Hello, hello friends, how are you?
Hanji sir, how are you?
I am a very bad person sir, my main name is C.S.
Shreyagupta and I am your friend, your companion, your
companion and your companion in the income tax issue.
Friends, since the last few lectures we have been doing
chapters on other sources.
Very interesting cheese we have covered.
And what interesting thing has happened since we covered
that now this chapter is on its last breath.
This chapter is in
Contemplation of his death.
If you remember where the word chura came from.
Contemplation of death.
There is little memory left of my old carriage.
Section 56.2.10 How much is Bobby Deol? 300 crores.
Friends, there is one last bit, teen line section, which I
want to discuss with you.
It has spread to your society that the transactions which
are mostly done through other sources, a lot of the
transactions are made for fraud.
As wo deemed dividend
Bobby Entertainment, Prem
Kishan Andy, those examples are being created with the
intention of committing fraud.
This is the transaction I told you about.
Please tell me, I have been thinking about your vision
since the beginning, this time I want to think about your
attention too.
Come, write a little on my whiteboard, and tell me
something,
What is this happening again and again, it doesn't matter
my friends,
Friends, it seems that a little money is needed to get a
good thing.
Come let's understand an example with me.
There is one company and its name is,
Be Imaan
Private Limited.
This guy is going to give his name to Imaan.
Limited.
The name of the company is Imaan.
Limited. As is the name, so is the work.
So what happened?
This company mein do teen directors the, one ka naam tha
Raju, one's name was
Shyam, and one's name was Babu Bhaiya.
Babu bhaiya means this.
So, what did they have to do now, they had to buy a
farmhouse.
How to do the transaction? How to make a hat twirl?
Don't you see something in our hands too? Because they also
had less money than the available number one.
How to do it now?
Personally I don't want to take this thing.
So what to do?
Farmhouse is also needed sir.
And tell me what I mean, this is Raju, his skull moves very
fast, this man is very intelligent.
How Prem lived there, how Raju lived here.
What did they do? He created a company,
Beeman Limited.
And this is the company's shares, they bought.
The face value of the company's shares is because there is
a face value which is minimum so you have to buy your
shares at the time of listing.
So this is the face value of the company's share, which was
rupees 100.
And he said this Raju, he says that I have a very big skull
and it changes very fast, so my dear sir, if you invest
money in my company, then within a day your money will
double.
So people started giving money to his company.
But he said, stop.
This rich man's scheme has fallen into my hands, and
because this rich man's scheme has fallen into my hands,
this is the face value of 100 rupees, so this share is
special, it will not cost you, mainly this share will cost
you at 120 rupees.
This is the issue price.
Which of my shares will come in the market, you will be
able to buy them at Rs 120.
That's right, it's absolutely right.
The company started running.
Listing went on, everything started getting better.
One month passed a bit.
Because there is a share market, the price of shares keeps
fluctuating up and down.
And one day this is the fair market value of the company,
the market value of the company was calculated,
approximately it was 110 rupees.
That's okay.
Abhi only here Raju, Shyam and
Babu bhaiya is there.
They called a madam, her name was Anura.
And told them, you do one thing, you also have money, you
do one thing, rotate this money through this company.
How to wander? You do one thing, you own our shares, for
example, the issue price tab of Rs 120 was going on.
He said, you do one thing, I have sold you this share for
Rs 120.
When starting a company, what is the fair market value?
Tab to nahi hogi na, tab to jab company nahi bani hai,
shares uske list hi nahi huay bhi tak.
So what did I find out, what is the rate of our share in
the market?
I learned that I should not sell my shares below Rs 100.
And I have made my decision in Rs 120, brother, I will
issue my share in Rs 30.
Come after a month, one, do it after a month, after a few
months,
Met Anuradha madam.
The glasses came in pain,
Motifrim's.
And he said, brother, what is your fair market value, 110?
To buy shares at Rs 110 from the main market?
Because it was Raju, he said, no madam, you beat me in 110,
you beat me in 120.
I share this which will cost you a little but this thing of
Rs 110 will cost you Rs 120.
What will happen to him?
Transition solution, what will happen?
The thing which was priced at Rs 110, will be available to
you in Rs 120.
How much money did the company earn?
How much extra money did you spend? Abhi 110 aane chahiye,
genuinely, if you buy shares from the market, you have to
buy them in 110 rupees.
To the company's profit, if the share capital is subscribed
as per your wish, the company's profit should come to Rs
110.
How many are there now? 120.
You are still paying rupees, why don't you spend it in
crores?
Who will you tell me now? We bought shares worth Rs 110
crore, we gave extra money and bought shares worth Rs 120
crore.
How much extra money did the company get?
Hey, how much do you want?
Yes? Doctor sahib, look here a little.
How much does the company want in its hands? 110.
And how much did it cost? 120.
What will you do with this company? This extra 10 crore
rupees will be reflected in your books, the actual
McPharmouse has bought the company in your name,
On the name of Bayman Limited, it was shown that these are
the shareholders and later these are the directors also,
they are staying there, all these things are there in the
company.
It is in the name of Bayman Limited, but who is it?
Actually these logs are still there.
They are making fun of the company's money.
So Sarkar said that Mr.
Raju ne.
They revealed that the issue price was higher than the
market value.
And whatever money he earned more than the market value, he
bought his pharmacy.
So the government says that the company has benefited from
this, the company should get 110 crores, and how much
should the company get? 120 crores.
What will this do in the hands of the company?
A kind of company? Income.
So tell me my dear friends, what income is being measured
and what income tax is required?
Answer is yes.
The government says that brother, the value of your share
is Rs 110 in the market, on what basis are you selling it
at Rs 120?
And who is that person who is buying us?
So brother, if whenever the issue price exceeds your fair
market value, the company will receive that money, then it
will be considered that the difference of Rs 10 crore is
the company's profit, on which the company will pay its
income tax. de ki.
It's a simple point, friend.
Apart from this there is nothing else in it.
See this my friend.
Its condition is that the issue price will be more than the
fair market value, and the condition before this is that
you are issuing the shares at a premium.
You are issuing your shares at a premium.
The premium is issued at a higher rate.
If the rate is Rs.100, then how much are you issuing?
At Rs.120.
Sir, if the rate was Rs.100, if the face value was Rs.100,
if you issue it at Rs.90, then this provision would not
have been applied there.
In that case, this provision was not applicable there.
It can only be applicable when, practically, if there is a
fraud, then it can only be applicable when the issue price
is a little higher than the fair market value.
And you issue these shares at a higher rate. This is the
point, friends.
Okay, friends? Let's move ahead. Is it clear? Let's see its
reading. Point number 3.
Consideration received in excess of, in excess of, it's a
simple thing, in excess of, in excess of FMV, fair market
value of the shares issued by a closely held company to be
treated as income of company, where shares are issued at
premium .
When you issue shares at a higher rate, in this case, I was
saying that I know the scheme of 21 days.
That is why I am issuing my shares at a premium.
If it is a share of Rs.100, then I am issuing it at Rs.120.
He would later go and find out what is its market value.
And then we took out the difference between issue price and
market value and taxable it in the company's hands.
Because who did he issue these shares to? To Anuradha Madam.
Come, let's go to the example.
Example number, see this, 1.
Did it come? Example number 1.
See, this company is telling me that its face value is
Rs.100.
The first condition I told you, see, are you issuing the
shares at a higher rate? Are you issuing them at a premium?
How will you find out?
Compare it with its issue price.
How much am I selling my share at? And what is the face
value of the share? If the issue price is high, then the
shares will come at a premium.
What is the face value? Rs.100.
How much is it issuing? Rs.130.
Is it issuing at a premium?
Check condition number 2.
Is the issue price higher than the market value of the
share?
What is the market value of the share? Rs.120. How much
should the company get? Rs.120.
How much is it issuing? Rs.130.
What will be the taxable amount in the company's hands?
Rs.130 minus Rs.120.
See, Rs.10 will be taxable.
If you multiply the number of shares, then you will get the
answer.
That is what is written here.
Now, look at this case.
The face value is Rs.100.
And how much is it issuing? Tell me, how much is it
issuing? Is it issuing at Rs.110? Is it issuing at a
premium? Is the issue price higher than the market value of
the share? Yes, it is issuing at Rs.110.
What is condition number 2? Is the issue price higher than
the market value of the share?
Is it higher? What is the market value of the share? Rs.120.
But you have issued it at
Rs.110. So, what is the problem? This is my company.
How much should I sell it at?
So, will this provision apply in this case? I said both the
conditions should be met.
Will it apply? In this case, this provision will not apply.
Answer is no.
You are issuing at a premium.
But the issue price is not higher than the fair market
value.
This is the point, friends.
Come to example number 3.
In example number 3, it is written that the share is Rs.100
and the issue is at Rs.98.
Is the issue at a premium? I am selling a share worth
Rs.100 at Rs.98.
I am selling it at a discount.
The first condition is not satisfied.
After that, if the issue price is higher or lower, what do
I have to do with it?
The first condition is not satisfied.
So, will this provision apply in this case?
Answer is no.
Look at this.
Shares are issued at a discount.
Although, the issue price is greater than the fair market
value.
When your share is at a discount and not at a premium, what
will you do with the next condition?
This was the point, friends.
With this, this chapter ends.
Amazing sir.
Applauds, sir.
Sir, through the medium of stories and by giving different
examples,
you have given such clarity, sir.
Absolutely, sir. This is it, friends.
Friends, my job here is to give you examples of real life,
practical life and explain these things to you, friends.
I will keep making you read for no reason and you will not
understand anything.
It is better that I give you an example first.
You must have seen my teaching method.
Although, I do not consider myself as a teacher. I still
consider myself as a student of this subject.
And in this life, I will consider myself as a student of
this subject.
But my technique is that I give you some examples first so
that it comes to your mind.
After that, I make you read a little.
Because when you will read,
you will have that concept in your mind.
You will read accordingly.
This is it, friends.
This section ends here.
This was the chapter of other source.
I had told you that the income mostly comes here.
Like horse income,
like gambling income, casual income etc.
comes here.
We had discussed this.
Like you receive a dividend.
If it does not go to any other head, it will come here.
You had put machinery on rent.
Remember, we had discussed this in the beginning.
You had put machinery on rent.
But putting it on rent and taking that rent was not your
main business.
So, what happened in that case?
You were getting income from other source.
I had also told you that the income that you will spend to
earn,
minus that from your income.
After minusing, the remaining value will be considered as
your income.
Come to the screen.
I will make you read from here.
Casual income is clear.
Dividend income is clear.
This point is also clear.
Third point.
Consideration, which you have got more than fair market
value.
Interest received on compensation.
Like I had told you that your land comes under check
bondage.
You get compensation on that.
And you get late.
So, the government gives you interest.
There is a deduction from that.
Minus that.
That will become your income.
Advance money forfeited.
Like I had told you that in property transactions,
it happens a lot.
Someone says it is visible.
Someone says it is not visible.
Advance money.
Then we had also talked about section 56-10.
See this, friends.
Gifts.
We had talked about gifts.
And we had talked about gifts in a very interesting way.
See this, friends.
Gifts.
Section 56-10.
You explain the definition of relatives even in sleep.
I had given you real life examples in this.
I had given you the example of Jacqueline Fernandez Sukesh.
Sometimes it is taxable.
Sometimes it is not taxable.
On some occasions, like on marriage,
nothing is taxable.
Even if you get it from someone.
We had discussed all these things there.
Gifts, gifts, gifts.
Your gift of love.
My life is made.
I have nurtured it with the support of my heart.
What else do I need to live?
This was the point in this.
Gifts.
All these points were clear.
Then we had made things minus.
I had said that in case of dividend,
I had told you that
you have taken a loan and bought shares.
Later, you get the income of the dividend.
So, do we have to do anything minus today?
Yes, we have to do something minus.
But what is the maximum?
20% of income.
These were the points.
And the compensation was 50%.
It had to be reduced.
You will not reduce your personal expenses.
If you had paid someone more than Rs.
10,000 in one day,
if you had paid in cash,
then you would not have to reduce that expense from this.
This has been discussed a lot in business and profession.
Come, friends.
So, this is the example of 222E, 222A, 222B, 222C, 222D,
222E, 222E, 222C, 222D, 222E,
222C, 222D, 222B, 222D, 222C, 222D, 222D, 222C, 222B, 222C,
222D,
other sources of income, like land in Chakbandi.
I got money from the government, but not now.
I got it after about 4 or 5 years.
Now, if you put an application that you are giving me money
after 5 years, and if you had given me that money 5 years
ago, then I would have earned some interest on that money.
So, now you pay me interest on that money.
The government's heart was such that the government said,
here is the interest money.
So, we will deduct 50% of that interest that you receive.
Look at this, 56-2, the 9th point.
This is the point where the property deal was not completed.
That man had given some advance money, but he ran away.
He did not come to deal the property.
So, the money that you received, you show it to your other
source of income.
Later, we came to the point of gift.
Gift is just a name, it is the message of my heart.
We had covered the technical point of immovable property
there.
We had to see the difference in terms of stem duty value.
And in immovable property, we had to see the difference in
terms of fair market value.
How much was the amount? 50,000.
I have covered everything for you.
And I am checking if I missed anything.
We had seen the definition of immovable property.
Share, security, 56-10, relatives.
I had given you the example of Ranbir Kapoor.
I had also given you the example of J. Thalal.
Then the occasion of marriage.
If you get anything from anyone at the time of marriage,
even if you get friends, then nothing happens. We had
covered all these things at that time.
If you get someone's property, if there is a contemplation
of death, if it happens from a medical institution. See
this, friends.
This is a flowchart.
You will not understand this, so I did not cover it.
These are the links of capital gains.
When they will do it there, then you will understand.
I have covered these examples in the class.
See this.
See more, friends.
If you get anything.
Casual income.
The deductions are the same.
You have to minus the deductions.
You have to do the same as you received the dividend.
If you had bought the shares on interest, you had earned a
dividend from it. The interest that you will pay to the
bank, you have to minus it from your income.
Maximum dividend is 20%.
Is the point clear?
Interest on securities.
This is the point of family pension.
If there is an employee in a company.
After some time, it expires.
He dies.
In that case, the employer can do this.
There are people like Dayabhavna.
They say that it has expired.
The salary that he had, you can take it from me every month.
Because his children may not be able to manage their
monthly expenses.
In that case, the employer says that his responsibilities
were there.
We understand this.
So you do one thing.
Whatever his salary was, you can take it from us every
month. So in a way, family pension is made.
In that case also, the government says that he should not
be taxed.
So the government says that whatever you receive, we will
give you a deduction of one third.
We will minus one third from your income.
And whatever balance is left, you have to pay your tax on
it.
Either one third or 15,000, whichever is less. This was the
point, friends.
How will we cover all these points in the class?
Like I told you about interest on enhanced compensation.
He must have got an interest of 5 lakhs.
Because the land was in Chakbandi.
And later the money was received.
His 50% deduction was minus.
And the remaining 50% of 2.5 lakhs was taxable.
There were some deductions which were not allowed.
Like he is doing a personal expense.
So we will not get him minused for personal expense.
In case of personal expense, nothing will be minus.
Or there is some expense which he did outside of India.
And he forgot to deduct the TDS on it.
He did not deduct TDS there.
So the deduction of that expense is also not available.
Sir, what is TDS?
Sir, we will talk about it in the next lecture.
That is why I have not touched him much.
You will get confused for no reason.
It is of no use.
With this, our chapter ends here.
I think we have covered all the points.
If you still have any doubts, then you are free to call me.
You can call me.
And you can ask me your questions.
I will stand there and answer all your questions line by
line.
Because it has become a bond.
It's fun to talk to you.
I don't know what has happened to you.
It's fun to talk to you.
It feels good when I am explaining these things to you.
And you also understand this concept very patiently.
It feels very good, friends.
I want to clap for you today.
You are working hard, friends.
That is why you deserve this clap.
If you have seen a dream, you are working hard for it.
You are working hard.
And this is the difference, friends, between dreams and
goals.
You can dream while sleeping.
But to achieve your goal, you have to work hard, which you
are doing at this time. You have reached the chapter of
Other Source.
So I believe that you have seen a lot of lectures before.
I also try to make things easy for you.
Because I also see my old self in you.
You are also like my brothers and sisters, friends.
I want you to revise the chapter I have given you.
Please note down the examples I give you.
You will forget them later.
It will be difficult for you to understand.
It will be very difficult for you to read it yourself.
But if you have written the examples somewhere, you will be
able to recapitulate.
This chapter ends here.
Breathe.
You have lived.
Never stop working hard, friends.
This hard work and knowledge are the only two things that
will make you successful.
You are at the age to work hard.
Keep working hard.
Keep living.
Respect your parents.
And try to give them a lot of happiness.
With this,
I, C.S.
Shreya Gupta, would like to take your leave.
I will meet you in a new lecture, in a new Head of Income.
With you.
Thank you very much, friends.
Thank you very much.