Conversion of Proprietorship firm into Partnership

This query is : Resolved

Dixhita (Querist)
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13 September 2010 Hello,

There was conversion of Proprietorship firm into Partnership firm as on 31-01-2010, the T/O of Proprietorship firm was exceeding the limit u/s 44AB and the same for Partnership firm do not exceed the same section for the period 01-02-2010 to 31-03-2010.

So my Questions are:

1. Should we Conduct Audit for the Whole year ??

2. Is it covered under Partnership Firm U/s 44AB or Proprietorship Firm ??

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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13 September 2010 Whenever we conduct tax audit it is always against a PAN no. In your case if partnership firm and propertiorship firm have two different PAN then these should be considered two seprate entities for tax audit purpose.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 September 2010 Agreed,
Till date of conversion of Propritorship, income will be assessable in your hand as seprately and tax audit will be done.

for Firm , no tax audit will be done.

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Dixhita

Dixhita (Querist)
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15 September 2010 Thank U

for the help sir