Hello, hello, friends. How are you all? I am C. H. De
Gupta, your friend, your companion, your sympathizer in
this Income Tax session.
Friends, we had discussed a lot of heads. We have finished
a lot of heads. And we have finished a lot of parts of
Income Tax, friends.
I hope you are able to understand my concepts so far.
Friends, today we will discuss a new topic.
This is not a head of income. On the contrary, this is a
head that benefits you.
But before you listen to something about this head, I would
like to share a small story with you.
Friends, tell me one thing.
Which animal is called the king of the jungle?
Lion. Absolutely right answer.
Friends, tell me.
Which animal is the heaviest in the jungle?
Elephant. Which animal runs the fastest?
Cheetah. Which animal is the smartest?
Fox.
But tell me one thing.
When the lion is not the smartest, not the heaviest, not
the fastest, then why is he the king of the jungle?
Because his attitude is like this, friends. He has all
these small things, but his attitude, his confidence, which
keeps telling him again and again that you are the king.
You tell me. What do you lack? Your hands and feet work.
Your mind works.
You have the means to see our classes.
What do you lack, friends?
Despite this, you keep doubting yourself. You lack
confidence.
This is confidence, friends. This is the attitude that will
make you a hero from zero.
Always keep your confidence. Confidence is your biggest
treasure, friends.
Never tell it less.
Let's start, friends, with a new topic. The name of the
topic is deductions.
Sir, what does deductions mean?
What can you deduce from deductions? First, you tell me
this.
Deduction means to minus something.
To deduct.
See, try to understand what I am trying to say.
Till now, whatever head of income we have discussed, what
was the reason for discussing it?
That how much total income tax you get.
So, its format, I told you something like this in my first
lecture, that what will you do first?
Income. What will you do first, friends?
Income.
Underhead salary.
This will come to you.
Then what will come to you?
Business. Business and profession.
This is also called PGP.
Then what will come to you, friends?
House property.
Then capital gains and then other sources.
What will come to you from here?
A gross total income will come to you.
I told you that a gross total income will come to you.
Now, the government tells you that your gross total income
has come to you.
So, what are you waiting for?
Your gross total income has come to you.
According to that, whatever salaries are made,
according to that, you can pay your tax.
But, don't you think this is wrong?
Tell me, don't you think this is wrong?
If this is my gross total income, if this is my gross total
income, this is basically the income that I have earned in
a year.
But, this income also includes the money that I will pay
for my children's fees.
This income also includes the money that I will pay for my
medical insurance premium.
This gross total income also includes the money that I will
pay for my LIC policy premium.
This money also includes the money that if I have taken an
education loan, in the name of my children, then I will pay
for their interest.
Basically, all these things that I am telling you, medical
facilities, education, this is the job of the government to
give me.
Tell me one thing, if the government gives us free
education, or at a very low cost, or at a very low cost,
gives us medical facilities, then do we need to take this
insurance policy?
Tell me.
Sir, who does this?
Why does the government give this for free?
Sir, you go abroad.
Go to Canada.
They will make a social card for you.
Show that card and get admitted to the hospital for free.
If they take tax from you, they give you all these
facilities.
You don't have to pay for medical expenses there.
But here, if you go to a private hospital for treatment,
your house will be sold.
Your house will be sold.
This is the problem, friends.
All these things are included in the income.
I am spending that money.
The money that the government should have spent on me, or
on this country, who is spending that money?
I am spending it.
I told people about this problem.
I told Mr. Modi about this.
Mr. Modi said,
Friends, I am sorry.
We understand that we have made a lot of mistakes.
The infrastructure of medical and education should have
been ready by now.
It has not been ready by now.
We accept this.
We are working on this road.
In the coming days, it will be possible that the medical
and education expenses will be reduced.
What should I do until that happens?
The income that I am earning,
I have not started spending it yet.
I have earned income and I am paying for my LIC policy.
I am paying for my health insurance policy.
I am paying for my children's fees.
What money do I have left for myself?
Will I give everything in tax?
The government said,
Friends, do one thing.
We understand that we have made a mistake.
We have also been delayed.
Do one thing.
We will create a special thing for you.
It is called the topic
Deductions.
Deductions means what minus you can do from your gross
total income and after that your total income will come out.
And now the tax you have to pay should be on this total
income and not on the gross total income.
From the gross total income, the deductions I will tell you
what minus you can do.
Like insurance money, educational loan, interest.
Minus all these things.
Because actually
I have earned money.
I have not used it for myself.
I am using it for those things which the actual government
should have given.
So the government said that from the gross total income,
deduct your deductions.
You have to pay your tax on this.
This is the point.
With this we will start our newest topic which is
Deductions under chapter 6.
This is our topic.
Before starting this chapter,
I would also like to tell you that there are different
sections and those sections tell you that when you will pay
for certain things, then the same amount will be deducted
from your gross total income.
We are going to study this in this chapter.
Let's start reading the first section because there are no
tough things.
Pay attention to what I am teaching.
First of all,
I hope you have noted down the deductions in the copy.
Suppose my gross total income is zero.
Should I still get deductions? Think about it.
If my gross total income is zero, should I still get
deductions?
Why are all these calculations being done?
They are being done so that you get a total income and pay
tax on it.
If your income is zero, what will you deduct from it?
If your gross total income is zero, then there is no need
to deduct deductions from it.
Chapter 6A contains deductions from gross total income. The
important point to be noted is that, if there is no gross
total income, then you will not get any deduction.
And deductions are available for some payments. Section 80A
states that deductions will be available from 80C to 80U.
But it also states that total deductions will be more than
gross total income.
What we are doing is that we are deducing from GTI and
deducing from total income.
If this is Rs.100, then what is the maximum deduction I can
get?
So, deductions cannot be more than gross total income in
any case.
How do you claim deductions?
If I have to get deductions from the government, then how
do I claim it?
I don't claim anything. When you fill your income tax
return form, you will get deductions.
But for that, you have to file a written form. If you don't
file a written form, then you won't get deductions.
That is why people say that you should file a written form
from time to time.
You must have seen advertisements of the government. They
also say that you should file your written form from time
to time.
There is one more thing. There is a section in PGBP head
called 35AD.
Section 35AD states that there are some specified
businesses.
And if you start those specified businesses, then the
deductions for the expenses related to those businesses
should be taken in 35AD.
If you get a payment in 35AD and also in Section 80, then
will you get both?
The income will remain the same.
So, will you minus it twice?
The answer is no. You don't have to minus it twice.
You can either go to 35AD and get the deductions from there.
Or if you are not getting deductions from there, then you
can get deductions from here.
You spent once, so you won't get deductions twice.
You have a choice. You can get deductions from any of the
two sections.
It is very important to file your written form.
If you don't file your written form, then you won't get any
deductions in that case.
See, how many losses you get for not filing your written
form.
Any problem? Any worry? Any fear? No, right? Let's move
ahead.
Let's start with the first section, 80C, one of the most
important sections of the Income Tax Act.
It is such an important section that if you lose sight of
it, then it will be a disaster.
It is a very important section. It will be useful for your
whole life.
In practical life, it becomes a very important section.
Section 80C.
What does Section 80C say?
Sir, Section 80C is like a blanket section.
It covers a lot of things.
For example, if you have taken a life insurance policy for
yourself, your spouse or your child.
What did I say?
If you have taken a life insurance policy for yourself,
your spouse or your child.
Then you will get a premium for it.
These policies go on an annual premium.
If you pay a premium, then you will get a deduction for
that premium.
And there is a maximum limit of 1.5 lakh rupees.
For example, if your premium is 1 lakh rupees, then you
will get a deduction of 1 lakh rupees.
But if your premium is 2 lakh rupees, then you will get a
deduction of maximum 1.5 lakh rupees.
This section talks about life insurance premium.
It talks about a lot of things.
Let's move ahead.
You will read and I will also read.
Section 80C provides for deduction from GTI.
The deduction is available to individual or HUF.
The maximum limit you will get is 1.5 lakh rupees.
The following are the investments.
As I said, this section is like a blanket section.
It is not just life insurance.
It also gives you a deduction for a lot of other things.
What other things does it give?
And there are some conditions in life insurance policy.
I will tell you what they are.
Keep reading one by one.
You will get a deduction for a lot of other things.