the amount shall be the income of the assessee or his nominee in that
previous year in which such withdrawal is made shall be chargeable to tax as
income of that previous year.
(1) Where an assessee on or after the 1st day of January, 2004, has in the
previous year paid or deposited any amount in his account under a pension scheme
notified by the Central Government, he shall be allowed a deduction in the
computation of his total income, of the whole of the amount so paid or deposited as
does not exceed ten per cent (10%) of his salary in the previous year.
(2) If the Central Government or any other employer makes any contribution to
his account the assessee shall be allowed a deduction in the computation of his
total income, of the whole of the amount contributed by the Central Government
or any other employer as does not exceed ten per cent (10%) of his salary in the
previous year.
(3) Where any amount standing to the credit of the assessee in his account , in
respect of which a deduction has been allowed in whole or in part, in any previous
year,—
(b) as pension received from the annuity plan purchased or taken on such closure
or opting out,
the whole of the amount shall be deemed to be the income of the assessee or his
nominee, and shall accordingly be charged to tax as income of that previous year.
Medical Policy should be taken on the health of the following persons: ---
Individual HUF
Parents of the
Taxpayer
Taxpayer, Spouse, and Any member
whether
Dependent Children of family
dependent or
not
Maximum amount Rs. 15000 Rs. 15000
Rs. 15,000
deductible
Additional amount
which is deductible
when policy is takenRs. 20,000 Rs. 20,000 Rs. 20,000
on the health of a
senior citizen
Note : Upto Rs. 5000/- incurred for preventive check-ups can be claimed
within overall limit of Rs. 15,000/- or 20,000/- u/s 80D
(a) Incurred any expenditure for the medical treatment (including nursing),
training and rehabilitation of a dependent, being a person with disability; or
(b) paid or deposited any amount under a scheme framed in this behalf by the
Life Insurance Corporation or any other insurer or the Administrator or the
specified and approved by the Board in this behalf for the maintenance of a
dependent, being a person with disability.
Rs.1, 00,000 where such dependent is a person with severe disability exceeding
80%
Where an assessee who is resident in India has, during the previous year, actually
paid any amount for the medical treatment of such disease or ailment
(b) for any member of a Hindu undivided family (HUF) , in case the assessee is a
Hindu undivided family (HUF),
the assessee shall be allowed a deduction of the amount actually paid or a sum of
forty thousand rupees (Rs.40,000), [ Rs. 60,000 for Senior Citizen]
whichever is less
Provided that no such deduction shall be allowed unless the assessee furnishes with
the return of income
Any amount paid in the previous year, out of the income chargeable to tax, by way
of interest on loan taken by him from any financial institution or any approved
charitable institution for the purpose of pursuing his higher education shall be
allowed in computing the total income
The Claim in respect of such Donation to the Prime Minister’s National Relief
Fund, the Chief Minister’s Relief Fund, or the Lieutenant Governor’s Relief Fund
will be admissible u/s 80G of the Income Tax Act,1961 on the basis of the
certificate issued by the Drawing and Disbursing Officer (DDO) / Employer in this
behalf.
- 10% of his total income towards payment of rent in respect of any furnished or
unfurnished accommodation occupied by him for the purposes of his own
residence,
- To the extent to which such excess expenditure does not exceed two thousand
rupees (Rs. 2000/-) per month or twenty-five percent ( 25%). of his total income
for the year, whichever is less.
[No Exemption is allowed to those who are in receipt of HRA & Claiming
Deduction U/s 10(13A)]
INDRECT TAX
Indirect Tax is referred to as the tax, which is paid by the taxpayer to the
government indirectly, charged on goods and services. Indirect taxes are collected
from someone or some organization other than the person or entity that would
normally be responsible for the taxes. The burden of tax can be shifted to another
person. Indirect tax regressive in nature. Tax evasion is hardly possible because it
is included in the price of goods and services.
April 30 - - - - 25 21 15 21/30
May 7 15 - - 6 - 21 15 21
June 7 - - 15 6 - 21 15 21
July 7 15 31 - 6 - 21 15 21
August 7 - - - 6 - 21 15 21
September 7 - 30 15 6 - 21 15 21/31
October 7 15 - - 6 25 21 15 21
November 7 - 30* - 6 - 21 15 21
December 7 - - 15 6 - 21 15 21
January 7 15 - - 6 - 21 15 21
February 7 - - - 6 - 21 15 21
*For Companies required to file report u/s 90E #e-Payment is mandatory for All assesseess w.e.f. 01-10-2014
Q1 June Jul-15
Q2 Sept Oct-15
Q3 Dec Jan-15
Q4 March May-15
Contribution
PF 12% of Basic+DA Employee
PF 12% of Basic+DA Employer
of which 8.33% or Max 541 Rs1250 for Pension Fund
EDLI 0.5% of Basic+DA or Max 32.50 Rs 75 Employer
ESIC 1.75% of Wages Employee
ESIC 4.75% of Wages Employer
Admin Charges
PF 1.1% of Basic+DA Employer
EDLI 0.01% of Basic+DA or Max Re 1.50 Employer
*New amounts effective Sept 1, 2014, as threshold for PF increased from ` 6500 to 15000
Form 16 A
Q1 June Jul-30
Q2 Sept Oct-30
Q3 Dec Jan-30
Q4 March May-30
in this study are restricted to the duration of the research and are
INTRODUCTION TO STRESS
INTRODUCTION
What is Stress?
Stress is the "wear and tear" our bodies experience as we adjust to our continually changing
environment; it has physical and emotional effects on us and can create positive or negative
feelings.
As we have seen, positive stress adds anticipation and excitement to life, and we all
thrive under a certain amount of stress. Deadlines, competitions, confrontations, and
even our frustrations and sorrows add depth and enrichment to our lives. Our goal is not
to eliminate stress but to learn how to manage it and how to use it to help us.
Insufficient stress acts as a depressant and may leave us feeling bored or dejected; on
the other hand, excessive stress may leave us feeling "tied up in knots." What we
We generally believe that the stress is caused by the external events and
the dynamics of the environment. But we need to emphasis the fact that the Stress is
caused by our reaction to the external environment. The manner in which we perceive
and understand the changes or the particular event creates same event can bring
happiness and cause stress in two different people depending upon how they react to it.
When students are asked to prepare a presentation, some may take it to the other
students may be perturbed by it for the fear of his weakness. So, Stress is our reaction
to external events and it can be positive or negative depending upon how we react, it is
the general wear and tear of the body machine that takes place due to extra demands
put on it.
Stress is the biggest killer in the Western world and the cause of huge
Increase well being in your daily life are within your reach –if you know how to go
about them.
anxiety. On one side stress provides the means to express talents and energies and
pursue happiness on the other side it can also cause exhaustion and illness, either
physical or psychological.
Definition of stress
According to the father of stress of research, Hans Selye, “stress is the spice of life;
the absence of stress in death.
Remember that our main definition of stress is that stress is a condition or feeling
experienced when a person perceives that demands exceed the personal and social
resources the individual is able to mobilize. With this in mind, we can now look at how
you can manage all of the stresses that your career will bring From our definition, you
can see that there are three major approaches that we can use to manage stress;
Action-oriented: In which we seek to confront the problem causing the stress, often
changing the environment or the situation;
Emotionally-oriented: In which we do not have the power to change the situation, but we
can manage stress by changing our interpretation of the situation and the way we feel
about it; and
Acceptance-oriented: Where something has happened over which we have no power
and no emotional control, and where our focus is on surviving the stress.
If you do not have the power o change a situation, then you may be able to
improve things by changing he way you look at it, and feel about it, by using an
emotionally oriented approach. These are often less attractive than action-oriented
approaches in that the stresses can recur time and again; however, they are useful and
effective in their place. The section on Reducing Stress With Rational Thinking explains
powerful techniques for getting another perspective on difficult situations.
demands upon us and increase the resources we can mobilize; the emotionally oriented
techniques help us to adjustor perceptions of the situation; and the acceptance-oriented
techniques help us survive the situations that we genuinely cannot change.
took the relationship between stress and industry very seriously.
Levels of Stress
Eustress: Eustress denotes the presence of optimum level of stress in an individual,
which contributes positively to his performance. This may lead employees to new and
better ways of doing their jobs. In certain jobs such as sales, creativity a mild level of
stress contributes positively to productivity.
Distress: Distress denotes the presence of high level of stress in an individual, which
affects job performance adversely and creates many types of physical, psychological
and behavioral problems.
Symptoms of Stress
As stated earlier Stress is caused by or reaction to the external events and bring
about changes in our response and our general behavior. The presence of Stress can
be estimated by the analysis of certain symptoms an individual shows. These symptoms
can be divided into three different categories.
They are Feelings, Behavior and Physiology. When the individual experience Stress,
one or more of the following symptoms can be exhibited.
Feelings
The individual becomes anxious become anxious about the outcomes and is
scared. The person feels that he has got something to loose or something wrong
will take place.
In an anxious state the person does not want to be corrected or interrupted. He
looks out for other areas where he can forget about the stress-causing event for
a while . The person becomes irritable and moody.
During high level of Stress the individual develops a negative frame of mind and
suffers from low self-esteem. The person loose faith in his capabilities and is
afraid of the failures. The individual does not have a focused approach and is not
able to concentrate and is involved in his own plans and thoughts.
Physiological and Behavioral Changes
Speech problems
Impulsive Behavior
Crying for no apparent reason
Laughing in a high pitch and nervous tone of voice.
PRAMOD RAM UJAGAR TIWARI SAKET INSTITUTE OF MANAGEMENT 57
TAXATION
Grinding of teeth
Increasing smoking and use of drugs and alcohol.
Being accident-prone
Perspiration/ sweaty hands
Increased hear beat
Trembling
Nervous ticks
Tiring easily
Urinating frequently
Sleeping problems
Diarrhea / indigestion /vomiting /nausea
Butterflies in stomach
Headaches
Premenstrual tension
Pain in the neck and or lower back
Causes of Stress
Both positive and negative events in one’s life can be stressful. However major life
changes are the greatest contributors of stress for most people.
1. If people have to travel a lot and have to move from place to place, it can cause
stress.
2. Individual can also be under stress if they are about to enter some new
environment. They may be going to new colony. To a new college or they may be
joining a new organization.
3. Some events, which are generally once I a lifetime can also cause stress. The
social institutions of marriage or divorcé can cause stress. Pregnancy can also
generate Stress.
They are:
Time pressure
Competition
Financial problems
Noise
Disappointments
UNDERSTADING STRESS
Three potential sources of stress:
Environmental Factors
Organizational Factors
Individual Factors
Environmental Factors:
Economic uncertainty is created when there is a change in the business cycle.
That is when people become anxious about their security. This uncertainty not only
affects the stress level of the organization but also to design of the organisation. By the
coming up to the new innovations in the field of technology
like computers, robotics, automation etc. It has become a threat to many people, which
causes stress. This type of uncertainty is called Technology Uncertainty.
Organizational Factors:
There is no storage of factors within the organization that can cause stress.
These are categorized into:
Task Demands
Role Demands
Interpersonal demands
Organizational Demands
Organizational Leadership
Organization’s Life Stage
Task Demands: Task demands are factors related to a person’s job. They include the
design of the individual’s job (autonomy, task variety, degree of automation). Working
conditions, and the physical work layout. Working in an overcrowded room or in a visible
location where interruptions are constant can increase anxiety and stress
Interpersonal Demands: Interpersonal demands are pressures created by other
employees. Lack of social support from colleagues and poor interpersonal relationships
can cause considerable stress, especially among employees with a high social need.
Organizational Structure: Organizational Structure defines the level of differentiation in
the organization, the degree of rules and regulations, and where decisions are made.
anxiety than graduates 33%, this can be considered as a positive stress of the
employees for the organization.
CHAPTER-5
CONCLUSIONS
The employees of APIL are selected in a step by step procedure, only the best
are selected and the rest are screened out, the usual working hours are 8 to 10
hours a day, depending upon the work load. The work is assigned on equitable
basis. On achieving the targets, monetary incentives and perks are given.
No medical camps are held, but medical reimbursement is given. The employees
are satisfied with the working environment; a friendly environment usually
prevails in the organization. The management maintains both formal and informal
relationship with the employees. There is low particicpation of employees in the
management decisions. The promotion policy and transfer policy is favorable to
the employees. If an employee is unable to complete the job he is given constant
back up’s.
The management understands the various reasons for stress and plans different
techniques and implements it to reduce stress and increase employee moral.
The cost incurred on implementing the work stress management techniques is
considered to be cost effective. APIL considers work stress as a management
process.
The different techniques are adopted to boost of the moral the employee and it is
achieved. Work stress management is considered to be profitable to the
organization. The employees have job satisfaction. The techniques adopted are
usually preplanned but in unavoidable cases they are instant. While planning and
implementing the different techniques the opinions of team leaders are also
considered. The work stress management techniques have also proved to be
effective in appraising the employee performance. The H.R department is
Responsible for planning and implementing work stress management.
APIL the work stress management is being implemented from the past 3-4 yrs
and is successful in enhancing the employee morale. This can be seen in the
employee performance; the employee avoids absenteeism and is satisfied with
his job. The techniques so implemented have proved to be positive in nature.
The employees are surely benefited from work stress management. The more
the employee morale, the less the chances of leaving the organization, so this
reduces chances of leaving the organization. Yes, the different techniques
adopted boost up confidence of employee. The quality of performance is not
considered for vertical up graduation. The different techniques used are
innovative plans; they are not based on any set standards. The employees are
satisfied with the remuneration what they are paid.
SUGGESTIONS
is fine then it can inferred that the degree of stress in the organizations less or
negligible.
It is recommended to the company to conduct frequent recreational programs like
get together in departments concerned, parties on occasions like the birthdays of the
employees, on the achievements of any particular department, cultural activites,
sports pleasure trips etc.
It is recommended to the company that bit should improve interpersonal
relationships among the employees of different departments by bridging the gap
between superiors and subordinates. These can a long way in reducing the degree
stress to some extent.
specified time. The time limit be proportionate with the work given i.e. time limit should
be neither too short not too long.
FINDINGS
It has been found that 58% of the employees among the total employees in the
organization are undergoing stress and these are officers and asst. Managers.
It has been found that the employees in the age group of 20-29 are facing more
health problems than the higher age headache. This is because the employees of
this age are undergoing more stress compare to higher age group due to factors like
work load, meeting targets and performance anxiety.
It is observed that though the employees in the age group of 30-39 are facing stress
than the employees in the age group 40-49. Still they are able to maintain better
inter personal relationship with their peers, subordinates and superiors.
It has been found that employees in the age group of 30-39 wanted a few changes
at work place to reduce the stress like timely targets, distributed work load and
periodic relaxation because they feel that it is too concentrated and the time to meet
these targets is highly insufficient.
It is observed that 95% of the employees are comfortable with the working
environment in which they are working.
It is observed that the 99% of employees agree that the work stress management
techniques will improve the morale of the employees.
It has been found that most of the organization has the opinion to take into
consideration the employees while implementing the stress management techniques
taken by the HR dept.
Bibliography
www.incometaxindia.com
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