Taxability of income intended to form new business
This query is : Resolved
20 June 2019
Hi All,
I have come across a case where a Assessee was intending to open a new Sole proprietorship firm and for that purpose opened a bank account in the name of the firm to apply for loan in the name of the firm. However since the business did not run well in the 1st few months of its intended formation the operations were suspended. The firm did not have a PAN number and there are few income credited to the new firm's bank account. How should this income be treated?
Should this income be considered in the Sole Proprietor's income?
Please assist on the above.
I have come across a case where a Assessee was intending to open a new Sole proprietorship firm and for that purpose opened a bank account in the name of the firm to apply for loan in the name of the firm. However since the business did not run well in the 1st few months of its intended formation the operations were suspended. The firm did not have a PAN number and there are few income credited to the new firm's bank account. How should this income be treated?
Should this income be considered in the Sole Proprietor's income?
Please assist on the above.
25 June 2019
Yes, you may go ahead and club the said income with the person's other income.
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