Hello friends, how are you all, how are you all, friends,
let me tell you, I am very good, friends, let's welcome you
to our income tax discussion.
We were talking about how to calculate house property
equity income, what we were including in the house
property, we understood many things, we read many things.
Many people were also included in our discussion, friends,
a man named Mukesh Ambani was also included for you, a man
named Anthony Gonzalez was also included.
Mr. Singh from DLF was also a part of our discussion,
friends, I would like to take this discussion a little
further.
I would like to say a little thing, friends, friends, if
someone asks you how it is, then he says that it is fun,
friends, this fun is inside a person.
If you are happy, you are satisfied, you are doing a good
job in your life, you are progressing in your work, then
your life is fun, what does the rest of the world think?
Do not think of fun outside the world, think of fun inside
yourself, think of fun in your work, think of fun around
you, in your family, your life will be happy, friends,
there is no more fun, if you work hard, your life will be
fun.
Friends, with this beautiful and good thought, I take this
discussion to you, come straight to the text, there is not
much left in this topic, property tax, municipal tax, as I
told you that you will get a minus of municipal tax, I will
write both of them, if you want to write, you can read it,
I will write it for you, that why we were discussing our
municipal taxes, that was our GAB, we used to minus this
municipal tax and we used to come to NAB,
I told you this symbol, that who will do less municipal tax
and when will he do less, who pays municipal tax, let me
know, does the tenant pay or the owner pays?
What happened, did you revise the last lecture, pick up the
copy, did not note it, let me tell you, property tax will
always be paid by the owner, if the owner has actually paid
it, if you remember the last lecture, I hope you are not
stupid, that you have short term memory loss,
if you remember the last lecture, you will remember that
the owner used to pay municipal tax and when did he get the
deduction, when he actually paid it, he did not have the
receipt, that I have this receipt, I have paid municipal
tax, this is my receipt and this is my bank statement, this
is my bank statement, this is my receipt, I have proof,
that is all, I have proof that I have paid municipal tax,
only he will get this deduction, it is written in this, let
me read it, I will remove it, it
very beautiful handwriting, God bless everyone, property
tax deduction will be given only if the owner pays it, what
else is written, it should be actually paid, if property
tax, second point, levied by local authority for a
particular previous year are not paid, if you have paid,
you will get the deduction, if you do not pay, you will not
get any deduction, second point is, if you do not pay, then
no deduction shall be allowed, in computation of house
property income, third point, suppose I
not pay that year, but after 2 years, I have paid my
previous tax, then what should happen in that case, we are
talking about actual basis, you will not get it if it is
fixed, but when you actually pay, you will get that
deduction, suppose in 2020, I have paid my property tax, I
will pay it in 2023, means it will take 3 years from 2021
to 2022, I will directly pay it in 2023, so when I will
deduct the house property income in 2023, I will deduct it
from that, not in 2020, not in 2021, not in
because I have not paid yet, when I will pay, I will deduct
it, when I will not pay, I will not deduct it, this is the
third point, read it sir, he is saying, if in subsequent
year, you have paid, then amount so paid is allowed as
deduction in computing income for that year, you will get
the deduction from that year's income, and fifth point, he
is saying, what is the outside of property situation, do
you remember, 2-3 lectures ago, I told you, one Mr.
Shahrukh Khan has bought a house in Dubai, in the name of
his wife Gauri Khan, so if he will pay tax in foreign
country, then what will happen, he is telling one point,
what did he say, that his property is situated outside
Dubai, means in Dubai, so tax levied by local authority of
that country is deducted, and this is the sixth point, we
have already discussed, that if in any house, the value of
self-occupied house property, we said that we take annual
value as 0, annual value will be nil,
I take its annual value as 0, then municipal tax will be
minus, when my annual value is 0, then my municipal tax
will not be minus, this means that if you have
self-occupied house property, whose annual value you have
taken as 0, then municipal tax will not be deducted from
that, is it clear, so friends, don't worry, don't worry, it
has come, it has come, so it will be cleared, this is the
question, this is the illustration, I want you to see, this
illustration is based on the same concept,
I told you about the example of Jannat, that his property
is there in Shahrukh Khan, and there he pays tax in foreign
country, property tax is paid, so his deduction will be
deducted, this is a very simple thing, don't get confused,
he is Rajesh, a British citizen and a resident of India, a
resident, ordinary resident, we have already discussed this
in starting lecture, he has ROR, and he has a house in
Bindar, where he has paid 10,000 pounds per month, 10,000
euros per month, so municipal tax
is paying is 8,000 euros, and he has told the value of 1 kg
is 95 rupees, so what will happen in that case, it is a
very simple thing, this is a gross annual value, actual
rent is 12 months, you were saying that it has to be
deducted from the actual rent, in last lecture also you
said that it has to be deducted from the actual rent, so it
has to be deducted from the actual rent, which you could
not get, which you could not receive, the government has
given some conditions, if you follow these
and you could not get the rent, then your actual rent will
be deducted from the actual rent, is there any such thing
here, no, so he has taken the actual rent of 12 months, he
has taken the rent of 12 months, 10,000 euros, he has taken
the rent of 9 kg per month, he has taken the municipal tax,
because in foreign countries, if we take India, then
whatever money he will earn in the whole world, he will get
taxable, but he has earned, but he has paid the tax in
London, so he will deduct it, ok
this was our small concept, so let us go to the last
important section, if this section ends, your chapter will
also end, so you will say with me loudly, so you will say
with me loudly, that we are going to become great people in
life, this time goes back and forth, a person who is
nothing till a day before, his time goes back and forth,
and he becomes a great person,
and he becomes a great person, see such people also,
If you have interest in something, run after it, don't
leave it, chase your goal and do something in your life
that will make you happy.
Don't get too emotional, let's move on to our topic,
section no.24
Let me take my notepad
Friends, we had a discussion about gross annual value
Yes or No?
Say Yes
We had discussed about gross annual value in case of
self-occupied and let out
We have discussed about one property of self-occupied and
let out
We have discussed about one property of self-occupied and
let out
We have discussed about one property of self-occupied and
let out
So, here we are talking about net annual value
Now, you have fixed these two things
You have fixed these two things
You have lessen these two things
You have got this
So far, no problem?
No problem
Friends, I have come here and I will bring your good heart
So, I say that net annual value is not there
Minus some things below it
If you will minus those things, your income will be less
And your tax will also be less
So, I said, Mr.
Modi, we think that you keep end of standing of Chaiwai
business
You keep end of standing of income tax
So, Mr.
Modi said, tell me one thing
You have earned so much money
I said, Mr.
Modi, tell me what to minus from this
So, Mr.
Modi said, tell me one thing
Do you get painting done in your house?
I said, yes, Mr.
Modi, you get it done every year
Mr. Modi said, friends, tell me one thing
Do you get nails done in your house?
I said, yes, I do
I said, friends, tell me one thing
Do you get tiles done in your house?
I said, yes, Mr.
Modi, you get it done
Mr. Modi said, when you get these things done
Do you get some expenses in this?
I said, Mr.
Modi, what are you talking?
What kind of talk is this?
Are you talking to a mad person?
Mr. Modi said, the expenses are free
Minus all these things
You have earned rent from any property
But to earn rent from that property
I can't rent a house to anyone
I will have to get that property painted
If the tiles are spoilt
If there is sludge in the tiles
I will have to change the tiles
I will have to get some work done in the bathroom
If the tap is spoilt
I will have to get it fixed
I will have to do all this work
So, Mr.
Modi said, do this work
What will happen again and again?
I will give you 30% every year
30% of this value 30% of NAB
Mr. Modi said this
I will give you 30% of NAB every year
I have assumed this in a way
Every year you are in some repairs
In a little cutting, in a little tiling
In a little furnishing
You are doing all this work
So we will give you a break
Your income will be reduced a little
I said, Mr.
Modi, what did you say?
Hats off to you, Mr.
Mr. Modi
I want to ask you a favor, Mr.
You reduced my income by 30%
You reduced my income by 30% of NAB
If my work was worth Rs.
1 crore
You reduced my rent by Rs.
30 lakhs
If it was worth Rs.
1 crore NAB
It would have been worth Rs.
30 lakhs
Mr. Modi said, what else?
I am not going to bring such good income
I said Mr.
Mr. Modi
I am sorry, Mr.
Seeing the condition of this country
My tears came out
So friends, let's move forward
Mr. Modi said, very good
I will give you a deduction of 30%
So when normal people were getting deductions
So my dear friends
With whom I am sitting here every day
Namdao You must be ready
When you have to go to my house
Our Mukesh
My Muku
Muku Bhai was also there
Muku Bhai said, Mr.
Tell me one thing
Muku Bhai called someone
He said, Mr.
I want to meet you
Muku Bhai said, I will come to your house
To meet you
What will you do?
So, Mr.
Come to Muku Bhai's house
And he said, what do you want?
So, Muku Bhai said
Tell me one thing
Mr. Modi, you are giving a deduction of 30% to normal people
I am such a man
Who has bought a house worth 11,000 crores
I have invested 11,000 crores in its construction
Yes, friends, if you remember
This news came a few years ago
He lives in the house of my friend Angela
His name is Angela
I had told him that name
I had asked him
His name is Angela
So, he said
I have spent 11,000 crores
So, Mr.
Modi said
Do 11,000 crores
What is your problem with 11 crores?
So, what is the problem?
He said, Mr.
The problem is
I did not have money at that time
At that time, I had taken a loan of 11,000 crores
From some bank
So, Mr.
Modi said
Okay, so what do you want?
So, he said 11,000 crores
Because I had taken a loan
So, I take interest in it
And I pay every year
And I will pay every year
So, Mr.
Modi said
What do you want from me, friend?
So, Mr.
Amani said
Brother, tell me one thing
We are talking about house property
And you can get that house property
Minused So, the interest that I pay
On my property
On my home loan
The interest that I pay
So, won't you get that minused?
Mr. Modi, what are you saying?
Mr. Modi, it won't happen
It won't happen
Mr. Modi said
Okay You are my friend
You are my best friend
What will you take care of?
So, Mr.
Modi said
Okay, do one thing
Friends The next day, Mr.
Modi came
He said
Friends From now on
The interest that you will pay on your home loan
I will give you a deduction for that
The interest that you will pay
On your home loan
For that
You will get a deduction
This will also be your minus
And the figure that will come at the end
This is your house property
Income And on this, you will get
Income tax
This is it, friends
See
In gross annual
Municipal tax
From that, net AV will come
In net annual
Then
30% Mr.
Modi said
The interest that you will pay 30% We are assuming that
You will spend it on repair and maintenance
So, deduct 30%
And this
For Mr.
Mukesh Ambani
He said
Even if the interest is increasing
So, you
In India and Pakistan
The next question is
If you live in a home loan
In any property
You will get a deduction for that home loan
You will also get a deduction for some home loan interest
Friends, this is
Important concept
I will listen carefully
Because in life
Whether you do something or not
For yourself
Definitely make a house
Where you are with your parents
Live a comfortable life
I know that you
Very soon
You are going to be a millionaire and a millionaire
And you
If you ask me
Mr. Gupta, you are a chartered accountant
Tell me a little
What to do
So, I want
Then I will tell you
I taught this in that class
Give your own notes
I will feel very good
That my student
So much came
If it reaches in life
So, we were talking about it
When you buy your house
So, you will have an issue
Because the house is such a thing
Friends
Along with emotion, there can be investment in it.
And usually there is so much investment that no human being
can fulfill that much.
So he usually takes loans from relatives, banks.
The government also understands this.
See, we were just talking a little bit about it.
But seriously, if you understand it, the government also
understands that when a person buys a house, he collects
money from different banks.
And the interest on that money also increases.
When we are putting a tax on his house property income, and
especially think about the person who has three house
properties and all three are self-occupied.
When we said that we will take the value of two as zero,
and the value of the third, even if he has a little heart,
we will assume that he has leased it.
He is self-occupied and we are putting a tax on his value.
So the government also says that if we are putting a tax on
your property, we are putting a tax on his rental income,
then we understand that that rental income is coming from
you, it is coming from the house.
How did you build the house?
I took a loan, so I built that house.
And I am paying interest on that loan.
So we understand that you have to pay interest to earn that
income.
So I will reduce that interest from the income.
Then I will put a tax on that net figure.
Understand this.
We also understand this, the government also understands
this.
And that is why this provision came.
That you will pay the interest.
The interest you will pay.
I will take a pen.
Actually, there is a big shortage of pens.
Sometimes it happens that someone takes it away.
So I am saying that if you have given a loan to build a
house, for example, this is your house, this is your house,
this is the house of dreams, these chimneys are installed
in it.
As you know, I have got a poster award in my drawing.
Assume that this house is of 1 crore rupees.
So 1 crore rupees is such a big amount.
For example, you had some savings.
And that savings was of 20 lakh rupees.
So still you took a loan of 80 lakh rupees.
From this pen.
You took a loan.
Assume that you took a home loan of 10% of this 80 lakh
rupees.
So how much interest you are paying every year? 8 lakh
rupees.
So the government says that 8 lakh rupees will be deducted
from your income.
So I will say that tell me one thing.
You are deducting my interest.
What will I do?
This is going up to 80 lakh rupees.
8 lakh rupees.
Will I pay 80 lakh rupees?
So that is also deducted.
But it will not be deducted from the house property.
It will be deducted in the chapter of deduction.
This is interest.
We are talking about interest.
Where will the interest go?
From the house property.
It will be deducted from here.
And this is my principal.
I am the principal.
It will be deducted in the chapter of deduction.
I will tell you that later.
So now we are talking about interest.
So the topic is again the same.
I told you that
I have to deduct my municipal tax from gross.
You will deduct your municipal tax from gross.
So you will come on net.
And from net you will deduct your interest.
You will get this figure.
This is the value on this.
You have to become income tax.
If you want to see that also I can show you.
This is the point.
This is the job.
If you want to see, you can see.
I will take the blade from here.
You can understand this.
If you want to observe.
This is the job.
Government motivates you.
Government motivates you to buy more houses.
Because government does projects.
Like Prime Minister Awaaz Mirza.
Awaaz means that you buy a house.
Because government, I told you in the first lecture.
Food, clothes and houses.
These are the three areas of the government.
Here all the sectors try to work.
Because the person who has a house.
So he pays attention to other things.
So the government always motivates you.
So if you see, you get a lot of home loans.
How are those home loan ads going on?
The government tries to control your interest on home loans.
At least.
So that every person who earns a little money.
Whether he can buy a small house.
He buys a house.
You must have seen that ads are running on TV.
I will show you one.
Government motivates you.
Friends, this is all government's loss.
Government motivates you.
If this is going on.
I will close it.
Look at this, friends.
I run an ad.
This is a home loan ad.
Look at this.
This is a home loan ad.
So this is it, friends.
DHFL Home Loan.
This is it.
Government motivates you.
Most people buy a house on home loan.
And their objective is that every person should have a
house.
That is good.
So pay interest on home loan.
And you will get a reduction of interest.
This was the point.
Because we are talking about interest.
It is good to have interest.
I got an idea.
Which matches the topic.
Friends, you must have seen.
There are some properties.
They have to be made.
It takes a lot of time.
We will talk about that, friends.
Someone said something.
One person got success very early in life.
Within 6 months.
He became a big businessman.
It took another person 3 years to achieve the same thing.
But the first person's turnover was only Rs. 25,000.
Within 6 months, anyone can earn Rs. 25,000.
And the person who took 3 years.
His company is very good.
His sale is worth Rs. 1 crore.
Within a year.
So the thing is.
You can make a lot of money.
But it takes time to build a palace.
It takes time to build a palace.
And it takes cost to build a palace.
Cost means home loan.
When you take home loan.
You will get interest.
When you pay that interest.
And the property is still being made.
For example, I am building a palace here.
I am building a big palace for myself.
This is my palace.
And for this, I took a loan.
And I took a loan here.
I took a loan in 2019.
It was worth Rs. 10 crore.
I am building a big palace.
I was inspired by Shahrukh Khan's ad.
I took a loan from BHFL.
I reached there.
I took a loan from Shahrukh Khan.
When he came to me.
He gave me Rs. 10 crore.
The problem is.
I am building a palace.
And it takes time to build a palace.
It takes time to build a palace.
But my interest.
It started from here.
If I take a 10% rate of this palace.
In the first year, my interest will be Rs. 1 crore.
In the second year.
This is from 2019.
This is from 2020.
If I take a loan from BHFL in 2019.
Then the interest will be Rs. 20-21 crore.
Here I completed my studies in March 2022 and here also I
completed my studies in May 2022.
Now what should I do?
Before building a house, I took a loan.
With that loan, I am building my house.
And I am paying interest for that.
Now what should I do?
Will I get deduction for that also?
Will I deduct that also?
So Modi ji said, Mr. Mukesh Ambani, we understand that you
have taken a loan of Rs. 11,000 crores to build your Antila.
And we also know that it may take 5-6 years or even 7 years
to build it.
Because it is a palace and it takes time to build a palace.
Which is ready in 2 minutes.
So let's do one thing.
Till the time your house is not completed, till the time
you collect your interest and see how much interest you
have.
So I said, 1 crore, 1 crore and 1 crore.
3 crore interest in 3 years.
So Modi ji said, okay, this 3 crore interest, don't deduct
it here.
Because there is no house here.
Do you have a house here?
Is there any house property here?
Not here.
But after coming here, my palace was completed on 31st
March.
Was it in 2019?
Yes or no?
No.
It was here.
Was it here?
It was here also.
But here on 31st March, my palace was completed.
And it became fully functional.
So it means that this palace is living on 31st March 2022.
So Modi ji said, okay, do one thing.
Till now you haven't taken any house property.
We haven't taken theirs also.
Because if you haven't taken the palace, then where will
you get the house property from?
If you haven't taken the house property, then where will
you get it from?
So do one thing.
Collect the interest that you are giving.
Give it and tell me the figure.
And on which year it will be ready.
On 31st March 2022, it will be ready.
On 1st October, it will be ready.
So from here, for 5 years, you have to take the deduction
of 3 crores.
So here you will get 60 lakhs.
Here 60 lakhs.
And here 60 lakhs.
In 5 equal annual installments, you will get the deduction
of your old interest.
This is the concept.
If you buy a house, it takes time.
You have taken a loan to buy a house or to construct a
house.
And you know that it will be ready after 2-3 years.
And by then there will be no income.
Because there is no income for house property.
Where there was no house property, there is no income.
So what will we do?
Collect it.
Keep paying.
Don't give the deduction now.
When your house will be ready,
Equal to 5 years.
Equally.
Divide it by 5 years.
What will be the amount of 3 crores?
You will get 60 lakhs.
You keep taking that from me.
Keep it simple.
See.
If you want to take a copy of this,
You can keep this.
Sir, this is the same as you give 3 crore interest.
I will get the same as I am making 1 crore every year.
What about that?
So give it.
You have made a house for that.
Take 1 crore.
Take it.
Keep it.
It will keep running whenever you have it.
We are giving 1 crore.
We are not giving this.
We are talking about the old loan you took.
And the old interest you put on that loan.
How will you get that interest?
You will get that interest in 5 equal installments.
This can be done.
Simple.
You will rent this palace tomorrow.
You will see the income of that rent.
You will take out the gross.
Minus the municipal tax.
You will come to the net.
The government will take a 20% deduction from the net.
And apart from that,
Take 1 crore as well.
And take this as well.
This is the concept.
There is no limit to this.
Whatever your interest will be.
And you have put that property on rent.
This is a let out property.
Whatever you will pay today.
That is your deduction.
You should have proof.
You should have a certificate.
That you are paying today.
This is it.
But this benefit.
You don't get this in self-occupied property.
They have put a limit in it.
We will have to give you the limit.
Or if you have put a palace on this.
Then you will get this.
Simple.
In self-occupied property,
You have to set a limit.
That you should not go above this amount.
We will give you this amount.
You will not go above that.
I will show you the limit.
Simple.
This is the concept.