Good Morning, Good Evening, Good Afternoon
Whoever is watching me this time,
I would like to extend a hearty welcome.
How are you all?
It's great fun out here.
It's great to understand the concepts.
We were discussing the topic of TDS.
And almost, almost, almost, almost this topic has now
reached our last stage.
There are only two or three topics in this.
There are only two or three sections in this that I want to
discuss with you.
And then this topic will come to an end.
As soon as this topic comes to an end, we will celebrate
the success of this topic.
Celebrating the happiness of success is a good thing.
But friends, always remember that the more you celebrate
the happiness of success, the better you should learn from
failure.
If you become unsuccessful in doing something, then you
should definitely analyze what mistakes you have made.
What are the shortcomings that you couldn't succeed in
doing?
It's wrong to blame everything on your fate.
That my fate is bad, my fate is bad.
You should also analyze where the problem has come from.
And then write those problems down on a piece of paper and
resolve them the next time.
Keep watching. Keep moving forward in life.
Come on, 194P.
It's a very small section.
And from this section, the government, which is our Nirvana
Tai, we get the idea of their goodwill and goodwill.
That the government also thinks about people and especially
about those people who are a little senior citizens.
Till now, the government was saying that you have to cut
TDS, you have to collect TDS.
The government was casting responsibilities.
But in this section, there was a slight change.
Madam made her heart a little bigger.
She made her heart bigger.
Sir, what are you trying to say? She made her heart bigger.
Since when has the government started doing such good deeds?
Sir, listen to me.
Section 194P.
P means pension.
Remember it like this.
P means pension.
The section clearly states that someone is above 75 years
of age.
He is a senior citizen.
He is a person above 75 years of age.
And his income is only from pension.
In today's world, there are very few government jobs where
pension is available.
But the old people still get pension.
They retire after 60 years.
They get pension.
Yes, the defense forces still have pension.
But there are many government jobs where the pension
facility is over.
It was a great benefit to get pension.
The people who are still getting pension and are above 75
years of age, this section is for them.
The section states that if someone is above 75 years of
age, he is a senior citizen, he earns money from pension.
And he is earning money from pension.
Along with that, some interest is also coming from a bank.
Only interest income.
There is no income from house property.
There is no income from PGPB.
Even in other sources, there is only interest income.
And how is the interest coming?
Either from his savings account.
There is a savings account in that bank where pension is
deposited.
He gets interest on the savings bank account.
Or he gets interest on a small FD.
There are only two types of income.
Either income from pension, which is already there.
Or if there is income, then there is interest income.
How is the interest income?
Either from his savings account or from a bank.
In that case, the government said that you are a senior
citizen and you are not made to work hard.
You are blessed.
You have done a lot of work in life.
The TDS that you have to deposit, the TDS that you have to
deduct, next year you have to take a refund.
This is the work of young people.
It is the work of running.
Where will you go to take a refund?
You have some income.
Uncle, your job is to relax.
You relax, watch cricket matches and enjoy your life.
It is better if you don't get involved in this TDS, VDS and
return filing.
Uncle asks, if you deduct my TDS, how will I file my return?
The government simply says, don't worry.
Do you have income from your pension?
Yes.
Do you have income from your interest?
Yes.
The bank will deduct your total income.
If there is a deduction, the bank will deduct it.
If there is a rebate, the bank will deduct it.
The bank will deduct your total tax.
The amount of tax that you will deduct, the TDS of that
amount will be deducted.
Assume that the tax of Rs. 10,000 is deducted.
The TDS of Rs. 10,000 will be deducted.
The advantage of this is that when the year ends and your
final position comes out, the tax of Rs.
10,000 has to be deducted according to your final position
which you would have paid the next year.
Your TDS has been deducted.
So, zero.
You don't have to deposit anything.
You don't have to take a refund from the government.
You don't have to deposit anything and you don't have to
take a refund.
Yes, you have to file a return.
So, the requirement of filing a return has been stated by
the government.
Look at cricket matches.
The bank will file a return.
Uncle, you don't have to file a return.
You just have to give the details to your bank that this is
my income from this and that place.
And if the income is only of interest and pension, then it
is better.
Because TDS will deduct the average amount of tax and you
won't have any requirement to file a return.
You don't have to file a return.
The expense of CA has also been saved.
So, the government says that you take a lot and give a
little.
Sir, sometimes they also give.
This is the government of India.
It is a little difficult to understand.
It is not that simple.
Come, let's read 194P.
What does 194P say?
P means pension.
However, it has nothing to do with pension.
I am telling you this so that you remember.
Click in your mind that 194P has been brought for
pensioners.
What does it say?
Look at the image first.
He is a poor old man.
75 plus.
However, he is not poor in real life.
He has so much income in real life.
Come on.
Does 194P require?
Wait a second.
Requires deduction of tax at source on the basis of rate in
force.
By? Who will deduct your TDS?
Your TDS will be deducted by your bank.
How much will the bank deduct?
At what rate?
There is no fixed rate.
First, your total income will be deducted.
According to that total income, the tax will be deducted by
90 days.
Do it according to the average rate.
Deduction of tax at source on the basis of rate in force by
the specified bank.
Being a banking company, as notified by the central
government, on the total income,
TDS will be deducted on the total income of the specified
senior citizen.
After giving effect to the deductions and rebate.
Simple as that.
And you don't even need to file the return.
Exemption from filing the return of income.
The specified senior citizen is exempted from filing the
return of income.
For the assessment year, in which the tax has been deducted
at source.
The government also gives some advantages.
If the government takes benefit from you, it also gives you
some advantages.
Look at the meaning of specified bank.
Banking company notified by the government and specified
senior citizen.
He is above 75 years of age.
And he has only pension income.
He should have no other income except interest income.
From any account maintained by the bank.
And he has also given a declaration.
Uncle has also given a declaration.
To the specified bank containing such particulars in the
prescribed form.
He has also given a declaration on a blank paper.
That yes, I have only pension income and interest income.
I have no business and profession income.
I have no rental or house property income.
I have no capital gain income.
This is the point.
This is an illustration.
Look at the direct solution of this.
This is Mr. Sharma.
He has income from pension.
And the remaining income is from FD and saving account.
So gross total income has been deducted.
The bank has given the benefit of deductions.
The bank will calculate it.
The bank has given the benefit of deductions.
After that total income has been deducted.
And the tax liability on total income is of Rs.19,450.
So the TDS will be deducted.
TDS of Rs.19,450 will be deducted.
TDS of Rs.19,450 will be deducted this year.
Next year, there is no requirement to file the return.
The bank will give the declaration of return.
No tax will be collected.
The tax will be collected as TDS.
Uncle has become free.
Once the TDS is done,
Uncle is free.
He can sit at home and watch the test match.
And enjoy life.
It is a simple thing.
Is the point clear?
Is it clear?
Let's move ahead.
Why Rs.194,000?
Why has this section come?
This is my question to you and the people of the country.
Why Rs.194,000?
Why? Why has this section come?
This is a new section. added section 194. Why? Why has it
been added? Basically, it has been added for monitoring
purposes.
There are very high net worth individuals. This section is
applicable to them.
It is not applicable to people like you and me.
Yes, but I pray that one day this section will be applied
to you and me as well.
What does section say? Section says that if a person buys
goods from someone, there is a simple agreement between a
buyer and a seller and there is no technical thing.
For example, this is a buyer.
And who is this buyer?
My childhood friend Mr. Mukesh Ambani.
He is a buyer and he buys goods from a seller.
If he buys goods from a seller, what will he give? He will
give money.
So, the government said that if the turnover of a buyer is
more than Rs.
10 crores last year, not this year, but last year, do you
think by looking at this person's face that his turnover is
more than Rs.
10 crores?
Obviously, yes.
If your turnover is more than Rs.
10 crores and you buy goods worth more than Rs.
50 lakhs from a person, then when you will make a payment,
you will make a payment by deducting TDS.
The point is that your payment is more than Rs. 50 lakhs to
any person.
What is the payment regarding?
You have bought some goods.
There is no contract or anything.
There are simple sale-purchase agreements.
You may have bought a product.
There is a reliance company.
They buy and sell a lot of products.
He may have bought some raw material.
Because he has a cloth business.
The cloth from Vimal.
Vimal is not that Vimal.
It is not that Vimal.
There is a cloth from Vimal.
That is his brand.
So, it is possible that he buys raw material from there.
He buys cloth stalls.
And his turnover is more than Rs. 10 crores last year.
So, whenever you will make a payment to that person, from
whom you are buying goods, and the payment is more than Rs.
50 lakhs, then you will have to deduct 0.1% TDS from the
amount above Rs.
50 lakhs and make a payment to that person.
Why has this section come?
Sir, I don't have an answer to why.
In a way, the purpose of monitoring was that the high-value
transactions, high-value transactions, in which it is
possible that there is a mistake, some payment goes through
cash, some payment goes through number 1,
in that case, the government has said that deduct 0.1% TDS.
Deducting TDS at a very nominal rate.
The objective symbol will be that this transaction will
remain in the mind of the government that yes, there was
such a transaction.
Because if TDS is deducted, then things come in the notice
of the government.
That there was such a transaction.
Yesterday, someone had to open your record.
Income tax has been assessed.
So, if old transactions have to be traced, then they will
be easily traced from here, my dear.
0.1% TDS has to be deducted.
If you make a payment above Rs.
50 lakhs, if there is an agreement between the buyer and
the seller, then?
Only the relationship between the buyer and the seller
should be there.
Payment above Rs. 50 lakhs.
So, 0.1% on the amount above Rs. 50 lakhs.
Sir, will this section be applicable to you and me?
It will be applicable if the turnover is above Rs. 10
crores.
It was our turnover last year.
Turnover above Rs. 10 crores.
In No. 1.
And apply this section on yourself.
If you make a payment, then reduce it a little.
Reduce it by 0.1%.
Is the basic point clear?
Now, I have only got the envelope and I have taken out the
stapler pin of the envelope.
I have not started reading the letter yet.
So, don't worry.
Try to understand the second point.
The second point is that whenever you do sales, you add GST
to the sales.
Whenever you go for shopping, whenever you buy anything,
there is a basic amount and then GST comes.
CGST, SGST, etc. or IGST.
And then the total sales value comes out.
So, now you are saying that if my sales are above Rs.
10 crores last year, then this section will be applicable
to me.
So, which sales are you talking about?
Are you talking about this Rs.
10 crores sales or this Rs.
10 crores sales?
Which sales are you talking about?
Sales before GST or sales including GST?
In this case, the government said that we are only talking
about pure sales.
This is the figure of pure sales.
This is the figure of Rs. 10 crores in actual.
After adding GST, the component of GST is the tax component.
Yes, this increases the figure of sales.
But it is not actual sales.
It is not pure sales.
It is sales including GST.
We only want pure sales.
So, in this case, pure sales is sales without GST.
The figure of sales without GST.
You have to take that.
To check, how much is your actual sales?
Last year.
How much should it be?
If it is up to Rs. 10 crores, then this section is not
applicable.
But as soon as you go above Rs.
10 crores, then if you will pay any seller above Rs.
50 lakhs, deduct 0.1% TDS.
Sir, this is the point.
This is the point.
Let's see.
Let's start its reading.
194 Q.
Q always says, what was the need?
The business was going well.
Now that poor seller.
Look, understand the loss of the section.
You say, deduct 0.1% TDS and pay.
It is good for the one who is paying.
Okay, a little less payment will go.
And I will pay the rest of the payment to the government.
But the person who is receiving the payment, understand
from his end.
If this section was not there,
I would normally pay the tax next year.
It is the income of the business.
I would pay the tax next year.
Now that 0.1% is deducting my money.
Although it is the tax, but the money is deducted.
My liquidity is spoiled by this.
I also have to pay someone later.
I also have to pay the salary of my workers.
My liquidity is spoiled by 0.1%.
You are also getting 0.1%.
The high net worth individuals, like Reliance, they make
payments of thousands of crores.
Each party gets a payment of thousands of crores.
And you put 0.1% on 1000 crores.
How much will it be?
The liquidity is spoiled by that person's money.
This is the thing.
Because of this, people get a little annoyed, that you give
the section for no reason.
But our job is to read and understand the section.
We are not lawmakers.
We are compliance people.
We need the knowledge of the section.
And we need the data of our clients.
What else do we need?
Our job is not to give opinions.
Our job is only to comply.
Let's read the section.
What does the section say?
Section says, 194Q requires any person being a buyer.
Buyer is responsible for paying any sum any sum to the
resident seller for purchase of goods of the value
exceeding Rs.
50 lakhs.
So he will deduct 0.1% of sum exceeding Rs. 50 lakhs.
If he is paying Rs.
55 lakhs, then 0.1% on Rs.
5 lakhs.
If he is paying Rs.
1 crore, then 0.1% of sum exceeding Rs.
50 lakhs.
And when to deduct?
At the time of credit or at the time of payment, whichever
is earlier.
You have paid in advance.
Let me ask you a few things.
What I am saying is, at the time of payment or at the time
of credit, whichever is earlier.
For example, you have paid in advance.
It happens in business, they give advance.
In this case, if you give advance today, billing will come
after 3 months.
After 3 months, he will give the goods.
And after 3 months, he will raise his bill.
So I will enter the books only after 3 months.
But when to deduct TDS?
When to deduct TDS?
Should I deduct it today or after 3 months?
Sir, in that case,
read this.
What is written here?
At the time of payment or credit, whichever is earlier.
At the time of payment, you are paying in advance.
So at this time, your TDS will be deducted.
It is advance payment.
At the time of payment, TDS will be deducted.
Why will it be deducted?
Because it is written here.
When to deduct TDS?
At the time of payment or credit, whichever is earlier.
You are talking about payment after 3 months.
But if you pass the journal entry today, then TDS will be
deducted today.
This is the point, sir.
These are old points, not new points.
Come here.
What does it say?
When to deduct TDS?
Tax is not required to be deducted
in respect of transaction on which tax is deductible under
any other provision and tax is collectible under TCS 206C.
We will cover what this is about.
Because same to same provision is given in TCS.
So if there, TCS is collected by the seller from you,
seller has collected TCS, then here, You don't have to cut
the T-Disc there.
Sir, why are you turning it?
Why are you making it so complicated?
Don't take tension.
Till now, have you ever heard a topic that you have never
understood?
When we start any topic, at first glance, it always seems
difficult to listen.
But when we start, when we start its dissection, when we do
its post-mortem, then it ends there.
It doesn't seem tough.
When we come to TCS, we will cover it there.
Don't take tension.
Who is the buyer?
The buyer is the person whose total sales, gross receipts,
from the business, carried on by him, exceeds 10 crores,
during the financial year, preceding the financial year, in
which the purchase is carried out.
Sir, these are some guidelines.
He is talking about GST.
Do we have to include GST in our sales?
Or do we have to remove GST?
Sir, do we have to remove GST?
Read it.
It must be written somewhere below.
Without including the GST, you have to take the sales.
Okay? He has given a very long break.
Consider it simple without GST.
Is there an exempt income?
For example, a seller is a person whose income is exempt.
When the income is exempt, when there is no income tax on
the income, then we will apply the provisions of TDS.
The actual objective of the provisions of TDS is that tax
is made, tax is payable, if it is payable next year, then
pay it today.
But what if the person's income is exempt?
If the income is exempt,
then when the tax is not payable, when the income is
exempt, when the tax is not made, then there is no need to
cut the TDS.
And who talked about advance payment?
Advance payment is that you cut it at the time of payment
or credit, whichever is earlier.
So, advance payment is at the time of payment, its TDS will
be cut.
Does 194 apply to any buyer in the year of incorporation?
The company started today.
Today is my first day, for example.
My company started today and today is my first day.
So, will these provisions apply to me?
How will they apply?
The first requirement of this section is that your sales
should be more than Rs.
10 crores last year.
Your business started today.
How to check the sales of last year?
So, don't check in the year of incorporation.
There is no requirement of TDS for that year.
What it says is that buyer is required to have total sales
exceeding Rs.
10 crores during financial year, preceding the financial
year.
So, if this condition is not satisfied, then you don't have
to apply any TDS in this case.
This is a simple point.
Last year turnover was more than Rs. 10 crores.
So, if this year you are paying more than Rs.
50 lakhs to a person, to a seller, there is an agreement of
sale-purchase.
If you are paying more than Rs.
50 lakhs, you have to cut 0.1% of TDS.
This was the section.
Today, we have covered two sections.
194P and 194Q.
All sections are running alphabetically.
We have covered many long sections.
But you will see that in every section, a new point, a new
thing will emerge.
Generally, they remain the same at the time of credit or at
the time of payment, whichever is earlier.
Some things are the same.
Their return date is also the same because TDS also has a
return.
So, these are some things.
I would like you to go through them again.
Because you have understood it now.
But it comes to revision.
You will revise it once or twice.
You will read it.
You will understand things.
Then the files that we have put, you will get MCQ in those
files.
And you will also get practical questions.
Our team has worked very hard to make practical questions
and MCQ.
We have worked hard so that you can solve them.
Friends, we have made MCQ in such a way that when you solve
them practically, all your concepts are covered there.
All your concepts will be clear.
Even if you don't understand anything, you can watch the
video again.
It is not a big deal.
Hope so.
You must have understood today's lecture.
Thank you very much, friends.