Legal Question in Business Law in India

If Mr.X is a partner in XY Pvt. Ltd. and also having sole proprieorship then payment of partnership firm by customer,who also trades with sole proprietor, given to Mr.X in his name instead of partnership's name will be treated as sole proprietor income or personal income or partnership income?


Asked on 9/25/16, 10:18 am

1 Answer from Attorneys
Kanti Mohan Rustagi

First, there is no difference between sole proprietorship income and personal income as proprietorship is merely a brand name for personal business. However, if the income of XY Pvt. Ltd., where X is a partner, has been wrongly received by X in his own name, then, X may/should release such income in the name of XY Pvt. Ltd. and upon such credit, the income will be of XY Pvt. Ltd., and in the absence of X doing so and continuing to avail the wrong credit, the income will be of X. For more clarification, please contact us at: [email protected] or 011-40539766/41580222.

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Answered on 10/25/16, 7:03 am


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