transfer propriotership concern

Dear Tushar,

I remember that u posted this same question few dayz back and I thin it remain unaswered...

Bhai if u r looking for the treatment under VAT  then I would say plz refer the Local Act or else post this query on the VAT forum...Hope u get the answer there....

As far as Income Tax is concerned - I think,  A sole propritorship business can be transfered in following two cases -

1) To a Family member in case of Proprietor's Death(Inheritance) - It is not considered as Transfer

2) Sale of Business - Running business is a capital asset and its transfer will attract Capital Gains. We have Sec 50B under which this tranfer can be covered or else usual computation will be made.