CHANGE IN PROPRIETORSHIP

This query is : Resolved 
 

(Querist)
14 July 2008

ONE OF MY CLIENT HAS CHNAGED THE NAME OF PROPRIETOR BY WAY OF PARTNERSHIP DEED, HE IS ALSO LIABLE FOR AUDIT U/S 44 AB,PLEASE GUIDE THAT HOW TO INFORM INCOME TAX DEPARTEMENT ABOUT THIS AND HOW TO CHANGE IN TAN AND OTHERS.

THANKS IN ADVANCE.


CA RAMESH KUMAR AHUJA (Expert)
14 July 2008

It seems that Proprietorship has been taken over by a new Partnership Firm. The personal Status of both is different. The books for both the periods are to be maintained seperately and tax audit will be conducted if sales exceed 40lacs. The change will be reflected by filing the form No 49A by the Partnership Firm for allotment of PAN and by the erstwhile proprietor for the change in particulars of business. Moreover, the particulars furnished alongwith the return of income will be a valid and complete disclosure to the department.

Vardhman Dangi (Querist)
14 July 2008

Dear Sir,
I think you don't understood what i told, there is change in proprieorship through new & dissolution of partnership deed. so the business is in the hand of other propietor .

Deepak (Expert)
14 July 2008

For safer side, Proprietor Assessee should inform to A.O., within 15 days of change, regarding change of status- refer s. 176(3)of Income Tax Act 1961. It seems assessee is changed, eventhough business is same, therefore all formalities may be done afresh.



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