04 September 2008
A prop. ship firm is availing deducxtion u/s 80-IB from the last 4 years. Now the prop. and his wife want to have a PVT Ltd. company, which will take over the entire business of prop. firm.
Will the company be eligible for the deduction u/s 80 IB, which the prop. was availing for that business.
04 September 2008
THIS IS CONVERSION OF A PROPRIETORY CONCERN INTO A PRIVATE LTD COMPANY. DEDUCTION U/S 80-IB WILL NOT BE ALLOWED IN THE YEAR OF CONVERSION. FROM THE IMMEDIATELY SUCCEEDING YEAR ONWARDS DEDUCTION WILL BE ALLOWED SUBJECT TO THE SATISFACTION OF OTHER CONDITIONS MENTIONED IN THE SAID SECTION.
17 September 2008
Dear Mr. Chakrapani, If I am converting the prop. firm into a pavt ltd. co. in the month of March, say on Ist of March the pvt ltd. company takes over the business of prop. firm. It simply mens that, the profit upto Feb. is taxable as prop. business and for the month of march it will be taxed in the name of the company. Now my querry is whether. as a prop. concern I will get the deduction u/s 80 IB or not. Forther as you replied, the company will not get the deuction in the year of conversion. So it means, that in the next year from April onwards, the company will be eligible for the deduction.
CAclubindia
