Tax Evasion using ₹40 Crore Building | Income Tax Case Study

This video is to guide viewers of how people tend to evade taxes using buildings and how the same evasion can backfire and not be beneficial monetarily too.
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[@TaxationWithCASahilJain]

Imagine evading the law and still ending up paying more taxes that you were originally supposed to. I'm not trying to say that Case 2 will be beneficial in all cases for all your clients. All I am saying is that the notion "Depreciation can always help you save tax" is incorrect. Whether you actually get to save any tax depends on the case in point.

[@rohansinghhada8611]

thank you sir...aaj hi sec 50 dang se samjh nhi arha tha...but ab perfect explain action mil gya h

[@aklaqkhan6611]

Sir i am big fan

[@abhisheknikam5608]

Sir agar building sell hi nahi karni hai to har saal depreciation claim karneko milega to ye situation me fayda hoga kya

[@divyshah9467]

What if someone is having a Family Trust like Godrej Family Trust and having crores of land registered, And you didn't consider black transactions (done by 99% landlords and builders across India)

[@CAPARTH89]

@@divyshah9467 No depreciation on land. Even if transactions done with black money, you will never make any transaction of property with official money below circle rates. So if you claim depreciation on circle rate value and later if you sell the property at the circle rate, difference between sale price and wdv of the block will be obviously high.

[@PiXimperfect]

Although I have nothing to do with CA preparations, I'm learning a lot from your videos! These lessons are worth their weight in gold and make any general citizen like us wiser when making financial decisions even though they are smaller.

[@inkclusiveDesign]

my guru is here 😁😁

[@YuvrajSinghManhas]

Do you think someday AI might help to evade tax super cleanly? I mean it can create a girlfriend right off now😂

[@mradulbhardwaj3147]

Umesh bhai, app edhar 😱

[@gurpratap]

ayo you here 😹

[@avishjha4030]

Damn, interesting to see you here! JSR represent!

[@mohammadrehmatullah3588]

Capital gain ki 3,4 section revised Pgbp me depreciation And indepth analysis Awesome sir♥️🌹

[@vivekkadyan6330]

I am an IT professional but still watch your videos. They are so intersting and informative, just love the way you teach.

[@pawarvishnunpawar743]

I learn communication skill from you sir because your teaching style is very well and I understand very well and smoothly . Thanks sir thanks sir thanks sir

[@abheetjain9819]

💯👍CA saab personality full h aapki

[@arjunsingh5637]

Sir aap baith ke kyu nhi padha rhe hain i miss that style ☺️

[@legendchor8319]

Me tooooo 😭

[@pm4562]

True😂😂

[@beasty007]

Weight loss p hai sir

[@Ashish-gj3vx]

Hmm waise samjh vi aata tha.

[@kushagragupta1923]

@@beasty007 sukhayega kya bhai unhe 😂

[@shivadhamo]

The typical goverment rate of the property might be 1/3 of the total value. Sell it to your family member first and then after 2 or 3 years sell it to the outsider... you can get LTCG in this case. Just imagine first year alone he saved 4 crore tax by showing the asset as depreciation. Invest that 4 crore rupees, and at 8% CAGR in 17 years that amount would be more than 14 crores. If you calculate the rest of the years amount, it would become a humongous amount

[@AbhaySharma-kb5yu]

feeling proud that i had a vague idea at the start of video....ki Dep lene mein problem kya hai....i knew STCG u/s 50 aa jayega feeling so happy that i took you classes Sir

[@sortingshorts5221]

wow to the point explanation and all points covered.. just loved it, hope you continue it in the future..

[@daithamadhav]

Seeing your videos, it gets reiterated to me that the fruits of being honest are innumerable. Great work sir.

[@puneetkapoor0410]

I'm not a finance background student but your videos are really good and informative

[@CryptoJobber]

Sir, I'm not a ca or related to this field but watching ur every video, i feel like I'm learning so many important things, i think every Indian should learn these tax laws and our Indian law 😊

[@MBVlogsIsTheName]

Sir your videos give a very amazing approach to understand stuff which we can't imagine just by reading theory. Amazing effort!

[@leothegoldenboy4194]

Sir we have not considered the tax benefits forgone by not claiming depreciation in the second case. So over the years we would have paid 13.33 Cr (33.33*40%) excess tax. So net we would still have to pay 4.7 Cr in taxes. Again if we consider that the benefit of 8.64 will be available in the future since we can only adjust it with LTCG and also the opportunity cost of money that was paid in taxes for not claiming depreciation, I think it would be beneficial to claim depreciation. Since depreciation amount will reduce with each passing year, for simplicity I have considered yearly tax saving on depreciation to be 0.78 Cr (13.33 Cr/ 17 yrs). Assuming you did a RD for that amount and taking 6% CAGR you would have a fund of 23 Cr. So maybe 1st option is not so bad!!

[@oopsbymistake1]

This is better

[@karthikk9179]

true

[@dumbogaming806]

Thanks for your informative video sir ! Hatts of to your teaching style ❤️❤️!

[@shubhamkumarsingh1019]

Sir,one day u will rule in your profession,All the best 🙏🙏!

[@kunalporwal667]

Best professor alert ⚠️ 💯

[@Piyush_gupta..]

I ain't even doing CA, These videos are just fun and informative

[@manndipp]

Wow, already knew all these concepts of LTCG, STCG, depn, indexation but never thought this way 👏 Thank you Sir, waiting for more videos

[@manishkumawat1548]

Thankyou so much sir ❤️ Law ke revision ke bich me aapne pgbp or capital gain ko revise karva diya🥰

[@TheClutterFree]

Very good video! Thank you, learnt something new.

[@sguchait]

You are a genius. Thank you so much.

[@rationalmind3785]

Amazing insights. Im a CA finalist and love your videos

[@vinaythakurlecnrzxvud6083]

I am preparing for civil services yet i am highly interested in your videos and yes ethics classes are also taught by you in hint style as in last part of video, where you cleverly change the topic😃

[@arunkumar4u]

Kya ho kya raha hai..... hum CA wale tumhari videos dekh rahe hain aur tum logo ko taxation main maza aa raha hai...

[@acommonman6164]

@@arunkumar4u Bhai m bhe upsc 😂😂

[@roop3321]

IAS banke paisa udake,, tax evasion karna chah rahe,, ye batao

[@vaibhavsingh5099]

Sir totally agree with you, but my point is that if the building is used for a shorter duration for example upto 5 years so it would be beneficial if you would claim the asset as business asset as even indexation would not be available if sold within 2years, then you will end up saving some amount of money if claimed as business asset. But sincerely thankyou sir for uploading such case studies, it is very beneficial for the students.

[@shashikantvakte8988]

Great great great knowledge 👌😊

[@shivangijain674]

Dashing sir with his spectacular knowledge , loved ur videos sir😍😍

[@santukumargiri9648]

sir thanks, sir your teaching quality is very very good.

[@carahulsrivastava9279]

Well explained sahil

[@Brain_holdings_Capital]

Disclaimer:- This is only theoretical example No one will sale his/her property less then index value cause (SDV always more than indexation benefits) And second thing if you sell building then if you buy new property for same value under section 54 G All stcg taxable @40% will be Nil And you claimed depreciation also It's all depends on your financial plan whether you want to rotate your money in property or you have another plan to use that funds to get better return then property

[@TaxationWithCASahilJain]

I would've appreciated if you made this comment as a way of discussing your point of view instead of outrightly stating that the video is theoretical and not practical. I'll answer all your concerns point-by-point:- Concern 1:- No one will sell his/her property at less then indexed cost (SDV always more than indexation benefits) Answer 1:- Not necessarily. It is not like the value of every property is bound to grow and that too at a specific rate. There are properties the value of which has fallen or not grown immensely. In such cases, the indexed cost can very well exceed the SDV/FMV of such property resulting in losses. Concern 2:- If you sell building, then if you buy new property for same value under section 54 G, the stcg which was taxable @40% will become Nil. Answer 2:- Section 54G applies only when you sell property in Urban Area and then, buy a property in any "Area which is NOT Urban Area". Not everyone would be willing to invest the same amount in Rural Area just to get exemption. I'm happy you made this comment. Gave us a chance to discuss a few more sections and enhance the knowledge of reader. God bless you!

[@inspirewithanand]

@@TaxationWithCASahilJain Learned a lot, sir. Thanks for simplifying the taxation 😇😃🙏

[@dedha7064]

@@TaxationWithCASahilJain Sir I am very impressed with your knowledge. CAs like you are very rare, the misfortune of this country is that people watch nonsense videos a lot. But don't like to see where knowledge and wisdom are found.🙏

[@rajm8132]

I am 16 and studying in 12th class your video help me to learn a lot.

[@PROGAMING-bk2yp]

Great bro keep doing

[@surajsodhani1642]

Great case study👌

[@pawarvishnunpawar743]

Thanks sir your video Very help to me and your teaching is very well .my English few poor so you try to understand it . Other wise thanks sir for your KZbin video

[@sradhanjalipanda9920]

ending shooting sound is awesome dear sir

[@neerajgupta3098]

Gazab Sir ji 👏🏻

[@ayurvedblog]

sir, honestly you are awesome at making taxation videos in easy ways. can you make complete videos for sole proprietors to save tax in India?👍👍👍👍👍👍👍☝

[@harshlekhwani3893]

You are amazing Sir. Really Respect You

[@anshugupta3689]

Great explanation sir

[@chiranjitsamanta16]

It's a request to start a course based on case studies only, so outsiders who are not preparing for any exams can also learn alot.

[@shivanshshukla5883]

Yes....

[@malaykp3119]

Superb educational vedio.

[@shivanandapandey6097]

Sir aap bahut knowledge dete hai

[@AristocratePrince]

Wha wha ....thank you....👏👏👏👏👏🙏

[@yeakubali2587]

awesome explanation ❤️❤️

[@akkhilgarg2041]

Awesome 👍

[@SANDEEPKUMAR-qt8my]

You are awesome sir 🙏🙏

[@I_agree_with_you]

Very good explanation

[@AnkitJaiswal-vm5mk]

You are amazing Sir

[@PradeepSingh-nk5wl]

One more interesting topic 😀

[@lakshnaramesh9733]

Sir I am watching ur video for more than 10 months, trying to understand as much as u say as idk Hindi Pls try to create a yt channel which teaches in English will be very useful to attract other subscribers widely 💐

[@yashagarwal1985]

Whenever I see your video notification i just came immediately as I know I will definitely learn something new and interesting.. ❤️ Thanks a lot sir for making such videos!!

[@pratyushsahoo6411]

Superb....

[@ssachinu]

Amazing!

[@shankeybhatia]

Good Education video

[@ashwanisingh-ns7mb]

Wonderful sir

[@Truth69194]

Haan ji ♥️

[@rscsingh7848]

Knowledge 👍🏼

[@vatsalsaxena3551]

Love ur videos.

[@user88169]

Sir pls make a course on full proof tax evasion and avoidance

[@nitishgoel3969]

Agar ethic ko side mai fek dia hai toe aapko pta hoga land deals mai bas minimum value white dikhai jaati hai most deals mai major hissa black ka cash hota hai (that’s why property is best way to dump black money)

[@mr.x_money]

sir if we take interest on claimed value , then also your analysis would be right?

[@vaibhavrastogi9073]

Sir please provide a video that how to learn applying sections. We students only know the sections but know how to apply those it would too much beneficial for us

[@adarrashid]

I always wait for your videos sir from Bangladesh ❤️🇧🇩 passion and dream to be a CA 💛💛💛

[@ZaidAjani]

Sir I am struggling to choose between finance (chartered accountancy) or engineering (IT) as my career. I previously thought that I'll be taking engineering as my career, but I realized that on youtube there is an ample amount of content for it available for free on youtube regarding engineering. I followed it and it gave me skills more than that of college graduates. Therefore, I dropped the plan of becoming an engineer and planned that I'll be taking finance as my career. My main purpose for it is that it will help me build good business fundamentals and knowledge, it will give me abilities to take finance of my business on the skyline, and will help me enter into the fin-tech industry. My aim in my life is to set up a business related to tech and automation. What do you think about my plan? I couldn't get any videos/content on the entire internet regarding this. People are still telling me to drop it and go with engineering. By the way, my inspiration to become a CA was first sparked by your videos.

[@cooldude2106]

Go for IT , you ll be wasting too much efforts in CA course that you can invest in enhancing your skills .

[@Ashu_CR7]

@@cooldude2106 That's not a Good reason but it might be helpful for him, or will make him even more confused

[@ashishagarwal9083]

Bro entry is easy , exit is too much difficult in CA

[@ZaidAjani]

​@@ashishagarwal9083​I'll do some hard work do not worry ✅

[@anonymous-rc3uv]

Bro actually we have only one subject related to finance (intermediate paper8 and final: strategic financial management) majority of the syllabus is taxation and audit( audit is damn difficult as you should memorize a lot) and these subjects such as audit and tax don't relate much to finance. So I would suggest you to check out on CFA or acturial science which is completely related to finance. Or an MBA in finance from top colleges. Hope this might help you.

[@devendrajoshi5997]

Amazing

[@SageNextinfo]

Accounting Trends: Predicting the New Business Future 2022 and Beyond -kzbin.info/www/bejne/gp6rfqKJm6aUprM

[@venomhaw1612]

Sir I am not a CA students but mujhe aapka video dekhna aacha lagta hai just because I'M a account executive

[@TheNicevideoclips]

Sir I think for computing PVM, Expected Rate of Return is required rather than IRR. Because IRR is the rate at which PV of future cash flows from an asset equals current market price. ERR varies from person to person whereas IRR is asset specific.

[@sauravsingh7029]

Capital gain and PGBP revision hogyi 😉😉🙏

[@rishikaushik8307]

in this example we are at a loss after indexation, doesn't that mean its a bad investment to begin with and we would have be better to just hold cash. Also does it matter if the person stopped claiming depreciation 2 years before selling

[@himanshuupadhyay4193]

sir , do you hire CA Articles Assistant ??, like i have completed my CA intermediate exam i want to do my Articleship under your guidance

[@rajukumarsah9106]

Thank you sir

[@SuhasShetty22]

So moral of the story is : jhoot math boliyega!! Thank you sir for sharing such informative videos.

[@manojadkurkar5315]

Thank U Sir... Mai Hamesh aapke Lecture dekhta hu, bahut maja aata hai aapse shikhane ko. Ek querry hai, Agar hum assets ko convert kr de stock in trade ko toh Benifit ho jayega ya nahi

[@Vty358]

Sir please residential pe bhi bana do .

[@tanmaysaha5000]

Best way is apne liye rent/lease dikhao Aur investment purposes k liye building purchase karlo

[@shubhamjain111]

One more point to be added - If we show asset in business, then we can also avail ITC of gst, so it will reduce cost of the asset

[@CADhirajtawari1306]

If I'm not wrong, You cant claim ITC ,as GST is not applicable on sale of ready to occupy property. And if it is construction of property, even then you can't claim ITC on any goods or services related to construction of the property as it is related to immovable property, not plant & machinery ( blocked credit u/s 17(5)(c) and (d) of CGST Act)

[@teddy-lg9zf]

but come to think of it sir, if am dealing only in trade and not in any kind of capital assets in my business then the LTCL has no use for me as am unable to set it off ever right, so in that case isn't it a good option? And i can claim maintenance cost of such building yearly

[@adityajubok7696]

Loved the video But sir in this case you know the selling price of your building But while buying we don't know the exact selling price

[@joashau4288]

can you make a video on rental business taxes and how to profit

[@iamchiragbafna]

Sir, what if we hold the building is taken in our holding co or any say company A, and shown as investment (IndAs 40). The subsidiary say Company B can in return give a loan to its parent to nullify the income against such rent income of parent (allowd u/s 185) which can be used for buying the same property. Thus the transaction would be such that the subsidiary is paying rent to parent and parent is paying interest to nullify maximum tax burden. In future the transaction can be squared off say after 10years and the group would easily retain any such tax on profits so earned. Your insights and comments are highly awaited. Lastly, thanks alot for helping us brainstorm frequently.

[@hrscreation6849]

Sir who is liable to issue E-invoice in case of RCM and whether the treatment is same for all recipients u/s 9(3) & 9(4) ?

[@jasmeerkumar]

*Sir aapne agar apna channel NIFTY50 pe list kraya hota to mai bahut paise kama leta* Congratulations for an exponential growth

[@rajeshbhaskar3657]

Can i claim depreciation for residential property where I'm residing and have taken a home loan for it? Thank you

[@varunpatankar3143]

Hi Sir! Love your videos! Just one point I would like to raise for discussion - Indexation basically brings the cost incurred to its present value right? And, on the other hand - we are ignoring PV calculation in the first option. So aren’t there two scenarios non comparable then?

[@lakshyaagrawal688]

In the first option , even if we take PV Calculation into consideration, the net tax saved wouldn't be as much as the benefits in case 2. By rough calculations , I believe the ultimate tax obligations in case 1 after considering the PV of tax saved through depreciation will come down to almost NIL . However in Case 2 , we're going to have a Long term capital loss of around 43 crores as shown in the video which can ultimately be set off . So Case 2 is going to beneficial in the above scenario even if we take PV into consideration in Case 1.

[@sunilrathod2639]

Hi sir I have seen your video it was most informative sir. Sir please make video on less home loans with or without collateral loan. Another sir loan for buying agriculture land

[@vivekshukla5757]

Sir in given case you have assumed that the block consists only one building .... But your given conclusion would not apply in those case where there are more than one building AND opening WDV is more than the selling price of said building..... And further not resulting in any STCG...

[@rkkmmmkkr]

Sir please 1 series bana do IT sector wale ke liye jiski salary 15-30 lpa ke bich m3 hoti hai wo kaise tax bachaye

[@deepakagarwala410]

Depreciation is a compulsory allowance in case the assessee falls under the trap of audit under 44AB. Since it's a commercial property and assessee is a proprietorship firm, then as per my personal opinion this planning won't be very easy. However in case of company/partnership firms a layout can be designed for implementation of the proposed tax strategy

[@davelawson2564]

there is a way out

[@FacebookInc.]

Ek video sir ca in foreign par lekar aayiye , usmein acca ki baat mat kijiyega

[@ManjuBala-xq2ep]

Sir in case 1 If we sell the property and reinvest the capital gains in another property than under section 54 whole capital gains tax would be exempted i think 🤔🤔

[@umangbanthia1219]

Sir 40% tax slab kyun liya ? Vo toh sirf FC ke liye hi hai na And 2nd doubt ki if block has more then one assets and one assets sold and sales consideration is less then wdv of block then ? Mtlb tab to 50 trigger nahi hoga na ? And tab kya cap gain LTCG manege ?

[@Vishin007]

sir apki videos toh crime partrol ki trhaa lagti ha JO be invasion karta ha tax ki 🤣🤣🤣

[@jeetendrakdr]

Tax evasion ki information government ko kaise de sakte hai us par 1 video bana dijiye sir

[@drpiyushagrawal8409]

What if in Case 1 where we have claimed depreciation, We invest the Amount Earned i.e 63.7 lakhs into buying another house. Then there will be no taxes as the entire money is invested back again?? Or we will have to pay taxes ??

[@vyomjain3468]

How does this calculation change if we buy building for investment purpose and rent some floors on same building?

[@visionarytomato]

Can't wait to evade taxes

[@arvindian]

The premise itself is so wrong. generally in India property prices will increase multi fold in 17 years. aur yahan double bhi nahi ho paya

[@TaxationWithCASahilJain]

Not sure how that defeats the purpose of video. If the value of property became 200 Crores instead of 70 crores, even then, the analysis remains the same and even in that case, the Case 2 only would be beneficial as pointed out in this video. I've clearly mentioned that the figures can be different in your case but the way to carry out analysis remains the same.

[@Siddharthkavathekar]

Sir just out of curiosity, if we cannot consider the impact of time value of money because of different irr's ,we still take into consideration the inflation rate or G-sec rate. because considering tenure (17 yrs) it would create certainly big impact I think?

[@avishjha4030]

This is also what I was thinking!

[@babloovasu]

Sir in this cant we contend that Land value is separate to that of building because land value is what even in reality that appreciated and the building value is what depreciated so on that building value we will calculate STCG and on land's worth we shall calculate LTCG with indexation.