Query
sakshi garg
(Querist) 10 June 2021
This query is : Resolved
i have a mining firm in name of my sister. She is doctor by proffesion and serving in government hospital under compulsory bond of 1 year only on Stipend basis. Is there any provision in Income tax under which i have to withdraw her name from firm?
T. Kalaiselvan, Advocate
(Expert) 10 June 2021
If she is the owner of the firm then she may have to transfer the property to your name either by a sale deed or by a registered settlement deed so that she becomes no more a owner of that property subsequently.
Without a registered transfer deed executed by her, her name cannot be withdrawn from the firm for any purpose.
Sankaranarayanan
(Expert) 10 June 2021
If a person working in Goverment as employee then they are not suppose to do full time or part time business. Therefore better close the business and start your own is better.
Sankaranarayanan
(Expert) 10 June 2021
Firm is properiterl ship or partnership firm beter to consult local lawyer or chartered account and seek advice and act
kavksatyanarayana
(Expert) 10 June 2021
Whether the Firm business is opened with you and your sister as partners or not? You stated that you have a firm in your sister' name means? Is the Firm proprietary by your sister? And your sister is Government doctor whether the post is permanent or not, she cannot do business without permission of the Government concerned. As she has a proprietary firm (you started in her name) she shall transfer it to your name by executing a deed and for this you shall consult a local senior CA.
Sudhir Kumar, Advocate
(Expert) 11 June 2021
Given facts indicate that she is not a Govt employee. She can carry on with business.
Advocate Bhartesh goyal
(Expert) 11 June 2021
Your sister can't do simultaneously both Govt job and business ( running mining firm ) . She has to left either her Govt job or business.
SHIRISH PAWAR, 7738990900
(Expert) 11 June 2021
Hello,
You have to transfer the business from your sister's name to your name. Your sister is not allowed to run any business while she is working with a government hospital. Further doctors cannot run any other business while practicing.
P. Venu
(Expert) 17 June 2021
The facts posted do not suggest to be a Government employee. Anyhow, there is no provision of income tax which requires her withdrawal from the firm even if she is a Government employee. However, in such an eventuality, provisions of the Conduct Rules, as applicable would be relevant.
