Hello friends, how are you all? I am Shreya Gupta, your
friend, your host, your companion, your companion, your
sympathizer in this Tech C Class.
Friends, we were discussing on deductions chapter.
We had covered a lot of sections and very few sections were
left.
If you remember,
we were discussing on 80GGB and that discussion was pending
due to some technical issues.
will continue that discussion now.
80GGB was basically, if there was an Indian company
and that Indian company wants to donate something to its
political party.
In India, there are so many parties like Aam Aadmi Party,
RJD, BJP, Congress.
There are so many parties.
To do business in India, you are not that innocent that you
don't know that if you
want to do business in India, you need some connections
with political parties, police
and all these things.
If a person does business, how will he do it if he doesn't
have connections?
If he is making a lot of profit, an MLA or a person like
Bahubali will say, yes, you
are making a lot of profit, what about our party? If a
businessman starts spending his
income in such parties, where will his poor income go? If
an angry businessman goes to
the government and says, Nirmala madam, you are our
country's finance minister, tell me how will this happen?
If I spend my income in political parties, what will I do?
How
will I run my business? He will say, okay, look, we need
money.
We will take money from
you, you can do anything. We will give you a deduction from
your gross total income.
We will make such a section that whatever donation you give
us, you will get a deduction
under section 80 GGB.
So friends, I explained to you that if there is any company
and its
gross total income comes out to be 10 crore rupees, its
profit comes out to be 10 crore
rupees. Now suppose you have to contribute to a party, you
have to make favourable policies
to the government, that you have taken a policy in our
favour.
Or my factory is going
this way, and he has given some contribution to the MLA,
that do one thing, get a good
road from here, so that the prices of my factory also
increase and my transportation also improves.
So get a road.
So MLA will say, okay, what for us? He will say, okay,
I will give some money to the party fund.
You must have seen this in movies, give money
to the party fund.
So what will he do? He will give a deduction or donation.
He will
give a donation, suppose of 1 crore rupees.
So it is a simple thing, we are giving him
a 100% deduction.
In which section are we giving? In 80 GGB.
His gross total income
will come out to be 9 crore rupees.
It is a simple thing.
He is also happy.
His income
has reduced.
Income has reduced, so tax has also reduced.
He is happy.
He has no problem
in giving.
On the other hand, the political party has also got money.
So friends, see
how cleverly these sections are drafted for their own
benefit.
But what are they doing?
Friends, if you want to do business in India, if you want
to earn money, you have to do all these things.
Friends, let's put a reading, 80 GGB.
And what I have made of BJP, it does
not mean that BJP people do such things.
It does not mean that I am making it for a
diagram. First, let me give a disclaimer.
The people whose names I have taken, I have
just given as an example.
It is not that they actually do it.
You go and call Adani
sir and BJP people.
There is nothing like that, friends.
All the things in this story
are imaginary.
They have nothing to do with real life.
Come on, friends.
He is saying
that this section provides for deduction by Indian company.
Right now we are only talking
about companies.
We are not talking about partnership firms.
We are not talking about
individual people.
We are not talking about sole proprietors.
We are not talking about
HUF. We are not talking about AOP.
We are only talking about Indian companies.
when will you talk about them, sir? We will talk about them
in the next section, friends.
The government is there.
It wants money.
It will leave it.
Not to anyone.
So, for that
they have made the next section, 80 GDC.
Let's do it now.
First finish it.
So, this section
provides for deduction of any sum by Indian company to
political party or to any electoral
trust. Now, for example, it can also happen that they
publish their own magazines of political parties.
As I remember, Shiv Sena publishes a magazine called Samna.
In that
Samna, you publish your advertisement, for example.
Advertisement you publish in a political
party. It will also be considered as a contribution. It
will also be considered as a donation.
And what will the company get? Deduction. How much will you
get, friends? 100 percent.
100 percent. I will give 1000 crore rupees as donation to
finish my gross total income.
Will you get it? Answer is yes. You will get it. Come,
friends.
In the second B point, expense incurred directly or
indirectly by a company on advertisement
in any publication, like pamphlet, souvenir, by or on
behalf of a political party or for
its advantage, shall be deemed to be contribution to such
political party.
You will get 100 percent deduction in that case.