Welcome to our new lecture on TDS.
We were discussing about TDS till now.
We had covered very interesting sections.
In last lecture, we had covered the TDS of Non-Resident
Sportsman,
Non-Resident Sports Association,
Non-Resident Entertainer, which we pay.
What are the provisions of TDS on that?
We had covered that point.
Today, I will cover two very interesting sections.
194G and 194H.
Not AGOG.
This is 194G.
GG. I am covering.
Don't say GG too much.
It feels good to say G.
In today's world, people say it loudly.
If a person comes and says G, it becomes a day.
Let's talk about 194G.
194G is Sale of Lottery Tickets.
Commission on the Sale of Lottery Tickets.
In this country, whatever income is possible, it is
possible, or there is a possibility that there can be
income from here too.
All the income you are seeing, the government is covering
in income tax.
Business income is made heads for them.
Salary is made heads.
Rental income is made heads for house property.
And the rest, the lottery income, the commission on it, the
lottery winner has a 30% flat rate.
The lottery winner has a 30% flat rate.
But this 194G is talking about that person who sells you
dreams.
He shows you dreams.
He says that you will win a lottery of Rs.10.
My dear, if you win this lottery and your number, the
lottery number, that number is put there, then by giving
Rs.10, you will get Rs.10 crore.
The question is of Rs.10 crore.
Rs.10 is lost.
Who knows, by giving Rs.10, you will become a millionaire
the next day.
By giving Rs.10 today, you will become a millionaire the
next day.
This is how they sell dreams.
And they hypnotize you so much that you will buy a ticket
for Rs.10-20-50.
Tell me a thing, is there anything in life that you give
Rs.10, don't work hard, and become a millionaire overnight?
Can you become a millionaire today?
Is it possible?
Is there anything in life without hard work?
Sir, all these are scams and frauds.
Don't fall into their traps.
I have seen such people who buy lottery tickets for Rs.100
every day.
And they have been buying them for 30 years.
Till date, they have not won a lottery of Rs.1.
Why won't they win?
Brother, from the angle of a lottery seller, there is a
ticket for Rs.100, and he has given it to 100 people
throughout the day.
Sometimes in a train, sometimes in a metro, sometimes
somewhere else.
Why did he spend Rs.10 for that?
And the poor guy who is buying, is sitting in the hope that
one day he will win a lottery of Rs.10 crores.
Whether he wins or not, the lottery seller is definitely
winning.
Because the lottery seller gets a commission from the
company.
The company organizes the lottery.
How does it sell?
These days, there is an online system, there are online
websites.
But they target, generally their target group targets the
low-income group.
They target the low-income group, who are less educated
people.
If they are educated, they don't fall into their traps.
Yes, the poor guy who is going on a cycle, they catch him
and say,
they catch him and say, give me Rs.10, and take the lottery
ticket.
Who knows, he might win a lottery of Rs.1 crore.
Today you are driving a rickshaw, tomorrow you will have
your own rickshaw factory.
Now, brother, if you tell the rickshaw driver, that you
will have a rickshaw factory, the poor guy won't be able to
sleep.
He won't be able to sleep at all.
He will start imagining, that I am driving a rickshaw in a
suit, or I have opened a rickshaw factory.
And I have started advertising.
And I am getting the ad board of my factory inaugurated by
Karishma Kapoor.
The poor guy won't be able to sleep at night.
This is a dream.
The one who is selling lottery tickets, gets a commission
from the company.
The company says, go to such and such people, who can buy,
who can fall into your trap.
Sell the lottery ticket, sell the Rs.100 ticket, and take
the Rs.10-Rs.15 commission from us.
The more the lottery ticket will be sold, the more your
commission.
Do you remember a film,
Mala Mal Weekly?
In Mala Mal Weekly, see this, Mala Mal Weekly.
What was the name of the lottery?
It was Mala Mal Weekly.
And if you remember the role of Paresh Rawal, he used to
sell lottery tickets.
In that, there was Anthony, who had won a lottery of Rs.1
crore.
And in the happiness of winning the lottery, the poor guy
used to die in this film.
He was the person who used to sell the lottery.
So when this guy sold the lottery to Anthony, he must have
got a commission.
He must have got a commission from the company.
Now we are seeing that the commission he has got, what is
it for? It is income.
It is income for him.
And when there is income, the TDS will also be deducted.
At what rate will it be deducted?
It is a 5% rate.
The company which is giving you the commission,
the company which is giving the commission to the agent,
the TDS will be deducted at a rate of 5%.
Yes, but if there is a commission of Rs.15,000 in the whole
year, then no TDS will be deducted.
If it is more than Rs.15,000, then the TDS will be deducted
at a rate of 5%.
And at the time of credit, it will be deducted at a rate of
Rs.15,000.
This is the point.
But this is my personal experience.
I will tell you, whatever people tell you to buy the
lottery, put it here, put it there, nothing happens.
A person becomes rich only with the hard work of his hands.
Everyone has the lines of his hands.
But no one becomes rich because of the lines of his hands.
You have to make these lines shine.
Because it is the fate of those who don't have hands.
But they also work hard.
There is nothing in life without hard work.
Today, the struggle you are feeling that you are seeing
classes, you are trying to understand, the struggle you are
feeling today, you will get the reward of this after a year
or two.
You will get a good job.
Suppose you are working at a place where there is no one.
There you will get to know that a master had got a TDS
section done.
He showed a photo of Paris travel.
Then all these things click.
Work hard.
Never be afraid of hard work.
These things reward you later.
You always get the fruit of good things later.
If you plant a tree today, you will get its shade after 20
years.
Its fruit will come out after 15 years.
Come here.
How much is the applicability and rate of TDS? 5% But if it
is up to 15,000, then you don't get any liability of TDS up
to 15,000.
What happened to him?
It seems that my laptop is stuck.
Oh my God!
Master, what are you doing?
Sorry.
Time of deduction is at the time of credit or whatever is
earlier.
This is the point.
Sir, this is the point.
Was there any problem in the section?
No problem.
Come to the next section. 194H.
194H.
And 194H talks about commission or brokerage income.
Commission or brokerage income.
Have you heard the name of property dealers?
If not, then see this board.
It is written Jagga Property Dealer.
Jagga Property Dealer says that we deal in shop, kothi,
plot, flat, godown in everything.
Flat is flat.
Just deposit 50,000 rupees and take the 75-gauge plot of
your dreams.
You must have seen it somewhere.
You go behind the auto.
If you are going behind the auto, get it booked in easy
installments.
0 km away from Delhi.
The palace of your dreams.
And you go and see, there is nothing there.
The whole jungle is there.
You neither see the person who takes the installments, nor
the person who gives the installments.
What is the job of property dealers?
Basically, they purchase and sell properties.
You must have seen, there is a shop, it is written plot is
plot, flat is flat.
Get the palace of your dreams in easy installments.
We will fulfill your dream.
So, where is the income of property dealers coming from?
The house he is selling, he will give him a commission of
around 1%.
And the house he is buying, what will he give him?
He will give him a commission.
Basically, the income of the property dealers, what is the
main source of income?
Commission.
Their main source is their commission.
They don't do anything themselves.
They will just tell you, yes, this is the house, this is
the party.
How much money do you have to give?
Give me the money.
My 1%.
The one who is being sold, let's take a commission from him.
Their main source of income is their commission.
Main source of, what did I say?
Main source of income.
From whom?
From the commission.
So when there is income, what should be added to the
income, friend?
Income tax.
Will you go and deposit next year?
The government will say, no, brother, don't come next year,
give it this year.
We are greedy.
Pay us this year, sir.
The person who is giving you the commission, go and tell
that person that this commission is my income.
This commission is my income.
And you deduct TDS on it.
On what percent?
Deduct TDS at a rate of 5%.
5% easy.
And deduct your TDS on monthly installments.
I don't want to do monthly installments in this.
So I am speaking in the same dialogue.
Whatever payment will come, your TDS will be deducted at 5%.
Yes, but if there is a commission of up to 15,000 rupees a
year.
If there is a commission of up to 15,000 rupees a year,
then no TDS is deducted there.
There is a rate of 5%.
At the time of credit or at the time of payment, whichever
is earlier.
Then you have to deduct.
Rate of 5%.
But deduct only if it is above 15,000 rupees.
No commission below 15,000 should be deducted.
Sir, this commission is not only in the case of property.
I told you about the property case because it is a very
common thing.
You will connect it.
You will see some other transaction where commission is
involved.
Like there are clearing and forwarding agents.
Means like you get goods from customs etc.
Goods come from abroad.
So I appoint an agent.
That my import is happening.
My goods are coming from abroad.
You do one thing, you become an agent.
I will give you some commission.
All these formalities, Kagri Karwai, going to the airport,
picking up the goods, bringing it to my warehouse.
You do all these things.
Right now I have a shortage of staff.
And there is a lot of business.
I have to focus on business.
You do all these things.
And for that work I will give you a commission.
That is also a commission.
When I will pay that commission to that person, then in
that case I will also cut the TDS and do the payment.
The commission should be more than Rs. 15,000 in that
person's entire year.
And when will I cut the TDS?
At the time of credit or at the time of payment, whichever
is earlier.
This is the point.
See it once.
I told you about the property case only so that you can
click quickly.
Take this sir.
An individual HVF whose sales were more than Rs.
1 crore last year or gross receipts were more than Rs.
50 lakhs, that also got covered here.
Anyone, all the people got covered here.
Because any person,
Earlier he said that any person other than individual HVF.
And later he said that individual HVF will also get covered
whose sales were more than Rs. 1 crore last year.
Now do you remember anything about Rs.
1 crore and Rs.
50 lakhs?
What was it?
What was the limit?
Sir, it was the limit of tax audit.
It was the limit of tax audit.
So the person who is getting covered in the limit of tax
audit, whether it is individual or HVF.
And there are other companies too on whom this provision is
being imposed.
If a company makes a payment, then the TDS will be imposed
on it.
But is there an individual?
Is there an HVF?
If someone is making a commission payment, and his turnover
is more than Rs.
1 crore last year, or if he is a professional, then he has
receipts of more than Rs.
50 lakhs.
He too will make a TDS payment.
This rate is there for companies.
But which individual is it on?
It is on these people.
It is their responsibility to make a TDS payment.
And when should it be made?
At the time of payment or credit, whichever is earlier.
There will be a threshold limit of Rs. 15,000.
This was the point.
This is the point.
What did we do for Rs.
We made a G.
The person used to sell lottery tickets.
And he used to earn commissions.
He used to sell dreams to people.
He used to earn commissions.
What will be deducted on that commission?
TDS.
What was the second case?
Rs. 194 H.
He is earning commissions by purchasing a sale.
In that case, the rate is the same of 5%.
In both the cases.
There is an exemption limit of Rs. 15,000.
There is a TDS of 5% on that.
At the time of credit or payment, whichever is earlier.
Both have the same rate.
That is why I covered both at the same time.
So that the mind can associate.
I will stop this lecture here.
Absorb it.
We will meet in the next lecture with a new topic.
Thank you friends.