In a sole proprietorship business how do we treat salary paid to proprietor?
vijaykanth bhattad (CA) (89 Points)
06 June 2014In a sole proprietorship business how do we treat salary paid to proprietor?
vijay
(Accountant)
(884 Points)
Replied 06 June 2014
Salary to partner is not allowed as expense under Income Tax Act
Hitesh
(Chartered accountant)
(382 Points)
Replied 06 June 2014
vijaykanth bhattad
(CA)
(89 Points)
Replied 09 June 2014
Hi Vijay,
My question was relating to salary paid to proprietor.. and not " Partner"
vijay
(Accountant)
(884 Points)
Replied 09 June 2014
Typing mistake , actually salary paid to proprietor is not allowed under Income Tax
And for accounting purpose also, passing salary entry to prop. does not make any sense
Saji John
(Finance Manager)
(26 Points)
Replied 17 June 2014
I strongly agree with Mr. Vijay, how can a proprietor pay salary to himself/herself and the same is not allowed too in Income Tax. Instead the proprietor can pay salary to any other member/spouse
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