Proprietorship firm and body of individuals

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SHASHI K MISHRA

M.Com

25 Points Posted on 23 December 2012

Hi all,

It may be interesting to deal with.

One individual has his own PAN number and he runs a proprietorship firm. There is also one PAN number in the name of his proprietorship firm and TDS has been deducted from that PAN. To get the refund of such TDS it shall be necessary to file Income Tax Return in the name of his proprietorship firm.

Now the question is:-

(1) While filing incomet tax return for the proprietorship firm separately, whether the concern can be treated as individual or body of individuals or any other?; and

(2) What form is applicable for it - ITR 1, ITR-2, ITR-3, ITR-4 OR ITR-5.?

PLS LET ME KNOW THE CORRECT ANSWER BECOUSE THE AMOUNT OF TDS IS RS. 1,12,333/-

I WILLL BE REALLY VERY THANKFULL

Replies (5)

Giridhar S Karandikar

Team Lead

5675 Points Posted on 24 December 2012

Dear Shashi,

In case of proprietary concern, the PAN of the individual itself is the PAN of the proprietary concern. There's no seperate existence of a proprietary concern, its just of form of carrying on the business by the individual in the name of proprietary cconcern. As you have said that the individual has PAN of himself as well as of his proprietary concern, it is illegal to hold multiple PAN's and you would be required to surrender one PAN to the Dept.

Coming to your point, it would be assessable as an individual and not as an BOI, because in case of BOI all of them shud be individuals.

SHASHI K MISHRA

M.Com

25 Points Posted on 25 December 2012

Many thanks and I agreed with your view sir. But now the big problem is that what to do to get the refund of TDS amount which has been deducted from PAN of that proprietoship firm. If I file separate ITR for the firm then what form would be applicable and what status of the firm should I show i.e., Individual or any other?

work is worship

Service

1392 Points Posted on 25 December 2012

Originally posted by : Giridhar S Karandikar
	Dear Shashi, In case of proprietary concern, the PAN of the individual itself is the PAN of the proprietary concern. There's no seperate existence of a proprietary concern, its just of form of carrying on the business by the individual in the name of proprietary cconcern. As you have said that the individual has PAN of himself as well as of his proprietary concern, it is illegal to hold multiple PAN's and you would be required to surrender one PAN to the Dept. Coming to your point, it would be assessable as an individual and not as an BOI, because in case of BOI all of them shud be individuals.

Hi Agree with Shashi ..

Further wtih regards to the TDS deducted using Properitorship PAN card, as far as my understanding it is that the TDS certificate need to be corrected with the PAN of individual. And also the PAN obtained for Proprietorship need to be surrendered.

Giridhar S Karandikar

Team Lead

5675 Points Posted on 26 December 2012

You will need to surrender the PAN of the individual & file the return under the PAn alloted for teh propreitary firm. This PAN would be one whihc you would be using going further for filing your I-T returns. you would be filing the reutrn by using ITR-IV as yours is a proprietary concern.