Proprietorship connverted into partnership during the year

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Chitsimran Singh (Querist)
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17 October 2014 I have a query regarding how can i treat the following:

- An Assessee who was running a proprietorship (Audit is applicable)

- during the year a person joins & they form a partnership firm.(Audit is applicable)

As on the date of 31.march what should be the treatment in respect of ITR, Audit reports?

Please Help!

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 October 2014 you need to file two separate returns. audit applicability will depend separate turnovers of proprietorship and partnership

Chitsimran Singh

Chitsimran Singh (Querist)
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17 October 2014 Audit has already been done.
Now Shall we need to file two audit reports?
One for individual & second for partnership firm?

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 October 2014 if the turnover during the period the proprietorship and partnership existed, exceeded 44AB limit, then yes..separate audit reports are to be filed.

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