Filling of income tax return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 Dear Sir,

A son join the proprietorship firm after the death of his father. My query is

a) Whether he will file one income tax return for the complete financial year or he has to file return upto the death of his father seperately as a legal representative and for the remaining period in individual capacity.

Thanks in advance

chetan soni

chetan soni (Expert)
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17 August 2011 legally there is change in the ownership of the proprietorship firm. The period before death needs to be file separately as representative capacity & period after death as individual capacity.

Experts pls. comment on this........

U S Sharma

U S Sharma (Expert)
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17 August 2011 1) he has to file his own return as usual, after teh instertion of his name in business, the business profit will get added to his file ( two balance sheet would be made for business, one for father ownership and 2nd for sons ownership)

2) for father, he has to file two returns 1) upto the date of death, 2) for the remaining period, as there are banking interest, capital gain etc.

3) after complete transfer of assets, and bank acounts close, he has to inform the ITO regarding the dealth of father, with request to close the file,

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