Working and starting a business

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Vasudev S (Querist)

24 February 2012 Hi,

I am currently working in a IT company and filing the returns for the salary income.

I have planned to start a business as "Sree Delight Enterprises" (Proprietorship - Stockist - FMCG products)

my question is can I continue to file IT returns with my PAN Number (Individual) for the business under "Sree Delight Enterprises". If not, what I am supposed to do? If I can, can I show my personal computer depreciation (bought in early 2011) that will be used for my business from now on.

CA Rushikesh Kolhe

CA Rushikesh Kolhe (Expert)

24 February 2012 Before starting your own business first confirm that there is no bond with your IT company that will prohibit you from starting your own business.
If there is nothing like above, then you can start business. You can continue to file income tax return for salary and for income from you own business, Only ITR will change. Till date you may be filing your return in ITR 1 or ITR 2. But after you start business, ITR will be 4.
You can also show your personal computer depreciation in the business and not in salary. But the value of computer should be taken the written down value on the date when you will introduce that computer in your business. Written down value means the value after depreciation till date.