Hello Hello friends, how are you all?
I welcome you all to the new lecture.
I am Ashish De Gupta, your friend, your companion.
Let's start a new lecture.
Till now, we were studying, discussing about income under
head house property.
And we tried to understand many important things.
If you are aware of these 2-3 lectures,
I will give you a context.
First, we saw what all is included in house property.
Building, offices, shops, etc.
Then vacant land.
If you are renting a land, how is it being taxed?
We discussed that.
After that, we also discussed what are the exceptions.
Sometimes, that thing does not go in house property.
Sometimes, we tax another head of the company.
We also discussed this.
After that, we discussed gross annual value.
Before this, we also discussed about composite rent.
You were right.
I was testing you.
Do you study at home or not?
Yes, you study at home.
Very good.
We also discussed about composite rent.
Composite rent is when you pay the rent of the property
along with its maintenance cost.
We also discussed about the taxability of composite rent.
When you can separate it, then what should you do?
When you cannot separate it, then what should you do?
Then, we moved ahead on our topic.
If you have rented a house for the whole year, then what is
the gross annual value of that house?
We will continue the same topic.
I welcome you to Dharavai.
We covered the case of let-out property.
If there is let-out property for the whole year, then what
should we do?
If there is no let-out property for the whole year, then
what should we do?
Now, we will talk about the property which is the most
important.
Sir, tell me one thing.
What you are saying is a very good thing.
Very good.
Very nice.
But tell me one thing.
In the first lecture, you said that you have to pay tax on
the house.
You have to pay tax on the house property.
Sir, tell me one thing.
I have been living in my house for so many years.
I have not paid any tax till now.
So, what new laws have you come up with, sir?
What new laws have you come up with?
What kind of suspense are you creating?
Friends, your veil is going to be lifted from this secret
today.
Today, I will reveal the veil of this question which some
of you wanted to ask.
Why don't you pay tax on your self-occupied property?
I am going to give you the answer to that.
Friends, the house in which you live openly is called
self-occupied property.
What is it called?
Self-occupied property.
Which you have occupied yourself.
The property of you and your family.
So, in this case, friends, the government gives you freedom
that you consider your annual rent to be zero in that case.
What does it mean?
Whatever your self-occupied property is.
A property where you live alone.
Your own family lives there.
It is said that there is a small house.
And we, you ladies and gentlemen of this house, that you
have a house in which you live alone with your family.
So, it will be considered as self-occupied property.
And the government says that its annual value will always
be zero.
Oh, my God!
So, this was the suspense.
That is why I have never paid tax on my house before.
Because I live in that house.
When I live in that house, it becomes my self-occupied
property.
And as soon as it becomes my self-occupied property,
according to the same government, according to the Income
Tax Act, its annual value will become zero.
And as soon as the annual value is zero, no tax will be
imposed on it.
When the annual value is zero, then the income of the house
property will be saved.
This can happen.
Oh, my God!
This was the suspense.
I agree, sir.
You have sent all our taxes, sir.
And friends, I say in every lecture, that brother has come,
Krishna will tell something.
Friends, all these things are fine.
But you must be having a doubt in your mind.
I told you in some of my previous lectures that I have a
very deep relationship with my childhood friend.
The name of that friend was Mukubhai.
Do you remember?
Mukesh Ambani.
He is my childhood friend.
We used to sit together every day.
So one day, he came to my house in great tension.
He said, Mr. Gupta, you are so educated.
You are a chartered accountant.
Tell me one thing.
Is it a crime to earn money in this country?
I said, Mr.
Mukesh, what is the matter?
What do you want to ask me?
He said,
Mr. Gupta, I have many houses in different places.
I have a house in Bombay too, named Antilak.
I have a property in Calcutta.
I have a property in Gujarat too.
And it is such a property, where I stay for a short time.
If I stay in Bombay, then I stay in a house in Bombay.
If I go to Calcutta, then I stay in Calcutta too.
For a few days, in a year.
For a month.
If I have a meeting tomorrow, if Ahmedabad comes to
Gujarat, then I stay there for a few days too.
I have 25 houses in the whole of India.
And my business is such that
I have to stay in those houses for my business or for my
work.
And you just said that if I stay with my family, then it
becomes a self-occupied property.
So whenever I want to have a meeting,
I take my wife and children with me.
So that too will be my self-occupied property.
I said, this is right.
So this was a big conflict.
There was always a conflict that if a person has a
self-occupied property, then you will not give the value of
that property.
But if there is a person who has many properties, then how
many properties will you give?
How many property values will you give?
You will give zero.
This was a big conflict.
And all these rich people, they stood on the roof of the
Income Tax Department and started saying,
Income Tax Department,
Hai Hai.
Modi Government,
Bye Bye.
So Modi ji said,
I am in such a hurry,
Bye Bye.
I will not give the house.
I will bring a provision for this.
And that provision was that if a person has,
Suppose, 2 or 3, 4 or 5, 4 properties.
Suppose, one property is in Mumbai, one is in Delhi, one is
in Kolkata, and one is in Bangalore.
So these two properties, the government said, any two
properties, this is the choice given by the government,
that any two properties, how many properties?
Only two.
Which you have self-occupied.
Take the annual value of two properties as zero.
After that, if you have any property, then it will be
assumed, whether you have done this or not, it will be
assumed that you have rented it.
It is deemed to be let out money.
This provision.
Suppose, these four properties are in the category of
self-occupied.
Some stay here for a few days, some stay here for a few
days, some stay here for a few days, some stay here for a
few days.
So the government said, that we are giving you the option
that you calculate yourself, which two properties do you
want to put in self-occupied, so that its value becomes
zero.
And which property is it, which we deem to be let out money.
The government has given this option, that you self-occupy
two properties.
The rest of the properties, it will be assumed that you
have rented it for a year and we will take out its annual
value.
How will we take it out?
We have talked about it in the previous lectures.
Gross annual value.
And on the property of those values, your house property
will be taxed.
Friends, this was the concept.
You have one house, no problem.
You live with your family, self-occupied, no problem.
We will take its annual value as zero.
If there are two, no problem, we will take its annual value
as zero.
But if there are three, if there are three, then two will
be considered as self-occupied.
We will take their value as zero.
And the third property, this is the third property. We will
assume that you have let out and we will put a tax on its
annual value.
Gross annual value will be calculated in the same way as we
discussed in the last lecture.
Yes or No?
Tell me quickly.
So that I can get closer to you.
Absorb this thing.
Okay friends.
Okay sir.
We have understood this.
Okay sir.
We have understood this.
That means there is no tax on two properties.
If there is any, then.
After that, the government says that we will assume that
you have let out your property.
Even if that property is vacant.
We will assume.
Okay sir.
No problem sir.
This is how it works.
So revise that format with me.
I discussed this with you yesterday.
That gross annual value you will get from everyone.
Did you get anything?
Then think about what you will get from that.
Don't copy.
Think with your mind.
If you get a minus from gross, you will come to net.
So what minus did I get?
That was municipal tax.
Now let us discuss this.
What is municipal tax?
We will discuss this in the next topic.
Before that, let us discuss what municipal tax is.
Friends, it is nothing.
It is a simple thing that you can understand by reading.
You give some tax to the government on your property.
Municipal tax is the annual tax that the municipality pays.
When the government imposed tax on your rental income.
Then a common citizen will also talk to the government.
Sir, you are paying attention to my income.
A common citizen will also say that you are imposing tax on
my income.
But I also spent some money to earn that income.
What about that?
If I have earned a rent of one lakh rupees.
Suppose I say that I have earned a rent of one lakh rupees.
But I have paid a tax of thousand rupees to the government.
What about that?
Isn't there any compensation for that?
So the government said,
See, people abuse us for free fund.
We are not as bad as you make us.
What will we do?
If you have paid municipal tax.
You will deduct it from your gross annual value.
Municipal tax will be deducted from your gross annual value.
Is it clear?
There is nothing to explain in this.
You can understand.
There are some conditions.
Sir, free conditions.
Yes, sir, free conditions.
There are no conditions.
There are beautiful conditions and small conditions.
Two main conditions are here.
Who will pay municipal tax?
Because you are a tenant.
So the tenant will pay the municipal tax.
Or you will pay the tax yourself.
This is to be taken care of.
Now you think and tell me.
Who should pay this tax?
Think and tell yourself.
Whose rental income are we paying tax on?
The landlord.
I have already said about the tenant.
He is paying the rent.
Why should he pay the tax?
Who is receiving the income?
The landlord.
So ideally, who should pay the tax?
Correct answer.
You have thought the correct answer.
The landlord should pay the property tax.
This is the first condition.
Who will pay this?
The owner.
The owner of the property.
He is paying the tax.
Clear? Sir, what is the second condition?
Sir, the second main condition is that property tax should
be paid.
It should not be that the government is sending you
property tax bills.
And the bills are being collected in your files.
You should have paid some amount.
You should have paid in actual.
It should not be that the amount is in due basis.
The payment should leave your bank.
Who will pay the payment?
The owner.
And will he pay in actual or in due basis?
It should be in actual.
You should have proof.
This is my bank statement.
I have paid the property tax in actual.
And I am the owner of this property.
I am not a tenant.
I am the landlord.
I have rented this house.
I have the property tax bill.
I will pay the payment in actual.
I will not leave the payment pending.
I will pay the payment in actual.
You should have mentioned in your statement that how to
charge the rent for house and home.
The zero amount is taken in land Shop.
You should have mentioned in your statement that how to
charge the rent for house and home.
The zero amount is taken in land Shop.
You should have mentioned in your statement that how to
charge the rent for house and home.
The zero amount is taken in land Shop.
You should have mentioned in your statement that how to
charge the rent for house and home.
The zero amount is taken in land Shop.
These properties shall not be used for soon.
Friends, this is what happened, it was a very simple thing,
small things that I wanted to discuss with you.
Okay, tell me one thing, sir, you ask so many things, sir,
why don't you come after studying, sir?
What to do, man, I don't get time to live my life, I don't
have time to study, what to do?
What to do, sir?
I want to ask you a question, it's a very simple question.
I want to ask you, sir, n1 value, as you were saying, where
do we write the n1 value of self over loss property?
We have to write 0, suppose DA is also 0, suppose if its
loss n1 value is also 0, then should I minus the municipal
tax from that?
Now, the thing whose value I took 0, what should I minus
from that and what should I add?
When the government is saying that you take your value 0,
we don't want to take any tax from you on that money,
then why are you minusing it for no reason?
So, in the case of self over loss property, don't ever
minus the municipal tax.
Why don't you do it when I am taking the value, when I am
taking the n1 value of 0, then what will you do by minusing
it?
What will you use? You won't use anything.
Always in the case of let out property, municipal tax, paid
by the owner, actually paid by the owner, always minus it.
Now, pay attention to this, in the case of self over loss
property, you don't need to minus anything.
Ok sir, ok sir, I understood.
Shall I move ahead?
Friends, yesterday I was watching a film and the name of
the film was Baghman.
Friends, the film is something like this, although jokes
are made on it, but seriously, if you think about it, it is
such a deep picture.
Our parents do so much for us all our life, always do
something or the other.
And what do we do?
According to our convenience, we make changes in our
behavior.
Friends, change in behavior is always for outsiders, not
for parents.
Because the child has a duty and the parents have a debt.
The debt of the parents, you will never be able to pay it
off.
Work hard, work so hard that your parents will never have a
headache because of you.
Work so hard.
If you are happy on their face, then there can be no
greater virtue in this world.
They say, do something so that God himself becomes happy.
There is no God, friends.
God himself is your parents.
So, work hard in life, friends, to achieve such a goal that
your parents should see such a life that no one can imagine.
With the same thought, let's move on to our next topic.
There was no need to motivate me.
I just wanted to share my thoughts with you.
Don't be so serious, work hard.
Don't worry, I am here, I will work hard.
It is my responsibility to complete my classes.
so you will not become a tax consultant from here so let's
go sir let's go let's talk about a house property till now
we were talking about two properties one we kept in let off
category and other in self occupied category till now we
were talking i was saying that one is self occupied and
other is let off how to get annual value of that suppose
there is a case that a person has only one house and what
did he do his work was like he used to stay abroad for 6
months and stay in India for 6
so he made such a system so that i get income so that i can
rent that house for 6 months so that i can get additional
income and when i come back from abroad i will stay in that
house do you understand for 6 months there is only one
house i rent that house for 6 months and in remaining 6
months i will stay in that house what is the tax treatment
look at this this is something to think is it self occupied
think and tell why i am asking about self occupied because
annual value is 0 is it self
yes or no answer is yes it is self occupied for 6 months
was it let off was it on rent yes or no yes it is on rent
and self occupied so what to do what to do sir what are you
saying why are you so angry friends do you remember when we
were talking about let off property so in that case in the
case of gross annual value what we did
ER vs AR what we did in the case of let off do you remember
no if you don't remember then watch the lecture again as i
said i remember my short term memory loss i also forget but
i also remember so i think it was
ER vs AR expected rent vs actual rent so in this basis we
have to proceed what we have to do is we have to take this
for full year we have to take this and this we have to take
how many months actual 6 months and this 12 months this
expected rent as i told you yesterday expected rent vs
actual rent what is actual 6 months simple and in expected
rent government says this is the advantage in last few
lectures you have written very well as i told you if two
house property are occupied i made it 0
now if you take everything what will we do so in that case
i said when you are giving so much benefit i also want to
do something for you so in that case if you want to do i
will tell you what you have to do our expected rent value
we have to take it for full year but actual we have to take
it how much it will be occupied we have to compare and
after comparing think quickly will you take more value or
less value now i will tell you what government wants from
you government wants maximum tax so
expected rent is more than actual then take expected if
actual is more then take actual whichever is more whichever
is more that value you have to consider simple from here
gross annual value from that municipal taxes as i said
GAV and from this i will minus my tax what will come
N A was there anything nothing and i will tell you with
this topic 80% chapter ends i am trying to tell you what
all i have told you let me recapitulate about self-occupied
property we will start the discussion self-occupied
property i have told you if there are two house property
then take their annual value but if there are more than two
house property that is also self-occupied it is there,
here, there, here it is everywhere it is like air station
if it is self-occupied then in that case
says take two property's value as zero annual value rest
all the property's value will be taken whether you agree or
not deem to be let off means whether you agree or not you
have to agree that you have left that property on rent
after that we will discuss suppose if a person has one
property and he has left it on rent for 6 months and his
wife is self-occupied then in that calculation there is
something in this let me read it there is no need there is
only one thing we discussed about
taxes what are municipal taxes property tax you must have
heard about it in newspaper about property tax you get
deduction for that basically you minus GAV and who will do
it? owner will do it and you have to pay it if you
understand this then you will understand the rest let me
read it try to understand come sir let's start reading
point number 3
it says in 23 sub section 2 if property is self-occupied
for own residence what is it saying? you have occupied
property for your own residence you will not leave it on
rent for your own residence you have taken the property in
that case what will happen?
for own residence if you have taken it for own residence
when that property is unoccupied means you have not left it
on rent it is unoccupied
then what will be its annual value?
NIL you are not taking any benefit from that property and
it has explained the meaning of unoccupied property and the
benefit of NIL is for two houses two self-occupied house
properties remember this you will get benefit for two house
properties
ok sir and you will not get any deduction of municipal
taxes because when you have set your annual value to zero
then what will we do? when we are telling you that you will
not pay any tax then what will we do? and then this case
came that there is only one property and you have taken
part of it and you have taken part of self-occupied
property so it was saying expected rent expected rent you
have to take the whole year and how to compare it? with
actual rent what will be the maximum of both?
G A V I will test municipal tax so which path will I take?
NAVP and then it was discussing about deemed to be let out
property what is deemed to be let out? what is deemed to be
let out? 3,4,5 governments little by little what will be
the value of two houses? zero what will be the value of
rest? deemed to be let out? it will be assumed that it will
be leased when it will be leased then its GAP will also
decrease expected rent vs actual rent then there will be
two parts of expected rent then we will see the value of
rent that the market is running
rent its comparison with its municipal value what will be
the maximum of both? expected how to compare it? with
actual rent its GAP its GAP then income at the option of
SSE any two property's income its annual value will be 0 ok
friends simple things expected rent will be GAV in deem to
collateral case will you compare with actual rent or not
there is no need to compare have you ever listed for actual
property have you listed no you have not in my example i
have understood if i have 5
and i used to live in small place then value of 2 will be 0
value of 3 will be expected actual rent will not be seen i
have not listed on rent i live there so actual will be 0 so
when it will be 0 then you will compare with 0 so this
thing will remain expected vs actual expected vs 0 this is
it this is it so expected is GAV
read this E point question of considering actual rent does
not arise so there is no need to make any adjustment empty
rent
this is it simple things municipal tax actually paid you
can reduce that this is it this is what i have discussed in
this topic now we have another small topic small topic you
may remember i have told you in beginning lecture like a
person's job was to buy a house for 1 or 2 years and then
sell it to a customer do you remember in that case business
stock will be 0 so when stock will be 0 then annual value
will be 0 but i have told you for 2 years annual value will
be 0 and in 3rd year annual
will be taxable if it is not sold this is it see this house
property held as stock read C point
GAV C means
Benefit available up to 2 years from end of year in which
certificate of completion is obtained for 2 years annual
value will be 0 and in 3rd year annual value will be
taxable take annual value this was the concept in this 7th
point i will cover you in next lecture i think it was a
simple lecture simple concepts if you still feel that you
didn't understand then revise it again and take a copy and
note the diagrams so that it will be easy for you to revise
we have already covered 80% of this
remaining 20% so with this i will take your leave see you
in next lecture till then good night thank you