Yes friends, how are you all?
I hope you are healthy and well.
Let me tell you, I am also very well.
Sir, you are looking very handsome today.
Oh man, thank you very much.
If you remember, my dear, in the last lecture, we had
discussed with you about a very important section.
And that section said that if you pay more than Rs.
10,000 in cash, for any expense,
if a person pays more than Rs.
10,000 in cash in one day, then that payment will be
disallowed.
If you have written that expense in your Profit and Loss
account, then you will have to remove it from there. As per
Income Tax Act.
You will have to add that expense in your Profit.
You will not get any deduction for that.
But remember, one person and more than Rs. 10,000 in one
day.
Suppose you pay five people, each person is getting Rs.
9,000 payment in one day.
Five different people are getting Rs. 9,000 payment.
Allowed or disallowed?
Will you get the expense?
You will get everything.
Who will not get it?
One person who is paying more than Rs. 10,000.
In that case, the person who is paying, he will not get the
expense.
We had discussed this in our last lecture.
Today, we are going to discuss about the expenses incurred
in a partnership firm.
Till now, we were talking about whether all that is
incurred in a partnership firm.
All that is incurred in a partnership firm.
Companies, individuals, whoever earns money from business,
whether you and I earn as individuals, or we open a company
and earn,
all these provisions are incurred on them.
But on a partnership firm, another provision is incurred.
That is, apart from that, another provision is incurred on
them.
I am going to discuss that today.
Let's start the topic.
In the name of God, say Ram Ram Ram.
The topic says that in a partnership firm, the partners,
the partners in that firm, how do they earn their income?
Tell me.
How do the partners earn their income? For example, if I
talk about a partnership firm, its name is Chatur
Associates.
Chatur Associates.
Okay? Three people opened this firm together.
Three of them are my dear friends.
We sit together every day.
These three must be partners.
Who? One is Mr.
One is Mr. Raju.
And one is Mr. Farhan.
These three are my dear friends.
And they opened their firm, opened a partnership firm,
whose name was Chatur Associates.
Okay? Do you remember the names?
From where?
Okay.
Now the problem is, these three are working hard.
For example, what is his job?
He is very good at technology.
So he is in charge of technology.
Raju is in charge of bringing in clients.
He has expertise.
He is very good at marketing.
So he is in charge of marketing.
Farhan says,
I am your friend.
You can keep me like this.
I will come for the sake of friendship.
I will not do much work.
I don't do much work.
I have a lot of demand in the South.
I live there.
Okay? He is my friend.
I keep him as a friend.
Now the problem is, when he takes the salary, for example,
he will take Rs.
He will take Rs. 50,000.
When he will pay this, then he will say,
Farhan, you don't do much work.
Why should I give you salary?
In this case, should Farhan get a salary?
Does he do any work?
He is just a name partner.
Is he a working partner?
He should not get a salary.
But now try to understand the second aspect.
If I am running a partnership firm, my objective is to show
the income tax people the minimum amount of profit.
For that,
I will have to spend as much as possible.
I will not differentiate who is a working partner and who
is a non-working partner.
I will spend everyone's salary.
My profit and loss account, if the gross profit is Rs.
I will spend everyone's salary so that my profit is reduced.
Don't you think this is wrong?
This person, who does not do any work, we have made him a
partner for the sake of friendship, but neither do we take
any service from him nor does he give us any benefit.
And just to show him the expense, to reduce our profit, we
show him our salary in our books.
Are we showing off or not?
We are giving a salary to a person who does not do any work.
Just so that my profit is reduced and the income tax is
also reduced.
So the government has said that we will not let this happen.
We also understand that you will make many such people
non-working partners.
You will bribe someone and make them non-working partners.
You will give them a salary.
You will reduce your profit.
Later, you will take the salary that you have given them in
cash.
This can be done easily.
So the government has said, no, this is not the case.
For this, we will bring a new section.
That section will tell us how much deduction a firm should
get, how much expenditure a firm, a partnership firm, can
take,
how much expenditure a firm can claim when it gives a
salary to a partner or when it gives an interest to a
partner.
That section has told us everything that we are going to
discuss now.
Is the point clear so far?
Sir, when a person opens a partnership firm, he is also a
writer.
As I told you, in this case, this Chatur Limited,
Chatur Associates for example, was giving a salary of Rs.
50,000 to all three partners.
Now, where will this Rs.
50,000 be decided from?
It will be written somewhere, right?
Will there be an agreement between the partners that your
salary is Rs.
50,000, apart from this, you will take these facilities,
your salary is this much, you will take these facilities
and you will work from this time to this time.
This will be your contribution and apart from the salary,
there will also be a profit-sharing ratio.
Where are all these things written?
They are written in a document.
The name of that document is Partnership Deed.
Have you ever read this in 11th or 12th grade?
There used to be a partnership accounting, admission of
partner, retirement of partner.
Do you remember anything?
So, in this Partnership Deed, what will be written?
Who will take how much salary?
Who will get how much bonus?
Who will have how much share in profits?
It is very important to make a Partnership Deed.
Partnership, this is my personal experience, all the
partnerships, do not last for long.
There are always arguments about money.
If you try to do your work, then avoid partnerships.
Why is there a partnership?
Because one has money, and the other has skill, knowledge
or talent. And there is no money.
Both meet and start a business.
Ultimately, when there is a profit, one says that it is
happening because of me, and the other says that I have
invested money, that is why there is a profit. The paths of
both separate later.
So, try to do business with your own money.
I trust the partnership a little less.
Anyway, this is a different thing, whether I trust it or
not.
Anyway, we were talking about the Partnership Deed.
A Partnership Deed is a document where all these things
will be written that who will take how much, who will take
what.
Now, a partner, as a partner, what all payments can go,
what all payments can be received, you tell me.
You tell me, what will go? Salary, very good.
What else can go?
You tell me.
He can get profit.
What else can he get?
A bonus?
Very good.
If a partner brings an order, a sales order, he can get a
commission.
He can take a commission.
All these things.
All these expenses will be allowed to a firm and the
partner will receive all these things from whom?
From the partnership firm.
Now, we have to see what all expenses will be allowed to
the firm.
The interest on capital account or interest on current
account, have you read these terms?
If a partner has invested 10 lakhs, 3 partners have
invested 10 lakhs, 30 lakhs.
What is the partner giving?
In a way, the firm is giving you money to move your work
forward.
So, the firm will give you an annual interest on that money.
How much interest can be given, how much will be allowed
and how much will be disallowed, that is what I am talking
about.
Interest on the capital.
Capital is what the partner has invested.
The firm pays interest on that capital.
I am using your money.
If I had not taken it from you, I would have taken it from
a bank.
I got it easily from you.
Now, I will give you interest on that money.
Come sir, let us discuss this.
Let us discuss this.