Yes, friends, how are you all? Good morning, good evening,
good afternoon.
Whoever is watching me, listening to me, understanding me
at this time, my heartiest greetings to them.
Friends, how are you all?
We have finished the chapter of TDS, friends.
I am having a lot of fun talking to you.
In the chapter of TDS, you showed a lot of momentum.
You showed a lot of energy in that chapter.
Sir, the topics we have now, there are no such big topics
left in Income Tax.
Assume that we have covered the entire Income Tax now.
Now there are small topics of half an hour each.
There is nothing on that.
After PGVP, if I believe, the biggest thing was TDS.
What do you say? Capital gain.
Where was so much in Capital Gain?
Capital gain was small.
But anyway, whatever it is, we worked hard in TDS.
Now there is a relaxing topic.
It is a very small topic.
Relax and enjoy in this topic.
The name of the topic is Advance Tax.
What is Advance Tax?
What is Advance Tax, friends?
Try to understand it yourself.
A tax which is given in advance.
What is it called? Advance Tax.
Have you seen the film Big Bull?
Abhishek Bachchan's film was released, The Big Bull.
Before that, it was called Scam 1992.
In that, a story of Harshad Mehta was shown.
And in that, it was told that in 1992, Harshad Mehta paid
the highest income tax in the country,
Advance Tax of 26 crore rupees.
Somewhere, a word came in that film.
If you have not seen that film and have some interest in
Bollywood,
I will tell you that Akshay Kumar is there.
Look at this. Akshay Kumar is there.
And he, as an individual, is the highest advance tax payer
in the country.
Every year, almost every year, he becomes the highest
advance tax payer.
As far as I remember, he has been for the last 3-4 years.
Advance tax payer is the highest in the country.
It is a small thing.
What is the quality of films?
I don't want to say it. You and I both know it.
But no matter what the quality of the film is, no matter
how much the public abuses, this person is earning money.
Sir, this is a learning quality.
This is a learning quality.
No matter how a person is, a lot of people don't like him.
A lot of people like him.
The whole world abuses him.
But this person knows that yes, I am earning 50 crores, 100
crores from a film.
In 40 days, I will finish the work.
In 40 days, I will earn 100 crores.
Then in 41 days, I will reach the next shooting.
This person knows that the public is abusing him. So let it
be.
When an elephant walks on the road, the dogs bark.
Let them bark.
Elephants don't change their behavior by looking at those
dogs.
Sir, elephants are elephants. Dogs are dogs.
A dog can never reach that level.
A dog can never see a scene that an elephant can see from
that height.
Can a dog ever see that scene?
Sir, it is said that a dead elephant is also worth 1.25
lakhs.
Does a dead dog have any value?
Sir, be like that elephant. Like this person does.
He does a very good job. He abuses the public. Let it be.
The quality of the film is bad. I don't care.
I am earning money. This person has saved his family.
That's it.
The person who comes from zero, his first objective is to
save his family.
We were talking about advance tax.
What is advance tax?
Sir, advance tax is nothing like TDS.
What did we do in TDS?
We had to deposit the tax next year.
So this year, the other party would deduct your TDS and pay
you a balance amount.
But in advance tax, what did the government say?
The government gave you hope.
The government gave you hope that you are an honest person.
That's why, no one is deducting your TDS.
Don't get your TDS deducted from the payment you are
receiving.
It's okay if it has been deducted.
Estimate your entire year's income.
And on that income, you yourself deposit money from your
own pocket.
This is the point of advance tax.
Can you tell me the difference between advance tax and TDS?
Can you tell me the difference between TDS and advance tax?
Sir, what was TDS?
TDS was that you are giving someone a service.
You are giving someone a service.
That person is paying you.
So he will deduct some money and pay you.
The amount of tax he is deducting, he will deposit on your
behalf in your income tax account.
That person will deposit. You are not depositing.
But what is there in advance tax?
In advance tax, you yourself are estimating your income.
How much income will I have this year?
And according to that, the income tax you are getting, you
are depositing on your own.
No one else is depositing on your behalf.
This is the difference between TDS and advance tax.
This is the difference.
You first estimate your income.
You estimate.
Take Akshay Kumar's example.
You are estimating your estimated income.
He will first call his secretary and say,
Secretary sir, tell me.
How much income do I have? 100 crores for a film.
You have 6 films in a year.
That will be 600 crores.
And you have taken brand advertisement.
You have taken brand endorsements.
That will be 50 crores.
And you go to any wedding, birthday party, even you go to
dance there.
You go to ribbon cutting ceremonies.
It is estimated income.
I have estimated my income.
I am sitting in April.
This is the first day of the financial year.
I called my secretary and estimated my income.
I have done.
Now what to do?
What is this? I have estimated that this will be my tax
liability which I will have to deposit from my own pocket
at the end of the year.
Means next year when I will file my return, I will have to
deposit 180 crore rupees.
So the government says that you don't have any faith, you
are a citizen of Canada. If you don't know, I will tell you
that they have the citizenship of Canada.
There is nothing wrong in this. I don't believe anything
wrong in this.
The government will think that what is your faith? Your
shooting of 4-6 films will get over, you will become a
Canadian.
Who will bring you from there? Till date we have not been
able to catch Vijay Mallya, Nirav Modi.
From where will we catch you? You run very fast.
So in that case, the government says that you have
estimated your income and you have estimated how much
income tax will sit on it.
Income tax will finally sit of 180 crore.
You do one thing, in easy instalments, 4 instalments will
go, 1, 2, 3, 4.
Pay your estimated tax payment this year.
You had to do it next year.
Next year when you would have filed your return, then you
would have done it.
The government says that you don't have any faith, you give
us money today itself.
So in that case, in easy instalments, 4 instalments will go.
In easy instalments, I will do the payment of 180 crore
this year.
The last instalment goes in the month of March.
So in the month of March, the last instalment goes.
Till then, the income tax people calculate that yes, this
person's estimated income is this much.
He has paid this much income tax on it.
Then they compare it with everyone.
How much advance tax has he paid?
Then it is found that the highest advance tax is paid by
Mr. Akshay Kumar.
So he should be honoured with an honourable letter.
This is how everything works.
This is the concept of advance tax.
You have to estimate this year's income in the starting
itself.
Then you have to see how much tax will come out.
Estimated.
Then you can estimate whether my DDS will be deducted in
the whole year.
Minus that.
Then the final tax liability will come out.
Estimated.
According to that, pay your advance tax in easy terms.
Sir, this is the concept.
This is the concept of the whole advance tax.
If you want to click a photo of it, click a photo of it.
Okay, sir. Let's move ahead.
I will explain it to you in the same way.
You won't even need to study much in this.
Okay? I will make you collect this reading in the end.
Now, this advance tax, see what is happening in a way.
If I earn good money, then this burden is falling on me.
This is a burden on me that my income has not even started
this year.
Today, I am sitting in the 1st of April.
And on 1st April, rather than going to a new client,
I should take a new job.
I am estimating my income.
And on that income, what tax will come out, I am estimating
that.
This is wrong, isn't it, sir?
This is wrong.
If every person starts feeling like this, then how many
problems will come.
Assume, there is a poor rickshaw driver.
Or a small vendor.
In India, there are many small businessmen.
For example, a poor man sells samosas.
He is also doing business.
A samosa vendor is also doing business.
So, should the samosa vendor also do the same?
Should the samosa vendor also do the same?
He should estimate his total income.
He should calculate the total tax on it.
And he should go and deposit it earlier.
The poor man has not even got his income yet.
Before that, he should go and deposit the tax.
Don't you think this is foolishness?
That the samosa vendor who has not even got his income yet.
Today, he is sitting in 1st April.
He will not fry the samosas first.
He will first estimate his total income.
Then he will calculate the tax.
And he will go and deposit the tax.
Whereas, he has not even got his income yet.
Now, all the work is being done on an estimation basis.
Isn't this wrong?
Isn't this foolishness?
In that case, the government says,
Don't call us foolish.
We have a team of IAS officers.
They consider all the facts.
After considering all the facts, we came to know that if
your advance tax
I am not talking about your income.
If your advance tax is up to Rs.
10,000, then no liability of advance tax will be imposed on
you.
The estimated tax liability of Rs.
If the estimated tax liability is up to Rs.
I am not talking about your income.
For example, you had a tax liability of Rs. 1 lakh.
Out of that, your TDS of Rs.
97,000 will be deducted on an estimated basis this year.
There is a tax liability of Rs. 1 lakh.
I know that someone will deduct my TDS of Rs. 97,000.
The parties are fixed.
They are fixed clients, fixed customers.
They deduct such a TDS every year.
My final tax liability of Rs. 3,000 will be deducted.
And this tax liability of Rs.
3,000 is much lower than the limit of Rs.
In that case, no advance tax liability will be imposed on
me.
No provision of advance tax will be applied on me.
If the estimated tax liability is up to Rs. 10,000.
This is the first point.
Is this point clear?
Let's come to the second point.
What is the second point?
The second point is, is there a senior citizen?
Senior citizen means,
Rajesh Khanna of Aftar Bachchan,
Amitabh Bachchan of Bhagwan film.
Is there a senior citizen?
If there is no income from the PGPP head of a senior
citizen, if he does not run a business, if he is a senior
citizen, then he will be able to run a business
If there is salary income, he will be able to run a
business.
But if there is no income from the business, because as
soon as you hear the word business, some ears of the
government stand up.
They feel that he is running a business.
He must be cutting something big.
Advance tax should be imposed on him.
That is why the government said, you are an old man, you
are a senior citizen, and you do not run a business.
You have some other income other than business.
In that case,
Advance tax should not be imposed on him.
PGPP head should not have any income.
This is the point.
Let me make it clear here.
Advance tax is up to Rs. 10000.
The estimated tax liability is up to Rs. 10000.
Advance tax provisions are not applicable on him.
Is there a senior citizen?
If there is no income from the PGPP head of a senior
citizen,
If there is no income from the PGPP head of a senior
citizen,
then these provisions are also not applicable on him.
This is the point.
Sir, you said,
In easy loans, pay the advance tax.
Pay the advance tax in very easy loans.
My blood is boiling
I said, sir, you tell me one thing, earlier you used to...
You see what all the government is doing.
Earlier, I used to take 30% tax from the income that I earn.
Earlier, I used to earn money peacefully this year.
Next year, I used to go and pay tax.
But, this stupid government didn't accept this.
Earlier, they made me cut my TDS.
They said, no, the salary that you are receiving this year,
cut your TDS.
I said, no problem, I am also a participant in the
development of the country.
I will cut my TDS.
But, sir, this didn't work out until they cut my TDS.
The government went a little further.
They said, your TDS has been cut.
But, tell me your estimated tax liability.
How much do you estimate that you will get income?
On the first day, in the first month, tell me.
Sir, this is such a wrong thing.
The government is saying, what is wrong? We are making you
deposit in easy installments.
Sir, for the government, installments are very easy.
But, the man who is earning money, while earning, he used
to think that I will give next year.
Now, while earning, he is paying tax.
The money doesn't even go to his house.
It is received, it comes to the bank.
From there, the advance tax payment goes.
He is not even able to utilize this money.
So, the problem is, what can we do?
There is provision.
Let's see, what are the dates.
On 15th, the payment goes.
15th June, 15th September, 15th December and 15th March.
Whenever you read the newspaper, if you read the newspaper
around these dates, what are the dates? 15th June, then
after 3 months, 15th September, then 15th December and then
15th March.
On these dates, you have to pay advance tax.
How much?
Up to 15%.
Then next, next is up to 45%.
Then next, up to 75%.
And here, you have to deposit 100%.
For example, Akshay Bhai had deposited 180 crores.
So, his estimated tax liability was 180 crores.
So, 15% of 180 will be deposited here.
Then 45% up to.
Meaning, 30% more.
Do you understand? I have written up to 15%.
So, first deposit 15% here.
The second installment will go in September.
She is saying, up to September 15th.
Deposit up to 45% by September 15th.
It should be up to 45%.
Meaning, 15% has been deposited here.
How much extra will be here? 30%.
Deposit 30% more. Next installment will be in December.
So, he is saying, up to 75%.
So, deposit 30% more here.
And whatever is left, 100%.
Deposit it by 15th March.
Imagine, how much blood Akshay Kumar would have shed.
I got respect for that man.
When I was reading the provisions, I got respect.
I said, after earning so much income, that man pays so much
tax, and he doesn't even shed blood.
It's amazing.
Hats off to Akshay Kumar.
He should be applauded for this.
I am not joking.
I am telling you in reality.
Because, paying 100-200 crore tax on an estimated basis.
Paying on an estimated basis.
See, what I am saying is, on an estimated basis.
I have not yet said whether you have received it or not.
It is possible that you have signed a film.
You have to pay 100 crore.
100 crore payment is a credit.
He has passed his entry there.
I haven't received it in actual.
It is also possible that you don't receive it.
You receive the money after 1-2 years.
This happens a lot.
You did someone's work.
Today, that person didn't pay you.
That person didn't pay you today.
But, on an estimated basis, you took your estimated income.
You didn't even get the payment.
Here, on an estimated basis, you showed your income.
estimated tax liability will also come.
Income has not come to you yet.
Now whatever you will save, you will save it from your
pocket.
Why? Because you are making accounts on the basis of
accrual, not on the basis of cash.
If you make it on the basis of cash, then the matter is
different.
Then the cash basis runs on the basis of receiving.
Now you are running on the basis of accrual.
So whether it is received or not, if it is due to you, then
it will become your estimated income.
Think how much blood the poor guy must be burning.
Whenever you read the newspapers, I am giving you this
homework.
This is 15
June, September, December and 15 March. Start reading the
newspaper 2-3 days in advance.
There you will see the advertisement that the second
installment of advance tax is due now.
If you have not paid, then pay now.
Or if you listen to Aakashvani on the radio,
Aakashvani has a lot of advertisements on the government
channels.
That the month of
June has come, pay your installment of advance tax.
The month of December has come, pay your installment of
advance tax.
Now the government is making you pay advance tax in easy
installments.
Brother, what is the use of the speaker? Ask the one who is
losing money from his pocket.
This is the matter, sir.
These are the points.
But if you are 44, do you remember 44 AD?
If you opt for 44 AD and 44 ADA, then you do not have to
pay these 3 installments.
You have to pay advance tax only once in the 15 March
installment.
You do not have to pay in these 4 installments.
Only one installment will go.
If you are in 44 AD or 44 ADA.
We had covered the sections in PGPP head.
Any tax till 31 March of this year will be
considered as advance tax.
This is the point of advance tax, sir.
First, a person should reduce his TDS.
On top of that, he should pay his advance tax.
Sir, see what to do now.
If you want to live in the country, you have to do
something. I am not instigating you.
I am just telling you the provisions.
Such things are going on.
The government does not want to leave the collection of tax
at any cost.
Because it also knows that the country will run only with
the income tax collection.
GST collection is the income tax collection.
The country will develop only with this.
Sir, these are the things.
Advance tax.
This was the point, sir.
Thank you very much, friends.
In the next lecture, we will cover the provisions of TCS.
Thank you very much.