INCOME TAX PROBLEM

Please compute the income from PGBP anf other sources the folllowing case for the year ended 31.03.2008:

Mr Rajesh is engaged in the business of retail trade for which sales amounted to Rs 10,00,000/-. His father was engaged in the business of electronic goods. His father died in 2003-2004. During the year he received Rs 10,000/- from a customer relating to his father’s business.

Please state whether the income from father’s business will be treated as PGBP Income or OS and does it has any relevance with the fact that the assessee is already engaged in business of his own.I mean if the income is treated as PGBP will it still be treated in the same manner if the assessee was not engaged in any business activity.please give sectional refernce if possible.

What has happened about the probate of father's will. Is it intestate? If the will is not settled, the fathers income tax file continues and the administrator is the represenative assessee who handles the income received of the father. This income may have already been accounted in the hands of the father and it may have been reflecting as a sundry debtor. If the will has been settled and as a legal heir you have appropriated the money, for you it is other than adequate consideration but you can claim it as inheritance if it indeed reflected in your fathes business. If the will is not settled you are the debtor to your father's estate to the extent of money received by you.

My view. Please consider other opinions also as I have not come across any such situations and what I have expressed is purely from applying logical reasoning.

Menu

INCOME TAX PROBLEM

Sahil