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need urgent advise on tax planning!

This query is : Resolved 

DEAR FRIENDS AND EXPERTS,

MY QUERY GOES AS FOLLOWS :-

A PERSON IS RUNNING A SOLE PROPRIETERSHIP FIRM. HIS STATUS AS PER FORM 26AS REFLECTS HIS INCOME AS PER HIS PAN CARD. BUT SINCE THE BUSINESS IS SOLE PROPRIETERSHIP, THE FIRM IS USING HIS PAN CARD ONLY FOR TRANSACTIONS. AFTER ENQUIRING IT WAS FOUND THAT THE BANK ACCOUNT WHERE THE AMOUNTS ARE BEING CREDITED IS OPENED IN THE NAME OF THE FIRM USING THE PERSON'S (i.e proprieter's) PAN CARD.

SO MY QUESTION IS :-

a) WHILE FILING THE PERSON'S INDIVIDUAL RETURN, CAN I USE THAT BANK ACCOUNT NUMBER WHERE THE NET AMOUNTS ARE BEING CREDITED (AS IT IS NAMED IN THE NAME OF THE FIRM and not the person himself !! ) ???

B) CAN I GIVE ANY OTHER BANK DETAILS IN THE RETURN JUST TO GET THE REFUND (IF ANY) ??

C) IF THE AMOUNTS ARE BEING DEPOSITED IN DIFFERENT BANK ACCOUNTS, WILL GIVING ANY ONE OF THEM IN THE RETURN BE SUFFICIENT??

Need your urgent advise.

Thanks...


An asessee shall have ONLY one PAN but he may have different businesses with different titles as proprietary concerns.While filing the IT return, his total income will be computed with consolidation of all the business units.So there is no problem, if you quote any of the Bank Account belonging to the assessee.Hope doubt is cleared.
answers :a)You can use that Bank Account no.b)You may also give any other bank a/c of the assessee which is reflected in his books of a/c. c)If the bank accounts are taken in the books of assesse, you can give any such bank a/c.

Under income tax act, proprietory business concern have no separate legal status. Its income/loses are assessed on the basis of total income of the Individual.

There is no bar in mentioning bank a/c number operated under firm name or any other bank a/c maintained by proprietor.

But for claiming refund under income tax act bank a/c should in the name of proprietor only.

for individual under prop. firm PAN is one . due to prop. firm have no separate entity under the income tax act.

you can give the PAN of the a/c in name of the firm or in name of individual.

but its better to give the a/c in which business transaction you are doing
when you get the refund its issue in pan of prop. and mention the a/c no.



Thank you all..

But can I give only one bank account in the name of the proprieter for the refund purpose evn if that bank account reflects no recepit of income as per form 26AS?

In short, is avoidance of those bank accounts where amount (reflected or credited as per form 26AS) possible??

Its doesn't matter which account you offered for refund, but account should be in the name of proprietor only. It may include bank a/c hold under the name of Joint Holders


Bajaj Finserv

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