Partnership firm

This query is : Resolved

Manisha Jain (Querist)
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30 April 2013 A partnership firm has discontinued its business but has not been dissolved. Is it necessary for the assessee to inform the income tax department of such discontinuance?

if yes, what is the time limit?

is there any penal provision in case the said time limit is surpassed?

Rahul Vora

Rahul Vora (Expert)
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04 May 2013 If the partnership firm has been discontinued, then it is better to inform the same. A dissolution deed is to be prepared and PAN also is to be surrendered. There is no time limit as such. But, you will have to file the returns till the date the PAN card is surrendered to the income tax department. The department can charge penalty for non filing of IT returns.