Hello, hello friends. How are you all? I hope you all are
fine, healthy and well.
Let me tell you, I am also very well, your friend C.S.
Shreya Gupta sir.
Let us welcome a new topic today.
We have read a lot of heads of income so far.
Today we are going to read a new head of income.
This head of income is the most important.
Sir, you say this after every lecture.
Every time the lecture starts, you say this is very
important, this is very important.
Sir, first listen to the name of this head of income.
The name of this head of income is profit and gains from
business and profession.
Sir, is it such a big name? Yes, it is such a big name.
The name is profit and gains from business and profession.
When you do any business in life, the income that you get
from that business, the profit that you get, the taxability
of that profit, how much tax should be imposed on it, how
much tax should not be imposed, where do we discuss that?
We discuss in this head.
Profit and gains, profit and gains, the gains that you get
from whom?
From business or from profession?
Everyone understands business.
If you buy anything, you sell it for some profit.
Business.
So what is this profession, sir?
Sir, profession means professionals.
When they practice, what do we call it?
We call it profession.
For example, there is a doctor.
He runs his own clinic.
He does not work in any hospital.
If he worked in a hospital and took salary from there,
which head would he be taxable in?
In salary head.
But in this case, he runs his own clinic.
The income that he gets from the clinic, the profits that
he gets, where will they be taxable?
They will be taxable in this head.
A person runs his own shop.
He got profit from that shop.
Hold my word.
What am I saying?
I am saying profit.
I am not talking about sales.
I am not talking about turnover.
I am talking about profit.
Is the point clear?
He got profit from his shop.
So where will he be taxable?
Profit and gain from business and profession head.
Head.
There were 5 heads.
First, salary.
Second, house property.
Third, business and profession.
Then capital gain and other sources.
So we are talking about profit and gain from business and
profession.
Is the picture clear?
He is a very important head.
In this regard, it is important that you get a job anywhere
in your life.
Government or private.
Ultimately, you can never become rich from a job.
If you want to earn money in life, and you want to earn
money according to yourself, according to your liberty,
then you will have to do business with someone.
You can never become rich without business.
This is a bitter truth.
You can never become rich without business.
And this country has always been a country of businessmen.
The person who sells chickpeas on the road also does
business.
If he wants to file his income tax return, and comes to
you, then in which head will you want to file his income?
Business and profession.
Similarly, if Dhirubhai Ambani comes to you, and you want
to file his income, of Reliance Industries, then in which
head will you go?
Business and profession.
A person does the business of drugs.
Supplies weapons.
Manufactures weapons.
And then supplies.
What is that? His salary?
Business.
Where will he get tax?
In business and profession.
Is there a lawyer?
A lawyer has his own practice.
What does he get from practice?
He gets profit from his own practice.
The income that comes in the whole year, after deducting
expenses from the income, the profit that goes to his
house, what will he get?
Income tax.
In which head?
Business and profession.
Sir, whenever you do business in life, you will need this
head.
And tomorrow, if you want to do a job, whichever employer
you work with, when you file the ITR of that employer, then
in which head will you do it?
In business and profession.
I have given you an idea till now.
We were just discussing on the heading.
Profit and gain from business and profession.
Sir, what will be taxable in this?
Because in business, there is sales.
In business, there is purchase too.
I have some expenses too.
So, if I put tax, on whom should I put it?
Should I put it on sales?
Sales is not your income.
If you think a little, in this chapter, I am telling you,
like we discussed in salary head, and I had said, can an
employer give all these things to his employee?
In that, it was that he can give everything.
We had to see, what will be taxable and what will be exempt?
We have to keep our business mentality here.
Whenever you see a question, or read any concept, think as
a businessman, that if you have taken up a business, every
person has a business idea in their mind.
This is India sir.
It is a country of businessmen from the beginning.
And it will remain.
It is not called a golden bird.
I am sure, the name of that golden bird will come back.
So, in this,
I will tell you any concept, you consider yourself a
businessman.
And think, whether this expense should have been there or
not.
Now, tell me one thing, for example, whatever business you
like, whatever you have thought, that I will do this
business, you think that business in your mind.
Close your eyes, and think about that business.
And imagine that you are doing that business.
And I am an income tax officer.
I came to impose tax on you.
I said,
Mr. Businessman,
Namaskar.
How are you?
He said, very good.
Sir, I have to impose income tax on you.
Now, tell me, what should I impose on you?
Should I impose it on your sales?
Who says that it should be imposed on sales?
Tell me.
You say that it should be imposed on sales, and you say
that it should be imposed on sales.
Okay.
No problem.
There is nothing wrong.
I will tell you now, on whom it will be imposed.
You say that it should be imposed on sales.
For example, your sales for the whole year, your sales for
the whole year, that is of 1 crore rupees.
That is of 1 crore rupees.
So, in that case,