Whether all the partners of partnership firm after dissolution can be partners in the sole proprietorship firm and profits of that proprietorship firm can be distributed to all the partners for tax purposes in their profit sharing ratio?
Thanks in Advance
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Partnership vs proprietorship
Replies (6)
in Sole Prop Firm, No Partner Concept is There.
So what should be done so that income of a single small business can be devided in 4 individuals for taxation purposes?
Whether joint venture would work in this case or it will attract some additional taxliability
| Originally posted by : CA SUNNY AGGARWAL | ||
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Whether all the partners of partnership firm after dissolution can be partners in the sole proprietorship firm and profits of that proprietorship firm can be distributed to all the partners for tax purposes in their profit sharing ratio? Thanks in Advance |
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Proprietorship means only one person handling Enterprise.So qestion of partners in sole proprietory doesn't arises.
after the desolution of the partnership firm, there is no existance of partnership firm, and the sole properitership firm there are no partners, the earlier partners can not claim for the individual properitership profit.
If the 4 individuals are of same family,Income can considered as HUF income.
I feel Joint Venture does not work because Joint Venture says for a particular contract/work.
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