I has been found capital& current account in the name of another party in accounts of a sole proprietaryship firm.
is it possible???
Replies (5)
Quick Summary
This discussion explores the unusual finding of capital and current accounts in the names of other parties within a sole proprietorship firm's financial statements. The consensus is that this is not permissible for a sole proprietorship, as such accounts are typically associated with partnership firms. The thread also touches upon the differing tax implications for sole proprietorships and partnerships based on turnover.
On the whole, this is wrong as a sole proprietor taxation starts at 3,00,000 and partnership taxation starts at 2,50,000. If they fall under turnover of 5-10 lakhs slab, nothing to worry about. But no one knows the real rules if anyone can have two bank accounts with different names.