0:07 [Music]
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0:21 notifications hello everyone welcome to
0:24 my YouTube channel from this particular
0:26 video we'll be starting a new subject
0:30 that is income tax law and practice so
0:32 in this particular subject that is
0:35 income tax subjects there are totally
0:37 five chapters in that from this video
0:40 we'll be dealing with the first chapter
0:43 that is basic concepts of income tax so
0:46 in this chapter it is mostly the theory
0:48 chapter but easy Theory and you'll have
0:52 only little problems so in this
0:54 particular video that is part one I'll
0:56 be touching the introduction part of
0:57 this particular
1:00 chapter now basically what is the
1:05 meaning of tax now if you see my slides
1:08 the tax is a compulsory contribution
1:11 made by the citizen of a Nation to meet
1:14 various expenditure of the government so
1:17 if you just observe this slide have made
1:19 uh three words have highlighted three
1:22 words first one is the compulsory
1:24 contribution the second one is citizen
1:27 of nation and third one is meet various
1:30 expenditure now
1:33 uh the people may ask question why we
1:36 need to uh pay the tax to the government
1:38 that question comes to us right why we
1:41 need to pay the tax now what [Music]
1:42 [Music]
1:45 happens government it is providing us uh
1:48 too many services isn't this isn't it
1:51 now the government is providing security
1:54 for the nation for which it requires
1:57 defense so the government is providing
1:59 water facility the government is
2:01 providing El electricity facility the
2:03 government is constructing the roads
2:07 isn't it it is giving all facilities
2:09 live about this water roads and
2:12 electricity mainly the government is
2:14 giving the military security to our
2:19 nation so if any war attacks happen the
2:22 soldiers who are guarding the nation
2:24 they will protect us if we are living
2:26 happily then because of the soldiers who
2:28 are protecting our nation now they need
2:31 to give salary to the soldiers they
2:33 should take care of the recommendation
2:34 they should take care of the food they
2:37 should have a strong military force so
2:40 for that the government needs the money
2:43 isn't it without money we cannot run all
2:47 these things so to collect that money
2:49 the government has come up with the idea
2:52 of tax so whatever the tax we pay for
2:55 the government using that money or we
2:58 can call it as a Revenue tax revenue the
3:02 government will try to to develop the
3:06 nation now if you see
3:09 here the first one
3:12 is compulsory contribution what is this
3:15 compulsory contribution compulsory means
3:18 everyone has to do it nobody can escape
3:20 from that if a person is liable to pay
3:23 the tax then he should definitely pay
3:25 the tax nobody can escape from that compuls
3:31 contribution
3:34 next he made by the citizen of nation so
3:36 who will pay the tax the tax will be
3:40 paid by the citizen of India Nation our
3:43 our nation is India so whatever the
3:46 amount paid as a tax will be used to
3:50 meet various expenditure whatever the
3:53 taxes the one person pays to the
3:56 government using that tax amount the
3:58 government will meet the various
4:01 expenditures this this is the meaning of
4:06 tax next is types of taxes so in India
4:09 we are having two types of taxes so what
4:11 are those two types of taxes one is the
4:14 direct tax and second one is the
4:18 indirect tax so India two tax systems
4:20 one the direct tax system and the
4:23 indirect tax system now let us see what
4:27 is the meaning of direct tax so the
4:30 incidence and impact is on the same
4:33 person the incidence and impact on the
4:35 same person so what is meaning of
4:38 incidence incidence means liability
4:42 impact means the burden of paying tax
4:44 liability to pay the tax and impact
4:47 means you are paying the tax the
4:49 incidence and impact is on the same
4:52 person now let us try to like understand
4:54 this particular statement by taking up
5:00 an example now here there is a m
5:05 X he is a citizen of the India next here
5:09 on the other party it is government so
5:11 government is there on the other side
5:14 and on one side we have Mr X he is a
5:17 person so in our my future slides I'll
5:20 tell you what is the meaning of person
5:23 so now Mr
5:28 X he has the liability to pay the tax of
5:32 20,000 so Mr X has to pay 20,000 rupees
5:34 tax for whatever the income he has
5:40 earned to the government Mr x 20,000
5:44 tax now who has the liability to pay the
5:48 tax Mr X so that
5:52 is incidence incidence means what
5:55 incidence means liability incidence is
5:58 nothing but liability means he has a
6:00 liability to pay the taxability
6:02 taxability
6:05 tax what is the impact who will pay the
6:09 tax Mr X only has to pay the tax so he
6:13 is going to pay the tax Mr X has a wife
6:17 you think wife is wife will his wife pay
6:21 tax on behalf of Mr X no Mr X has earned
6:24 the income so he need to pay the tax off
6:28 his own so the incidence and impact the
6:30 liability to pay the tax and the person
6:34 who is going to pay the tax is the same
6:36 so whatever definition says the
6:39 incidence and the impact is on the same
6:42 person here x is only earn the income
7:00 x
7:03 we call it as Direct Tax so why it is
7:05 called Direct Tax you should remember
7:08 this particular line the incidence and
7:12 the impact is on the same person so hope
7:16 you have understood about the direct tax
7:19 now you may ask me what is indirect tax
7:22 so indirect tax means the incidence and
7:25 the impact is on two different person
7:29 different person now let us try to
7:30 understand the particular statement by
7:34 taking up an example now one side we are
7:39 having government okay next here we are having
7:41 having
7:44 manufacturer some person has
7:47 manufactured and here we have
7:50 consumer so there are three different
7:53 persons one is the government second one
7:55 is the manufacturer and third one is the
7:58 consumer now
8:02 manufacturers manufacturer fan okay he
8:04 will sell it to the
8:08 consumer so here he's selling it to the consumer
8:16 manufactur now the value of fan is let
8:18 us think it is
8:21 20,000 and uh let us assume that tax is
8:24 10% so the tax how much he need to pay
8:27 it is 2,000 Rupees 2,000 Rupees tax he
8:31 need he need to pay to the government so
8:34 who need to pay the tax manufacturer has a
8:35 a liability
8:44 manufacturer so liability
8:49 here the incidence incidence means what
8:52 the liability to pay the tax incidence
8:55 is on the part of manufacturer incidence
8:58 is on the pack of manufacturer but who
9:00 is going to pay the tax tax will
9:02 manufacturer pay the tax directly to the
9:05 government no he will make his consumer
9:08 pay the tax so what he will do instead
9:11 of selling the fan at 20,000 he will
9:13 sell the fan at
9:17 22,000 so the burden to pay tax so here
9:19 impact impact means what the burden of
9:23 paying the tax is on the consumer so the
9:27 consumer will pay the tax so who is
9:29 having the burden consumer is having the
9:33 burden so the impact is on the consumer
9:35 so here if you you can see that the
9:38 incidence is on the part of manufacturer
9:41 and impact is on the part of consumer so
9:44 what does the indirect tax mean the
9:46 incidence and impact is on the two
9:48 different person so here also
9:51 manufacturer is having the incidence and
9:53 impact is on the consumer so two
9:55 different persons have been involved so
9:59 this is the meaning of indirect tax
10:01 next what is
10:06 assessment now for example you have
10:08 written an exam for 50 marks let us
10:11 assume that you have exam written a
10:13 paper for 50 marks you will submit it
10:17 your paper to the teacher and teacher
10:20 evaluates what she will evaluat she will
10:22 evaluate which are the correct answers
10:24 you have written and which are the wrong
10:26 answers you have written and for correct
10:29 answers how much marks you should get
10:32 she will allot the marks this is known
10:34 as assessment
10:39 similarly in the income tax so for
10:42 example you're earning an income of 5
10:46 lakh per anom so let us think that per
10:48 anom anom means for one year you're
10:51 earning the income for 5 lakh so it
10:53 doesn't mean that you have to pay the
10:56 tax on this 5 lakh there are certain
10:59 exemptions exemptions will be there so
11:01 regarding this exemptions I'll be doing
11:04 in another video now just have an idea
11:05 in your mind that there's something
11:09 called as exemption now we need to know
11:12 how much tax you need to pay isn't it if
11:15 you have a Commerce background uh you
11:18 can easily know but let us think that a
11:21 person is a doctor a person is an
11:24 engineer okay he should know that how
11:28 much tax he need to pay so the process
11:30 of knowing how much tax he need to pay
11:34 is known as assessment so the assessment
11:45 now it is a process of computation of
11:48 taxable income computation means what
11:50 you're finding out that is assessing
11:52 you're assessing you're finding out what
11:55 is the taxable
11:58 income and the tax liability so here
12:00 here two different terms you have to
12:03 observe one is taxable income and one
12:06 more is tax liability now let us take an
12:12 example Mr a is earning an income
12:16 of 5 lakh okay yeah is earning an income
12:19 of 5 lakh now
12:24 in the income tax there is a concept of
12:27 deductions and exemptions deductions exemptions
12:29 exemptions
12:32 uh topic
12:36 so let us think there's a deductions of
12:40 20,000 and exemption of 10,000 now if
12:44 you subtract this 20,000 and 10,000 from
12:48 5 lakh I think we will get 4 lakh
12:52 70,000 so this is the income earned so
12:55 earned income he has earned certain
13:00 income but 4 lakh 70,000 is taxable
13:03 income so we should charge the income
13:08 tax rate not on 5 lakh rupees but on
13:12 470,000 so this is taxable income now
13:15 let us think there is a 10% tax which is
13:17 nothing but
13:20 47,000 isn't it so I'm assuming it but
13:22 tax rate will be different just for
13:24 giving the example I'm assuming it has a
13:29 10% tax rate so I need to subtract this
13:34 47,000 from 4 lakh 7 uh
13:39 th000 so 47,000 sorry so when I subtract
13:43 47,000 from 470,000 I will get 423,000
13:45 423,000
13:49 so here what is this 47,000 this 47,000
13:51 is the tax
13:56 liability means Mr a Mr a has to pay
13:59 this 47,000 to the government
14:01 so you understood what is taxable income
14:05 and tax liability so computation means
14:07 finding out how much is my taxable
14:10 income and what is the tax liability I
14:13 need to pay as per the income tax act
14:24 assment
14:29 assessment next assessment year now we
14:31 got to know what is assessment mean it's
14:33 a process of calculating how much tax
14:36 you need to pay now assessment year is
14:40 an year in which you will calculate how
14:42 much tax you need to pay so it is a
14:45 period of 12 months so in one assessment
14:48 year there will be 12 months it will
14:51 start from 1st April and ends at 31st
14:55 March as usual you know assessment 12
15:00 months 1 April in the start 31st March
15:03 so the this is very important line
15:06 please focus on this the income of the
15:09 previous year is
15:13 assessed to the tax in the assessment
15:18 year so previous year concept there is a
15:21 concept of previous year previous year
15:23 means what I'll tell in the next slide
15:27 so whatever the income earned so you
15:30 have earned certain in income income
15:33 earned in the previous year in previous
15:35 year you have earned the income for that
15:38 you will pay the tax in assessment year
15:40 so don't get
15:42 confused whatever the income you have
15:45 earned in the previous year that all
15:47 income will be calculated in the
15:49 assessment year and you have to pay the
15:53 tax in assessment year now which is our
15:55 current assessment here can anybody
15:57 answer you can put the answer in comment
16:01 box which is a present assessment
16:06 Year yes our present assessment year is
16:08 2023 to
16:12 24 means current assessment we uh we are
16:15 starting from 1st April
16:18 2023 and our current assessment year
16:22 ends at 31st March
16:25 2024 so this is assessment year just
16:28 remember this one diagram whatever the
16:30 income we have earned in previous year
16:32 we will pay the tax in the assessment year
16:35 year previous
16:42 assment now then what is previous year
16:46 so previous year same it is also having
16:48 12 months and it will also start from
16:51 1st April to 31st March so it is a
16:54 financial year immediately preceding the
16:57 assessment year the Year preceding the
17:00 assessment year now don't get
17:05 confused look here now for example let us
17:06 us
17:11 take the our assessment year is 2023 to
17:16 24 preceding year means one year before
17:19 means 2022 to
17:23 2023 so this is known as previous year
17:25 so whatever the income you have earned
17:28 in this 2022 23 that is previous year
17:30 for that you will calculate the taxx and
17:34 you will pay the tax in assessment year
17:37 previous year income
17:39 income
17:42 assment so it is the financial year
17:44 immediately preceding the assessment
17:47 year so one year before the assessment
17:51 year is known as previous
17:54 year now which is our present previous
17:59 year yes it is 2022 to
18:03 2023 because our assessment year is 2023
18:06 to 2024 one year before so it will be
18:09 2022 to
18:11 2023 so what is the basic difference
18:13 between previous year and assessment
18:16 year means in previous year you have
18:18 earned the income so whatever the income
18:20 you have earned in the previous year you
18:23 will pay the tax in assessment year so
18:25 the assessment year the income of
18:28 previous year is taxed this is the basic
18:30 difference between previous year as well
18:34 as income uh sorry assessment year so
18:36 hope you have understood about this
18:39 introduction part very well if you have
18:41 any doubts or queries please post your
18:43 queries in the comment box so we'll try
18:45 to respond to your queries as soon as
18:48 possible thank you for watching my video
18:49 if you have not subscribed to my YouTube
18:51 Channel please subscribe to my YouTube
18:54 channel and press the Bell icon because
18:56 whenever I post some new lectures you
18:58 will get the immediate notification
19:00 thank you for watching the video let us
19:03 meet in the next video if you have any
19:05 queries regarding today's session kindly
19:08 send your queries to education. mbro
19:17 [Music] gmail.com
