How are you all? I am your friend, Shreya Gupta, your
friend, your companion, your companion, your sympathizer in
this discussion of tax.
How are you, friends? Are you fighting? If life is
knocking, then you are facing that knock, my dear.
If not, then you are harming yourself, because life will
not leave any stone unturned.
But, it is up to you, how you play that life, sir.
Remember my words, that in the race of success, the one who
fights bravely against the difficulties of life, is always
ahead.
Take care of yourself and your success. Keep working hard.
Have confidence in yourself, sir. One day, success will
surely kiss your feet.
With this, I would like to start today's topic, which we
were discussing.
If you remember the last lecture, my dear, we were
discussing some deductions of Section 36.
Sir, what was Section 36 and what were its things?
Let me do a small recap, before starting the lecture.
I was saying, my dear, that we had made a profit and loss
account.
We had written our sales here. For example, we had gross
profit here.
What have we done till now? What are we trying to
understand and read in this chapter?
We are trying to read and understand, my dear, what
expenses I can put here, as per the people of the Income
Tax Act.
Whatever expenses I put here, my gross profit will decrease.
As my gross profit decreases, eventually my income tax, my
dear friend, will also decrease.
If you remember, in the beginning, we had talked about
rent, repairs, insurance expenses.
After that, a very big topic came up, whose name was
depreciation.
How much depreciation expenses were allowed? We had
discussed this, sir.
After that, we had discussed scientific research as well.
If you have done a capital expenditure, you can also reduce
that expense here.
Then, in section 36, I had brought you here.
In section 36, we were discussing, for example, if you have
an interest or interest.
If you have an interest, you get a leave.
The more interest you pay to the bank, the more you have to
reduce from your gross profit.
Why am I reducing all these things?
Because all these have to do with my business.
If I don't do all these expenses, my business won't run.
If I don't pay the rent, my business won't run.
I won't get a job without paying the rent.
I have to do business. For that, I need funds.
For that, I have to take a loan from the bank.
What will I do with the loan? I will give interest on it.
So, this should also be a minus for me.
There are many other things.
Here, the contribution of the employers was mentioned.
The contribution of the employer.
PF, ESI, in that.
Then, we also discussed this, in the end, that I am an
employer.
I have taken the contribution from the employees.
But, I did not deposit that money till the due date of the
fund.
So, the government had said that it is wrong in your
intentions.
And, that money will be considered as your income.
That money will be considered as your income.
In a way, that money will be added here.
Was the point clear till here?
Now, let's discuss further.
The last point of this section was about bad debts.
Bad debts.
What am I saying?
I have said, bad.
Bad means bad.
Bad debts.
Have you ever heard this term in class 11, class 12, B.Com?
Bad debts.
A debt.
What does debt mean?
I had to take money from someone.
I had to take money from my debtor.
But, that debtor became bad.
That debtor started smoking.
That debtor started drinking.
What am I saying?
I am saying that being a bad debtor means, from where I had
to get money, now I will not get money from there.
He took my money and ran away.
Try to understand this with an example.
For example, there is a man.
There is a man.
What is his name?
His name is Mithun Chakraborty.
He was standing on the road.
It was Diwali time.
At the time of Diwali, he set up a cracker shop.
He stood on the road and said,
Ladies and gentlemen,
I go to the temple and light incense sticks.
My name is Mithun Chakraborty.
Buy these crackers from me.
I have opened a cracker shop.
Two customers came to him.
Two customers came to this man.
Who were those two customers?
These were the two bad guys.
Sir, these are the two customers.
This is the big bad guy.
This is the small bad guy.
They said,
Mithun sir, give us crackers worth one lakh rupees.
We will return the money to you after a few days.
Our time is not good.
We keep going inside and outside.
Do you understand the meaning of going inside and outside?
We keep going inside and outside.
It is time for us to go inside.
When we come out, we will return the money to you.
Mithun sir gave them crackers worth one lakh rupees.
He said, you can make the payment after two months.
Sir, look at their faces.
Look at his face.
Looking at this man's face, do you think that if he takes
money from you, he will return the money to you?
Looking at his face, do you think so?
Do you think that if he takes money from you, he will
return it to you?
The way they look, the way they behave, they did not give
him the money.
They took Mithun sir's money.
They did not give him the money.
While crying,
Mithun sir came to me and said,
Mr. Gupta, how are you?
I said, Mithun sir, I am fine.
He said, I have incurred a loss.
I said, what happened?
He said, I sold a product worth one lakh rupees to a person
and I am not able to repay that money.
In a way, I have incurred a loss.
I have incurred a loss.
So, the Profit and Loss account that I will create,
I will create my Profit and Loss account.
So, in that Profit and Loss account, should I put my loss
money on the expense side?
If this is my gross profit, then should I put my loss
money, my bad debts, on the expense side?
One lakh rupees?
Tell me.
Can I put it?
I said, put it.
What is the problem?
First of all, it is a business related expense.
This expense happened during the business.
I supplied the goods, but I did not get the money.
So, in a way, it is my expense.
So, in a way,
I should get the deduction.
The government said, you will get the deduction, but there
is a possibility of fraud.
How is the possibility of fraud?
You sold the goods to a person, and you said, do one thing,
pay me in cash.
There will be no accountability for the payment in cash.
Pay me in cash.
Don't do it by cheque.
And I will prove that you did not pay me.
And I will take the expense of bad debts and reduce my
profit.
Okay? Is this possible?
Is this possible?