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How to close a firm under income tax

sanjay kumar Maurya (Article) (28 Points)

28 November 2012

HI guys

can any one tell me detailed procedure for closing a firm.

for eg. surender of PAN, ROI for current year,whose to notify, etc.

again Please tell me detail procedure.........

I am thankful for your consideration......

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1 Replies

Shridhar Shah (Chartered Accountant in Practice) (172 Points)
Replied 29 November 2012

I think there is no such procedure in the income tax act.

But in case of partnership firm, you can dissolve the firm & send the copy of deed with appropriate forwarding letter to the assessing officer for knowledge that the firm is now closed.

There is no provision to surrender PAN in case you have only one PAN. Also your firm can be chosen for scrutiny under IT act in future even after dissolution. So in my openion, the PAN wont be cancelled. But by initmation to AO about closure of firm may save you for future from violation of provisions of income tax act.