Yes friends, how are you? Good morning, good evening, good
afternoon, whoever is watching me at this time, how are you
all?
How are you all? The weather is pleasant, isn't it?
What kind of weather is it in your city? What kind of
weather is it inside your body, sir?
A weather also runs inside you, which keeps you happy,
keeps you sad, makes you laugh, gives you pain, that is
also a weather.
The people who say that how is the weather today, actually
they are not saying that how is the weather outside, they
want to know about your weather.
If you say that the weather is very good, it means that you
are also satisfied with your life, happy.
But you say that today the weather is very bad.
Remember, the day you said that the weather is very bad,
that day you yourself must be feeling depressed.
That is why you must have said this.
The weather inside you is more important than the weather
outside, sir.
It is very important to always keep the environment inside
you focused.
There is nothing in life that can be achieved by getting
distracted here and there.
I am telling you the truth.
They say that you don't get your destination just like that.
You have to awaken a passion in your heart.
Someone asked a bird, how does a nest form?
It says that you have to pick it up piece by piece, sir.
Piece by piece.
The classes that you are watching, by doing it piece by
piece,
keep this hope, keep this courage,
that this piece by piece will make a palace full of
knowledge.
And when you will give that knowledge in front of someone,
they will feel that a tax consultant is talking to them.
Sir, have confidence in yourself.
Let's start today's new topics.
Do you remember in the last lecture,
we discussed about the cost of acquisition in 3-4 lectures.
About the cost of improvement.
We discussed about some cases where the capital asset was
being transferred.
Today, in this year.
But when was it taxable?
In some other year.
Sir, this chapter is taking its last breath.
Doctors have also given an answer to this.
Now, this is the last guest of a few moments.
Let's discuss about the rates of tax.
What was the difference between short term capital gain and
long term capital gain?
What was short term and what was long term?
We had classified it in the beginning.
And I had told you the purpose.
What was our purpose of classifying it?
The purpose was that the rates of tax are different.
In one, you get the benefit of indexation.
In the other, you don't get the benefit of indexation.
Sir, we had discussed about indexation.
What is the difference in the rates of tax?
Can someone tell me what is the difference in the rates of
tax?
Come on, quickly.
I will tell you.
There are only 2-3 sections.
They are not very important.
I mean, they are important.
They are very useful in real life.
But they are not so much that you can't understand.
Take this, sir.
Sometimes, my laptop gets spoilt.
Sometimes, my pen gets lost.
Come on, sir. Try to understand.
What am I trying to say, sir?
For now, let's talk about short term capital gain.
What is short term capital gain?
This is your sale consideration.
Sir, which ink are you using?
Sir, my ink has become thick.
They make it thin.
Why do you get tensed?
Then, I had reduced some expenses.
This was my net sales.
Do you remember?
Because I am talking about short term.
If I am talking about short term,
then in the case of short term,
you don't get the benefit of indexation.
So, I will reduce the cost of acquisition.
I will reduce the cost of improvement.
What will I get?
Either short term capital gain
or short term capital loss.
Do you remember this point?
Or have you forgotten?
Do you remember, my dear?
Do you remember the promises we made?
Do you remember?
Come here.
Now, what do I want to say to you?
What do I want to explain to you?
I want to explain that
the whole exercise that we were doing,
that we removed short term capital gain,
why were we doing this?
The objective of doing this was
that somehow,
my tax should be deducted from this.
Short term capital gain,
its tax rates are different.
Short term tax rates were different.
Long term capital gain,
its tax rates were different.
Now, I want to know the tax rates.
Whatever be the tax rate,
I will multiply it.
My income tax will be deducted.
This is what we are discussing.
Do you understand?
Now, I will explain to you
what are the tax rates.
In some cases, what are the tax rates.
Is this point clear?
Let's move ahead.
Let's discuss.
This is our short term capital gain.
The calculation that we did
that from the sale consideration,
we deducted the cost of acquisition
and cost of improvement,
my short term capital gain was deducted.
Now, the government has divided it into two parts.
The government has divided it into two parts.
The government loves to divide.
The government has divided it into two parts.
One is the short term capital gain
that you earn from the share market.
The other is the others.
There are two points.
The short term capital gain
is divided into two parts.
One is the short term capital gain
that you earn from the share market.
The other is the others.
If you buy a property today
and sell it after 6 months,
it is in the short term.
If you buy gold or jewellery,
if you buy jewellery today
and sell it after 8 months,
it is in the short term.
The capital gain tax for that has to be deducted separately.
The rest has to be deducted separately.
What is it?
Let me tell you.
Let's call it the share market.
It is actually called something else.
I am explaining it to you as an explanation.
And these are the others.
Let's call it as a section.
It is called 111A.
Section 111A.
What does this section say?
This section says
that if you have earned
capital gain
on equity shares
or equity oriented funds,
you have earned capital gain
on equity oriented funds.
You have earned capital gain
on equity oriented funds.
You have earned capital gain
on equity oriented funds.
You have earned capital gain
on equity oriented funds.
Short term.
Not long term.
Short term.
Do you remember
the time limit in their case?
Do you remember the period of holding?
Generally, they used to take 36 months.
Land and building
and in the case of unlisted shares,
I remember it was 2 years.
And what was the limit for 1 year?
We had listed shares.
Or equity oriented funds.
So if you have held for 1 year,
up to 1 year,
what will you get in short term?
But if you buy today
and sell it after 1 year,
what will you get in long term?
For example, you bought this share today
and for 6 months,
I bought a share worth Rs.1000.
Okay?
I got some inside information
that this company is going to get a very good profit
in the next 6-7 months.
It has got very good orders.
I said,
what benefit will I get from this?
I will only get benefit
when I become its shareholder.
So that if its share increases,
my wealth will also increase.
I went to my house,
went to my room,
and saw myself in the mirror.
And the man inside me said,
you are Harshad Mehta.
I am also Harshad Mehta.
And what did I do?
I bought shares worth Rs.10 lakh
that day.
And as I had predicted,
within 6 months,
the share worth Rs.10 lakh
doubled to Rs.20 lakh.
I said, money has doubled.
Let me sell the share.
And the profit I got from selling the share,
I will buy a shiny car from that.
Now what will be my capital gain?
Sale consideration of Rs.20 lakh.
Cost of acquisition.
First, I will reduce the expense
that I will give to the broker.
After that,
I will reduce the share worth Rs.10 lakh
that I bought.
Cost of acquisition.
Here, let's say,
9.80 lakhs.
What did I get for Rs.9,80,000?
Short term capital.
capital gain.
Why short term sir? Why short term? That's why it came out.
That's why it came out.
Because there was a time limit of 1 year.
If it goes beyond 1 year, then long term.
But how much time did I hold it? 6 months.
So according to 6 months, my short term capital gain came
out.
It was a short term capital asset, that's why it had a
short term capital gain.
Because now tell me, what is the short term capital gain?
Is it from the share market? I have sold listed shares, I
have sold equity shares.
So for equity shares, there is a different rate.
What is that rate, my dear? That rate is 15%.
Means if you multiply this 9,80,000 by 15%, your short term
capital gain tax will come out.
It's a simple point sir.
But this 15% rate is only for the share market.
You sell listed shares.
Now there are some units of mutual funds, equity oriented
ones, not debt ones.
There are units of equity oriented mutual funds.
You sell them.
There is a short term.
Short term means you are selling it before 1 year.
Whatever profit you will have, you can directly put 15% on
it.
That is your income tax.
This will come out, this is my income tax on this.
Income tax.
Any problem?
This is the share market.
The share market destroys people's houses.
They used to say that they used to work in the share market.
Their houses were sold, cars were sold, factories were
sold, they came on the road.
The government gives some benefits to the share market
people because income is very beneficial for the economy.
The companies get to know their real status according to
their shares.
If a company's share is running really well, then it is
assumed that the company's operations, its management is in
good hands.
The company is performing well.
Do you remember what happened with Adani some time ago? The
news came that they buy shares in Adani and create
artificial demand in the market.
All the shares fell.
A share of Rs.
4000 fell to Rs.
1000 in just 4-5 days.
So this share market indicates to you, it tells the general
public how the company's operations are going on.
Now what is in Adars?
Adars has a horse, a car, everything.
What does a horse and a car mean, sir? Sir, you have sold
jewellery.
You have sold some jewellery.
You have sold some property.
You have sold some land.
Because apart from the share market, there are also capital
assets.
Apart from shares, there are also capital assets.
You have sold some capital assets.
You have sold drawings.
You have sold paintings.
In that case, what do you have to do? In that case, you
have to take the normal rate.
You have to take the normal rate.
There is no special rate for that.
You have to take the normal rate in that case.
Come and have a look.
Director of Adars.
Adars
has
a
horse, a car, everything.
You
have
sold jewellery.
You have
sold paintings.
You have sold jewellery.
You have sold
jewellery.
You have
sold jewellery.
have sold jewellery.
The balance that comes out, 15% tax will be applied on it.
This is the case of the share market.
Now, the other small capital gains, short term, like
jewelry sold, or the short term capital gain by selling
land and building, what about that?
That will be applied on normal rates.
How do we calculate the total tax, sir?
Total tax, the normal income, the slab rate on that, what
has to be added to that tax, this 15% one, add this to it,
the total tax will come out, friend.
I will end today's lecture here.
In the next lecture, we will discuss how to do it in the
long term.
Bye, friends.