ITR filing liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 One of my client's death on date 23/11/2009. He was run a proprietorship firm. After his death other family members transferred the soul business (balance sheet as it is) daughter-in-laws' name. Since 24/11/2009, she is looking the said business.

Turnover up to 23/11/2009 Rs. 30 lakh.
On wards i.e. 24/11/2009 to 31/03/2010 Rs. 25 lakh.

My query is
1) What the TAX AUDIT liability ?
2) Whether ROI filed two or one i.e. in the name of death person - PAN / legal hair name - PAN ?
3) Can I file ROI, whole Financial year by legal hair name - PAN.

Please satisfy my query.

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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05 September 2010 If the business is allowed to continue in the name of the legal heir then there will be two assessements one in the name of the deceased where return would be signed by the legal representative of the deceased and the later in the name of the executor of the Estate of the deceased.
But if the properitership concern is taken over by the daughter in law of the deceased then there is no question of having two asssessment. The assessment upto the death would be in the hands of the legal representative of the deceased and thereafter the income would be assessed in the name of the daughter in law of the deceased.

NITIN SHARMA

NITIN SHARMA (Expert)
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05 September 2010 THE ROI SHOULD BE FILED BY THE LEGAL HEIR. THERE IS NO QUESTION OF TWO ASSESSMENT AS THE PROPRITORY BUSINESS HAS BEEN TRANSFERRED IN THE NAME OF LEGAL HEIR

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