Tell me friends, will there be any limit?
When section 56 is not being implemented, then where will
the limit of section 56 be imposed?
So this is what the government said.
And friends, let me tell you, this section is so important
in practical life, that people who have to make mistakes,
they make all the mistakes through this section.
The first point is, from any relative, any sum of money, he
is saying sum of money, sum of any, any sum.
What is the meaning of any sum, sir?
What is the meaning of any sum?
I went to my grandfather's house and he gave me 500 rupees,
so will the tax be imposed?
No, it won't.
I went to my grandfather's house and he gave me 50,000
rupees, as a gift, so will it be imposed, sir?
Answer is, no.
No.
I went to my grandfather's house and he was so kind to me,
and he gave me 50 crores.
Will it be imposed?
Think about it and tell me.
No, it won't be imposed.
Why? Because it has been covered in the definition of
relative.
Who is a relative? I will tell you next.
But if you receive any sum from your relative, no tax will
be imposed on him.
Read this.
Any sum of money or value of property, suppose I get cash
from my grandfather, 50 crores cash, and along with that he
said, son, I like your coat, and your shirt is also very
nice, and because you look so handsome, so I will gift you
the land of my village, which is worth 250 crores.
So on that gift, will I get the property worth 250 crores?
Will I get anything?
Answer is, no.
You won't get anything.
See friends, there is a lot of loss for the relative, but
if the relative gets cheated, what are the benefits?
Next, sum of money.
Don't get lost in dreams.
First come to this, I will explain more.
Any sum of money or value of property received, in the
following circumstances, would be outside section 56-10.
First, you get it from a relative.
What all comes in the definition of relative?
Let's read it once, because there is a lot of confusion on
this.
Sir, you are saying a lot, what all comes in the definition
of relative?
I am telling you friends.
Come down.
Everything is given here.
Open your eyes and see.
In this world, everything is here.
Don't go anywhere.
Everything is here.
See this is the definition of relative.
First of all, what is the definition of relative?
In case of individual, for example, if I am an individual,
then who is my relative?
Spouse.
My better half, my wife.
Spouse of the individual.
If I take something from her, then what will I get?
What will I get?
Will I get something from other source?
For example, if she...
For example, if she is an individual, who is she?
Individual.
If he does any transaction with his wife, that is, wife has
given him 50 lakhs, he has given his wife 1 crore, then
will anyone's income be taxable?
No, it won't.
In this case, nothing is taxable in the income of the other
source.
In this case, there is no tax.
In this case, nothing is taxable.
Because this will become relative.
This will become relative.
Come to the next point.
What is the next point?
Brother-sister of the individual.
That is, if I take anything from my brother or my sister,
5000 crores cash,
will I get anything?
Will I get anything taxable?
Nothing.
Brother-sister of the spouse of the individual.
For example, if I have a wife, and I have a brother-in-law,
or a sister-in-law, and I take something from her,
will I get anything?
Nothing, sir.
Brother-sister of either of the parents of the individual.
Either of the parents of the individual, sir.
What does it mean?
My parents, either of the parents,
I am talking about either of the parents.
For example, if I am this, then he will be my father, and
she will be my mother.
So what is this?
Either of the parents, and their brother.
If I take something from my uncle, or from my uncle, any
gift, 1 crore, 2 crore, 10,000 crores, will I get anything
taxable?
Nothing.
Who is my mother?
Should I take from my uncle?
Or should I take from my aunt?
Will I get anything taxable?
In my hands.
If I take from them, will I get anything?
Nothing.
Why? Because it is relative.
Next point.
What does it mean?
Lineal ascendant or descendant of the individual.
Lineal ascendant or descendant.
Means my children.
If I take something from my children,
will I get anything taxable?
Nothing taxable.
Nothing is taxable.
Lineal ascendant or descendant of the spouse of the
individual.
For example, my wife got divorced, and my wife married
someone else, and she had a child, and I took something
from her.
Will I get anything taxable?
Nothing taxable.
Look at this.
Do you understand?
If I have to divert cash, if I have to divert income, how
many people, for example, if I get cash, how much can I
show people?
That I gave it to my relatives, and the income tax officer
can't do anything to me.
What is this?
Next point.
What was the lineal ascendant?
Dada.
Pardada.
I took something from Dada, will I get anything taxable?
Nothing taxable.
And what is the last point?
Spouse of the above.
What does it mean?
Spouse of the above.
If I take anything from these people, anything, property,
bank balance, anything, then the income tax officer can't
do anything to me legally.
Look at this.
What a great provision the government has made.
If you still don't understand something, let me give you an
example.
If a brother-in-law takes something from his wife, will he
get taxed?
What will he become?
Spouse.
Will he get taxed? No.
If a brother-in-law takes something from Sundar Veera, will
he get taxed?
No.
If a brother-in-law takes something from his father, will
he get taxed?
No.
If a brother-in-law takes something from his father, will
he get taxed?
No.
One more question.
If a brother-in-law takes something from his father, will
he get taxed?
This is a genuine question.
If a brother-in-law calls me and says,
Mr. Gupta, if I get some property transferred from Mr.
Babita, will I get taxed?
The answer is yes.
No matter how close
Mr. Babita is, she is not a relative.
If he marries her, she will become his relative.
If anything is transferred, he will not get taxed.
The point is clear.
Relax.
I am not here to teach you.
I am here to tell you stories.
You keep listening to stories.
And keep learning.
Friends, look at this.
One second.
Let me show you something.
This will give you some entertainment.
And your concept will also be clear.
Friends, who is he?
What is his name?
Tell me.
His name is
Sanju.
What is his name?
Sanju is his name, right?
You are telling me about Ranbir.
I got confused.
He acted so well in that film that my mind slipped what his
actual name is. I have started to know. So his name is Mr.
R.K.
Girls have a smile on their faces and his name is R.K.
Leave it, you know what is the need to write it.
His name is Mr. Ranveer Kapoor.
If he from his wife, for example, what is the name of his
wife by the way?
Yes, yes, absolutely right.
Now he has a wife.
Now if he takes something from his wife, for example, if
his wife gives him a cheque of one crore rupees, then will
he get some income from Ranveer Kapoor?
Will he get some income?
Nothing, zero tax.
Who is he? Because he is the spouse of the individual.
Let's go to the next point.
Look at this figure.
Where did it go?
Why is it not going up?
Friends, look at this figure.
This.
What is happening?
Who is this?
He is an individual.
So he is the parent of the individual.
Who is he?
Parents of the individual.
So if he gets something from Ranveer Kapoor, for example,
if he gets something from his father, one crore, two crore,
ten crore, then will Ranveer Kapoor get some taxable income?
Nothing.
What if he gets something from his mother?
Nothing.
Who is he?
Father-in-law, mother-in-law and father-in-law.
I had said that the parents of the spouse also get covered
in this.
The parents of the spouse, these are the spouses, these are
his parents,
Mr. Mahesh Bhatt and Ms. Soni Rajan.
So if he gets something from them, will Ranveer Kapoor get
taxable income?
The answer is no.
Look friends, these are the benefits of making relatives.
Till now your relatives were sleeping, call them tomorrow
and tell them that
I have some cash with me, first you keep it and later give
it to me.
Do you know what will happen in this?
You will call them and say that you fall in the definition
of my relative and our sir has said that if we take
anything from relatives, then tax is not applicable.
So I have this one crore cash with me.
You do one thing, first you keep it and later give it to me.
I will put this money in my account.
It will become my number one income.
What will happen?
If you give them one crore, they will not even see you,
your relatives.
They will run away with your money.
Let's go to the next point.
Who is this son?
This is Ranveer Kapoor and Alia Bhatt's daughter.
His name is Raha.
If you get anything from him, then tax is not applicable.
Come down.
Who is this? Raj Kapoor.
Who is this? Lenil.
He has a grandfather.
If you receive anything from him, then tax is not
applicable.
Who is this? Shashi Kapoor.
Who is this?
His father's brother.
Father's brother means his uncle.
Suppose his uncle comes to Ranveer Kapoor and says, this is
50 lakhs for your acting and 50 lakhs for this.
Will he get anything from Ranveer Kapoor?
He will not get anything.
But friends, see this.
One point, seriously.
Who is this?
Everyone knows, Pathan.
For example, if Shahrukh Khan comes to him and starts
giving him gifts, does he fall in the definition of
relative?
Brother, sister, spouse, lineal ascendant, lineal
descendant, does he fall in that category?
He does not fall.
So in future, if he goes to Ranveer and says,
Ranveer, take this.
So will Ranveer get something taxable?
Answer is yes.
Why? Because he is not relative.
This is the point, friends.
I hope you liked it.
We had a little fun today.
This is the point, friends.
Shall we move on?
Shall we move on, friends?
We have just covered one point.
Section 56.2.10 is not applicable.
See this, sir.
Section 56.2.10 is not applicable.
When there is a definition of relative, when relative
comes, you take something from relative.
We have just discussed what relative is.
So you will not get tax from them.
In that case.
On the occasion of marriage of the individual, the rituals
of seven circumambulations, at that time, if anything is
given to any individual, then there is no tax on it.
What are you saying, sir?
Yes, sir.
These income tax people also understand some things.
So sir, tell me one thing.
The gifts that we give to the groom and the bride at the
wedding, is there no tax on it?
No, sir.
Seriously? No, sir.
On the occasion of marriage, if you are giving it, then
there is no tax on it.
Sir, this is a very good idea.
What will I do tomorrow?
I have cash and I don't know how to divide it.
So I will ask all my relatives to divide 5-2 lakhs.
And I will ask them to bring this.
Put this in their envelope and give it.
Or cut my cheque and give it.
Then I will have number one income.
My income can't do anything legally.
Because I have taken that money at the time of marriage.
The answer is yes.
This happens, friends.
On the envelopes of the gifts, there is no tax on it.
And on the dowry people take at the time of marriage, there
is no tax on it.
Although it is a very wrong thing.
But what to do, sir?
The provisions are such.
But we should not support such things.
Friends, two points have been made.
Is the point clear?
Let's come to the third point.
C point says that if you get something under a will or by
way of inheritance, will means property.
Friends, 90% of the fights in India are on property.
Why? Because they also know that if someone gets property,
what did I say?
If someone gets it, then on getting it, in a way, there is
no tax on your income.
Sir, what if the property comes from one's own parents?
Sir, anyone's property.
It is said that Sanjeev Kumar, who was a very old hero,
fell in love with Hema Malini.
And Hema Malini's heart was on Dharam sir, on Dharam bhaji.
So when he married Dharam ji,
Sanjeev Kumar sir had a heart attack.
This is a funny story.
He had a heart attack on seeing his marriage.
And in his last days, his service was done by
Shatrughan Sinha ji.
It is said that Sanjeev Kumar had a property worth 70-80
crores.
He named it after Shatrughan Sinha.
In this case, if Shatrughan Sinha's income is 70-80 crores,
will Shatrughan Sinha be taxed?
The answer is no.
70-80 crores becomes his income.
The property he received, for example, of 70 crores, is
tax-free.
He will not face any problem.
But when he sells it, then he will pay his capital gains.
As we discussed in the last lecture.
This was the point.
Is the point clear?
Let's move ahead.
Point number D.
In contemplation of death of the pair, as the case may be,
what is contemplation of death?
I think I am going to die.
It is said that when a person is about to die, a few days
before his death, he realises that he has lost his ticket
and has to board a train.
If someone feels that he is about to die, then his property
will be transferred to a particular person.
In this case, the person who gets the property will not be
taxable.
Let me give you an example of his life.
He is a film star.
He is the son of Dharam Baji.
His name is Bobby Deol.
His father-in-law was very impressed by his behaviour.
His father-in-law was very rich.
He was in a high position.
He realised that he will die in a few days.
So he transferred his property worth 300 crores to Bobby
Deol.
I am telling you a real life case.
He transferred his property to Bobby Deol.
In that case, did Bobby Deol get the property? answer is no.
When Bobby Dole became sole owner of his father-in-law's
legacy, last
rights and 300 crore property rights after 15 years of
family feud.
Now, let me tell you one thing, you don't get anything by
studying these things.
Relationships only get spoiled and so does the mind.
That's why friends, money is what you earn.
are all useless things.
Let's come to E point.
From any local authority, you get something
from local authority.
You get something from medical institutions.
How do you get from medical institutions? For example,
sometimes it happens that you have a family member and you
take him to a hospital to get him treated.
And the treatment from the hospital is not
proper and your family member expires.
So the hospital will give you some compensation so that
your name doesn't get spoiled and you don't go out and
defame us and you take
10-20 lakh rupees.
So in that case, the person who lost his family member, how
do we get tax from him? So the government said, if you get
something from a medical institution, you won't get any tax
on it.
If you get something from a trust or institution, you won't
get any tax on it.
By the way, these trusts are made to circulate cash.
These being human
things that Sonu Sood is doing, although I don't want to
get into any controversy, but
all these things are done to circulate cash transactions.
Actually, when we will come,
I will tell you.
These are all real life cases.
Our own clients come and we know what is going on.
There is something else in the market, friends.
Something else is shown and
something else happens.
Same is the H point, I point, transaction, which is not
considered to be a transfer, like the ML commission case, J
point, K point, there is nothing in it.
So these are the points, friends.
These are the points of COVID-19, it is not relevant now.
So these are the points, friends.
In some cases, we have seen where your section does not
apply.
In relatives, at the time of marriage, if you have taken
someone's will or property, then what will be taxable in
your hand? Nothing will be taxable there.
Sir, tell me one thing, we are having fun today.
Sir, today you are hitting sixer on sixer.
You have told some such things today, that we will go home
and give some knowledge to our family members today.
Sir, tell me one thing, you were saying that
what all does not come in a movable property.
You were talking about the list 2-4 lectures ago.
So what was that list, sir? You have not told it yet, you
are going round and round in talking.
I said, son, when the time comes, I will tell you about it.
And now that time has come.
What all comes in the definition of property, you read it.
Immovable property, that has become different.
So what was left? This was movable property.
I had told you that property is of two types.
One is movable and the other is immovable.
So immovable has been covered here.
The rest is movable.
What are the shares? Jewelry.
For example, jewelry, like Sukesh gave jewelry to
Jacqueline ma'am for 25 lakhs.
Because it was jewelry, jewelry becomes movable property.
And if it is movable property, then it will come in section
56-10.
And because of this, it was taxable in the hands of
Jacqueline ma'am.
And because of this, she had to go around the income tax
department again and again.
Archaeological collection.
They say something is 100 years old, some diamond is 100
years
old. So these are the archaeological collections.
So in that case, it will become movable property and will
be taxable in the hands of the receiver, if it goes above
the limit of Rs.
Drawings, paintings.
Because friends, sometimes the paintings that you see in
exhibitions,
M. F.
Hussain is a very famous painter.
Picasso's paintings are sold.
These are auctioned for lakhs and crores of rupees.
So sometimes if someone wants to buy, what does he do?
He says, do one thing, I want to buy from you.
I will pay you in cash, which will not be recorded anywhere.
And what I will do is that I will show him a gift.
Do you understand
what I am saying? So this is why this section will be used,
section 56.
Sculptures, any work of art, bullion.
These are the things, friends.
This has become our movable property.
This was the whole point, friends.
So friends, see how interesting we have talked in today's
lecture.
Today go home and give knowledge to people and relatives.
And make your relatives and friends.
See that you get something in the contemplation of death.
You get something from the will or inheritance.
Okay friends? All this is nothing.
Believe in your hard work.
Hard work always helps in life.
Okay friends? With this, goodbye, khuda hafiz, bye bye,
tata.
See you in the next lecture.
Thank you friends.