clarification on Income tax filing afterdemise of proprietor

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unnikrishnan k (Querist)
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23 June 2011 Pls let us know the procedure for filing of Income tax return on the sudden demise of the proprietor of the concern. ie. for the financial year 2010-11. He was already filed returns for the year 2009-10 as an individual capacity.

Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 June 2011 1. His return will be filed by his legal representative.

2. Prepare his details of Income till his death and show in his return.

3. If the said business has been continued by other family member after his death, the family member will show the income, in his return of income.

4. The Assets and liabilities of the business of the deceased person may be transferred to the new proprietor on succession.

unnikrishnan k

unnikrishnan k (Querist)
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23 June 2011
Thank you so much for your valuable reply.

The same business is run by his wife as proprietor with her PAN No. and separate service Tax Registration No. with same name for the business.

Is it alright.

He was having the following assets
a car & scooter
Is his wife need to get the legal hire certificate to get the assets transferred to her and childrens name.

Pls clarify
thanks & regards
K.Unnikrishnan

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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24 June 2011 Yes it has rightly been done but how the entire assets have been transferred to the wife. What about the children. Now, if all the children are major then do one thing draft an agreement and let it be signed by all the members that they have no objection in transferring the assets and business of the father in the name of their mother and wife of the deceased. This is required as you do not know in future any child or his wife or husband may come forward and claim the property or the business. Generally it is done through the deed of release but since no immovable properties are involved the same can be done on a non judicial stamp paper of Rs.100/-. Do not forget to have the signature of at least 2 witnesses with their address and phone number.

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