Inheritance of fathers business on his expiry

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CA Jayesh Nimje (Querist)

16 August 2013 I have few queries.

1) Proprietor expired in the middle of a F.Y. The business of the proprietor was inherited by his son. Father was not maintaining any records relating to stocks of the business.The closing stock at the end of the year was to be on the basis of proprietor and it is not practicable to physically count the stock on the day of his expiry. how to calculate the value of stock on the day of his fathers expiry?

2) If in the above situation father had 4 son's, 3 of them do not want any share of the business and wanted to give their share to the 4th son, what can be done in that situation? can they make a MOU to extinguish their rights in the business?

3) How the return is to be filed of the father as well as the son who inherited the business?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

18 August 2013 Aheir to a deceased person can apply for change in the name of owner to the registeringauthority and continue the business as usual. Along with the application an MOU among the brothers also can be attached to avoid any future problems.No need to worry about stock evaluation in the middle of the year.Returns also can be filed as their father was doing .....mjk

CA PARTH SHAH

CA PARTH SHAH (Expert)

28 December 2014 Father's return has to be filled by his legal heir in case of death of the father. for which death certificte and certificate of the legal heir has to be subitted to the income tax department While son should file his seperate return.

CA PARTH SHAH

CA PARTH SHAH (Expert)

28 December 2014 Father's return has to be filled by his legal heir in case of death of the father. for which death certificate and certificate of the legal heir has to be submitted to the income tax department While son should file his separate return.

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