Note that there has been an amendment in Surcharge Rates. The Surcharge rate that you see in this video is as per latest tax laws which are applicable for M'23 CA Exams and not for N'22 Exams. This video should help you understand how taxes are saved practically as well as revise Sections 2(42A), 45 & 112 of Income Tax Act, 1961.
The reason for 20% stake sell was to raise funds for expansion of their business and after getting the ₹500 crores, if they put that money in property then what about business expansion?
@@nonamenolastname4375 As such there is no rule under income tax for the one time use of benefits of section 54 rather we can use it for only one property in multiple year
Not a CA Aspirant, Doing Btech in CS. I don't know this just fascinates me, this is actual real skill that you can actually apply in real life and help make money for yourself and other too.
Now I realised why I was not able to score good marks in tax . One should not only focus on concepts but it's application in real life as well . Thanks for such video sahil sir 🤠🙇
@@kushagraverma7509 Yes please check Dec 2021 papers of Taxation of Inter and Final level... The kind of questions ICAI asked was very conceptual and practical....
This example should be worded as stake sale and not as securing funding. Because, when a startup secures funding, the amount is not paid to the founder. The funding goes to the startup company (company and founder are separate legal entity). So no capital gain arises for the founder. Even in case of sale of shares, we need to keep in mind that section 54F is not applicable if the assesse owns more than one residential property.
I know an entrepreneur who sold a percentage of his company, bought a 5 tower residential complex from the proceeds under company's name by slighly changing object clause, transferred the property to another company as consideration for an overpriced service, and then sold individual units and pocketed the proceeds. He should have been scrutinized all the way from the moment he changed his object clause but nothing happened. Greasing the palms of Income Tax AOs goes a long way in such cases.
Sir, I am currently pursuing my articleship. I have actually helped my client in saving 2.84 Lacs of taxes by sec 54F which the client was unaware of. In their case, this situation had accidentally arisen. They had booked CG when they bought some listed shares during covid when markets were low and sold it after markets surged after covid making them nearly 100percent profits. The client was very happy with the situation as he had actully made provision of 3 lacs for the same, but was saved by me. I know I am bragging, but bragging makes me happy. The client also gave me barbeque party later on😂😂
You can do business as well. Who is stopping you? The more people that do business the better it is for the nation. Which is why businessmen are given more incentives.
Now I understand that why so many founders after selling their company to other, buys property like; Aakash founder buys property in Delhi after selling his company to Byjus, lenskart's co founder Neha Bansal buys property in Delhi etc for tax assumption. Great sir 👌 this is real education!
1) Residential property worth 500Cr will require upwards of 5Cr to maintain annually. 2) Capital appreciation of this priperty will be pathetic. 3) Nothing feels rich like cash in hand.
But this does not get them any kind of cash flow, then what is the point since they have spent crores on buying these luxurious properties but how are they going to maintain it with no actual cash in hand
Sir I am CS student thanks for this practical example and for recalling all the section for these exemptions sir I want to ask you a question how many time we can claim these exemption?
In order to claim exemption under section 54 you have to wait untill the lock in period of 3 years expires then only you'll get exemption benefits otherwise exemption shall be withdrawn by reducing from the cost of new asset acquired.
Sir apki videos dekhne ke baad samajh aata h class me kya padha tha aur fir video me kya hua Isse provisions aur section toh yaad hote hi h but application ka bhi pata chalta h thankyou sir 💌❤
Sir I have a question 🙋♂️ Vo founder to vc se fund lega uska utilisation to business development me krega na vo koi property thode hi kharidega Us case me uska tax planning kese kiya jayega? Please reply
Section 54F: The Income Tax Act sets the exemption limit under Section 54F to Rs. 10 crores, as announced in the Union Budget 2023 on April 1, 2023. Earlier, there was no maximum limit on the exemption available under section 54F.
Govt is not also dumb in this case, Cz when u purchase land or house a lot money goes to govts pocket as registration fees. And it is everytime when u buy.
Sir I used to see ur videos when I was in ca foundation.... I didn't used to understand a anything.....but now I'm pursuing ca inter.......after seeing this video I completely understood how the section are applicable that to in a very good way sir ❤️❤️❤️
sir is not it possible the person of billionaire spend his money back into the business or somewhere else like in buying stocks of other going company for escaping taxes legally irrespect of spending it in buying houses and other luxuries.. also cant he can payable to the govt with lower taxes for example he may choose a way through which taxes are very much lower may you understand what I just said
If you get that amount via a trust. It is totally tax-free. That is the reason why super rich industrialists have given their stakes to trust and drawing money via them. It is the biggest loophole worldwide.
Sir, Income Tax se related, please make a video for guidance of freshers (income range 4-10LPA). What should a fresher with first job know and how he/she can save most out of in hand salary.
I don't understand why to sell shares to invest in another property? He didn't got money for personal use anyways. Its just appreciation of networth which is possible with money invested in original Company also.
If they are reinvesting full value in purchasing home, still they have to pay taxes if they want some spare money to purchase car, or other consumables. This is only applicable when you dont need any money right in your bank account to purchase car or other liabilities.
Sir but this planning can only be done in case of RHP residential house Property and it cannot be more than two. And maximum limit for it is only 10 cr.
Ye tax planning unke liye hai jo property buy karna chahte hai lekin agar koi ye chahta hai ki uss pese ka wo jese chahe use kare like invest in other start-ups, buy personal jet etc. They have to pay taxes on it
You bought the house selling shares of the company. How are you going to fund the company requirements then? Tax evasion - good. But what about the actual reason why the investment was sought after
As you said in the beginning, aman wants some money to grow his business , for which he is selling his stake the in the company. If to save taxes he invests whole money in property, then why should he sell his stakes. When he dont have any money left.
But when he buy that bungalow at that point he needs to pay the STAMP DUTY and OTHER TAXES on that !! So the basic point is buy or sell anything you are in the loop where in the end you have to pay taxes to the government anyhow.
He bought house with the total amount he gained and put 50cr + his own how is that helpful what if he had to buy TV or another car or something which is not a property how could he save tax then he has to pay tax then ?
I have a query here, as he is reinvesting the amount, so, he is not getting any cash in hand or account to spend. He needed cash and sold the property worth 500 crore in 501 crores after 1 year of possession. So, will his total tax liability be 1 crore only now?
As a CA final student i would like to mention that section-54 of the income tax act is only applicable to "purchase or construction of First property" not applicable to subsequent properties. So all those tech guys in the comments thinking to start up and apply this video's knowledge please hold your horses or brace your self for show cause notices😂.
Let's say I made a tech company like a ride hailing service for which I got an app which works pretty well. Lots of users giving the company a great valuation. Now when I sell my company's stake percentage for some amount and save tax on it by buying a property. Now apps need updates everytime. So the in next update I change certain features in my app along with some changes in my company's documents and re-register my company under new terms whereas in the other hand I retain the same updated app. So I again raise funding say series B and with that my to save tax I buy a property which again will be the first property for my company. Can I do that?
but if i park all my 500 crores in a property what about other aspects of my life? cant i buy a property for 300 crores and pay taxes on the remaining 200,
But if Aman purchase property worth rupees 500cr as you said, then how he will invest money in his business? All money raised has been used to purchase property. If he wants to invest then would capital gain applicable in his hand for sale of its stake?
That's an incorrect interpretation of the section Saurav. The option of investing in 2 properties is a benefit which is available only once in lifetime. However, the option of investing in 1 House Property and availing exemption u/s 54 is a benefit which can be availed any number of times by the assessee. Hope this clears the doubt.
Saurav.. you are referring to section 54 whereas sir said 54f, If He further sells that house.. then he can again but in section 54 Avail tax benefit iro 1 house as its value is obviously above 2 crores.😀
Note that there has been an amendment in Surcharge Rates. The Surcharge rate that you see in this video is as per latest tax laws which are applicable for M'23 CA Exams and not for N'22 Exams. This video should help you understand how taxes are saved practically as well as revise Sections 2(42A), 45 & 112 of Income Tax Act, 1961.
The reason for 20% stake sell was to raise funds for expansion of their business and after getting the ₹500 crores, if they put that money in property then what about business expansion?
Sir sec.54 ham to 1 hi assessment year me use kar sakte he na ?
@@nonamenolastname4375 As such there is no rule under income tax for the one time use of benefits of section 54 rather we can use it for only one property in multiple year
Sir, what if he needs the capital to grow his business. So he will have to pay tax in the money raised?
Does this apply for ESOPs as well??
Not a CA Aspirant, Doing Btech in CS.
I don't know this just fascinates me, this is actual real skill that you can actually apply in real life and help make money for yourself and other too.
Man can you tell me from where to start this tax thing am also a cs person but wanna know more about tax system
I am doing bsc cs and CA at the same time lol
@@ramansaini3898 read CA Inter TAX & CA FINAL TAX ...
Bro please tell if Cs is easy to learn or not bc im worried about which branch to chose
Now I understood why Ashneer bought 10Cr. Table 😂😂
Not a CA, actually I'm pursuing MBA but I still watch every single video on this channel. Kinda addicted toward your presentation style
Same here I am an MBA student too and watch this channel
@@princeofheaven19 High five 🙏
I am graduation 1st year student even i am watching and planing for CFA.
@@govindgoel369 Again high five for CFA.
@@tubai_bhattacharjee You will be super rich dude more than than as of now.
These Sections feels like magic when they are applied sir 🤣🤣
bhai... The way you simplify stuff is amazing
Now I realised why I was not able to score good marks in tax . One should not only focus on concepts but it's application in real life as well .
Thanks for such video sahil sir 🤠🙇
Nah man. For exams you need bookish knowledge, practical application only works in the practical world.
@@kushagraverma7509 No my dears ,the institute is at thise time asking case studies based question more than therotical based questions.
@@kushagraverma7509 Yes please check Dec 2021 papers of Taxation of Inter and Final level... The kind of questions ICAI asked was very conceptual and practical....
Great Mr. Jain.
Your video justifies, “Information is power. “
This example should be worded as stake sale and not as securing funding. Because, when a startup secures funding, the amount is not paid to the founder. The funding goes to the startup company (company and founder are separate legal entity). So no capital gain arises for the founder.
Even in case of sale of shares, we need to keep in mind that section 54F is not applicable if the assesse owns more than one residential property.
I know an entrepreneur who sold a percentage of his company, bought a 5 tower residential complex from the proceeds under company's name by slighly changing object clause, transferred the property to another company as consideration for an overpriced service, and then sold individual units and pocketed the proceeds.
He should have been scrutinized all the way from the moment he changed his object clause but nothing happened. Greasing the palms of Income Tax AOs goes a long way in such cases.
Ya bro... you are right.... even i thought
Not a CA but a Tech RUclipsr, Watch all your videos regularly kinda addicted.
Ok
Sir, I am currently pursuing my articleship. I have actually helped my client in saving 2.84 Lacs of taxes by sec 54F which the client was unaware of. In their case, this situation had accidentally arisen. They had booked CG when they bought some listed shares during covid when markets were low and sold it after markets surged after covid making them nearly 100percent profits. The client was very happy with the situation as he had actully made provision of 3 lacs for the same, but was saved by me. I know I am bragging, but bragging makes me happy. The client also gave me barbeque party later on😂😂
Great 😃👍
@Ajinkya Chincole not bragging i would say thats nice great
😇😇yeah stay happy bro
Great @Ajinkya can you tell me how
@@khanasif1654 What details do you want to know??
Taxes are for salaried person, not for businessmen🙃🙃🙃
You can do business as well. Who is stopping you? The more people that do business the better it is for the nation. Which is why businessmen are given more incentives.
@@AbhinandanNM he is talking about super rich buisness man. corporates
Normal buisness man ko toh dena padta hai
Tumhe job bhi yahi companies dengi.
Businessman's and corporates pay major tax outof total tax collection
Multiplies of investment karke deduction claim Kiya ja sakta h salaried person ke liye most of deduction 80c to 80u inke hi basis me hote h
i am a cma student sir your videos are too amazing to watch!!!
Now I understand that why so many founders after selling their company to other, buys property like; Aakash founder buys property in Delhi after selling his company to Byjus, lenskart's co founder Neha Bansal buys property in Delhi etc for tax assumption. Great sir 👌 this is real education!
Exemption*
sir you are a very dynamic teacher + mentor❤....please make more videos for students
but sir 54F will restrict you upto 10 cr to invest in lmmovable property. remaining 90 cr ke liye capital gain pe tax dena hi hoga
thanks, Sahil, tax ki wajah se hi main Apni income 15l k neeche rakh Raha tha , next year 100 crore hi kamana hain, wo bhi Bina tax k
sir im an iitian but still i regularly follow your videos as it gives a new approach for finance or consulting type of job profiles for us
I just love your intro..simple and sweet..
They have however curbed the upper limit to 10 Crore by the latest amendment in 54F. Plucked it :P
Sir your teaching is so nice so I can also understand so nicely 👍👍👍👍
1) Residential property worth 500Cr will require upwards of 5Cr to maintain annually.
2) Capital appreciation of this priperty will be pathetic.
3) Nothing feels rich like cash in hand.
Maaja agya sir kal hi revise kara tha or aaj bilkul aaj practical example
intresting and useful. as a non ca I can tooo read taxation books to save my money without hiring ca
But this does not get them any kind of cash flow, then what is the point since they have spent crores on buying these luxurious properties but how are they going to maintain it with no actual cash in hand
Awesome Sir... The way u explain it clear all doubt itself
Sir I am CS student thanks for this practical example and for recalling all the section for these exemptions sir I want to ask you a question how many time we can claim these exemption?
The only condition is that you must not have more than 1 house property (other than acquired under this section)
Happy to see this sir! 😄
In order to claim exemption under section 54 you have to wait untill the lock in period of 3 years expires then only you'll get exemption benefits otherwise exemption shall be withdrawn by reducing from the cost of new asset acquired.
Thank you bhai
From the heart ❤ of ठाकुर शुभम लोधी
Your way of presenting is awesome
Sir apki videos dekhne ke baad samajh aata h class me kya padha tha aur fir video me kya hua
Isse provisions aur section toh yaad hote hi h but application ka bhi pata chalta h thankyou sir 💌❤
Sir, Please make a video on Section 44AD and 44ADA
So sec 54 is the main culprit of the real estate bubble in India???
its capped at 10 cr now
Does the invested property to be in the name of company? Or it can be in the name of anyone...??
Kindly answer anyone?
Provided assessee is satisfying conditions mentioned in 54F . You missed very crucial point here
Sir, can we avoid LTCG by selling share and buying shares of other company or only real estate properties should be bought?
Yes, we should buy residential property only to avail 54& 54F benefits (not other properties)
@@amuthurijagadeesh8539 Ok, thank you sir.
Sir
I have a question 🙋♂️
Vo founder to vc se fund lega uska utilisation to business development me krega na vo koi property thode hi kharidega
Us case me uska tax planning kese kiya jayega?
Please reply
Section 54F: The Income Tax Act sets the exemption limit under Section 54F to Rs. 10 crores, as announced in the Union Budget 2023 on April 1, 2023. Earlier, there was no maximum limit on the exemption available under section 54F.
Most of them are Ca's and they know taxation like sahil sir 😂😂
Richest CA - K. M. Birla Sir
BOAT Founder CA - Aman Gupta Sir
Tax Guru - CA Sahil Jain Sir
.
.
.
.
~ CA Aspirant ❤️
Richest ca is Rakesh jhunjhunwala
@@koustubhg3370 *was
@@ssdftddrt1540 True
CA working as CA would earn maximum 60-70 L that to if they work at Top position in very big Co. or Big4s
Now the as per per budget 23 , Sec 54 and 54F will be only upto 10Cr (applicable from AY 24-25) ab mja ayega 🤣
Govt is not also dumb in this case,
Cz when u purchase land or house a lot money goes to govts pocket as registration fees.
And it is everytime when u buy.
But section 54F only applicable to Individual & HUF then how can it possible??
Thank you so much for this video. Beautifully presented and explained.
Sir I used to see ur videos when I was in ca foundation.... I didn't used to understand a anything.....but now I'm pursuing ca inter.......after seeing this video I completely understood how the section are applicable that to in a very good way sir ❤️❤️❤️
sir is not it possible the person of billionaire spend his money back into the business or somewhere else like in buying stocks of other going company for escaping taxes legally irrespect of spending it in buying houses and other luxuries.. also cant he can payable to the govt with lower taxes for example he may choose a way through which taxes are very much lower may you understand what I just said
If you get that amount via a trust. It is totally tax-free. That is the reason why super rich industrialists have given their stakes to trust and drawing money via them. It is the biggest loophole worldwide.
Sir, Income Tax se related, please make a video for guidance of freshers (income range 4-10LPA).
What should a fresher with first job know and how he/she can save most out of in hand salary.
Your explanation is Awesome sir. I understood every thing clearly
Superb understanding given by sir... 🙏🏻 😀.
I don't understand why to sell shares to invest in another property? He didn't got money for personal use anyways. Its just appreciation of networth which is possible with money invested in original Company also.
If they are reinvesting full value in purchasing home, still they have to pay taxes if they want some spare money to purchase car, or other consumables.
This is only applicable when you dont need any money right in your bank account to purchase car or other liabilities.
Sir but this planning can only be done in case of RHP residential house Property and it cannot be more than two. And maximum limit for it is only 10 cr.
Union budget 2023 impose 10 crores limit on sec 54 F..
But if its a startup who wants to raise funding from VC how will the founder buy other properties rather than influxing the money into the business?
Ye tax planning unke liye hai jo property buy karna chahte hai lekin agar koi ye chahta hai ki uss pese ka wo jese chahe use kare like invest in other start-ups, buy personal jet etc. They have to pay taxes on it
Explained very well!
You bought the house selling shares of the company. How are you going to fund the company requirements then? Tax evasion - good. But what about the actual reason why the investment was sought after
Dear Sir, now since the 54F is amended to cap the exemption limit to 10 crores only, now this trick might not be much useful. Is it correct?
Yes sir you are absolutely correct... thanks for sharing
As you said in the beginning, aman wants some money to grow his business , for which he is selling his stake the in the company. If to save taxes he invests whole money in property, then why should he sell his stakes. When he dont have any money left.
No longer applicable
Bec limit in introduce for 10 cr under finence act 2023
Please make a detailed video on AOP VS BOI
Now the exemption has been capped to 10 Crore as in budget 2023,.. Is that correct ??
Can that 500cr be split to buy multiple properties like empty plots, shops in malls, and also construction of houses in existing plots cumulatively.
@ca sahil Jain
But government is very smart.
8% toh registry ka naam ka upfront leleta hain . When you buy property. So you save only 12%.
Sir how come Bansal of Flipkart paid only 10% of capital gain tax…whereas it’s 20% by the regulation
Wt if v buy numbers of property with 550cr?? Is this applicable ?
Is this should be commercial/residential??
But at somepoint in life you'll need that property invested money to use in Real life expenses. At that time how will one tax plan ?
Lekin property purchase pe lagne vaale GST or Duty ka kya
But still when you buy a property with that money , we need to pay registration tax and all of that right ?
but the residential property will be purchased in the name of company only right and not of aman gupta(individual)
But whatever profits company makes they have to pay 25% tax
A salaried person pays more tax than a business owner.
But when he buy that bungalow at that point he needs to pay the STAMP DUTY and OTHER TAXES on that !! So the basic point is buy or sell anything you are in the loop where in the end you have to pay taxes to the government anyhow.
Sir property ke badle kishi company ke shares kharid sakte hain kya
He bought house with the total amount he gained and put 50cr + his own how is that helpful what if he had to buy TV or another car or something which is not a property how could he save tax then he has to pay tax then ?
I am doing diploma in engineering but still love your video sir😅
But what is Aman Gupta has already held a property in his name? As per section 54F in that case how would claim?
Isnt new property value is capped at 10cr for availing Sec 54f?
Sir one doubt but registration and stamp paper ka duty kya karenge
Sir what will be time period to buy new property like same fy or more
I have a query here, as he is reinvesting the amount, so, he is not getting any cash in hand or account to spend. He needed cash and sold the property worth 500 crore in 501 crores after 1 year of possession. So, will his total tax liability be 1 crore only now?
But eventually property khareedkar, stamp duty govt ko hi jaegi na sir, is that why allow the same?
Bhai sahab one month se pta kar raha sab sir ke uper se nikal raha tha😂 finally is video me samjh aaya thank you Brother 🫡
As a CA final student i would like to mention that section-54 of the income tax act is only applicable to "purchase or construction of First property" not applicable to subsequent properties. So all those tech guys in the comments thinking to start up and apply this video's knowledge please hold your horses or brace your self for show cause notices😂.
Let's say I made a tech company like a ride hailing service for which I got an app which works pretty well. Lots of users giving the company a great valuation. Now when I sell my company's stake percentage for some amount and save tax on it by buying a property. Now apps need updates everytime. So the in next update I change certain features in my app along with some changes in my company's documents and re-register my company under new terms whereas in the other hand I retain the same updated app. So I again raise funding say series B and with that my to save tax I buy a property which again will be the first property for my company. Can I do that?
And yes I do resale my 1st property of the same re registered company
This technique was mentioned in the book RICH DAD POOR DAD by Robert kiosaki
but if i park all my 500 crores in a property what about other aspects of my life? cant i buy a property for 300 crores and pay taxes on the remaining 200,
Shares sell karke capital gain earn karne ke baad share khareed sakte hai only ? Or sell profit ko property me investments allowed hai ?
So this exemptions would only work in land and property? Like if this money can be used in another share buying... it won't work there? Please help.
Aesa ku6 he ke IT consulting and Service company ko taxes benefits mile ?
But if Aman purchase property worth rupees 500cr as you said, then how he will invest money in his business? All money raised has been used to purchase property. If he wants to invest then would capital gain applicable in his hand for sale of its stake?
Sir factory or plant/ machinery can also be purchased?
Sir property sell aur buy karte rehne se tax to save hota hai lekin agr wohi capital gain business me invest kya jata fir kya hota??
Sir lekin 15 surcharge ki limit 112A ke liye hai na sirf? to aapane 112 ke only 15 use kyu kiya 37kyu nahi
With some conditions that investor should have one property in India…is it?
Sir. Stamp duty would be the cost. Isn’t ?
Sir. Jab naya ghar lete hai toh registration fee and property tax dete hai, toh kya iss scenario me Aman ji ko property twx dena hoga?
sir purchased property company use ke liye kharidi ja sakti hai kya?
Sir agar wo 500 crore ka shares sold kar rhe h toh unko security transaction tax kitna pay karna hoga
7:57..sir but as per section 54 assessee can take this benefit only once in lifetime..!!!
That's an incorrect interpretation of the section Saurav. The option of investing in 2 properties is a benefit which is available only once in lifetime. However, the option of investing in 1 House Property and availing exemption u/s 54 is a benefit which can be availed any number of times by the assessee. Hope this clears the doubt.
Saurav.. you are referring to section 54 whereas sir said 54f,
If He further sells that house.. then he can again but in section 54 Avail tax benefit iro 1 house as its value is obviously above 2 crores.😀
Can we purchase some other stocks for the same ??