Unmatched Claim

Tax queries 793 views 2 replies

vishnupriya

CA Final

1418 Points Posted on 11 July 2010

Dear Friends,

One of our client was a partner in a partnership firm. By mistake the advance tax of the client for the AY 2009-10 was paid in the firm name by using firm's PAN No.. But in that year the partnership was dissolved and our client had become the proprietor of the business and the same name is also carried to the proprietary business.

After all this while filing the return, the advance tax which was paid in the name of Firm was claimed in the personal return of the Proprietor because there is no business in the status of partner ship as it is dissolved.

Now we got a communication letter from CPC(Banglore) mentioning the unmatched claim.

What shall we do now? How can we transfer the credit given earlier?

Moreover the communication letter stated "do not reply to Bangalore"

Replies (2)

kapil kumar agrawal

Chartered Accountant

169 Points Posted on 11 July 2010

Dear friend,,

First thing I want to say that u should not pay adance tax in firm name. but not to worry.... u cannot claim advance tax in ur personal return because PAN No, is different . that PAN No. is in Firm name... Even if the firm is dissolved... When u become a proprietor of that firm then also u cannot claim in ur personal return. in that situation u should file the return in firm name for A.Y. 10-11 by claiming refund. then only u can received ur tax. u should revised the personal return...

Amir

Learner

4016 Points Posted on 12 July 2010

Dear Vishnu,

Ideally the same should have been claimed in the return/assessment of the firm.

I think the best option in this case would be to approach the AO along with the letter, which your client had received and just ask him what can be done in these circumstances - I think he will be the best person to advice.