Hello, Hi, Good Morning, Good Afternoon, Good Evening
How are you all?
Good Morning, Good Afternoon, Good Evening
How are you all?
Are you enjoying your studies?
Are you understanding the concepts, my dear?
Friends, this is the hope of both the teacher and the
student
That the one who is teaching should teach in such a way
that the concepts are remembered through the medium of the
story
And the one who is studying should be entertained and
should get an education
Edutainment I never consider myself to be different from you
I consider myself to be your elder brother
That's why my purpose has always been to teach you through
images and stories
There are other teachers in the market, sir
I don't want to say anything
The difference is clear, sir
Sir, enough of your praises
Sir, let's come to the topic
The last topic of this chapter is
There is nothing in this topic
If you remember in the last lecture 44 We talked about AB
tax audit
Who does tax audit?
Chartered accountant
Is a chartered accountant qualified to do tax audit?
Yes What were the conditions? When to do it?
Was there a limit of 1 crore or 10 crore?
Do you remember all that?
Let's come to the next section
The number of the section is 44AD 44AD, 44ADA and 44AE
These are the three sections that we are going to cover in
our topic
These are the three sections
And what do these three sections say?
These have brought a solution to a problem
They have brought a solution to a problem
Which problem?
The problem was that any businessman
To calculate his income
He has to maintain his books of accounts
Now those books of accounts
If I am a businessman
Understand this from your point of view
If I am a businessman
Where should my maximum time go?
To move the business forward?
To do sales?
Or to maintain my books of accounts?
You tell me
If I am a businessman
And I have come to maintain my books of accounts
Then my business will go down
My sales will go down
I will keep making my business
A customer will come to my shop
He will say, sir, do you have this?
Do you have this thing?
I will say, I don't have time, you leave
I am making my business
Is this possible?
In a way, what is the government doing?
The government is burdening the small businessmen
The big businessman who is running a company
He has 40 accountants
What about that?
But the poor small businessmen
They face problems
So in that case, the government said
We are bringing a section
Under which
It is not necessary for you to maintain your books of
accounts
Sir, when it is not necessary to maintain books of accounts
Then how will you know
How much income you have earned?
The way to do that is
You just need one information
That is
How much sales did you do?
You just need one information
That how much sales did you do?
If you have this information
Then you can easily put a percentage
On your sales figure
And it will be assumed that
The sales you have earned is your income
I will explain it to you now
Sales figure, any businessman will know
How much sales did I do in a year
Do you know this figure?
You must know how much sales did you do in a year
We will put a percentage on this sales
And what will be assumed as the sales you have earned?
Income Ok Any problem?
What will you have to give on this income?
Tax There are three sections
Let's cover all three together
Is the point clear so far?
Come with me
Let's start reading one by one
And let's finish this topic
It is too long
Come with me
Can you see 44AD?
I am talking about this
Can you see 44AD?
What does it say?
Who is eligible?
Be it an individual or a partnership firm
Engaged in business
Who has not taken the deduction of 10AA
Or 6A deduction
This is applicable on businessmen
Sir, this topic is
Profit and gain from business and profession
You are saying, let's take business and profession together
But yes, you are right
Business and profession
Are always taken together
But this section
Is made separate for business
And for profession
Internal things are same
So what is the objective of making it separate?
When internal things are same
Sir, when internal things are same
So the objective of making it separate
Is that
There are different limits
If your sales
Are up to this level
Then it will be assumed that you are a small businessman
Because of this
You don't have to maintain books of accounts
But if you go up from this level
Then in this case
You will have to maintain books of accounts
Sir, Let's see what are the limits
So 44AD is not applicable
On professionals
It is applicable on businessmen
Right? And in which businesses
What is the limit?
It is applicable on those businesses
Whose total turnover
Is 2 crore rupees
If you run a business
See this is very important for your personal
If you start a business
In the first year
You won't be able to reach 1000 crore turnover
In the first year you will have 20 lakh turnover
Then 50 crore
Then 1 crore, then 1.5 crore
Then 2 crore
So till then how will you show your taxation?
Till then your taxation
Whether you want to maintain books of accounts
Or not
If you have sales of 2 crore rupees
Total turnover
Or gross receipts
In the previous year is up to 2 crore rupees
So how much will you be considered
If you have sales of 2 crore rupees 8% 8% 8% 8% of the
total turnover
Or some higher than this
Claim to have been earned by the SIC 8% of the total
turnover
Or some higher than this
For example
If you have sales of 1 crore rupees
Gross receipts of 1 crore rupees
In the previous year 8% If you have sales of 1 crore rupees
8% What is this 8 lakh rupees?
This is your income
On this income
You have to pay tax
This is a simple point
How good it is
I told you that these are my sales
Expenses I have not done any less
Simple government said
You tell me your sales
We will accept your profit
You don't have to claim any expenses
Why is there no need to claim?
Why is the expense minused?
Sales I will reduce the expense from this
Only then will I come to profit
I will reduce the expense from sales
Only then will I come to profit
And here profit
Government is telling you
If you have sales of 1 crore
Take 8% 8% profit
So is there a need to claim expenses?
Answer is no
I don't need to claim any expenses
I don't need to maintain books of accounts
I don't need to claim any expenses
What a great section
I don't have to maintain books
Only one thing should be known
What is the sales in the whole year?
Everyone knows that
Don't they deduct invoices?
Don't they deduct bills?
Can I show more than 8%?
I am a true honest person
Government is telling me
Your income is of 8 lakhs
I say no
I want to show my income more
So that if I get more income
I will pay more income tax
That will bring good days for the country
Can I do this?
Government is saying
Tell me one thing
We are dying for someone to pay us more tax
We were disallowing your expenses
So that your income increases
From here you yourself
Are coming and saying that your income is more
So what is our problem?
Come and show your income
You say that sales of 1 crore
And 15%
Suppose I have earned 15 lakhs
Okay Give me more than 15 lakhs
What is our problem?
We are just telling you that
You can't show less than this
You can't show less than 8%
If there is a rate of 8%
You want to show more than this
Show it
Don't show less than this
Come here
What is your presumptive income? 8% of the total turnover
More than this
What is 6%?
Read it first
total turnover sales, if you are receiving it through
cheques, bank drafts, ECS, during the previous year or
before due date of filing the return of income.
It means that if you have done sales of number 1, in desi
language, if you have done sales of number 1, whatever
sales you have done, you take the money from the cheques,
not cash.
You take money from cheques or you take money
electronically, then in that case, the government is giving
you this benefit, my dear, that you can show 6% of your
income or more if you wish to, but you cannot show less
than this.
Two cases are made, your first one is that if you have done
sales of 2 crore rupees, then you can take this benefit.
What is the benefit?
If your sales are in number 1, all of them, then 6% income
will be taken.
And if your cash also has some sales, then 8%.
Can you show more of your income than this?
Yes.
Do you need to maintain books?
Answer is no.
Can you claim some expenses?
There is no need.
Because income has come.
Deduction allowable under 30 to 38 shall be deemed to have
been given full effect to and no further deduction shall be
allowed.
All deductions will be deemed to have been given to you.
Apart from that, you will not get any deduction.
Requirement of maintenance of books of accounts? Books of
accounts are not required, if you show according to Article
44 AD.
But let's assume that a person has a worm.
In India, there are many worm-eaters.
One of them was a person named Chulbul.
His worm came out and there was a worm left in him.
His worm was such that he used to say, why should I give
even 8%?
I will give only 2%.
Why should I give even 8%?
I will give only 2%.
What will you do with me?
I will deposit only 2%.
I will show that there is a sale of 2 crores.
2% on that, means 4 lakh rupees.
I will consider that as my income.
You keep saying 8%, 6%.
What difference does it make to me?
Then the government will say, come here.
You are saying 2%.
Do you have any proof that you have earned 2% income?
What proof do you have?
We are trying to give you a benefit here, that show 8%, 6%.
Do you have any proof that you have earned 2% money?
He will say no.
Then he himself will ask madam, madam, tell me, finance
minister madam, tell me what proof should I have? What
proof should I have?
You should have accounts, right?
You know the sales, if you minus the expenses from that,
then the profit that you will have, that should be that 2%.
That should be 2%, right?
Do you have any proof that you are earning 2%?
If not, then go and make your accounts.
And not only this, because you are cheating us, right?
Then you must make your accounts, books of accounts, make
them.
But sir, get a tax audit done from his chartered accountant
also.
Who knows, you are cheating us.
If your actual income is 25%, then there would be a margin,
and you are telling us 2%.
Make books of accounts, get a tax audit done from CSS, he
will make a report and give it to us, then we will check,
that okay, there is something like this, okay, now take it.
Now you will have to maintain books of accounts, you will
have to claim the expenses. I will have to claim my
deductions, the deductions of expenses, only then I will be
able to take the benefit.
Whom am I talking about?
The person who says that
I want to show below 8% and 6%.
The serif person, is showing 8% and 6%, there is no problem
for him. But a cheater person, a mischievous person, says
that I will show below 8%, then he has to maintain books of
accounts, he has to get a tax audit done, after that he can
claim, but we are also punishing him, that the year he gets
his tax audit done, means the year he says 4480,
I don't take it,
I don't believe in your 8% and 6%,
I will make my books properly,
I will get his CSA audit done, and then I will pay income
tax on his income.
So we also punish him, that the year you opted out of 4480,
what did I say?
That the year you opted out of 4480, opting out of your
will, or you don't want to take that option, then from that
year, till the next 5 years, you can't look back at 4480.
That person won't come back for 5 years, for example, if
this was going on, and he got a chill, that I will get out
of 4480.
He got out of 4480.
Now from here, 1, 2, 3, 4, 5, he can't take 4480 till here,
if it is there, he can take it.
He can't take 4480 for 5 years.
Think about the benefit the government is giving you.
You are doing a sale of 2 crores, on that they are saying,
that you are earning 8%, and if there is a sale in number
1, then 6%, this is the benefit.
In a way, when the government is giving the benefit, it
doesn't give the condition.
And when it is giving, then why don't you want to claim it?
This is going to be a very important section for all of
you, who will do their business sometime or the other.
To do business, you have to recognize the right opportunity
at the right time.
Any opportunity, whether small or big.
When you see that yes, you have so much money in your
pocket, that you can survive for 6 months or a year,
definitely try your hand in some business, my friends.
A rich person won't be able to make a job, a rich person
will be able to make a business.
A job is for survival.
When there is nothing, then a job.
And when there is a little bit of base build up, then
business.
And when you come in business, in the starting, even though
my blessing is that you will reach thousands of crores, but
in the starting 1-2 years, there will be a turnover of 1-2
crores.
And when there is a turnover of 2 crores, what you have to
do, that is present in front of you.
Till when do you have to pay advance tax?
There is only one date, 15th March.
It's a simple thing.
This was the point of 44AD.
See it once.
Is it blocked from here?
See it once.
Come next.
What we have covered in 44AD, what was it for?
It was for business people.
Those who do business.
Now those who are professionals,
Doctor, Engineer,
Chartered Accountant, Lawyer.
Those who are professionals, what do they have?
How to do? How much to do?
See 44ADA.
44ADA. ADA means
Adha.
Resident individual or partnership firm engaged in any
profession.
Like what profession?
Legal, Medical, Engineering, Architect.
All were in the middle.
Film artist.
Is there any poor film artist?
What benefit has the government given him?
Son, from this level, if you have income, revenue,
receipts, then show your income on a percentage.
What is that? 50 lakhs.
If you have gross receipts up to 50 lakhs, if you have
gross receipts up to 50 lakhs, in a year, then you will
fall in this section.
And 50% of your income will be accepted.
If you have receipts up to 50 lakhs, for example, if you
are a film artist, tell me a small name, who earns small
money.
Take Rajkumar Rao.
Assume that Corona was going on for the whole year, he did
not get any work.
He got income from somewhere, he did advertisement from
somewhere.
And in the whole year, he earned 40 lakhs.
Okay.
In that case, if he had done it generally, what would he
have done?
Because he is a professional.
We had read a section earlier, 41AA.
In that, he had to maintain books of accounts.
Here, he would have shown his 40 lakhs income, revenue,
receipts.
Here, he would have put expenses.
And then, he would have made a profit.
In this case, what did the government say?
Because you have gross receipts up to 50 lakhs, you should
not get involved in all this.
You should not get involved in all this.
Your only job is to check up to 50 lakhs, whether there are
receipts up to 50 lakhs.
Yes, there are.
So, make a 50% of that.
In Rajkumar Rao's case, we had 40 lakhs.
So, 50% of 40 lakhs, 20 lakhs.
So, 20 lakhs, make a 50% of that.
Assume that there is a profit.
On top of that, he will have to pay tax.
In the case of business, 8%, 6%, here, 50%.
Sir, why is this?
Why so much discrimination? 8% is given to him, here, 50%
is assumed.
Sir, you understand one thing.
A businessman buys goods from somewhere.
He does some processing on it.
For example, if he buys cloth, he will do processing.
If he buys raw cloth, if he buys cloth from a factory, he
will make a shirt out of it.
For that, he will apply labour.
He will make a tailor.
He will pack it in sheets, then he will do marketing, then
he will sell it.
So many expenses.
But assume, assume that there is a lawyer.
What is his expense?
Assume that he practices solo.
He is alone.
Okay, the case has come.
Make the papers.
Go to the judge and get it filed.
The expenses will be there.
His expenses are for the printing station.
What else is his expense?
His expense will be more for the office.
We are not talking about manufacturing cost.
In that case, the cost will definitely be less.
Because of this, we are considering it as a 50% profit.
Come everyone.
Next section, 41A.
A means 41AE.
For whom is AE?
For Kartar Singh.
Kartar Singh?
Who is Kartar Singh?
Have you seen the movie, Here I Feel, in which Kartar Singh
was the old truck driver?
This section is for truck drivers.
Kartar Singh is a truck driver.
He is a truck driver.
He earns money from trucks.
Where will he make his books of accounts?
After that, will he have so much knowledge?
He is driving a truck on the highway.
He is singing a song while driving a truck.
I left the car.
There was a turn.
I left my heart there.
There, he left all this and made his accounts.
How much is my sale?
How much is my expense?
Even in that case, the government understands all these
things.
They say, don't make accounts.
Let's put a limit for you too, Kartar Singh.
Kartar Singh.
And what is the limit?
Is there any SSE owning not more than 10 good carriages at
any time during the previous year?
This is the point.
He should not have more than 10 trucks of that Kartar Singh.
He has up to 10 trucks.
10 trucks.
So, it will be assumed that you are a small business man.
So, you will fall in this section.
But you have more than 10 trucks.
So, you have a job worth crores of rupees throughout the
year.
So, if you have a job worth crores of rupees, then hire an
accountant of 10-15-20 thousand.
Tell him to take our class.
He will take our class and learn other things.
In that case, if he has more than 10 trucks, then he does
not fall here.
If he has up to 10 trucks, then he will fall up to 10
trucks.
It is a simple thing.
What is the business?
Plying, hiring, leasing good carriages.
He himself drives.
He gives trucks on rent.
This is his job.
And what is the income?
Is there any percentage in this case?
There is no percentage in this case.
In this case, there is a rate of 1000 rupees.
1000 per ton of gross vehicle weight.
1000 rupees.
This is for heavy goods.
If it is a small vehicle, then 1000 per ton of gross
vehicle weight for every month or part of the month.
And if it is a small vehicle, then it will be charged 7500
rupees per month.
If it is a heavy truck, then 1000 rupees per month.
And if it is a small truck, then 7500 rupees per month.
You will not get any deduction of expenses in this case.
There is no need to make books of accounts.
Because you have taken an income there.
But if you still say that I would not have opted for this.
I would not have opted for 44AD.
And I would not have opted for 44AA.
In that case, you have to make books of accounts.
You have to get the CSS tax rate done.
You have to show the proof that the income that you are
claiming, is it really less than 8%, 6%, 50%, 1000 rupees
or 7500 rupees?
If it is so, then you will be allowed that income.
This was the point.
Thank you very much.