Hello, let's try to move things forward through another
example, without any delay, we will start writing with me,
if a person notices from income tax that the income you are
telling is less, we feel that your income is more, go and
get your proper income, get the proper profit calculated,
get the CSA certified, so in that case, the client will
come to you and say, get my proper income, the income tax
people are doubting me, so how will you calculate his
income, let's see here through another
Example, we will write with me, without any delay,
Example, the income tax officer on assessing the income of
Mr. Dharmendra for the financial year, by-stays for the
financial year, those are by-stays, feels that Mr.
Dharmendra has not disclosed the full income,
Example, he gives you the following particulars of assets
and liabilities of Mr.
Dharmendra as on 1st April 21 and 1st April 23
Example, the income tax officer on assessing the income of
Mr.
Dharmendra for the financial year, write this much quickly,
after that,
I will explain this question practically to you, you write
first,
Wives Jewelry 75000
Liabilities Owing to Moti's brother 40000
Creditors 35000
Write this much quickly, then you have to write the
information of 1st April 22,
1st April 23
Assets Cash in hand 16000
Inventory 91500
Debtors 52500
Land and Building 1,90,000
Motor Car 1,25,000
Wives Jewelry 1,25,000
Loan to Moti's brother
Loan to Dharmendra's brother 20000
Creditors 55,55,000
Write further,
During that 2 years,
The domestic expenditure was
Rs. 4000 per month
The declared incomes of the 2 years were
Rs. 1,05,000 and Rs.
Please state whether the contention of income tax officer
is correct or not.
Please write this down.
.
tax officer that he has suppressed the income of two years,
suppress means to press, he gives you income tax officer,
he gives you the following particular of assets and
liabilities of Shri Dharmendra.
Income tax officer discloses the assets and liabilities of
Shri Dharmendra to you.
How? When the income tax officer assesses his income, there
is a section 147 in which there is a scrutiny, there is a
144 in which there is a best judgment assessment and there
can also be a raid.
So whatever power he must have used, the income tax
officer, after using all this, he found out that the assets
are this much and the liabilities are this much with Shri
Dharmendra on April 1, 21 and April 1, 2023.
He told you how many assets and liabilities of Shri
Dharmendra on two dates.
He told you on two dates.
Income tax officer told you.
Now this case has come to your CA office, you yourself are
CA, CSA, CMA or work somewhere, so it is possible that your
CA should forward you, you have to work or it is possible
that as a CA you have to see this work yourself, so the
example is very relevant for everyone. Then it is written
during the two years, during these two years, domestic
expenditure, that is, domestic expenditure was 4000 rupees
per month, that is, 4000 rupees from the business was taken
out every month for household
by Shri Dharmendra.
Declared income, Shri Dharmendra has told how much is the
income of two years, one of 21-22 years, 1,05,000 and what
he has told of 22-23 years, he has told 1,23,000.
State whether the contention of income tax officer is
correct or not.
Is it right for the income tax officer to think whether the
income tax officer's income has been hidden or not.
How will you do this work, tell me, first tell me your
approach, what will be your approach to reach the answer of
this, what will be your approach to reach the answer, tell
me what you say.
Sir, we know the assets and liabilities of two years, I
said yes, it is absolutely correct.
So Sir, we will make a statement of affairs, you taught in
the last clip, I said yes, it is absolutely correct, but
what will you get by making a statement of affairs, what
will you get? We will get the capital of one April 21 by
making a statement of affairs, and we will get the capital
of one April 23.
I said yes, it is absolutely correct, then what will you
get,
Sir, after that we will put the equation, opening capital
plus additional capital plus profits minus drawings is
equal to closing capital, you have taught Sir, absolutely
correct, you are going absolutely right, let us try to
solve it in the same way, let's start.
Solution, write statement of affairs, Sir, this is the word
of affairs, we will write
statement of affairs, what will you write here, liabilities
and liabilities of two dates are given to you, 1st April 21
and 1st April 23, make both of them together, you will not
do different formatting, where are the mosquitoes coming
from, assets, 1st April 21 and 1st
April 23, start putting values, cash in hand, inventories,
debtors, land and buildings, wife's jewellery, Sid L W,
let's write it quickly, we will write the asset side, cash
in hand, inventories, debtors, land and buildings, land and
buildings, wife's jewellery, Sir, his wife's jewellery is
his personal asset, he has given it in business assets, he
has brought his wife's jewellery and invested it in
business, Sir, his wife must be giving it, it seems like
this, he has given his jewellery to
in business, what else is there after that, there is
nothing else, liabilities are owing to Dharmendra brother,
he has taken a loan from Dharmendra's brother, brothers are
not seen in business, if there is a loan, then there is a
loan, balance sheet side will be written, owing to
Dharmendra's brother, how much is owing to Dharmendra's
brother, creditors 40,000 and 35,000, after that creditors
40,000 and 35,000, what are these values, 25,500, 56,000,
41,500, 190,000 and 75,000, these values are
there on 1st April 23, put them also, cash in hand 16,000,
inventory 91,500, debtors 52,500, land and building as it
is 190, because there is no depreciation and sale purchase,
then nothing will be done, motor car 125, motor car has an
asset, which
has been confirmed, the wife is also there, and the next
point is very careful, loan to
Dharmendra's brother, loan to Dharmendra's brother, last
time it was owing to Dharmendra's brother, last time owing
means taking a loan from Dharmendra's brother.
loan was taken from the owner's brother in the business.
This time it is 2 loan to Dharmendra's brother.
Loan has been given this time.
It is an asset, an asset.
This time the loan was paid last time from Dharmendra's
brother and on the contrary, he was also given a loan. to
Dharmendra's brother.
20,000, 20,000.
Creditors 55,000, 55,000.
So after putting so much, now according to me, you can find
out the opening and closing capital.
You can find out by balancing this account on April 1, 21
and April 1, 23.
That capital will come out as a balancing figure.
I pick up the calculator, you also pick up the calculator
and find out the answer of the year.
25,500 plus 56 plus 41,500 plus 190 plus 75 minus 40 and
35, 75.
This remains 3,13,000.
3,13,000. One April 21 capital has come and the total on
both sides is 3,88,000 and 3,88,000.
After that, on the other side, 16,000 plus 91,500 plus
52,500 plus 190 plus 125 plus 125 plus 20 minus 55, 65,000.
Total is 6,20,000, 6,20,000 on both sides.
6,20,000, 6,20,000.
What did we find out?
We had to make a profit.
To make a profit, we find out the opening and closing
capital and then take the support of the equation.
Opening capital plus additional capital plus profit minus
drawing is equal to closing capital.
Opening and closing capital have been achieved.
Now it is time to apply the equation.
But this time keep one thing in mind.
Sir, what is the thing? Friends, the opening capital is of
1 April 21 and the closing capital is of 1 April 23.
Say 31 April 23.
There is a gap of 2 years.
Opening and closing capital.
So all the things that you will take in the equation,
consider the amount of all of them for 2 years and take.
You will also consider the amount of all of them for 2
years and take it.
Okay, sir, we understand what you are saying.
I said very very good.
Apply equation.
Opening capital plus additional capital plus profits plus
profits minus drawings is equal to closing capital is equal
to closing capital.
How much is the opening capital, sir? 3,13,000.
How much is the closing capital, sir? 5,65,000.
And this is what I am saying in between, additional
capital, profits and drawings.
Take all these things for 2 years and go.
So how much is the drawing for 2 years? 4,000 rupees per
month.
How much is it in 2 years? 4,000 rupees per month.
How much is it for 2 years? 24 into 4,000.
4,000 into 24.
96,000. 96,000 plus profits will come out. Profits will
come out.
And friends, we did not have any additional capital.
Additional capital is 0.
Just see how many profits will come out here.
4,000 into 24 will be 96.
Here it will be 96 plus and 3,13,000 will be minus.
3,48,000. Profits will also come out for 2 years.
When all the other figures are reflecting 2 years, then the
profit of 3,48,000 will remain.
This is also the sum of 2 years.
3,48,000. So according to your calculation, the profit that
has come out is 3,48,000.
3,48,000. For 2 years.
21, 22 and 23.
And how much has elder brother shown in income tax? Elder
brother has shown in income tax, 1,05,000 and 1,23,000.
If you do the total, then it is 2,28,000.
How much are the profits disclosed? Disclosed means the
profit that has been sent to the income tax department for
2 years.
That is 2,28,000.
2,28,000. So you can tell that according to your
calculation, 3,48,000 is the profit for 2 years.
He is saying 2,28,000.
How much income has been hidden? It has been suppressed.
How much is the suppressed income? How much profit has been
shown? Sir, A minus B. Consider this as A and consider this
as B.
A minus B.
1,20,120,000. 1,20,120,000 friends.
Please note it down.
Please note it
down. Please note it down.
You can understand it like this.
A client comes to you.
He says that I have worked for 2 years.
Give me my 2 year profit.
You will say that tell me the initial assets and
liabilities of 1st April.
And where your 2 years are completed, give us the details
of 1st April 20, that day's assets and liabilities.
Ask him for drawings and additional capital.
Then also you can take out his profit and serve him.
You can do it.
Okay sir.
So friends, we could have calculated the profit in this way.
Review this clip and then move ahead.
We will meet in the next clip.
If you have any doubts, ask.
Till then, thank you, bye bye and take care.