Good morning, good evening, good afternoon.
Today we are going to talk about indirect tax.
Indirectly you will face a burden.
You can recover from the other.
For example, GST.
What are we studying right now?
Which classes are you watching?
You are watching income tax classes.
So what are we going to discuss?
Direct tax.
On income tax.
Now see, there is income tax.
There is one thing.
What happens? How does it happen?
We discuss it.
But there is one thing.
There must be some rules or regulations behind it.
It must be written somewhere.
If this is the income, then how to tax this income?
If this is the income, then how much tax will be imposed on
it?
Will tax be imposed on this income or not?
We have to study all these things.
At what rate tax is imposed on which income?
No rate is applied.
That income is exempt.
At what expenses do you get a deduction?
You get minus from your income.
How is the total income deducted?
How do we deduct our income?
If you have to give income tax, then break the income tax.
Income and tax.
A tax that is imposed on income.
For that, first I have to calculate my income.
There are procedures for that too.
All these things must be written somewhere.
The law of income tax.
What are its components?
Let's discuss about that.
Overview of the income tax law in India.
How is it made?
First of all, we have the Income Tax Act.
The government made an Act.
This Act is from 1961.
In 1961, the government said that this Act is so big.
This Act has everything.
All your questions, we have tried to answer all of them.
Act basically means that you have made a law.
You have made a law.
That law has got the assent of the President of the country.
A law has been passed there.
Income Tax Act.
Now whatever work you do, you have to follow the law within
the law.
If you go beyond the law, then that thing becomes illegal.
Do you understand?
There is a law.
If you work within the law, then it becomes illegal.
As soon as you go beyond the law, it becomes illegal.
I am sorry.
Okay? It becomes illegal.
This is written in the Act.
Now after this Act, every year if you remember, every year
if you watch the news, then the budget comes.
At this time, our Madam Finance Minister, what is her name?
Nirmala Sitaraman.
For you, she is Sitaraman.
For me, she is Nirmala Tai.
From now on, whatever lectures there will be,
I will tell her, whenever I see her, whenever her reference
comes, we will call her Tai Ram Ram.
Tai Ram Ram.
And Nirmala Tai will be her name.
So the budget comes every year.
In that budget, there are rates.
How much tax will be imposed this year?
You have made the Act.
You have made the law.
What income to take, what income not to take, how to
charge, how not to charge, which income will not be taxed.
The law has made that.
Now every year, the rates of 1961 cannot be imposed today.
Whatever rate was there at that time, now that rate cannot
be imposed.
So every year, these budgets come with new rates.
What is your income this year?
At what rate will you impose tax on it?
Or which income will be more beneficial to remove this
income?
Or a new income has come.
For example, let's talk about cryptocurrency.
Crypto, 1-1.5 years ago, there was a lot of crypto.
The same people are investing money in crypto.
Crypto was not there in 1961.
So what about its taxability?
What did Nirmala Tai say?
If we want to impose tax on crypto, we put it in the budget.
We put it in the budget.
So you will get reference in the budget also.
Then comes income tax rules.
What the Act forgot to say, that what is not written in the
Act, in the law, will be written in the rules.
The Act never tells you the forms that you have to fill
under.
Which document number it will go under.
All these things are written in the income tax rules.
You will get reference from the income tax rules also.
Then comes circulars.
The income tax department also takes out their circulars,
their notifications from time to time.
A new income has come.
Just like Dream 11 is going on right now.
This is a speculation business.
It is a real income.
A new type of income has come.
For that, what will the income tax department do?
They will issue a circular.
They will put India's logo on it.
The income tax department's logo will be put on it.
They will write on it that from this date, this income
should be treated like this.
Tax should not be imposed on this income.
Or tax should be imposed on this income.
The income tax department also keeps issuing their
circulars, notifications.
We will have to take reference from all these things from
time to time.
And if there is a case of
High Court or Supreme Court, of income tax, they issue a
ruling that this type of income should not be treated like
this.
You can take reference from that court also.
Basically, when you need knowledge of income tax, when you
want to see the entire law of income tax, not only will you
take reference from the Act, but you will also have to see
the circulars.
You will also have to see the judgments of the court.
Then you will get to know how tax is imposed on this income.
Or why tax is not imposed on this income.
If it is imposed, at what rate?
If it is not imposed at a higher rate, why is it not
imposed at a lower rate?
These types of questions, if you take reference from these
5-6 things, you will understand.
The law of income tax is made up of these 5 things.
I mean to say that the entire text of the law of income
tax, is made up of these 5 things.
Sir, will you teach us these 5 things?
Sir, I will explain to you in this way.
I will explain to you in this way.
You will not even know.
And you will cover all these things.
We are going to cover all these things in our course.
But don't worry.
We will cover it in such a way that you won't even
understand.
And you will remember all these things.
Sir, we are very high level magicians.
We snap our fingers and the person understands the income
tax.
Sir, isn't it too much?
Come here.
What is the income tax act?
It came in 1962.
1st April 1962.
There are 5 sections.
There are clauses in it.
I will tell you for general knowledge.
If you go in professional life, don't go first.
How do you segregate it?
One is section.
As someone said, it is section.
Where the number is written, where the number is visible,
it means section.
The younger son of section is called sub-section.
His identity will come in brackets.
And it will remain a number.
Like this.
Now read it and tell me what I have written.
I have written section 56, sub-section 2.
For example, I write 59 and 3.
What will it mean?
Read it and tell me.
First comes section.
Section 69, sub-section 3.
Section, sub-section.
Sir, is there anything after this?
Yes, there is.
After this comes clause.
Like this.
This is clause.
Do it like this.
This is in roman numerals.
Now read it and tell me.
Section, sub-section, clause.
Now read it and tell me how you will read it.
Section 56, sub-section 2, clause 10.
Like this.
Do it like this.
How will you read it?
Section 59, Subsection 3, Clause 7, Section, Subsection,
Clause, Sub-Clause, Section 56, Subsection 2, Clause 10,
Sub-Clause A
Section, Subsection, Clause, Sub-Clause
Section, Subsection, Clause 10, Sub-Clause A
How much rate will your income be taxable, all those things
are told in it.
Because of this, listening to it becomes necessary.
Now next, we have seen income tax rules.
What are the rules?
Administration of the direct tax is looked after by Central
Board of Direct Tax.
Now what is CBDT?
CBDT is nothing, it is Ministry of Finance which will
handle all the tax.
Defense Ministry will handle it.
Home Ministry will handle the tax work.
Finance Ministry will handle it.
Now in that Finance Ministry, there is a department which
only does the work of direct tax.
But Ministry of Finance has a lot of work.
They make different departments.
That you take care of direct tax, you take care of indirect
tax.
So who are we? We are the direct tax people.
So we are the direct tax people.
So our department is CBDT.
Central Board of Direct Taxes.
CBDT.
These circulars are issued.
All income tax officers, income tax department is under
their supervision.
CBDT.
Central Board of Direct Taxes.
Direct Taxes.
Pay attention to this.
So in Ministry of Finance, there is a department.
These rules are made.
CBDT is empowered to make the rules.
For carrying out the purpose of the act.
For proper administration, CBDT makes rules from time to
time.
We have to see the rules they make.
What are the rules they have made?
How does it affect our income?
According to that, we will issue our income tax.
In between, they also issue circulars.
Circulars.
What happens?
They issue one or two pages.
They issue a circular of 8-10 pages.
That a new type of income has come to the country.
A new type of income has come from cryptocurrencies.
So whether that income is considered as income or not.
There is a detailed discussion on that circular.
How much tax rate has to be imposed on that income?
According to that, there is a discussion.
All these things are written in the circular.
CBDT takes it out from time to time.
We also have to read those things.
Sir, because of being a professional, studies never end.
I told you in the first lecture that I am also a student of
this subject.
Why did I say that?
Because of this, sir.
Today, you will feel that I have received the entire income
tax.
Next day, CBDT will issue a circular.
Update.
To stay in the market, it is very important to update
yourself.
HMT's watch, Nokia's mobile and Ambassador's car.
What did I say?
HMT's watch, Nokia's mobile and Ambassador's car.
Got out of the market because they could not update
themselves on time.
They got left behind somewhere.
If they would have brought new features on time, there
would have never been a flop in life, sir.
That is why I am telling you, keep increasing your
knowledge from time to time.
Keep doing small courses.
Today, you took a taxi class.
Let this end.
Do a small Excel course.
Clean your hands on computers.
In today's date, all these things are more important than
breathing.
You should know Excel.
You cannot get a job without it.
Your hands should be clean on MS Word.
You should know PowerPoint presentation.
You should know how to speak in English.
All these things have become very important.
In today's date, a person feels outdated.
That is why, it is not a bad thing to educate yourself and
update yourself.
Don't feel shy.
Keep updating and keep learning new things.
Come here.
These are some notifications and case laws of the Supreme
Court.
Come here.
Now, let us see how income tax is applied.
How is it done?
What is to be done?
How is it withdrawn?
I will give you a basic gist of it.
I am not going into detail now.
As we go further in detail, there is a envelope in Canada.
It is like a letter envelope.
What do you do?
First of all, you open the stapler pin.
I am doing the same thing.
I am opening the stapler pin.
I am yet to read the letter inside.
There are a lot of things left.
Come here.
I am simply telling you how income tax is withdrawn.
What is it? How is it withdrawn?
Sir, for income tax, all the income you have in this world,
is divided into five categories.
What am I saying?
Who are you?
Are you a resident or a citizen?
First of all, it is classified whether you are a resident
or a non-resident.
Because their provisions are also different.
Whatever word I say, its provisions will be different.
First, it will be seen whether you are a citizen or a
non-resident.
Yes, it has been proved that you are a citizen.
So, all the income you have in this world, will be divided
into five categories.
Which are those five categories?
Sir, a child is asking, all the income?
For example, I am a cricketer.
I play cricket.
I get my income by playing cricket.
Is that also?
Yes, sir.
You are a cricketer.
You are an actor.
You are a professional doctor.
You are a businessman.
You receive rent.
You have invested money in FD.
You earn interest from there.
You have income from the share market.
You have some other business.
All these things have been divided into five categories.
All your income has been divided into five categories.
What are those categories?
Sir, first of all, to get your income tax, it is necessary
to get your total income.
And for total income, those five categories should be known.
The first category is house property.
Basically, I am not telling you in detail.
I am just telling you that when you sit to get your income
tax,
you will first see what is the income of five heads.
These are five heads of income.
Head.
Sir.
There is a head.
These are the income of five heads.
Classify all the income.
Which is the income of the head?
First of all, house property income.
Basically, if you have a house on rent, if you get a rental
from somewhere, this is a rental.
If you get a rental, if you get a rent, it goes here, sir.
It goes here.
If you have a rent income, add it here.
Okay, sir.
If you get a salary from somewhere, if you work somewhere,
if you get a salary, add that salary here too.
Okay, sir.
If you do a small business, if you do a small or a big
business,
you get an income from that business.
You get an income from business and profession.
Add that income here too.
Someone will say,
I have a tea shop.
MBA tea shop is very famous.
I am not adding anyone.
Basically, what is MBA tea shop doing?
Let's talk about a topic.
What did MBA Chaiwala do? He opened a tea stall
I am speaking in desi language, I don't know how to speak
in sugar coat
What did MBA Chaiwala do?
He opened a tea stall
He named it MBA Chaiwala
MBA doesn't mean Master of Business Education
MBA means Mr.
Bellore from Ahmedabad
That's his full form
MBA Chaiwala named it
He did so much marketing that
MBA, MBA, MBA, Chaiwala, Chaiwala, MBA Chaiwala
He went to every news channel
He went and told people that I am an MBA, MBA Chaiwala
I sell tea worth this much
People developed a craze
And that guy did a smart thing
Do you know what he did?
In today's rate, what is his business model?
He sells tea
He started selling his franchise
He is taking 4 lakhs, 5 lakhs
To sell the franchise of MBA Chaiwala's brand
A new guy comes to him
He says I want to open this business
Okay, do one thing
Give me 5 lakhs of MBA Chaiwala's brand
As it is
Open this brand there
By selling tea
Now tell me one thing
The people who are buying from him are also like this
You want to open a tea stall
Will you buy a franchise for that too?
This is high level marketing, friends
Ultimately, to open a tea stall
To open a tea stall
Will I give 5 lakhs to someone?
Today, I will spend 10,000 rupees to open a tea stall
Why do I need to give 5 lakhs to someone?
After 2 years, it will be mine
Once Chaiwala becomes a place
You will go there to drink tea again and again
I will open a tea stall in front of a library
It will become a super hit
With that tea, I will sell my bread pakora
I will sell Parle-G biscuits
Sir, this is high level marketing
High level
He is doing his marketing everywhere
I will say that people will buy my franchise
Tell me one thing about Chaiwala's franchise
Since when did you need to buy a franchise to sell tea?
You can do it on your own
This is my opinion
Maybe you have a different opinion
But this is my opinion
People do a lot of marketing
They talk a lot
Don't listen to them
Apply your mind
What is this person's intention?
What does this person want?
And then make your decision
Is the business going on?
Do you do a small business?
Or do you have a big business?
The business income will come here
Do you do a share market?
Did you buy a share?
Did you sell a share?
Did you buy a property at a low price?
After 2-3-4 years, when there is a boom
You sell the property and leave
The capital gains income comes here
Capital Gains
If you have an FD in a bank
You get the annual interest of that FD
That is the interest income
It will come to the other source income
All this income
As far as you can take your thinking
That I will earn income from here
I will earn income from here
All your thinking will come to these 5 heads
And everything will get stuck
Because the government has thought a lot
And made these 5 heads
That wherever you earn money
In these 5 heads of income
You will definitely fall
You calculate the total of these 5 heads of income
After calculating the total
You see that
In your income
No one else's income will be clubbed
There will be no clubbing provision
Sometimes you are responsible
For someone else's income
For example
If it is a child's income
Parents are responsible
To pay tax on that income
In parents' income, it becomes a club
After clubbing
You calculate your total income
For example, I have less space
I will do it next
When you will do noting
You have to calculate the total
You have calculated the total
Director sir, please
You have calculated the total
You will take a loss
Carry forward of loss
You have taken a loss
After that you get a total income
If there are any deductions
You have given deductions
I will tell you later
I have told you
We have chapters of all these
All your doubts
Clubbing, deductions
There are chapters
All your doubts will be cleared
I am just telling you the basics
Here you reach the total income
And on this total income
You see
What is the government's tax rate
According to that rate
You pay your tax
On this total income
Just understand the basics
There are five heads of income
Total And on that total income
You pay your income tax
This is the basic thing
Basic simple
This is the concept
I will stop this lecture here
In the next lecture we will continue
So that you can absorb things
Revise and come
See you in the next lecture
Bye Bye