Income tax return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 Dear Experts

A partnership firm dissolved in the month of 26 june 2010 and another 2 partners join the partnership. My query is
a) Can I have to prepare balance sheet upto 26th June 2010 seperately alongwith the balancesheet dated 31st March 2011.
b) Whether I will submit 1(one) income tax return for the year ending 31st March 2011 or I have to submit 2 (two) income tax returns for the period 1-4-2010 to 26-6-2010 and 27-6-2010 to 31-3-2011.
c) Is there any difference if i cover under section 44AB of the Income tax Act.

Thanks

Pragnesh

Pragnesh (Expert)
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17 August 2011 Dear Friend, As per my knowledge you don't have to prepare two seperate Balance sheet for Income tax return if firm is going to continue after joining 2 partners. However it two seperate balance sheet required when new firm is formed with new PAN no. other wise not required.

chetan soni

chetan soni (Expert)
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17 August 2011 As you said the firm is dissolved on 26th June 2010. That means on that date the all transactions stops related to the partnership firm. This also means that the business is end on that date, hence you need to prepare the the closing balance sheet of the dissolved firm.

You are again saying that the 2 partners joined the firm, is this a new firm or the same one. If this is same firm then firm is not dissolved at all. Then you do not need to prepare two separate balance sheets.

Or there is takeover of old firm by the new partnership firm. If this is the case then you need to prepare two balance sheet 1. upto 26th june as closing balance sheet of earlier firm 2. from 27th june as first balance sheet of new firm.

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