proprietorship firm take over by the company

mudit nigam (Querist) 02 August 2011 This query is : Resolved
Hello
respected Sir

my problem is during the year the month of July proprietorship firm take over by the new company he gives me a some amount and share in new co. for this take over. how to compute income tax.
whats up i think so all amount received by the company and my firm capital difference is taxable in normal rate of taxation.

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Raj Kumar Makkad (Expert) 02 August 2011
You are right in your approach.

soumitra basu (Expert) 03 August 2011
MAY BE IT IS A CASE OF SLUMP SALE.

Dr. Imran Ahmad, MOZA (Expert) 06 August 2011
You will be calculating till july. After acquire of your firm it is the job by that co. Money received by takeover co. is your income through sold out of entire firm. So you want disclose that. Do note it will be different if it is a merge case. "Please again check". In merge case you may have some rights. I am not talking of shares. It is you who has to decide if you firm was making loses or profits as per your previous accounting.
Regards

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