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I need help

AmolNikam (CA Final Student) (29 Points)

27 December 2011

i am in trouble help me

our assessee A is died on 08-01-2011 and business is successed by his wife before death turnover is 47 lakhs and after death 31 lakhs , so how many retuns to be filled , if one by successer (wife) then how to claim refund of TDS of his Husband and if two returns to be filled then how to calculate depriciation , proportionate basis (days used) or for first it is used for 180 days so give the full and after death it is used less than 180 days so give half depriciation then it will be higher .

please give answers with the applicable sections

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7 Replies

(Guest)

Dear Amol,

Two returns to be filed one for the deceased & the other for his wife with a single tax audit report.

Depreciation will be calculated as per the IT act & will be divided among the two returns on the baisis of no. of days.

Thnx.

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AmolNikam (CA Final Student) (29 Points)
Replied 15 January 2012

thanks for reply

but in ITR 4 their is no space for daywise depreciation and please give answers with proper sections

and one more question the business loss and unabsorbed depreciation can be carry forrward

awaiting ur reply .

(Guest)

Dear Amol,

U have to disallow the excess amounts as per ur own calculation. I think this is nowhere mentioned in the act. (Refer Section 32)

Section 72 of the I T Act provides that unadjusted loss of a year can be carried forward up to 8 years & can be set off with business income only and not with any other head of income.

u/s 32(2) unabsorbed depreciation can be carried forward for any number of years without any limitation & can be utilised to adjust any income except salary.

Other Members plzzz do correct if im wrong.

Thnx

AmolNikam (CA Final Student) (29 Points)
Replied 21 January 2012

thanks for reply

but the wife can carry over the unabsorbed depreciation , and how can provisions os 44 Ab is attracted because th status of assessee is changed so i think the tax audit is not aplicable, and what is the proceedure to claim tds refund in the name of wife.

awaiting for reply

(Guest)

Dear Amol,

Provisions of 44AB will be applicable if the turnover exceeds the tax audit limit. The assessee cannot escape tax audit if he/she is a successor of a business.

To claim refund the wife of the deceased will have to file the returrn on his behalf apart from her own return.

Thnx

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 21 January 2012

thanks for adding knowledge....

AmolNikam (CA Final Student) (29 Points)
Replied 23 January 2012

for 44 ab if u have some book references please tell me abt the book and page number and i think that the assessee is different so tax audit is not applicable and we r going to file two returns so limit doesnt cross please give book reference or case reference and u can mail me at amol8674 @ gmail.com

thanks for ur help