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Multiple business units

Tax queries 412 views 2 replies

Is it allowed to have multiple business units under 1 private limited company? Is it mandatory to split business unit transactions/incomes? I have 3 business units property income, software income and trading income. Is there a combined tax implication or should I pay income tax on individual business units? Is there a special provision in income tax act which prescribes premises income to be sperated and calculated income tax seperately?

 

Any thoughts. Appreciate early response and advance thanks.

 

 

Replies (2)
Income tax has to be paid combinedly by a pvt. ltd. Co. for all the business units but under diff. sources of income. Property income under income from house property if it is rental income otherwise business if business is of purchase & sale & others as business income & if possible records should be separately maintained for all the businesses
Originally posted by : CB Ayer

Is it allowed to have multiple business units under 1 private limited company? Is it mandatory to split business unit transactions/incomes? I have 3 business units property income, software income and trading income. Is there a combined tax implication or should I pay income tax on individual business units? Is there a special provision in income tax act which prescribes premises income to be sperated and calculated income tax seperately?

 

Any thoughts. Appreciate early response and advance thanks.

 
Thanks for the reply. Can I set off annual business losses against other business units?  Say loss from trading against profit from rental income? NOT long term capital gains.

Thanks again
 

 


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