Have you given any insurance premium to insure your
inventory?
Sir, why do you give insurance premium to insure your stock?
Please try to understand my small example.
For example, if my shop is in a place where there is a very
high risk of flood, and I have opened my shop there.
I don't know whether I will get that shop or not in the
condition in which I bought it.
I have a doubt about this too.
I went there in the night.
Or in the day time, I was doing my sales, and in the back
of my shop, there were garments, and from here to the top,
there were shirts.
And a flood has come from the front.
The flood is coming, coming, coming, and I am standing here
and watching.
What should I do?
Should I let my stuff flow in front of my eyes?
If it flows, let it flow.
Let it flow, let it flow.
Let me drink from your eyes.
If I have some pain in my chest, let me live in this
pleasant environment.
Should I do this?
You are saying, let it flow in front of your eyes.
What am I saying? Listen to me.
Should I let my stuff flow like this?
Should I make a loss of 10-20 crores?
Should I let all my stock flow?
What will I do in that case?
When will I let it flow?
When I will have the insurance of that stock.
I know that even if my stock floats, gets spoilt in the
water, there is a fire, there is a drought, there is a
flood, whatever happens,
I will go to the insurance company,
I will show my receipt,
I will show a copy of my insurance policy, and I will say,
look sir, my inventory has flowed.
Give me money in respect of this, so that I can buy an
inventory of the same value.
I got the insurance.
And according to me, whenever you do your business, you
have to do it.
In a way, I have told you that you have to do it.
You have to do this.
If you listen to your elder brother, learn to listen to
what your elder brother says.
Even if you do it on a small level, you have to try doing
business once.
When you will be 70-80 years old, you will not have this
desire, that if I would have started my business in my
youth, today there would have been a company worth 100
crores.
You should not have this desire.
You have to open it once in the beginning.
If you will flop, your fate will be seen.
It is not that you did not try.
When you will be 70 years old, you will not think that I
did not try.
I tried, but it did not work.
What to do?
It is fate.
So, if you have given an insurance premium to your stock,
to get it insured, you will also get a deduction for that.
You can put your expenses in the P&L account.
The income tax people will give you the deduction for that.
The more you put the expenses, the more the premium will
be, the more you will get the expense.
Do you give any health insurance?
You have given health insurance to your employees.
You have given health insurance to your employees, because
he was a very important employee.
I have given a very important job to this person.
If his health is not good, if he has corona, if he dies in
the future, or for his hospital, the expenses will be,
let's say, the expenses will be 20 lakh rupees.
And during his job, for example, if he is a doctor, doctors
treat patients, sometimes they also get diseases.
Let's say, that doctor, is a very big asset for that
hospital.
He is a key personnel there.
For his health, he has given insurance.
If something happens to him in the future, and he has to be
treated in another hospital, so that money does not go from
our pocket, the insurance company will pay the hospital.
If you give health insurance in the name of your employee,
then the company owner gets a deduction.
If you are doing a good deed, you should get a deduction in
that case.
And you will get it.
Third point, bonus and commission.
You give a bonus to your employee on Diwali.
In this world, there are many employees who do not give
bonuses, but there are many who do.
Bonus and commission.
If you give a bonus to your employees on Diwali, or you
give a commission, then your employer, who is the owner of
your profit and loss account, can spend it.
Subject to one condition.
We will discuss that condition in a while.
Next.
Interest on the borrowed capital.
You have...
First of all, business is done with your own money.
This is called debt and equity.
What is equity?
The money that I have invested in my own business.
What is debt?
The money that I have borrowed, to run my business.
Now, the interest that I will give on that money,
I should get a deduction for that.
Because it is related to business.
My expenses are related to business.
If I had not borrowed money, would I have been able to run
my business?
There is a lot of debt in business.
Those who own a shop, who have a small business, they know
this.
In that case, you can take the deduction of interest.
For example, if you have a business in your house, and you
make your balance sheet, profit and loss account, or get it
made by a CA, just check today, if you have taken all these
expenses.
If not, then get it changed today itself.
And start depositing all these expenses from next year.
I am telling you for your own good.
With all these expenses, your profit will come down.
And as soon as your profit comes down, your income tax will
also come down.
Are you getting me?
I am talking about interest.
There is also that interest, which you mentioned about
buying a machine.
I had bought a machine from abroad.
For that, I had also given interest.
Yes, of course.
So, in that case, the interest that you were paying, you
had added it to its actual cost.
Now, here you are telling that you have added it to the
actual cost.
Here, you are telling to deduct it from the profit and loss
account.
What is this double-double game you are playing?
What is this duality?
I said, son, this word duality is nothing.
There is no duality.
At that time,
I told you one thing.
Maybe you did not listen carefully.
I said, till the installation of that machine, till the
installation of that machine, till the production does not
start from it, till it is not put to use, till it is not
used, till then, add the expenses to the actual cost.
Once the production starts from the machine, once the
machine starts being used, the value of that machine,
means, the interest, do not add it to the cost, the
interest, you will deduct it from the profit and loss
account as expenses.
Is the point clear?
Shall we move ahead?
Until the machine is not installed, add it to the actual
cost.
Once it is installed, once the work starts from the
machine, once it is put to use, from the profit and loss
account, you will deduct it as expenses.
This is the point.
Discount on zero coupon points.
There are zero coupon points, there is a discount on it.
So, the value of the discount, divide it by the number of
years, you will get the expenses for every year.
Come, sir.
Contribution to provident and other funds.
And what is the second one?
Pensions.
What is all this?
For example, you are the owner,
I am telling you, in this chapter, what will you consider
yourself?
You will consider yourself a businessman.
Now, when you become a businessman, you will have a lot of
responsibilities.
You will have a lot of burden on your shoulders.
One of them will be the burden of provident fund.
The employee will put something or the other in the
provident fund from his salary.
Remember, in the salary chapter, we had discussed that the
employee puts 10,000 from here, who puts 10,000 from there?
The employer puts 10,000.
So, the employer who is putting 10,000,
in that case, should he get a discount?
Should the employer show the expenses in his profit and
loss account or not?
He should.
So, he will show the expenses and he will take the
deduction there.
But the condition is that
the provident fund should be recognized.
We had made a very solid discussion there.
What was recognized?
Approved.
Superannuation fund.
Approved gratuity fund.
If you give here,
in approved, in recognized, then you will get the deduction.
If you give in unrecognized, then the employer will never
get the deduction.
As a businessman, you will never get the deduction.
There is a condition of 43 B.
We will discuss it later.
The same condition was there in the bonus and commission.
I had told you to hold it.
We will discuss it later.
Pension scheme.
In pension scheme,
the actual contribution of the employer or 10% of the
salary, whichever is less.
Actual contribution or 10% of the salary, whichever is less.
Employer will get the deduction.
Employer means businessman, you will get the deduction of
that much.
Okay.
We have discussed the provident fund.
We have also discussed the pension scheme fund.
Employer will get the deduction.
But all this should be recognized.
It should not be that you are giving money in unorganized.
If you give in unorganized, then you will never get the
deduction.
As a businessman, you will never get the deduction.
For example, an employee makes a contribution for a
provident fund.
I was telling you that we make a fund.
What do we do with that fund?
What do we do with that fund? Employer puts money in it.
Employee puts money in it. Employer puts money in it.
Employee puts money in it.
So basically what are you doing is that you are taking a
contribution from that employee.
You put money in it. Okay.
You are taking money from that employee and putting it in
that fund.
But sometimes you can also make such a mistake that you
took money from the employee but did not put it in the fund.
So in that case, what will happen?
Sir, you took money from the employee and did not put it in
the fund.
Should it be believed that this is your income?
Yes or no?
You took money from someone and did not put it in the fund.
It will be believed that this is your income.
The due date of the fund.
If you do not deposit the employee's contribution by the
due date of the fund, then that contribution will be
taxable in your hands.
It will be believed that your intention is wrong.
You have no intention of putting money in that fund.
You are a businessman. You are a red man.
It will be taxable in your hands.
So whenever you become a businessman, be sure to keep the
dates of the provident fund and pension fund in mind.
You have to make your contribution as an employer.
But you will have to deposit the money taken from the
employee to the due date of the fund.
Only then you will get its deduction.
Next point.
For example, if you use sheep and goats in your business.
For example, someone has a dairy business.
What will the dairy man do?
He will buy cows, buffaloes and milk from them.
And he will package the milk and sell it.
It is a dairy business.
And suppose one day a cow or buffalo dies.
What will you do?
Will you get a deduction for that as well?
Tell me.
You will get a deduction.
It is a strange case, but you will definitely get a
deduction.
How will you get a deduction?
You will get a deduction for the amount of cow or buffalo
you bought.
Minus the skeleton of the cow or buffalo.
You will get a deduction for the amount of meat you sold.
Sir, what are you saying?
What should I do in the syllabus?
I am not telling you these things from my house.
You will have to do it in the syllabus.
This is the point of bad debts.
We will discuss it in the next lecture.
Today I just feel like staring at you.
I will keep staring at you.
Just you, me and this moonlit night.
Let's end it here.
We will discuss bad debts in the next lecture.
This was session 36.
You will get the deduction for the expenses from your
profit and loss account.
Okay, friends.
Bye.
Always be happy.
Bye.