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Receivable to be received in saving account

Others 339 views 1 replies

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??

Replies (1)

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


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