Surrender of COP

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This discussion examines whether a Company Secretary or Chartered Accountant surrendering their Certificate of Practice (COP) is considered a discontinuation of profession under Section 176(3) of the Income Tax Act, 1961. It clarifies that while intimation to the Assessing Officer isn't always mandatory, it may be necessary if the professional plans to leave India. The surrender does not prevent the individual from undertaking other professional services besides attestation.

Hina Kulshreshth

Hina Kulshreshth (Querist)

09 March 2020 If a CS/CA in Practice surrenders his COP then will it amount to discontinuation of profession under section 176(3) of Income Tax Act,1961 ? Whether this surrender of COP is required to be intimated to the Assessing officer as mentioned in that section?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

09 March 2020 I is not necessary as the Section is discretionary from the point of view of an AO to assess the income of an assessee who will be having no income after discontinuation of business in the relevant previous year. After surrendering COP if the CS/CA will be leaving India ( of course , after Corona Virus disappears) then he should intimate.