THIS IS IN DEPTH QUERY PLZ.. REPLY AFTER CONFIRMATION

Yes. You can run two proprietorship concerns by one proprietor. However, the PAN number is of the individual. Therefore, the limit for Section 44AB is Rs.40 lakhs for the individual is irrespective of the number of proprietorships the individual has. For purpose of TDS you can take a separate TAN for each branch of the individual. Each proprietorship can be treated as a separate branch.

For purpose of CENVAT and Service Tax also the treshold limit is available to the individual is once only  irrespective of number of proprietorship. However, each proprietorship will have to take a separate registration.

For VAT administrative relief is given only once to both proprietorships. Common TIN number is given as usually the TIN is in name of individual and he can have more than one proprietorship in the TIN.

For IEC, only one IEC is granted per PAN. Therefore the proprietorships will have to be branches of the individual or one will have to be branch of the other.

Why complicate life? Try and consolidate in one name and create disivisions for different businesses.

Hi! vishal.

I'm pretending here that by "firm" you mean to say proprietory business.

Ans - 1: Yes.

Ans - 2: The proprietory businessess will be assessed under the PAN of the proprietor, thus Sec. 44AB will be applicable.

One individual can become propriter in more than one Propritership firms.

the limit of Section 44AB is applicable on Person basis, so the person is liable to Tax Audit becoz its Turn over is 78 Lakhs...

yeh... 1 individual can go for morethn 1 propriertoy business... here 4 d purpose of tax auit u/s 44AB turnover of all the business r 2 b added n if exceeds 40 lacs thne tax audit of all business is required....

suppose if 1 is business and other is profession thn also if any of both exceeds its respective limts thn audit under both is required...

further if both business n profession is below their limits then no audit is required....

dear it is first of all not an indepth question. Moreover in case of a propreitory business when the return is being filed, thw assessee and his PAN and not his businesses.

So businesses might be different but the owner being same is assessed u/s 44AB of the IT act.

In form 3CD mention the names of both the business and also the profit of both the business and also other requirements of both the business together in aggregate or can also separately by providing numbers.

Dear vishal ,

All are right except in case of presumptive taxation, where different businesses shell not be considered at par with each other.

An Individual and all his proprietory concerns (entities) are considered as one assessee only for Income Tax purpose.. i.e (Entities + Individual = assessee)

So this is what u do..

First.. prepare accounts (p&l, balane sheet etc) for all entitiy + individual

Second.. Find out if the combined turnover of all entities + individual is more than the prescribed limit. If answer is yes, tax audit needs to be done for all the entities + Individual and a consolidated report prepared for the assessee

Third.. prepare a consolidated computation of total income for the assessee and file the return..

I do agree the same

The Income will be consolidated in the hands of Individua

 The Income of both Propreitory concern is consolidated in hands of Individual assesses therefore audit under section 44AB shall be applicable....!!!!

In my opinion Tax audit is necessary under section 44AB but Tax audit report may be separetely for each proprieotor ship concern.

 yes he may the propreitor for two or more firm. In my opinion, the assessee is the same for the both of the firm. so it will be taxable in the hand of the assessee for both. the 44AB is applicable on it and he need the audit for the aggregrate income.