Hello friends, how are you all? I am C.S. Shreyagupta, your
friend, your companion, your fellow traveler, only till
this class.
Friends, we were discussing till now about immovable
property.
That immovable property is in the hands of the buyer and if
there is no consideration or there is a consideration, but
it is given a little less, then how is it taxable?
Friends, we had discussed all these things in our previous
lectures.
Yes, tell me, what is the matter?
Sir, my doubt is that you said that it should be a capital
asset in the hands of the buyer.
I said, absolutely right.
If tax is to be imposed in 56-2-10, then it should be a
capital asset in the hands of the buyer.
Sir, you have not talked about it from the point of view of
the seller.
You are turning this matter in a great way.
I am not turning it.
I had said that I have just opened the stapler pin of the
envelope.
I am going to read it slowly in the letter.
So, this is my next topic.
Today's topic is that if it is a capital asset in the hands
of the seller, it can be only two things.
If it is a house property, i.e.
an immovable property, and the person who wants to sell it,
either it can be two things.
What is the use of buying a house?
If its value is not very high, then to sell it?
Or what can be the other use of it?
It can be used for investment.
As an investment purpose, he bought the house and later
gave it to you as a gift at a lower price.
It can be only two cases.
So, is there any relevance of stamp duty value in these two
cases?
Will we need stamp duty value in these two cases?
This is my question.
The answer is yes.
In these two cases also, we will need stamp duty value.
How will we need it?
And what should be done in these two cases?
Come, let's spend two minutes and discuss it.
Friends, as I told you, there will be two cases.
Either it is a capital asset for that person, and he is
transferring his capital asset.
So, check it out.
Whom are we talking about?
The buyer or the seller?
We talked about the buyer in the last lecture.
Now we are talking about the seller.
The one who is giving the gift.
Means who?
Who was giving the gift to Jacqueline Fernandez?
Sukesh.
So, whom are we talking about?
Sukesh.
The one who is giving the gift.
In his hands, if this immovable property, this house of
mine, which he is giving as a gift, if it is either a
capital asset, or what is it?
Stock.
I mean, what is its purpose?
Suppose, its name is Sukesh Sharma or Sukesh Kumar.
It is a capital asset for him.
He bought that house.
Later, he fell in love with Jacqueline Fernandez, and he
said,
Jacqueline madam, I love you, and this gift is from me.
So, this is the case.
Or suppose, the second one, its purpose was construction.
And he said, tan-tan-ta-ta-ta-ta-ra, does it run?
Nine to twelve.
And he gifted this stock to Jacqueline madam.
So, what do you have to do in this case, friends?
In this case also, compare and see, that the value of the
stamp duty, if it is more than 110% of consideration, then
you, if the value of the stamp duty is more than 110% of
consideration, then you will consider the stamp duty value
as your FVOC.
Because it is a capital asset.
And when we sell a capital asset, then there are capital
gains.
In this case, you are giving a gift, but ultimately, you
are selling the property, and showing the face of the gift.
By selling the capital asset, you are showing the face of
the gift.
So, the government says,
Mr. Sukesh, we are not so stupid, that you give us a gift.
And FVOC, will be considered as your stamp duty value.
Sir, when FVOC, means basically my sale price, will be
considered as stamp duty value.
Will it have a cost?
Yes.
The person who is selling, will he not know the cost?
If Sukesh, gives a gift to Jacqueline, will he not know the
cost of the gift?
Of course, he will know.
So, reduce that.
Minus COVA.
And what will come out?
Capital gains.
Who will get it?
Seller.
Who was the seller, Sukesh?
He will get it.
Look at this.
The point is simple.
There is no problem.
It is a capital asset.
He is selling the capital asset.
While selling, he is showing, that he has given a gift.
The amount of gift he has given, the consideration, of his
stamp duty value, is more than 110%.
If yes, then the stamp duty value, will be the sale price,
will be the full value of consideration.
This is fixed.
From this, my cost of acquisition will be less.
And what will I get?
I will get my capital gains.
This was 50C.
If you talk about the section number, then the section
number was 50C.
50C is what it says.
If you read the point on capital gains, then you will
remember this.
Come to the second point.
I have a stock.
I have a stock of immovable property.
What is my job?
To buy a house.
And after 2-4 months, to sell the house.
This is my business.
If this is my business, then what will be my stock?
Immovable property.
If Sukesh Constructions, was the name, and he was giving a
gift to Jacqueline, then what would he be giving?
Capital asset or stock?
He would be giving stock.
And in that case, what would the government do?
If there is stock, then it is his business.
He is selling the stock, and he is buying the stock.
He knows the cost of buying the stock.
And the selling price, what will it be?
Stamp duty value.
Simple.
But when will it come?
When will it come?
It will come, when my stamp duty value is more than 110% of
consideration.
Then I will consider the stamp duty value as my sale price.
And my cost of construction, or the cost of making the
product, or buying the product,
I will lessen it.
And this will be my profit.
And this is the whole thing.
The profit was coming here, because what was your business
here?
Buying a house, and selling the house.
This was your business.
Your business was not here.
Here you bought for investment purposes, and later your
heart was on Jacqueline, and you gifted her.
So this was the case.
Here was your business.
So where there is business, there will be profit.
Where there was your capital asset,
there it will take the form of capital gain.
The thing is the same, friends.
The names are different.
And the name of this section is 43CA.
Is there any doubt in this?
Please focus.
I will move aside for a second.
Is the point clear, friends?
The thing is the same.
The treatment is different.
Is it a capital asset or a business?
This is the thing, friends.
Is there any favorite heroine of anyone,
Jacqueline Fernandez?
If there is,
I am sorry.
But what to do when the behavior is like this?
Sir, where did you get this example from?
You will also see.
Mr. Gupta.
A kid is sitting here and asking me.
Mr. Gupta, what is the matter?
Even while watching the news, if you make an example.
Now, sir, what to do?
My dear children,
you know that my heart is such that wherever I get an
example,
I try to present it to you.
So that your concepts become clear.
Friends, this is our hard work.
Our small team works behind this.
And the work remains for 24 hours.
Friends, this topic ends with this.
Immovable property.
Some things were still pending.
Like, what comes in the definition of relatives?
When we get this gift, from whom will we get the tax?
And from whom not?
Then also tax will be imposed.
On what occasions do we get tax?
These are some points that your brother will cover in
today's class.
Don't take tension.
If your brother comes, he will make you understand.
Friends, before starting the next topic, one thing came to
my mind.
I want to say it.
Friends, there was an eagle.
In English, it is called an eagle and in Hindi, it is
called a baaz.
The caliber of a baaz is much higher than that of other
birds.
There is a story in a village.
There was a crow in a village.
The crow used to talk a lot about the baaz.
You are like this, so you are like that.
There is nothing that you can do.
There is nothing.
There is no use.
The enemy is the grain.
The baaz used to listen and keep smiling.
At night, he used to get worried.
He used to think, what mistake did I make?
That this crow is telling me this for no reason.
Then one day, the crow started following him.
The baaz also got angry.
The baaz increased its flight a little.
The crow sat on its back and started talking in its ears.
You are like this, so you are like that.
There is nothing that you can do.
There is no use.
The enemy is the grain.
The baaz got even more angry.
It increased its flight a little.
The crow sat on it again and started talking.
But now, the oxygen level started decreasing.
When the oxygen level started decreasing, the crow started
having difficulty in flying and holding its back.
The baaz did not listen to it again and went higher.
Now, the crow is in a bad condition.
It is a long story to tell.
The crow did not get oxygen.
It fell down from there.
Friends, what does this story teach us?
Friends, this story teaches us that do not listen to others
and reduce your life's flight.
People will always down in life.
But your job is to keep flying.
Show them the level at which they themselves will fall.
Friends, the actual thing is that the day I became CA, my
relatives beat their heads.
How did this man become CA?
Because people had told me a lot.
Today, they do not even beat their heads in front of me.
This is the thing, friends.
Because we are talking about relatives, friends.
So, income tax people also understand this.
And they said that, we also know how relatives are.
But in some cases, if you take a gift from your relatives,
then we will accept that it is a genuine gift from you.
No tax will be imposed on it.
No limit will be imposed on it.
What? Sir, what did you say?
Yes, friends.
This is the point.
No limit will be imposed on it.
The gift you will take from your relatives.
Now, who are those relatives?
I will take you to my notes.
Please come.
Please come to my notes.
And try to read this definition.
Read this section, friends.
This is non-applicability of section 56-10.
Till now, what we were reading, we were reading that, on
whom will 56-10 be applicable?
On whom will it be applicable?
It will be applicable.
Now, what are we reading?
This section which we have read in 2-3 lectures, on whom is
it not applicable?
We are reading that.
So, what is the first word, friends?
With which you and I are both worried.
And every person in life is worried.
That person's name is relative.
Neither let us live, nor let us die, nor let us eat, nor
let us drink.
This is it, friends.
If you receive anything from any relative, then your other
source's income will not be accepted.
Who is saying this?
This is what this section is saying.
This is non-applicability.
When 56-10 is not applicable, then will there be a limit of
50,000?
Yes or no?
Will there be a limit?
There will be no limit.
See, there is no limit there.
When there is no limit, can I transfer openly?
Relative to relative?
Tell me.