Re:--closure of bank Account
tarun
(Querist) 04 April 2011
This query is : Resolved
My one of the individual client wants to close the bank account which is in the name of Business name And whose tax Audit had done during last Asstt. year. Then My Question is that:-
1. is it amount to closure of Business?
2. Is Information of the same is to be given to be given to income tax department ? If yes, then with in how much days from closure of Bank Account.
In respect to above I want to clear that the said person is going to open a Private Limited company to do the same business.
Plz reply soon . I shall be grateful to you.
malipeddi jaggarao
(Expert) 05 April 2011
Legally it will not amount to closure of business. But he will conduct his business without having any bank account for the business? There is no need to give the information relating to closure of Bank Account to IT Department. Private Limited Company is a separate legal entity and in way connected to his previous business.
Rajinder KumarAhuja9990725300
(Expert) 07 April 2011
Tarunji,
It is clear that account closure is different from closure of business. closure of business need be advised to tax authorities.But account closure need not be advised to anyone. the new entity can be created anytime .
tarun
(Querist) 09 April 2011
my heartiest Thank you all of you to participate.
But in above case, On the one hand A business running under a proprietorship concern is now going to be carried on under Private Limited concern. Then, here we r going to close business under Proprietorship and start business under Private Limited where many shareholder exists.
soumitra basu
(Expert) 09 April 2011
The day when the private limited company take up the assets and liabilities of the business that shall amount to closure of proprietorship business.
tarun
(Querist) 10 April 2011
Then, Mr. Basu Do you mean that on the date of incorporation of Private Limited Company, business is shutting down . Then, in this case am i liable to inform IT deptt. & Last date of giving information to IT deptt. Should be Counted from the date of incorporation of Private Limited Company?
