Yes friends, how are you all?
How are you?
Sir, how are you?
I am good.
Blessings to all of you.
I get a chance to meet you.
It becomes my day.
Sir, you are in a very poetic mood today.
It's just a small lecture in a poetic mood.
It's a small class.
I don't want to have a long discussion.
Because our last few lectures have become very heavy.
Right? Forgive me a little.
Nothing heavy.
The content goes like this.
What should I say?
The sections are such that even I get helpless.
But I always try to simplify it.
It's okay.
These are a few topics.
They are not very big topics.
Let's try to understand them quickly.
What is the name of the topic?
Deemed.
Full value of the consideration.
Deemed.
Full value of the consideration.
What does it mean?
What is the full value of the consideration?
Which is our sale proceeds.
When we sell any capital asset, to get the capital gain, we
calculate the sale proceeds first.
Sale proceeds can also be deceived.
Till now we have talked about minusing any of the sale
proceeds.
Then you get the capital gain.
But if I want to reduce the capital gain, then I can also
do this.
If I want to reduce the value of my sale proceeds, if I
want to keep it actual, and reduce the value of sale
proceeds, then what will happen?
If I am selling an asset worth 100 crores, and my purchase
cost is 10 crores, then my capital gain is 90 crores.
But if my purchase cost is 10 crores, then I can also do
this.
I can show that my sale proceeds are worth 10 crores.
If I have reduced the sale proceeds of 10 crores, then my
capital gain is zero.
Is this possible?
Sir, manipulation is a story.
Manipulation can happen everywhere.
India has always been a country of manipulation.
Manipulation is everywhere, from politics to business.
Manipulation is everywhere.
If you take wheat or rice, it is manipulated.
If you put pebbles in it, if you mix water in milk, it is
also manipulated.
The government has said that if you keep doing this, then
one day our country's treasury will be empty.
Forget about good days, children will not come to us even
for a few days.
We will have to treat this.
And the treatment is, whether you believe it or not, we
will assume that these are the sale proceeds.
Whether you believe it or not, it does not matter to us.
We will assume that these are the sale proceeds.
Your capital gain will be based on this.
Whether your actual transaction is at any value.
Whether your actual transaction is at any value, it does
not matter to us.
It will be assumed that this value is your actual sale
proceeds.
This is the point.
Let's see.
The first case is of land and building.
Director, if you could focus a little behind.
It is a case of land and building.
What is there in the case of land and building?
It is a simple thing.
You are doing a property transaction.
There is so much blind manipulation in the case of land and
building.
You cannot even imagine that.
It is a transaction.
I took a cheque for half the amount.
The rest is cash.
I am selling a plot worth 1 crore.
I took 50 lakhs from the cheque.
I am taking 50 lakhs in cash.
Sale proceeds.
If I come to show the sale proceeds, then how much will be
the sale proceeds in that case?
What is the proof worth?
There is a proof of 50 lakhs.
There is no proof of cash.
I have reduced my sale proceeds.
Now whatever is my cost of acquisition,
I will minus that and make it capital gain zero.
People do reverse calculation.
They come in reverse calculation.
Do you want to make capital gain zero?
Okay.
Do you know the cost of acquisition?
How much is it? 10 lakhs?
Okay.
So minimum, show sale proceeds of 10 lakhs from number 1.
I showed.
Rest 90 lakhs in cash.
This much manipulation is done.
This much is done in property transactions.
Now how can these people be caught?
In this way, the government is incurring a heavy loss.
Where capital gain tax should be applied, it is not being
applied.
Because you are showing value zero.
So the government said, okay, no matter how much money you
transact, it does not matter to us.
We will believe that you have done that transaction on
stamp duty value.
If some conditions are satisfied.
We will believe that the market value of the transaction
that you are telling is 10 lakhs.
The plot you have sold, the plot of 1 crore, you have sold
it for 10 lakhs.
Saying that its market value is 10 lakhs,
we are not considering the market value.
We will look at its stamp duty value that in the government
documents, in that city of that city,
in that street of that city, what is the value of that
house?
The stamp duty value that will be said, we will consider
that value as your sale proceeds.
Whatever you say,
it does not make any difference to us.
Stamp duty value will be considered as your sale proceeds.
When, when, what are the conditions?
If the stamp duty value exceeds, 110% of the consideration
received.
Means, how much is the consideration received?
Actually, it is 1 crore rupees.
It is 1 crore actually.
90 lakh cash, 10 lakh cheque.
So how much will it tell?
That I have received the consideration of 10 lakhs.
Now what will we say?
We have to check that the consideration that I have
received of 10 lakhs,
the consideration that I have received of 10 lakhs,
is my stamp duty value
more than 110% of that consideration?
Means, is the stamp duty value more than 11 lakhs?
Is the stamp duty value more than 11 lakhs?
Actually, there was a rate of 1 crore.
So the stamp duty value is of 80 lakhs.
Now is this 80 lakhs more than 11 lakhs?
Answer is yes.
So in this case, what will be considered?
Stamp duty value will be considered as your full value of
consideration.
Assume that the plot or the land that you have sold, you
have sold it for 80 lakhs, my dear.
You have sold this property for 80 lakhs.
You keep saying 10 lakhs, it does not make any difference
to us.
Assume that your sale proceeds are 80 lakhs.
The capital gain that will come out, will come out
according to 80 lakhs.
Why will it come out?
Because the stamp duty value,
the 10 lakhs that you were showing,
is more than 110%.
So what is the stamp duty value to be taken?
It is a simple thing.
You have to take the date of agreement.
The day I get it registered,
I have to take that date.
It is a simple thing.
Even if I get 1 rupee from number 1, number 1 means,
I get it from the account paid cheque.
It comes from the account paid draft.
It comes from the electronic clearing system.
Even if I get 1 rupee,
the rate on the day of date of agreement, will be taken as
the rate of stamp duty value.
This is what point A is saying.
If the date of agreement is different from the date of
transfer,
whether you call it the date of registry or transfer,
because you will only accept the transfer the day you get
the registry.
And the whole of the consideration or part of the
consideration,
even if you get 1 rupee from the cheque,
from the account paid cheque, or from the electronic
clearing system, or from other modes, then you will accept
the value.
Otherwise, the rate of stamp duty value on the day of
transfer, will be accepted.
This is the point.
Did you see?
Did you see this?
Are there any unquoted shares?
Unquoted means, which are not listed anywhere.
Like the share of shadi.com.
Is that share listed anywhere?
It is not listed anywhere.
Is it listed anywhere in India?
It is not listed anywhere.
Is the boat listed anywhere?
It is not listed anywhere.
So, what is the value of their shares?
Fair market value of the share, determined in a prescribed
manner.
What is prescribed manner?
We will see later.
Their fair market value is determined.
Is there any other capital asset?
That will also have a fair market value.
Is there any problem?
Let's come to the next topic.
Let's keep it at the end of today's lecture.
Advance money forfeited.
Advance money received.
Section 51.
Advance money received.
Let's zoom out a little.
What is the meaning of advance money received?
In property transactions,
when two people are doing a deal,
for example, I am doing a deal with my director, of a
property transaction.
Our director,
let me tell you, he is a billionaire.
He has built a property worth lakhs of crores.
and tell them that I am doing MBA. He is the owner of a
property worth crores of rupees.
And I saw his property and I am also a bit hungry for
property.
So I told my director that what is the value of your
property? He said one crore rupees.
I said one crore rupees is there.
So take this five lakh rupees in advance.
Keep five lakh rupees in advance because I have already
booked your property.
I will make the rest of the payment within three months in
installments.
You must have heard this.
You must have seen this.
This happens a lot in property transactions. You have given
some advance money in the starting.
Friends, some call it as statement. Some call it as
visible. And we call it as advance money.
Visible, statement or advance money.
Now this advance money that I have given, this advance
money that I have given, I have given it in the condition
that I will make the rest of the payment within three
months in installments.
But assume that tomorrow
I would not be able to make the payment in installments.
So I have given a right to our director that if I do not
come to give this money within three months, then
automatically after three months, what should I do with
this five lakh rupees? I should take it in installments.
This is actual.
In property dealings, whenever you see, ask any elder
person in your house that the money of statement that you
give, and later you reject the payment or later you say
that you do not have interest in this property.
That money is taken away and then you do not get it back.
The money that is gone from your pocket is gone.
My pocket is gone.
If our director receives this five lakh rupees, is it his
income?
Has he received it from somewhere? Has it become his income
in a way?
Now this income is there, but in which head should we show
it?
Is it income related to capital assets? Is it all income
related to capital assets?
So it is a simple thing.
Let it go.
It should be in capital gains only.
But what did the government tell? They said that it is not
like that it will go in capital gains.
They told it in a simple way that if your 1,4,2001, no no,
end of 2001 chapter.
We have beaten the man of 2001. I also met a boy in the
street who was born in 1,4,2001.
I took off his coat and beat him a lot. So he left. Here it
is 1,4,2014.
If on the day of 1,4,2014 or after that if you have
someone's advance money which you take, then it is your
income.
But in which head will it go? It will go in other source.
And if it is before that, then it will go in capital gains.
Come, let's read.
Section 51 provides that while calculating capital gains,
above advance must go to reduce the cost of acquisition.
Earlier it used to be that the cost of acquisition which
you used to receive in advance, you used to minus that.
But now it is considered in other source.
It is taken to other source.
So when it is taken to other source, there income tax is
applied on it.
So now why should I reduce my cost of acquisition? However
if advance has been received or retained by the previous
owner and not the SAC, then the same will not go to reduce
the cost of the acquisition.
Section 56.9 says that taxability of any sum of money
received as advance in the course of negotiations.
Simple. This is the point.
Now it goes to other source. You can see its chart from
here. You don't have to read much.
If advance has been received before 1,4,2014, then whatever
you used to receive, you used to minus that with cost of
acquisition and taxability is postponed to the year of
actual transfer of capital asset.
When was the tax due? When you used to sell the actual
capital asset.
But now we are in 2022 phase and we are talking about
1,4,2014.
So now the advance money which is forfeited, income from
other source is taken and taxable.
Advance money
is forfeited.
What can we call it as token money? This is the point.
Today's lecture was easy.
Today's lecture was light.
I have kept it light because you all worked hard with me
there.
Just pat your back.
Assume that I am patting your back.
That time you supported me a lot in the last two lectures.
That's why today I have given you a free period.
I didn't make you study much.
Sir, it is very important to cheer yourself.
In this world, no one will clap for you.
No one will support you.
No one will cheer for you.
You will have to create a motivation in yourself.
You will have to praise yourself.
Sir, you don't lose in falling.
You are a human, not an avatar.
Falling is not wrong but getting up after falling.
Getting up after falling is a big thing.
Falling is not a big thing.
But you are lying there.
That is wrong.
Get up after falling.
Fall again.
No problem.
But get up again.
No problem.
Sir, it is a big life.
No one is going anywhere.
again. No problem.
But don't just lie there.
Get up and work hard.
See you in the next lecture.