transfer of properitorship firm
Amitesh
(Querist) 21 July 2009
This query is : Resolved
sir,
I have a properitorship firm in my name. Due to the nature of business I have Vat, Cst and Tin number taken..
I am also doing a job..salary of 8 lac p.a.
Due to this, i have to pay tax for my salary income and business income..
Inorder to save tax, i would like to transfer my properitorship firm in my wifes name..
do let me know if it is possible ? All sales tax documents and licence are in my name..
is there any other better way of saving tax in my case??
Kindly guide.
A V Vishal
(Expert) 21 July 2009
Amitesh
You can transfer the business per se, but not your licenses and sales tax registration, the VAT registration and other licenses has to be acquired fresh for your wife, she has to acquire a PAN card in her individual capacity.
An option would be form a partnership firm with your wife and make her a working partner, the firm can claim benefit of interest on partners capital and remuneration to the working partner, you need not take any remuneration but only interest on capital and the profit will not be liable to tax in your tax returns since it will be tax suffered. However, since your remuneration is more than 5 lacs, the tax slab would be 30% in your own case and also the taxation for firm is 30%.
G. ARAVINTHAN
(Expert) 22 July 2009
yes i agree with Vishal sir. First you have to surrender all the licences and registration certificates in your name to concerned departments and then have to apply afresh for your wife.
Amitesh
(Querist) 22 July 2009
Thanks Vishal sir and Ganesan sir.. ur advise has been highly useful to me..
It would be great if i could have ur email ids too.
Sankaranarayanan
(Expert) 22 July 2009
asper the law the style of business can allow to do by some one in the same banner . but u cant transfer the propertiership to ur wife or relative.
ask them to start their own .
