Query regarding proprietorship business accounting
This query is : Resolved
16 October 2018
R/sir
Kindly request to resolve my problem in proprietorship accounting as soon as possible:-
1.) If salary or any remuneration is paid to proprietor is it allowed as business expenses or not
and
2.) If for proprietorship business, proprietor uses their own property and for this if Rent paid by business to proprietor is it allowed as business expenses or not.
(If we consider above both transactions by considering "Entity concept" of accounting)
Kindly request to resolve my problem in proprietorship accounting as soon as possible:-
1.) If salary or any remuneration is paid to proprietor is it allowed as business expenses or not
and
2.) If for proprietorship business, proprietor uses their own property and for this if Rent paid by business to proprietor is it allowed as business expenses or not.
(If we consider above both transactions by considering "Entity concept" of accounting)
17 October 2018
1. No. It's not expenses and it's drawings.
2. As per Income Tax view no more effect in this transaction. So, Better to avoid this one.
2. As per Income Tax view no more effect in this transaction. So, Better to avoid this one.
17 October 2018
R/sir
I have to ask is it apply only on proprietorship business
I have to ask is it apply only on proprietorship business
17 October 2018
As per Your query.. Yes. It's based on proprietorship...
14 October 2021
No. Such expenditures are not allowed in proprietorship firm.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Tds on commission charges
- Applicability of GST on Salary Reimbursement Component
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- FAST-DS Scheme - Foreign Assets
- Regarding Applicability of Tax Audit u/s 44AB
- Dep. as per companies act
- TDS on TRUST
- Salary from Qatar in Dollars in India
- CHECK RELATED
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
16 September 2026
Article Assistant
MANUJ SHARMA AND COMPANY
Noida
CA Inter
View Details
Featured
12 September 2026
Assistant Manager - Finance & Compliance
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
CCI
Pro
CAclubindia
