Good Morning, Good Afternoon, Good Evening
Whoever is watching me right now, my heartiest greetings to
you all.
How are you all?
Good? Great? Exciting? We should always be like this.
In the last lecture, we had discussed everything about
surcharge.
What is surcharge?
Basically, it is tax on tax.
We charge a little more tax on tax from the rich people who
have an income of more than 50 lakhs.
There are different rates like 10%, 15%, 25%, 37%.
There were such rates.
After that, we had discussed about health and education.
Whatever the tax is, you will add 4% of health and
education on it.
This big chapter of ours ends.
What we want to discuss is that the slab rates that we have
increased are of individual categories.
The rates of companies are different.
There are two rates of companies.
What is the bifurcation of companies?
One is domestic company.
Domestic company means Indian companies.
The soil of our country, the salt of our country, the
cement of our country, the things of our country.
Domestic companies.
And the second is foreign companies.
In the case of domestic companies, what has the government
said?
There is a limit.
If the total turnover of the previous year of 2021 is below
400 crores, up to 400 crores, maximum up to 400 crores,
then the tax on you will be of flat rate of 25% on the
total income.
Assume that your turnover of 2021 is 200 crores.
So in this year, the previous year, what will be your tax
rate? 25%.
You will earn 100 crores.
25 crores will be paid in the form of tax.
But there will be a surcharge on 25%.
If a surcharge is applied on you, then at a different rate.
And after the surcharge on 25%, health and education is 4%
which is mandatory.
In any other case, 30% of the total income.
30% will be of the total income.
Assume that it exceeds 400 crores.
If it exceeds 400 crores in 2021, turnover, then in that
case, 30% tax will be applied on you.
Domestic companies like Adani,
the country's company is incorporated here.
It is a company which is registered in India.
And the dividends are given from that income which is
taxable in India.
It is an Indian company.
In that case, what are the provisions?
And if it is a foreign company like Nestle, it is a foreign
brand, foreign company.
If it is Samsung, it is a foreign company.
Samsung is a foreign brand.
In that case, 40% tax rate will be applied.
If Samsung earns 100 crores, then 40% tax rate will be
applied.
After that, surcharge.
And after that, health and education cess.
This is the point.
Look at this.
In the new regime, the rates are a little different.
What is the new regime?
We will discuss it later.
Actually, the new regime is nothing.
In the new regime, you do not get the benefits of
deductions.
The rate of tax is a little less.
In that case, it is 22% tax rate.
But the disadvantage is that there are a lot of business
and profession heads and other deductions which you take
advantage of.
You reduce your income because of that.
But in the new regime, there are a lot of deductions which
you will not be able to take.
We will discuss it later when we read PGVP.
For now, assume that we are reading the old regime.
In today's date, the government has given two options.
Either you pay tax from the old regime or pay tax from the
new regime.
What happens in the old regime?
The advantage of the old regime is that you take advantage
of all the deductions.
In the new regime, the tax rate is a little less.
But in that case, you do not get the benefits of deductions.
There are a lot of deductions that do not benefit you.
For example, this is a domestic company.
Domestic companies have two rates, 25% and 30%.
But in this case, it is a 22% rate.
But you will not get some deductions.
For example, 10AA.
33AB, 35AA, chapter 6A has some deductions.
You do not get all these things.
So ultimately, coming to the new regime is a disadvantage
for many companies.
Do not just look at the tax rate and decide whether you are
paying 25% or 30%.
And here it is 22%.
Do not compare it with the tax rate.
You take advantage of it.
You take these deductions and reduce your income.
But here, your income cannot be reduced.
If the income increases, you are paying tax on it.
There, your income is reduced.
So you have to calculate all these things.
When you pay your tax, you have to see which benefits you
cannot get in the new regime.
If you are in the old regime, how much tax do you get?
You have to compare all these things.
We will discuss this when we talk about business and
profession.
We have discussed the normal rates.
What are normal rates?
Slab rates.
Special rates.
These are some special rates.
Section 112.
Long-term capital gain.
For example, you buy a property and sell it.
You sell it after a particular time limit.
Then you will get a 20% rate.
Long-term share market gain.
Section 112A.
10% rate on equity shares.
These are different rates.
Normal slab rates are not applicable on these.
These special rates are applicable on these.
These are mentioned in the Income Tax Act.
Equity shares.
Unit of Equity Oriented Fund.
Short-term capital gains.
Intraday trading in the share market.
Holding the shares for a year.
15% rate.
Lottery, crossword puzzles.
Gambling.
Unexplained money.
60% rate.
These are special rates.
Special rates.
If your total income is coming from somewhere.
And in that total income, your gambling income is also
coming.
Your share market income is also coming.
And your other income is coming.
Like salary is coming.
Business income is coming.
You will separate the two incomes.
Normal income according to normal slab rate.
This income according to special rate.
Combine the taxes of both.
Add surcharge.
Add health and education tax.
Your total tax will come out, my dear.
Is the point clear?
This is what we are studying.
All our lectures are going on.
This is what we are studying, sir.
These are the points, sir.
If we are talking about the company, then let's talk about
the surcharge of the company.
Because we have studied the surcharge in the individual
case also.
So, let's study the surcharge here also.
What is the surcharge in the case of companies?
Sir, come with me to the screen.
After this, we are just finishing the chapter.
Where is my pen?
Here is my pen.
Look at the times now.
In the past, the teacher used to write on the blackboard.
We remember.
There used to be a chalk.
The teacher used to write on the blackboard.
That chalk used to be such that sometimes we used to eat
that chalk in our childhood.
Tell me, who has eaten chalk in their childhood?
Has anyone eaten?
I must have eaten.
It is said that there is a lot of calcium in it.
It is good for bones.
To eat chalk.
No, I am not joking.
That chalk is full of calcium.
Chalk, mud, etc.
Anyway, what are we talking about?
We are talking about the company.
In the company also, you have seen the tax credit.
25% and 30%.
Now, we are talking about the surcharge in the company.
What is the surcharge in the company case?
First, let's talk about the domestic company.
The Indian domestic company.
If we talk about the domestic company, if the domestic
company earns up to 1 crore rupees,
up to 1 crore rupees.
Because it is a company.
It is obvious that the earnings are more.
On top of that, our Nirmala Madam, since the Modi
government has come, the Modi government is giving a little
boost to industries and businesses, which is a good thing.
It is a very good thing.
If you want to increase the GDP of any country, if you want
to grow the country, then you will have to give incentives
to industries and businesses.
And how do you get incentives?
We will give you a little discount in your tax rates.
We will reduce the rate of tax.
We will increase the limit of surcharge.
For example, in the case of individuals, there was nothing
up to 50 lakhs.
What did you do in this case?
There is nothing up to 1 crore.
So, you will have to give some advantages to your
businesses.
Without advantages, the business will not get motivation.
If you put more tax on them, they will say, if it is good,
then I will do something else.
I will close my business, when I have to give all the money
in tax.
If you want to grow the country, then you will have to give
incentives, advantages, tax holidays, all these things.
And our government is giving these things in today's date.
So, these are some benefits.