Friends, I was a bit aggressive in the last lecture, so
this light, our light fell down.
So, yes, yes, so we were talking, friends, here.
That brother, the income of a person of 20 lakhs has become
due, but not received.
Will the income tax people reach him?
That brother, tell me one thing, you have earned money, you
have gone to the office for 365 days.
Yes, I have gone.
Yes, so you have earned money.
That is a different thing, your employer does not give
money.
What do we have to do with that, brother?
That is your matter.
Don't tell us that, you come here and tell me, my dear son,
that son, have you received the salary for the whole year?
He says, no, sir, I have faced a lot of problems in a year.
I did not get any salary.
I asked from here and there and managed to survive, sir.
So, what will he say?
He says, okay, it is like that, okay, no problem.
Okay, tell me this, was your salary due?
He says, yes, sir, it was due.
Was it due?
Take him and take the income tax from him.
He says, sir, why like this?
I am a very poor person.
He says, brother, poor, poor, nothing, we have said, due or
receipt, whichever is earlier.
This is the point, friends.
Did you see, friends, how heartless our income tax people
are?
You may not have received the money.
I wanted to explain you correctly that you may not have
received the money.
But even if it is due, you will have to pay tax on it.
We have a hero, Mr. Arshad Warsi.
This happened with him once.
His income was due.
He had made a contract with someone on the basis of salary.
Income was due, not received.
And from there, when it was not received, he did not pay
any tax.
How will a person pay tax when there is no money?
You are talking about food, you are talking about tax.
Income tax people sent him a notice of Rs. 50 lakhs.
And he took a loan from somewhere and deposited Rs. 50
lakhs.
I am talking about Arshad Warsi, the one who made the
circuit.
Come on, next.
Where any salary, third point, where any salary paid in
advance is assessed in the year of payment, it cannot be
subsequently brought to tax in the year in which it becomes
due.
For example, friends, this is a very simple thing.
For example, like we were talking about Bharat Bhushan.
And we said that he has a salary of Rs. 20 lakhs and did
not get a single rupee.
But for example, there are some employers who have a
package of Rs. 10 lakhs.
So he worked for 6 months and got Rs. 5 lakhs.
And his sister is getting married in his house.
So he went to his master and said,
Master, my sister is getting married.
My sister means your sister.
And you give me an advance of Rs. 6 lakhs for this.
You give me an advance of Rs. 6 lakhs today.
Later on, I will pay off my salary with interest.
He said, okay, everything is fine.
So he gave him an advance.
What did he give, friends?
Advance.
Now this advance, think carefully, when will it be taxable?
For taxability, check Section 15 of the Chargeability Act.
What does it say?
Due basis or receipt basis, whichever is earlier.
When will this salary be due in 6 months?
One will be here, one will be here, one will be here, one
will be here, one will be here, one will be here.
In 6 months, it will be due in different months.
Every month on 31st and 30th, it will be due.
But when will it be received?
Right now, when you took the advance.
In that case, when will it be taxable?
Here.
It has become taxable in your hands.
Now tell me, for example, the Rs.
5 lakhs that you had, the Rs.
5 lakhs that you had, friends, these Rs.
5 lakhs have become taxable.
You have deposited the entire income tax on them.
Okay, you got an advance.
You deposited it on the advance.
If we look at it in one way.
Is the point clear?
The second point.
Come to the same example.
The example of Bharat Bhushan.
Here, for example, it had been a year.
For a year, this person had not received a salary of Rs. 20
lakhs.
So here, this person's entire tax was imposed on Rs. 20
lakhs.
On what basis?
On due basis.
The receipt was not done.
It was due.
So the tax of Rs. 20 lakhs had already been imposed on him.
Here, here, his employer,
God appeared in the dream of the employer.
And God said,
Son, employer, he is a man of God.
He is my true devotee.
If you do not pay this person's salary the next day, for
the entire year,
then you will die.
I will finish all of this.
So, brother, who has the upper hand in front of God?
The employer came the next day and said,
Brother, my employee, take this Rs. 20 lakhs.
This is from last year.
Now pay attention.
What happened to him?
He got a receipt.
He received Rs. 20 lakhs here.
His due was here.
He has already paid the tax on due.
Now when he received it, the income tax people came to him
again.
They said,
My dear employee, my son, tell me one thing.
Now that you have received the salary, come and pay the
income tax on it.
Do you know what that employee will do?
He will take off his shoes first.
He will say,
Son, tell me one thing.
First, you yourself say, that due basis or receipt basis,
whichever is earlier, you have deducted my tax on due basis.
I have paid it quietly, by arranging money from here and
there.
Yes, I have paid it.
Now when I am actually getting it,
why do you feel itchy?
When I have already deposited the due basis or receipt
basis, whichever is earlier here, now whenever I get the
receipt, what will you do with it?
You have already taken the tax on due basis.
He said,
Yes, I have taken it.
He said,
Okay.
Will the income tax people agree?
Yes, they will agree.
Why will they agree?
Because you have already taken tax on due basis from that
person.
When it will actually be received, then I will not take tax
from that person again and again.
I had to deduct tax on Rs. 20 lakhs.
I deducted it earlier.
Now when it will actually be received, then I will not
deduct tax again and again.
This is the point, friends.
This is the point.
Third point.
However one.
Where is salary paid in advance is assessed in the year of
payment.
It cannot be subsequently brought to tax in the year when
it becomes due.
This is this one.
And if salary paid in arrears has been assessed on due
basis.
This is the fourth point.
If salary paid in arrears has already been assessed on due
basis.
If it has already been assessed on due basis, then the same
cannot be taxed when it is paid.
When you will have to pay it again, you will not have to
pay that tax.
This is the point, friends.