25/01/2019
Apart from the purposes Specified in the scheme, the amount standing to the credit of the "special account" may be allowed to be withdrawn in the following circumstances :
* When the amount can be withdrawn and it is treated as taxable profit :-
1. Closure of business
2. Dissolution of firm
* When the amount can be withdrawn and it is not treated as income :-
1. Death of the taxpayer
2. Partition of Hindu undivided family
3. Liquidation of company
Where an amount is withdrawn because of closure of business or because of dissolution of firm, the amount withdrawn will be treated as taxable profit and taxed accordingly 0n the basis as if the business was continuing or the firm had not been dissolved. In all other cases, viz, death of the taxpayer, partition of the Hindu undivided family and liquidation of the company, the amounts withdrawn on closure of account because of the occurrence of any of these events will not be included in the taxable income even though the amounts have not been utilized for any of the purposes specified in scheme.
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