I have come across a problem. A sole proprietorship is converted into a company. after that all income and expenses are booked in the name of the company. But the company forgot to intimate it to their clients and they continued making payments in proprietor's name. Actually the income is booked in the name of the company. But the problem came when the client issued TDS certificates in the name of proprietor. They are not willing to change it.
Since the proprietor has no income since all income is booked can he claim refund for the tax deducted in his name.
30 October 2008
My question is that can I claim refund for that amount with out showing the income in Proprietor's account since the income has been already booked by the company.
can he claim refund for the tax deducted since certificate is issued in the name of proprietor and not the company
Tax deducted at source has not been shown as an asset for the company since the certificate has been issued in the name of that proprietor
30 October 2008
Practically, you will have to pay tax on the income booked in the name of company instead of Proprietorship. What is the status of that proprietor in the company ( whether he is a shareholder or a director)? There can be some practical solutions to this problem. The answer to the question asked by Warrier sir can help a lot in this regard.
CAclubindia
