Change in proprietorship

This query is : Resolved

Guest

Guest (Querist)

30 August 2011 If an assessee wants to make any other person proprietor in his own place, then what he will have to do regarding Income Tax law? Further can he draw salary in his own name after change in owner?

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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30 August 2011 Dear Mr. Anil Daga

That will be the case of takeover/transfer business.

Existing prop. will sell/transfer the business on specified date for a consideration.

New prop. will bring agreed amount in the form of capital in the firm & Old Prop. will withdraw his capital & profit/loss upto the period of takeover.

Further notice is require to be given to following Dep't:
- ITO
- Sales Tax
- Excise
- DIC
- pollution
- Electricity
- other legal/Govt. Dept

now cheers