Income tax rules

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AVIJIT ROY (Querist)
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02 September 2011 Dear Sir,
My frnd having pan card.Tax has been deducted from his salary till 20th April 2011.Now He is jobless till today from May'11.He has also get his form 16 from his previous company but he could not return file as no knowledge in TAX area.How can be IT FILE completed now for the yr 2009-10 & 2010-11.
My 2nd Question is- He has to open a Sole Proprietorship Firm and he wanted to open a new Pan card/Bank A/c/Tax Book in the name of the firm.All doc's should be made in individually in the firm's name.Is it poosible to get the above point..
Your kind help is highly appreciated.

U S Sharma

U S Sharma (Expert)
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02 September 2011 1. file his return for the year ended 2009-10 ( assessment year 2010-11) though its belated, and claim refund/ set off of TDS

2. file return for 2010-11 in regular( last date has gone on 31st july) and claim refund/set off TDS

3. to open a proprietorship firm, his own pan card is valid, it will be used in firm. Proprietorship firms does not have separate pan cards.

AVIJIT ROY

AVIJIT ROY (Querist)
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02 September 2011 Thank you sir for your reply.......

You means he can get registration from State Labour dept in his Sole Proprietorship firm (XYZ Enterprises) and all tax would be deposited into his own pan card.

Sir which type of registration and legal step is required for opening the new sole entrepreneur.Further informing you he will recruit max 9 no employee\'s.(One Business Head,6 sales person , 1 Admin & Account Head,1 office boy.Basically They will work with some respective company( Like Reliance/Kotak/Mahindra)for vehicle loan , General Insurance and business income will be calculated thugh brokerage from the mentioned company. I want all the doc\'s to b made in the name of firm.For Example -XYZ Enterprises..
Please sir guide me brifly.
Sir May I can expect for more help from your side.
Thank you...

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AVIJIT ROY

AVIJIT ROY (Querist)
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AVIJIT ROY

AVIJIT ROY (Querist)
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03 September 2011 Question Formation of his Sole Proprietorship- One Business Head,6 sales person ,1 Admin & Account Head,1 office boy.Is it possible for the above firm.
Question They can invest more money in his own firm after 1 yr or 6 months.Suppose he invest 5 lac at this time for the firm , after one yr he suppose to invest more 2 lac.Do they hv any problem?
Question Is necessary of the Trade License and Shop&Establishment for this firm?
Question If require any extra features pls guide me.

Thank you.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 Let's break down your queries step-by-step:

### 1. **Filing Income Tax Returns for AY 2009-10 & AY 2010-11**

**For AY 2009-10 and AY 2010-11:**

- **Filing Returns**:
- **For AY 2009-10**: Since the filing date has passed, this is a "Belated Return" under Section 139(4) of the Income Tax Act. You can still file it, but you might not be able to claim any refunds for that year. If there's any tax due, it will be calculated with interest and penalties.
- **For AY 2010-11**: Similarly, you can file a belated return under Section 139(4).

- **Steps to File**:
- **Collect Documents**: Gather Form 16, details of TDS, and any other relevant documents.
- **Choose the Right Form**: Use ITR-1 if it's a simple salary case or ITR-2 if there are other sources of income.
- **File the Return**: You can file the return through the Income Tax e-filing portal or consult a tax professional.
- **Penalties and Interest**: There may be penalties and interest for late filing, which will be clarified in any notices you receive.

### 2. **Opening a Sole Proprietorship Firm**

**Registration and Legal Steps**:

- **PAN Card for the Firm**: A sole proprietorship does not get a separate PAN card. The individual’s PAN card is used for tax purposes.

- **Bank Account**:
- Open a bank account in the name of the sole proprietorship firm (e.g., XYZ Enterprises). The account will use the proprietor's PAN and proof of business address.

- **State Labor Department Registration**:
- **Shop and Establishment Act Registration**: Required to operate legally and employ staff. This is issued by the local municipal authority or relevant department.
- **Employees’ Provident Fund (EPF)** and **Employees' State Insurance (ESI)**: Required if you have more than 20 employees, subject to state regulations.

- **Trade License**:
- Typically required for conducting business. This is issued by the local municipal authority.

### 3. **Investing in the Firm**

- **Additional Investment**:
- It is permissible to invest additional funds into the sole proprietorship at any time. There is no restriction on adding more capital.

### 4. **Forming and Operating the Sole Proprietorship Firm**

- **Business Structure**:
- You can form a sole proprietorship with the following employees: One Business Head, six salespersons, one Admin & Account Head, and one office boy.

- **Tax and Registration Requirements**:
- **Trade License**: Required for business operations.
- **Shop & Establishment Registration**: Required for employing staff.
- **GST Registration**: If the turnover exceeds the threshold limit.
- **EPF/ESI Registration**: If applicable.

### Summary

1. **Filing Returns**: File belated returns for AY 2009-10 and AY 2010-11. Penalties and interest may apply.
2. **Sole Proprietorship Setup**: Use your PAN for the firm, open a business bank account, register under Shop and Establishment Act, and obtain a trade license. Additional investment is allowed.
3. **Employee Management**: You can hire up to nine employees. Ensure compliance with labor laws and tax regulations.

For detailed assistance and to handle any legal or tax-related issues, consulting a professional accountant or legal advisor is advisable.