I was running firm under propritorship , and also i had current account in the name of firm , now i have disconntinued my firm and want to close current account in the name of firm of which i m proprietor.
then can i receive outstanding receivable of my proprietorship firm in my saving account because current account is closed.
will it be any problem in income tax or in any other law??
If you claimed deduction on account of those sum (eg claim of bad debt) and you recover SUCH sum after closure of business then this will be liable to tax
Refer S. 41(1) [remissions] and 41(4) [Bad debts] of the income tax act
Otherwise there are no issues
Shyam S Gupta and Company
New Delhi
CA Inter
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ADY & CO.
New Delhi
Graduate (Any)
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CCI
Pro
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