Yes friends, how are you all? Good morning, good afternoon,
good evening.
Whoever is watching me right now, my heartiest greetings to
them.
How are you all?
Great fun outside.
Sir, why do you keep asking about fun?
What is this fun?
Friends, in life, if you believe in fun, it is every day.
And if you don't believe in it, if you don't believe in it,
it is pain and suffering every day.
What else is there?
Keep laughing, keep being happy, keep reading concepts,
keep moving forward in life.
Why do you have to overpower yourself with so much pain and
suffering?
These things don't do anything, friends.
The more you think about something, the more that thing
increases in life.
If you think more about problems, you will get problems in
life.
If you think about laughter and happiness, you will get
happiness in life.
If you think about laughter and happiness, you will get
happiness in life.
If you think about success, you will get happiness in life.
If you think about earning money, you will get happiness in
life.
In turn, all these things will increase in your life.
Do it and see.
Be positive, friends.
There are a lot of people who are negative.
They say, if you want to see, look high.
If you want to look down, you will get a lot in life.
That's it, sir.
Come on.
We are on the last topic of Income Taxi Dharani.
These are our last topics.
There is a chapter on clubbing.
Clubbing.
Do you know what club means?
What does club mean?
Sir, why don't you know what club means?
There is a song in the club.
That club says, not that club.
Club means to add something.
To total something.
To include something.
To club it.
To club the income in this income.
That is called clubbing.
We clubbed this thing.
Clubbing means we added something.
That is called clubbing.
We have to discuss about the same thing.
What is clubbing?
What should be added to which thing?
What should be added to which income?
Whose income should be added?
We have to study that.
Sir, till now we were discussing in Income Tax that if I
earn some money,
I can easily deposit the money that I earn in Income Tax.
Now you are talking about clubbing.
Friend, I am telling you the simple meaning of clubbing is
if another person also has some income, if another person
also has some income, then you are responsible for that.
It will be accepted that that person is not earning that
income.
You are earning that income.
And you will deposit the income tax that will go on that
person.
What am I saying?
I am saying that for example, there is a person.
His name is Big B.
He is the same person.
He is the same person as you are thinking.
Okay.
Now his total income, his individual total income and his
total income for the entire year is so high that it comes
under the tax bracket of 30%.
Whatever money he earns, whatever money he earns, 30% of
the income tax will be deposited on him.
Whether he earns money from films, whether he earns money
from KBC, whether he earns money from the property that he
has rented, he will come under the tax bracket of 30%.
Yes, but his sons,
his sons are a little tall in height,
Junior Junior Big B.
Junior and Big B.
There is a lot of difference in their income levels.
Big B is 80.
And his income is still above 200-250 crores annually.
Whereas our Junior is still looking for a job.
So now his income is above 200 crores.
Here, his income is not even enough to cross the exemption
limit.
His income is of Rs.
0 for the entire year.
He earns Rs. 0.
Now what will Big B do?
He will do tax planning.
Big B will do tax planning.
What will he do?
He will think that whatever my income is, at least, at
least I should divert my income here.
Because even if I earn an income of Rs.
5 lakhs, here, for example, the existing income is Rs.
100 crores.
Assume that my rent is coming from somewhere and the rent
is of Rs.
5 lakhs.
So here, if I add my income of Rs.
5 lakhs, then that will also come under the tax bracket of
30%.
On top of that, I will have to pay tax according to 30%.
Why not?
If my rent is of Rs.
5 lakhs, then why not
I shift my rent here?
I will tell the tenant that, hey tenant, listen to me.
The cheque that you make, don't make a cheque in the name
of Big B.
Make a cheque in the name of Junior Big B.
What will that do?
My income of Rs. 5 lakhs will be reduced from here.
In the tax bracket of 30%,
I would have paid a tax of Rs. 1.5 lakhs on this income.
Now this income has been diverted here.
And this tenant's income is of Rs. 0.
The exemption limit is of Rs. 2.5 lakhs.
And if there is a tax of Rs.
2.5 lakhs, then we will give you a rebate of Rs.
5 lakhs.
Basically, you are exempt.
So here, even if I get the income of Rs.
5 lakhs, then what is there on this?
There is no tax on this.
There is a tax of Rs. 0.
Sir, this tax planning,
Big B has done an excellent tax planning.
A tax of Rs. 1.5 lakhs was being made.
On the income of Rs.
5 lakhs of house property, that tax of Rs.
1.5 lakhs, they saved it.
Their own son,
even their own son, got an income source generated.
The number of transactions like this was increasing in the
country.
The high-income group, who come in the tax bracket above
30%, the tax bracket above 30%, the problem is that if they
earn extra, they will have to pay tax according to the 30%.
Understand, a simple concept.
The person who is in the tax bracket above 30%, whatever he
earns, he will have to pay tax according to the 30%.
What is left for him?
He will look for people in his house who have an income of
Rs.
0 or whose income is a little less.
The tax rate should not be 30%.
It should be a little less.
It should be 10%, 5%, 20%.
He looked for them and his income,
on which if I would pay tax,
I would pay tax according to 30%,
I diverted that income
to such a person in the house who either gets exempted or
gets taxable at a rate of 5% or 20%.
Even if he gets taxable at a rate of 20%,
I still saved my tax.
If he would have been taxable at a rate of 20%,
I would still have saved 10% tax.
Sir, this tax planning was going on.
The high income group was doing the same thing.
They were diverting the income.
So, Nirmala Tai's eyes fell on these transactions.
Nirmala Tai said,
Son, you have not left anyone till now.
If you have not left anyone till now, how can they leave
you?
You must be a Big B.
Nirmala Ji brought a new chapter named Clubbing.
Clubbing.
If you break it,
Clubbing What does Clubbing mean?
This income which I transferred to
Junior Big B, that will also become a club.
In whose hands? In Big B's hands.
Big B cleverly transferred its income to Junior Big B's
hands.
But now, when these provisions have come,
Nirmala Tai's eyes fell on these transactions.
She said, wherever there is a mistake, I will correct it.
What is wrong?
There is a diversion of income.
You have diverted the income.
So, what is wrong in diverting the income?
I will try to save my tax.
What is wrong in diverting the income?
There is nothing wrong.
It is wrong to divert the income when you have the house
property and they have the house property.
They have the house property.
They have the house documents.
So, they should also get the rent.
Who is going to take that rent?
If you give all these documents, these papers to them, they
will get the property.
If they get the property, to Junior Big B, the ownership of
the house.
Now this is the owner, whatever rent he gets from the house
property income will be in his hands.
He will not care about it.
It is a simple concept.
The problem is that you are not transferring the papers,
you are not giving the documents.
You have all the documents.
You have the ownership of the house.
You are only transferring income to him.
This is not right.
Why should that person get the income when you have the
ownership of the house and the documents.
You are making a policy of fraud.
No one will allow you to do this.
Transfer the documents in his name.
Show him that you have sold the house to Junior Big B for
adequate consideration.
If the house comes to that person then he will show that he
has the house property income.
He will claim his exemption limit.
No one will bother Big B.
But in this case the problem is that Big B has the
ownership of the house, he has the documents, he is the
owner.
He is only transferring the income.
So in this case the government has brought the provision of
clubbing.
If these conditions are satisfied then the income will be
clubbed in the hands of the transferor.
The person who is transferring the income. This is the
point.
Let's do some reading.
Income of other person included in the SSE's total income.
SSE is Big B. Transfer of income without the transfer of
the asset.
I have explained this to you. Income transferred. The house
property income of 5 lakhs was the rental.
That was transferred. But Big B did not transfer his house.
He is very cunning. He did not transfer the house but
transferred the income.
So what will happen in that case? If any person transfers
the income from any asset without transferring the asset,
such income is to be included in the total income of the
transferor.
That income will be included in the income of Big B and it
should be included.
On what basis are you making him receive? On what basis are
you making Abhishek Bachchan receive?
As a what? Is he the owner of that property? When he is not
the owner of that property, on what basis can he receive
the rent? On what basis can he receive the rent?
You are the owner.
You have the right to the property.
On what basis is he receiving?
You are doing fraud. In this case, it will be taxable in
the hands of the transferor.
It is immaterial whether transfer is revocable or
irrevocable and whether it was made before the commencement
of the act or it was made after the commencement of the act.
For example, Mr.
A confers the right to receive rent in respect of his house
property to his wife,
Mrs. A, without transferring the house itself to her.
Mr. A has told the tenant that don't make the cheque in my
name, make it in my wife's name.
And I have not even transferred the house property to Mrs.
A. I have the house property.
The property is mine.
I am the owner of the house.
The rent is going to her as a what?
Who is she? What right does she have? Sir, why are you
saying like this? She is your wife.
I am talking to you legally. I am talking in legal terms. I
am the owner of the house.
I am the owner of the house. I have the papers. I should
get the income.
So, as a what? On what basis is the income going to her?
So, in that case, the income that will come in my hands, in
that case, the income that will come in her hands, that
will be considered my income.
That club will be made in my hands.