Up to 1 crore rupees, companies have been given the benefit
that if you make an income of 1 crore rupees, then in that
case, no surcharge provision applies to you as a company,
my dear, it doesn't.
But if you make an income of 1 crore rupees to 10 crores,
then this becomes a substantial income.
If you make an income of 1 crore rupees to 10 crores, then
in that case, a 7% surcharge rate will be applied.
But on what will 7% be applied?
For example, we are talking about surcharge.
And what is surcharge?
Tax on tax.
So, the 7% rate will be applied on what?
On tax.
First, you will take out your normal tax.
After that, the surcharge that you will take out, at the
rate of 7%, you have to take 7% of the tax.
Okay, sir?
Do you understand?
And if your income is more than 10 crores, if your profit
is more than 10 crores, we are talking about big companies,
then in that case, 12% surcharge will be applied on you.
This is the point, friends.
What we are talking about is a domestic company.
We are talking about a domestic company.
All the Indian companies, like Adani, Reliance,
Titan, SBI Bank, we are talking about those companies.
We are talking about domestic companies.
In the case of foreign companies, what will be the rate?
Here, it will be 2%.
I will mark it separately so that you can note it down.
This will be 2%, and this will be 5%.
This is in the case of foreign companies.
In the case of foreign companies, 2% and 5%.
They have been given an exemption in the surcharge of up to
1 crore.
This is the point, sir.
You can see.
Nothing is up to 1 crore.
If a company earns from 1 to 10 crores, 7% and 2%.
And if you earn more than 10 crores, in that case, 12% will
be in the case of domestic companies and 5% will be in the
case of foreign companies.
Your health and education will also be added to that.
These were the points regarding foreign companies and
domestic companies.
We have seen the rate of tax.
What was the rate of tax? 25% more or 30%.
25% is when you have a turnover of less than 400 crores in
the previous year, 2021.
But if you exceed that, in that case, the rate of tax on
you would be 30%.
30% of your total income.
You add this surcharge on that.
This is the rate of tax.
Add surcharge on this.
And on this, your health and education says that whatever
it is, 4% rate will be added and your final tax payable
will come out.
This is the point.
The same point is for individuals.
There is only a difference in rates.
There is a difference in rates of surcharge.
This is the point.
See for yourself.
This is why sometimes it is beneficial to incorporate a
company in your work.
Don't work on an individual basis.
Make a company.
Make a private limited company.
It is a small business.
Make a private limited company.
You will be taxed at a rate of 25%.
The turnover is less than 400 crores.
Let's say I earn 50 lakhs a year.
If I am an individual, then I am taxed at a rate of 30%.
But if I am a company, then I will be taxed at a rate of
25%.
And leave that aside, if I earn 70 lakhs or 75 lakhs a
year, then as an individual, if I register in an individual
category, then I get a surcharge of 10%.
Tax is there.
Surcharge is applicable.
But if I work as a private limited company, in that case,
there is no surcharge of 50 lakhs or 1 crore.
This is the reason.
Many people work as a private limited company.
Today you must have understood what the reason is.
Companies get a lot of tax relief.
And this is the reason.
This is the major reason that people make private limited
companies and do their transactions.
So that at least if they earn 50 lakhs, 70 lakhs or 80
lakhs a year, then you can save in surcharge.
In the case of a company, there is no surcharge of 1 crore.
In individual cases, there is a surcharge of 37%.
You see, there is a surcharge of 37%.
But here, there is a rate of 12% surcharge.
Look at this.
This is why people generally do this.
They incorporate a company and run their transactions
accordingly.
This was the point.
This is what I wanted to discuss.
Next and last topic.
It is the topic of marginal relief.
What is marginal relief?
It is a relief that when you exceed a particular margin,
then the government gives you relief.
Sir, what are you trying to say?
I don't understand.
Let me explain to you what it is.
We are discussing the topic of marginal relief.
Before we discuss this topic,
I have a small thought in my mind.
I thought of discussing it with you.
Friends, whenever you try to do something new in life,
people will mock you.
Do you understand mock?
They will laugh at you.
They will make fun of you.
They will laugh behind your back.
You won't be able to work.
They will mock you.
Do you think you can do this?
Friends, never listen to people.
Don't listen to people and create self-doubt.
Friends, it is written in every religious book that God has
given every person a superpower that he can achieve
unlimited opportunities and unlimited targets.
There is no limit.
The limit is in your mind.
Where does the limit come from?
It comes from the people in your mind.
In this world, every person can do everything.
You should be determined to do something.
What did I say?
Whatever you want to say, let it be.
What do you want?
It is a matter of time.
Everyone has their own time.
This is the matter.
Whatever you want to say, let it be.
Just focus on your work.
Don't get other people's words into your mind.
When a ship sinks, it doesn't sink from the outside water.
When there is a hole in it, the water fills it.
Don't let the negativity outside come inside you.
The day negativity enters your mind, you won't be able to
do anything in life.
Keep this in mind.
Don't let other people's words enter your mind.
Whatever you are, you are the best.
You are the best judge of your life.
You are the author of your life.
Nobody can stop you from achieving anything.
I have full faith in you.
You will achieve something in life.
Wake up every morning, look at yourself in the mirror and
say, I am the king.
I am the king.
You will achieve something in life.
Keep this attitude.
Nobody can stop you.
Marginal relief.
People will say, is this a motivational lecture?
Look, friends,
I have thought about it.
Why are you all younger than me?
I will explain to you
Marginal relief.
What is this
Marginal relief?
Marginal relief is suppose if there is a company which
earns 1 crore 1 lakh rupees in a year.
Assume that its tax rate is 25%.
What will be the tax on this? 1 crore 1 lakh rupees.
If I get 25% of this tax rate
I will get 25 lakh rupees.
Calculate the tax.
The tax will be 25 lakh rupees.
Because this company has earned more than 1 crore rupees.
Will there be a surcharge on this?
The answer is yes.
There will be a surcharge on this company.
The rate of surcharge will be 7%.
This is the surcharge.
Surcharge at the rate of 7%.
If we calculate 7% then 7% will be equal to 1,76,750.
Ok. 1,76,750.
Calculate the total.
I am not talking about health and education.
Calculate the total.
The total is 27,01,750.
Ok.
First try to understand this calculation.
The total income of this company was 1 crore 1 lakh rupees.
1 crore 1 lakh rupees was his income.
On top of that he added tax at 25% and then added
surcharge. Are you not finding anything wrong in this
calculation?
Are you not finding anything wrong in this?
Think about it.
Are you not finding anything wrong in this?
Are you not finding anything wrong with this company?
Can someone tell me?
The person who gave me the right answer,
I will give him 500 rupees in cash,
I don't have my phone with me.
I will give him 500 rupees in cash right now.
Can someone tell me if there is anything wrong in this?
There is nothing wrong in the calculation.
What is wrong is, what is wrong is according to the amount.
The problem is that he is earning 1 crore and 1 lakh rupees.
Suppose if he would not have earned 1 crore and 1 lakh
rupees, he would have simply earned 1 crore rupees.
Please tell me, if he would have earned 1 crore rupees,
what would have been his tax?
According to 1 crore.
Leave 1 lakh for now.
Tell me according to 1 crore, what would have been his tax
according to 1 crore.
Sir, according to 1 crore, 25 lakhs would have been his tax.
According to 25 percent, 25 lakhs would have been his tax.
Would there have been any surcharge in this case?
Up to 1 crore rupees, there would not have been any
surcharge.
So, what would have been his tax?
25 lakh rupees.
If I earn 1 crore, then my income tax will be 25 lakh
rupees.
And if I earn 1 crore and 1 lakh rupees, then my income tax
will be 27 lakhs, 1000,
750 rupees.
Don't you think it is wrong?
If I earn 1 crore rupees,
then my tax will be 25 lakhs.
And if I earn 1 lakh rupees extra,
I have earned only 1 lakh rupees extra.
If I earn 1 crore and 1 lakh rupees extra, then my tax will
be
2 lakhs, 1000, 750 rupees.
This is it.
How much did I earn?
I earned 1 lakh extra.
If I earn 1 lakh extra,
and my tax increases, it will be 2 lakhs, 1000, 750 rupees.
First, try to understand the calculation.
I will sit down.
Try to understand.
There was a calculation of 1 crore and 1 lakh rupees.
On 1 crore and 1 lakh rupees, how much tax and surcharge is
required.
So we calculated that by adding tax and surcharge,
27 lakhs, 1000, 750 rupees tax is made.
We calculated this.
As far as your calculation is correct.
Now my question to you was, can I stand up?
My question to you was,
My question to you was, if I earned 1 crore, then how much
tax would I pay?
I would pay 25 lakhs tax.
Now how much did I earn from 1 crore?
1 lakh.
I earned 1 lakh extra.
And in order to earn 1 lakh extra, how much extra tax did I
pay?
2 lakhs, 1000, 750 rupees.
This is wrong.
Isn't this wrong?
I earned only 1 lakh extra.
And you gave me the punishment of earning 1 lakh extra,
that you are taking 2 lakhs, 1000, 750 rupees from me.
I am earning 1 lakh,
and on that 1 lakh rupees,
I am paying 2 lakhs tax.
What kind of law is this?
In which book of law is it written that the punishment of
earning 1 lakh rupees will be 2 lakhs tax?
If the earners will get this kind of punishment, then sir,
I am sorry to say,
I am sorry to say, but in this way, no one in the country
will like to work.
In this way, no working, no calculation, no business, no
empire, no industry can work, sir.
In this way, if things start happening in our country, that
you will earn 1 lakh extra, and you will pay 2 lakhs tax,
no one will work.
Sir, people have reached, finance ministry,
income tax department people have reached, people have
started protesting outside Nirmala madam's office, some
people have started sitting on food, many people have a
habit of sitting on food in our country.
Many people have started sitting on food.
They say, Madam, what is this?
If you earn 1 lakh extra, then you are taking 2 lakhs tax.
Nirmala, Nirmala Tai,
Hi, Hi,
Modi government, Bye, Bye.
They have started putting some slogans like this, friends.
They were putting slogans like this.
Modi ji came, discussed with Nirmala madam,
Modi ji said,
Madam, Madam, Madam, Madam, the thing is right, poor guy is
earning 1 lakh extra, so because of surcharge, he is paying
2 lakhs.
You understand,
Modi ji has a lot of brain, he has understood calculations,
that why is he going extra.
The reason for going extra is, that in this case, no
surcharge is needed.
And in this case, surcharge is needed.
So fine, Modi ji said, we will bring such a scheme, that we
will give this person some relief.
Marginal relief.
What do we give?
Marginal relief.
What is the meaning of marginal relief?
Marginal relief is basically, when your income, from a
particular level, slightly exceeds, slightly, 1-2 lakhs, it
exceeds.
And what are those limits?
Those limits are surcharge limits.
Surcharge, in individual's case, different limits, in
company's case, different limits.
If your income goes above that limit, then in that case,
your maximum tax, see, maximum tax, in this case, what was
the maximum tax?
Earlier, how much tax was there above 1 crore? 25 lakhs.
Because this person's income is 1 lakh extra, then the
government can't do such a thing, that they leave their tax.
Both are aspects of this case.
He is earning 1 lakh extra.
Tax should be paid as per the law.
But the government is taking 2 lakhs tax above 1 lakh.
This is also wrong.
The government's action is wrong, but the intention is
right.
The intention to collect tax is right, but the action is
wrong.
And the person, my SSE, he is saying that, above 1 lakh,
I am not refusing to pay tax.
I am not refusing.
I am just saying that, take the tax with some rules, with
some limits.
In the limit, that person will say,
I have earned 1 lakh extra.
You take 1 lakh extra from me, on the maximum side.
Take all that you have earned from me.
But why are you taking double from me?
I have earned 1 crore and 1 lakh rupees.
So, take the tax on 1 crore from me.
And take 100% of the tax on 1 crore.
Even then, it is beneficial for me.
Earlier, I was paying 2 lakhs.
Now, at least, I will pay 1 lakh and leave.
Did you understand some point?
So, the government said, okay, brother, you are earning 1
crore and 1 lakh rupees.
So, on 1 crore, pay the entire tax of 25 lakhs.
And,
on the rest, pay the entire 1 lakh rupees.
So, now, your tax will be 26 lakhs.
Earlier, how much was the tax? 27 lakhs and 1750 rupees.
Now, how much tax is left? 26 lakhs.
1 lakh and 1750 rupees, you got the benefit.
You got the marginal relief.
This is the point.
Whenever our surcharge limits, like in the case of
individual, 50 lakhs, 1 crore, 2 crores, 5 crores.
In the case of companies, 1 crore, 10 crores.
With these limits, your income increases a little.
So, what happens is, because of surcharge, you get more tax.
Because of surcharge, you get more tax.
And, sometimes, the amount of money you have earned, more
than the surcharge limit, more than that, you get tax.
So, in that case, the government says, tell me the limit
tax.
And, the amount of money you have earned on surcharge, 100%
you deposit as a tax.
1 crore, 1 lakh rupees.
So, deposit tax on 1 crore.
And, 1 lakh rupees, more than the surcharge limit, deposit
that 1 lakh as a tax.
It's a simple point.
Is the point clear or should I explain again?
Tell me.
There was a surcharge limit.
With that limit, my income exceeded.
The punishment for exceeding was, more than the limit, more
than the income, more than that, I got tax.
So, I told the government, take as much tax as your income.
There is no logic in taking double-double tax.
So, the government revised the calculation a little.
In that case, the government said, tell me the limit tax.
More than that limit, more than the surcharge limit, more
than that limit, more than that income, deposit that as
100% tax.
On top of that, deposit your health and education tax.
Your tax will be finalized.
But, do this calculation only when you are near the
surcharge limit.
Sir, this was the point of marginal relief.
Come, let's read it once.
Then, let's finish the topic.
There is nothing left in this topic.
Look at it.
These are the topics of our surcharge.
These are some questions.
To calculate tax, etc.
And, look at this.
Marginal relief.
Like, look at this question.
This is the question of marginal relief.
Let's see this.
That, Mr.
B is of age 51.
Why is he telling the age of 51?
What is the point of telling the age?
Sir, he is telling the age.
He is not interested in age. He is saying age to see the
exemption limit.
Whether to take 2.5 lakhs or 3 lakhs or 5 lakhs.
Because he is 51 years old. So in this case his limit will
be 2.5 lakhs.
Total income is 1 crore 1 lakh. Same example.
Assume that his total income comprises of salary, house
property, FD.
It is not in the new scheme. It is in the old one. So
calculate his tax.
Now look carefully. I have said this concept of Marginal
Relief many times.
When does this concept of Marginal Relief apply? Now at
least tell me.
Now at least tell me.
When does the concept of Marginal Relief apply?
Read the question before Shanti. See the detail in the
question.
See his total income. If the total income is above the
surcharge limit.
So keep in mind that here the concept of Marginal Relief
will come.
What is the surcharge limit in an individual case? 50
lakhs, 1 crore, 2 crores, 5 crores.
Here it is 1 crore. A little more than 1 crore.
So keep in mind that here the concept of Marginal Relief
will apply.
So if I have to apply the concept of Marginal Relief, I
will have to do two calculations.
First I will do a normal calculation. How much income tax I
get on 1 crore, 1 lakh.
Including surcharge. Let's do that calculation first.
What does that calculation say? See this is an individual.
5% rate for 2.5 lakhs. 20% for 5 lakhs to 10 lakhs.
And 30% for 10 lakhs. The example we did of 27 lakhs was of
a company.
This is of an individual. So you took out the tax on 1
crore.
The tax is 28 lakhs, 42 thousand, 500 rupees.
What did you do on that? You added the surcharge of 15%.
If it is above 1 crore, then 15%.
In an individual case, the surcharge is 0 rupees for 50
lakhs.
From 50 lakhs to 1 crore, 10%.
From 1 crore to 15%. So the surcharge of 15% is added here.
So this is your total liability. Now don't add health and
education by mistake.
It will be added at the end. First take out the actual tax
payable.
So 32,68,000 rupees.
Simple. What is this 32,68,000 rupees?
This is the total tax.
If I don't apply Marginal Relief, then?
If I don't apply Marginal Relief, then my 32,68,000 will be
deducted from the tax of 875 rupees.
Point number 1. Situation number 1. Scenario 1.
Okay sir, no problem.
Now I will see, because my income is exceeding the
surcharge limit,
I will make a new combination and see.
And what is that combination?
The combination is that if I had earned 1 crore rupees,
then how much tax would I have paid?
Whatever tax will be made on 1 crore, I will add 1 lakh
rupees on that.
I will add whatever extra I have earned.
Now there will be a calculation, how much tax will be made
on 1 crore.
Come here.
See the tax on 1 crore. Here it is. 28,12,500.
Because the income is 1 crore, then the surcharge will also
be 10% above 50 lakhs.
In that case, what is the surcharge? Surcharge of 2,81,250.
30,93,750 tax is made if you earn 1 crore rupees.
See, understand this carefully. This is a very small thing.
These are your tax calculations. This is an advantage that
the government is giving you.
The person who has understood, has understood. The one who
has not understood is incurring a loss.
You have an alternative. You have an option.
If I earn 1 crore rupees, this tax is on 1 crore rupees.
And how much is this tax on? This tax is on 1 crore, 1 lakh.
I have earned only 1 lakh rupees extra here.
So see how much my tax has increased.
Calculate how much it has increased.
32,68,875 minus 30,93,750.
If you earn 1 lakh rupees extra, then your tax has
increased from 1,75,000 to 1,25,000.
You incur this loss.
Tax on 1 crore, 1 lakh is 32,68 and tax on 1 crore is 30,93.
If you earn only 1 lakh rupees extra, then your tax is on
1,75,000 to 1,25,000.
Sir, do you know what the person will say in this case?
The person will say, do one thing.
Take the entire tax on 1 crore.
Take this entire amount from me.
On this, I have earned 1 lakh extra.
I made a mistake by earning 1 lakh extra.
Okay, I don't want 1 lakh.
Keep this 1 lakh.
Ms. Nirmala, I don't want it. Keep 1 lakh.
I will pay as tax.
Look, if he pays 1 lakh extra, then also it will be
beneficial.
It will be 31,93,750.
If he pays 1 lakh extra, then also his payment will be of
31,93,750.
But here it was 32,68.
Still, he has saved.
He has saved 68,75,000.
What did this brother say? 1 crore is 1 lakh rupees.
Take the tax on 1 crore.
And keep the extra 1 lakh.
Still, I am in benefit.
In this case, you will get this margin relief.
Now, the tax you will pay, you will pay on this.
On this figure.
You will get health and education on this.
This is the point.
I think this question is clear to you.
There is a little extra.
There is a little extra income going from the surcharge
limit.
I will say, I don't want that income.
You keep that income.
Why am I being so generous?
Why am I paying my income as 100% tax?
Sir, the logic is that if I come to pay the entire tax, it
will be 32,68,000.
If I pay 1 lakh extra, then my tax will be reduced.
It is a very small thing.
Very small thing.
But are you seeing the savings in your money?
You have saved 75,000 rupees.
Will you buy a new iPhone?
Will you get a new laptop?
Will you get a new scooter?
Can you buy a new watch?
This is the point.
Let's see the answer.
See, he did the same thing.
He paid 1 lakh extra.
31,93,750.
He gave 4% tax on it.
33,21,500.
He saved 75,000 rupees.
Our government gives us.
With this, people said,
Mr. Modi, thank you very much.
And Ms. Nirmala, sorry.
We doubted you.
You are our mother.
We made a mistake.
We didn't read the whole concept of marginal relief.
Now that we have read the concept, we have come to know how
well your government is doing.
This was the point of marginal relief.
Is the point clear?
Friends, we have almost completed this chapter.
I don't think there is anything left.
These are practical questions.
You can do marginal relief easily.
See, one more question.
I am not completing it.
Mr. D is 37 years old.
Why is he telling his age?
We didn't ask him his age.
The logic of telling age is,
I come under the exemption limit of 2.5 lakhs.
I don't come under the exemption limit of 3 lakhs.
I don't come under the exemption limit of 5 lakhs.
I am below the age of 60 years.
My dear friend,
I will be subject to the exemption limit of 2.5 lakhs.
And how much is this? 5 crores for 1 lakh.
Is there any surcharge limit around this?
The surcharge limit was 5 crores.
So, the same calculation.
Take out the tax on 5 crores and 1 lakh.
Obviously, it will be more.
Then take out the tax on 5 crores.
5 crores and 1 lakh for tax plus surcharge.
5 crores for tax plus surcharge.
Compare both of them.
This will be useful.
In this, add the money he earned above 5 crores.
Pay tax on this.
The rest of the difference will be marginal relief.
This is the point.
See, he is doing exactly the same.
He has done exactly the same.
Look at this.
We have discussed about the companies.
We have discussed about the individuals.
I think this chapter ends here.
I will tell you the tax rate on the firm.
There is nothing.
There is only one point.
The tax rate on the firm is 30%.
You open a firm.
A lawyer opens a partnership firm.
CA opens a partnership firm.
In this case, there is nothing.
Flat rate.
Sir, what is this flat rate?
Is this the rate of a flat?
You have to apply the flat rate on 30%.
There is no slab rate.
This flat rate is 30%.
What kind of kids are you?
The kid asked me,
Is this the rate of a flat?
Yes, it is the rate of a flat.
It is the rate of DLF Gurgaon.
For example, you earn 1 crore.
The firm earns 1 crore.
According to 30% tax rate, you earn 30 lakhs.
Surcharge and health and education says, do remember, don't
forget that.
Surcharge and health and education says, do remember.
Sir, in this case, what is surcharge? I will tell you.
Why are you taking tension?
Surcharge is nothing.
It is a firm.
If it is earning 1 crore, then it is nothing.
And if it is earning more than 1 crore, then 12% surcharge
will be applicable on the firm.
It is a simple concept.
All these rates that we have discussed are old regime rates.
Old regime and new regime have only difference.
In old regime, you can take some benefit of deductions.
You can reduce your income a little.
But in new regime, you don't get many benefits of
deductions.
You don't get many benefits of deductions.
Now, when you sit to calculate your tax, at that time, you
decide that in old regime, you get less tax or in new
regime, you get less tax.
In which you get less tax, according to that, you pay your
tax.
Surely and definitely.
Sir, what is surely and definitely?
It is nothing.
Some words get stuck in the tongue.
They keep coming out.
Okay, friends.
I will see something else.
I will see if there is anything left in this topic.
Because the topic is completely over.
And always remember the calculation of marginal relief.
Marginal relief is not applicable only in the case of
companies.
Marginal relief is applicable in every individual, company,
firm.
In every such place, the concept of marginal relief is
applied.
Your income is slightly above the surcharge.
You tell the government to keep your income.
Because the benefit is yours.
No matter how much extra income you give to the government,
still your total income tax will be less.
See, we had read the rates of tax.
Mr. Bachchan, who had 3 lakhs and 5 lakhs, had come.
He was saying that I am above 80 years.
So, give me the exemption limit of 5 lakhs.
See friends, this is the new rate.
I just wanted to tell you once about the rate of
individuals.
See this.
As per 115 BSE,
Individuals and HUFs have an option.
What is the option?
To pay tax in respect of the total income at the following
concessional rates.
If they do not avail some deductions like leave, travel,
concession, standard deduction, interest on housing loan.
If they do not take all these things, then only you will
take this option of new rate.
If you are coming under the option of new rate, if you want
to make the tax rates applicable on you, then you will have
to say goodbye to some deductions forever.
You cannot reduce your income by taking advantage of those
deductions.
In old regime, you take advantage of all deductions, take
advantage of whatever you can see from wherever, and reduce
your income.
Pay tax on that.
But here, in new regime, there is no option to reduce your
income.
Now, it is up to you.
When you sit for calculation, it is possible that you do
not have those deductions before applying.
You may not have those deductions.
In that case, you can compare whether you want to go in old
or new.
Old and new.
Have you seen old rates?
See new rates.
They are giving 2.5 lakhs exemption here also.
5% on 2.5 lakhs.
10% on 5 to 7.5 lakhs.
10% on 5 to 10 lakhs.
20%.
10% on 5 to 7.5 lakhs.
15% on 7.5 to 10 lakhs.
Then 20%.
Then 25%.
Then 30%.
This is all.
These are some points.
It may be noted that, see this is another loss of coming in
new.
It may be noted that, individuals of the age 60 years or
more, or above 80 years, they would not be entitled to the
basic exemption limit of 3 lakhs or 5 lakhs.
Like our Anil Kapoor,
Modi ji came there.
We gave them exemption of 3 lakhs.
We gave 5 lakhs exemption to Amitabh Bachchan.
But in this case, caste, religion, gender, age, there is no
discrimination.
There is no discrimination of age also.
Whether you are 65 years old or 85 years old, all these
rates will be applied to you.
In that case, you were given different exemption limits.
Do you remember? 2.5 lakhs were given separately.
3 lakhs were given separately.
5 lakhs were given separately.
In this case, there is nothing different.
There is a little loss.
The person who is above 80 years, who did not pay tax up to
5 lakhs in old age, now that poor guy has to pay tax up to
5 lakhs, 5% tax on 2.5 lakhs.
So these are all things, friends, to sit and think
comfortably.
You will have to do the calculation yourself.
Whether those deductions are being applied to you or not.
If they are being done, then take full advantage of it.
Calculate the tax in old age and in new age.
In which the tax is less, pay that tax.
So friends, this chapter ends here.
Before saying goodbye, let me recap in 1-2 minutes, that we
have had 8 lectures in the last 5-7 years, on introduction
and slab rate.
What have we studied so far?
We have seen the difference between direct tax and indirect
tax.
What is direct tax, which you deposit from your pocket?
You cannot recover from someone else.
Then we saw how to calculate income tax.
For that, we learnt to calculate total income.
How to calculate total income?
We added all the income.
If we had to pay income tax on someone else's income, we
added that too, which is called clubbing.
We minused the losses of old age.
We paid the tax on that.
Then there are two types of tax, normal rate and special
rate.
For both the rates, calculate the total, then add surcharge.
After surcharge, don't forget to add health and education
tax.
You will get the total tax.
Then the rates of tax were different.
In case of individuals, 2.5 lakhs, 3 lakhs, 5 lakhs were
exempt.
Then the rates were different.
In old age, you have seen in new age.
The rates of companies are different.
If it was a domestic company, then a different rate.
If it was a foreign company, then a different rate.
If it was a partnership firm, then 30% rate.
Then the rates of surcharge were different.
In the end, we read a mind-blowing concept of marginal
relief.
The amount of income you get from surcharge, the amount of
income you get from surcharge, pay that amount of tax and
finish the work.
In this case, your tax amount will be less.
This was the point, friends.
I tried my best, friends.
I hope you understood this basic lecture.
You must have observed, that I was trying to teach in 3-4
different styles.
So that the child who is watching, if his base is strong in
the beginning, then he does not face any problem in the
future.
This has always been my effort.
It will remain.
It is the same now.
It will remain the same in the future.
It has always been the same.
In a very basic language, in a very basic way,
I will slowly explain the concept to the child.
Because income tax is a little complex.
If I try to explain it in a complex language, all the
things will come out of my head.
There is no use of these classes.
That is why I explain things to you in a very basic, desi
language.
I hope so, your lecture will be clear, friends.
Let's meet in the next lecture with some other Head of
Income.
Until then, thank you.
Take good care of yourself.
And don't let the negativity of people outside come inside
you.
Don't keep any limit in your mind.
You can do anything in life.
I know.
You can do anything.
Go and conquer.
Conquer every field.
Bye.