Yes, friends, how are you all?
How are you all?
Good? Good? Good? Great? Is everything going well in life?
Is everything fine at home?
Sir, you asked.
This is a very big thing for us.
Look, there is a bonding between us.
It is my duty to ask, sir.
Your family members are also related to me.
I am also related to you, isn't it?
Come on, sir.
Emotional talks will continue.
Come on, next.
What did we talk about in the last lecture?
We talked about the compulsory maintenance of the books of
accounts.
We had decided.
We had discussed that we had set a limit of 1.5 lakh rupees.
In the case of professionals.
In the case of professionals, like singers, actors,
lyricists, CA, doctor, lawyer.
For these people.
We had set a limit of 25 lakh rupees for business people.
Okay.
The point was clear up to this point.
Now come to a very important section.
Sir, you say this before every section.
Very important section.
What is it?
Very important.
You have to tell a little.
It is very important.
If I don't tell.
Then you will pay attention to that thing.
You will say, leave it, man.
Skip this thing.
No, but this is an important section.
This is the audit section.
This is the section of CA people.
Tax audit section.
You must have heard this word somewhere.
If not.
So the day you.
The day you.
Will take entry in the corporate world.
There you will get to hear the word tax audit again and
again.
What is tax audit?
How does it happen?
Who does it?
Till when do we do it?
On whom do we do it?
We will try to finish our discussion about it in 10-15
minutes.
Sir, what happens?
You have made your books of accounts.
You have made your books of accounts compulsorily.
You have made books of accounts according to your own
account.
Like Salman Khan.
His income is above 1.5 lakh rupees.
Annual income.
So he will have to maintain his books of accounts
compulsorily.
He himself will go, son Salman Khan.
He himself will take the general entry class.
He will read the books of the first 11th class.
Right? Salman Khan will get his accounts tuitioned.
He will leave all his work and go to the tuition with a
scooter.
Right? He will go and see the tuition of people.
Or he will hire an accountant.
Sir, it is obvious that he will hire an accountant.
Now, it is also possible that his accountant is also like
Salman Khan.
He does not have so much knowledge of things.
He does not know about the entries.
If there is more sale, he is showing less.
If there is less, he is showing more.
To check on him, some person is needed.
An external person.
He does not need his department's person.
He does not need his owner's person.
An external person is not needed.
What fraud is the next person doing?
How many invoices have been hidden?
How many invoices have been deposited?
How do you know?
How does the government know about this?
An external person is needed to check everything.
This external person is needed.
Does he have so much qualification of his own that he can
check things in one go and tell that you have done this
wrong and you have done this right.
An external person is needed.
A qualified person is needed.
An independent person is needed.
It is a simple thing.
The government has brought this section.
Its name is 44AB.
This section talks about tax audit.
And it says that if...
When does it become compulsory?
If any business...
It is a simple thing.
If my business turnover is more than 1 crore in a year.
If my turnover is more than 1 crore.
If it is more than 1 crore, then I will have to do a
compulsory tax audit.
I will have to do a tax audit of my brother's accounts.
With whom will I have to do it, sir?
With whom will I have to do it?
I will have to do it with a chartered accountant.
Who is a chartered accountant?
He is standing in front of you, my dear.
How does a chartered accountant look like?
He is standing in front of you.
Look at him.
Will this chartered accountant have that much knowledge,
sir?
You were saying that knowledge should also be there.
What do you think?
I am standing in front of you.
What do you think?
Do I have the knowledge or not?
Who said no?
I heard a voice from somewhere.
You don't know who you are, my dear.
If I pick you up, I will throw you out of the house.
You don't know.
I am a very dangerous person.
I have a lot of knowledge.
And along with knowledge,
I also have the qualification of a chartered accountant.
I write CA in front of my name.
Am I so well equipped?
Do I have so much knowledge that I will be able to see the
accounts and tell where this person has fraud and where he
has not?
I will tell you in a jiffy.
I will tell you without wearing glasses.
Where has he done fraud?
He has not done it.
The government has appointed him.
They said that who will do this tax audit?
Only a chartered accountant will do it.
Who will do it?
The businesses that have a turnover of more than 1 crore,
the tax audit of those businesses will be done compulsorily
by the CA.
Sir, this is a business matter.
This chapter also talks about the profession.
It also talks about professionals.
Is that also there in this?
Sir, the limit of professionals is 50 lakh rupees.
If a professional, for example, a doctor, if the doctor's
gross receipts are more than 50 lakh rupees, then who will
do the doctor's tax audit?
The CA will do it.
Sir, if there is a CA himself, if he has a practice of more
than 50 lakhs, will he do the tax audit himself?
No, sir.
If there is a CA and he has a practice of more than 50
lakhs, then he is a person who can do the fraud himself.
And he will do the fraud in such a way that no one can
catch him.
Because he has the knowledge of tax and other things.
So we will get his audit done by some other CA.
There will be some other CA outside.
He will do his tax audit, sir.
In the case of professionals, the limit is 50 lakh rupees.
And in the case of businesses, it is 1 crore rupees.
The government has given you one more benefit.
What benefit has it given you?
The benefit is that if you satisfy two conditions, then
your limit of 1 crore will be increased to 10 crore rupees.
Your limit of 10 crore rupees will be increased.
If you satisfy these conditions of mine, then?
Sir, what are the conditions?
Come with me, friends.
Look at my whiteboard.
Look, friends, the world is changing so fast.
When we used to study in school, the teacher used to tell
us to look at the blackboard.
Now it has become black and white.
This is what is happening these days.
Since the time of Modi government, everything has become
black and white.
Black, black, black.
Black has only remained in the clothes, sir.
Black's earnings, black's board, can't be seen anywhere in
today's date.
Look at the third condition.
In the third condition, I am saying that when will the
limit of 10 crore rupees be imposed?
If you take 5% of your sales in cash, not more than 5%,
what am I saying?
If you have done the entire sales till 5%, you must have
received an amount of sales.
For example, you have done sales of 100 crore rupees
throughout the year.
You have received 100 crore rupees.
If you receive 5 crore rupees out of 100 crores in cash,
then this condition applies.
This is only about sales.
Let's check the second condition.
The second condition is that the payment that you have
made, in this, all the expenses, purchases, etc.,
everything has come.
How much should this also go in cash?
Cash up to 5%.
How much is up to 5%?
For example, you have spent 100 crores.
You have spent 100 crores.
So, 5% of 100 crores is 5 crores.
Cash is going up to 5 crores.
If you are paying cash up to 5 crores, and in this case,
whatever sales you are receiving, 5% of it is in cash, then
instead of 1 crore, what will be the limit? 10 crores.
Sir, what is the loss from this?
What is the benefit from this?
Sir, if you get a tax audit done by a chartered accountant,
then he will take some fees, 20,000, 50,000, 1 lakh, 2
lakh, depending upon what your work is.
The government says that the person who earns 1-1.5 crores,
see, 1 crore is a lot.
The businessman who earns less than 1 crore, who can earn 6
lakhs a year, 50,000 per month, the person who is doing a 6
lakhs business, his gross receipts are 6 lakhs a year, why
should he be bothered?
He will take 50,000-60,000.
What will he be left with?
So, we will not bother small people.
We will bother those who are earning more than 1 crore.
And in a way, we are not bothering them either.
If you do everything in numbers, like I am saying, black is
becoming white, if you do everything in numbers, then
instead of 1 crore, the government is giving you a limit of
10 crores.
The government is motivating you to leave the work of cash
and take money from the cheque and give the money from the
cheque.
If this is the case, then your limit increases to 10 crores.
will be in the bracket of 1 crore.
Once you are above 1 crore, you will have to get your tax
audit done from a qualified chartered accountant.
There is a report for this, my dear.
It's not like if you get it done, it's done.
There is an audit report for audits.
Tax audit report.
The CA will audit your brother's accounts first.
All your brother's accounts will be audited.
Is this your account?
Yes, it is.
Show me.
Very good, it is.
I am signing on this.
And on this, I have my stamp.
He has stamped that all your accounts are correct.
And he will give his report.
This is my report.
Your books of accounts, etc.
I have done an audit for them.
It has been found that your books of accounts are
absolutely correct.
You have not done any fraud in them.
Tax audit report is also submitted to the Income Tax
Department.
And what is its due date?
The date of your written filing is one month before that.
In today's date, since 31st October is the date of written
filing, then 30th September will be your date when you will
have to submit this tax audit report.
This was the concept of tax audit.
Is it clear?
Is everything clear?
What was it? 1 crore rupees for businessmen, 50 lakhs for
professionals.
And if you receive up to 5% in cash, and you are paying up
to 5% in cash, then 10 crores.
Shall I proceed?
Read the text once.
Come with me.
Audit of the accounts.
It is obligatory for the persons mentioned in the column to
audit their accounts before the specified date.
From whom?
From a chartered accountant.
If your conditions are satisfied.
Here it is.
If your total sales are above 1 crore or 5% conditions of
10 crores.
Okay? There are one or two more conditions.
I will see them when I will cover the next topic.
Okay? Professionals, 50 lakhs.
Is the point clear?
He mentioned an audit report.
You will have to submit the audit report.
What is the date?
Specified date for tax audit would be 30th September of the
relevant assessment year.
You will have to submit your tax audit report by 30th
September.
If not, you will be penalised under Section 271B.
Sir, this is the point.
This was the point.
That is why the value of a chartered accountant increases a
little.
Because the CA will audit the tax audit.
The CA also audits the normal audits in the Companies Act.
That is why CA earns money
Thank you very much, friends.