Direct tax and indirect tax.
What is the meaning of direct tax?
What do you understand from direct tax?
Direct.
You are being charged directly.
You are going on the road with your friends.
You get a slap on your back on your collar.
And directly, the person from your pocket takes out the
money.
Directly.
Not indirectly.
You are going with 3 friends.
You are going on the road.
One friend is here.
And you are walking in the middle.
You get a slap on your back on your pocket.
He had kept the money there.
He took it out from you.
Direct.
Not from here and there.
He is taking it from you.
He is taking it on your earnings.
What am I saying?
What is the meaning of this?
Try to understand.
There are two types of tax, friends.
Direct tax and indirect tax.
Direct tax means,
Vahe tax.
Which will be taken directly from you on your earnings.
You earn Rs.100 today.
And the government has said that the income tax in the
country, which is direct tax, which is direct tax, will be
Rs.10.
Mr. Modi comes in the evening and says,
And he says,
Friends, from 8 pm today, whoever earns money, he has to
pay 10% of his earnings as direct tax.
So, what do you understand from this?
The government is taking 10% of your earnings directly from
you.
Meaning, if you earn Rs.100, you will have to pay Rs.10 in
tax.
You will have Rs.90 left.
Directly.
The money that you earn.
There is a house where two brothers live.
For example, the household expenses are Rs.50,000 per month.
And there are two brothers.
So, Rs.25,000 is given by one brother.
And Rs.25,000 is given by the other brother.
So that the household expenses continue.
Development continues in the house.
In this case, the house is our country, our government.
And these two brothers, they are giving Rs.25,000.
What is this?
Direct tax.
They are giving it themselves.
They are depositing it directly from their income.
They are depositing the money from their income.
What is direct tax basically?
The money that you yourself, yourself, deposit from your
own pocket.
You give it from your own pocket, sir.
This is the point.
It is understandable.
If you understand this, then understanding this, the whole
concept is clear to you.
You deposit it from your own pocket.
You deposit it.
My writing is a little...
It is like this that I have got Padma Bhushan on my
handwriting.
So, please forgive me for this.
But please understand the meaning.
Is the point clear?
The tax that you yourself deposit from your own pocket.
You cannot collect that tax from anyone.
In this case, you cannot say that if you have to deposit a
tax of Rs.10, then I will take it from some other person
and deposit that tax again.
This is not possible.
You yourself will have to open your wallet.
You will have to withdraw Rs.10 from it.
And you will have to deposit that money in the government
treasury.
You cannot collect Rs.10 from any other person.
And this is the identity of direct tax.
Directly, you have to give this money.
You cannot collect it from anyone else.
And in this country, there is only one direct tax at this
time and that is income tax.
So, what do I mean?
What do I mean?
Income tax is a direct tax.
And the income tax that I will earn myself,
I will deposit it from my own pocket.
For example, if I earn Rs.1 crore a year and Modiji says
that the tax of 10% is a direct tax,
then I will open my wallet and withdraw Rs.10 lakhs.
I will withdraw Rs.10 lakhs from my own pocket.
I will open my wallet and withdraw Rs.10 lakhs.
I will withdraw Rs.10 lakhs from my own pocket and deposit
it in the government treasury.
I cannot collect that Rs.10 lakhs from any other person.
I give that money from my own pocket.
My income decreases a little.
The Rs.1 crore that I had,
I deposited the tax of Rs.10 lakhs.
Now, only Rs.90 lakhs are left.
Take the example of Akshay Kumar.
He says that he pays the highest income tax in the country
in an individual category.
So, suppose if I earn Rs.500 crore a year and deposit
Rs.150 crore in tax, then what is that?
It is a direct tax.
I have earned Rs.500 crore, but I am also depositing Rs.150
crore from my own pocket.
Rs.500 crore has come.
I have deposited it in my wallet.
But then it occurred to me that
Mr. Modi had said that the tax rate is of 10%.
Whatever you earn, give the direct tax as per 10%.
So, what will I do?
I will deduct Rs.50 from the Rs.500 that I have deposited
in my wallet, as per 10%.
I will deduct Rs.50 and deposit it in the government
treasury.
The essence of the story is that the tax that I deposit
from my own pocket, without any other income, is called
direct tax.
I have to reduce my own income.
Sir, direct tax hurts here.
It hurts here when you pay direct tax.
Because you are earning.
You have deposited your income in the wallet.
And now the wallet is opening again to pay the tax.
Direct tax.
D for direct.
D for heartache.
Is the point clear?
The opposite of this is indirect tax.
Indirect tax means, what I have written here, this is
direct tax.
Whatever you deposit from your own pocket, is called direct
tax.
So, what is the opposite of indirect tax?
Which you do not deposit from your own pocket.
Sir, what did you say?
What did you say?
Are there any such taxes which I do not deposit from my own
pocket?
Which I can get from someone else?
Sir, tell me.
I would like to know what such taxes are.
I will do the same thing.
If I have to pay tax,
I will take it from someone else and deposit it.
I am interested in such work.
Why will I deposit money from my own pocket?
Sir, listen to me.
You must have gone to a shop to buy some clothes, or a
shirt.
You must have ordered food from a hotel or you must have
gone to eat.
And when it is time to pay the bill, that person must have
brought the bill for you.
An invoice is called.
On that invoice, it must have been written
I will write it with another pen.
On that invoice, it must have been written that this is the
amount you have to pay.
For example, you went to buy a shirt.
It is written on it that this shirt is worth Rs.
Keep your hand on your heart and tell me that you pay Rs.
1000 for a shirt worth Rs.
Do you ever pay a little money in the name of GST?
You pay money in the name of GST.
There is no benefit of paying in the name of GST.
But still you pay.
Now suppose you have paid Rs. 100 in the name of GST.
How much will you pay the shopkeeper in total?
Rs. 1000, Rs.
100 or Rs.
Tell me. You are sitting on a hot seat at this time.
Abhidha Bachchan is standing in front of you.
This is a question worth Rs. 1 crore.
How much do you pay the shopkeeper?
Rs. 1000, Rs.
100 or Rs.
The option is Rs. 1100.
Congratulations! You win Rs. 1 crore.
What will you do with so much money?
Come here.
You pay Rs. 1100.
Now understand this point from the shopkeeper's angle.
You bought a shirt and you paid Rs. 1100.
You bought a shirt worth Rs.
1000 and you paid Rs.
100 in the name of GST.
You gave GST to whom?
You gave GST to the shopkeeper.
What did the shopkeeper do?
He did sales.
GST is charged on the sales.
Did he pay GST himself?
He did sales.
GST is charged on the sales.
Did he pay GST himself?
Yes or No?
He shifted that GST very cleverly.
You are paying that GST.
You are buying this shirt.
You are adding GST to it.
You are paying the total bill amount.
You are paying the GST.
You are paying the GST to whom?
To the shopkeeper.
What did the shopkeeper do?
You have the liability to pay the GST and the shopkeeper
has very cleverly made you pay the GST.
The shopkeeper will collect the GST from you and will
deposit it to the government.
This is what happens. I am not telling you anything
different.
I am not telling you any unique case.
I am telling you the case of practical real life.
So sir, in this case, what has happened?
What is GST? First tell me, it is a tax.
It is a tax, goods and services tax.
But the tax that you are paying, are you paying it directly
or indirectly?
By you I mean the shopkeeper.
I am talking about the shopkeeper.
The shopkeeper is indirectly depositing the money to the
government.
Why did I say indirectly?
Because he is not directly depositing the GST from his
pocket.
He is not directly depositing the GST from his pocket.
He has very cleverly collected the GST from you.
And the GST that he has collected from you, he is
depositing it in the government's treasury.
Indirect tax.
Indirect tax, sir.
This is the point.
Direct tax, he is depositing the money from his pocket.
He took out the wallet, took out the money and deposited it.
I cannot recover it from anyone else.
But in this case, if you take the example of the shopkeeper.
The shopkeeper is depositing the GST money to the
government.
He is depositing it to the government.
But he has recovered it from you very cleverly.
So what is this? Indirect tax.
The tax that you pay from your own pocket without
recovering it from anyone else.
That is called direct tax.
Because sir, D for direct.
And D hurts when you give your hard earned money to someone
else.
What is the pain in indirect tax?
What is the pain?
What is the tension for this shopkeeper?
This shopkeeper who is doing sales.
He is adding GST to the sales and is cheating the customer.
He took money from the customer in the name of GST.
And he deposited it to the government.
Indirect tax.
Yes, tax was imposed on the shopkeeper, but indirectly.
Not directly, but indirectly.
So sir, indirect tax that you recover from someone else.
For example, GST.
What are we talking about?
What we are going to talk about in this lecture is direct
tax.
What do I mean by direct tax?
Income tax.
What do I mean by income tax?
The tax that you yourself take out of your pocket and
deposit it in the government treasury.
Income tax, direct tax.
This is the point, sir.
Okay, friends?