Salary in family


This query is : Resolved 

Quick Summary
Yes, you can pay your wife a salary in a proprietor firm if she genuinely contributes to the business and performs specific roles, such as managing accounts or operations. The salary must be reasonable, actually paid, and declared in her Income Tax Return (ITR). It's crucial to maintain proper documentation, like attendance records and payment proofs, to justify the expense to tax authorities.

01 April 2024 Proprietor firm mein wife ko salary dikha sakte hain ?

01 April 2024 Yes, you can pay salary to wife if she is adding value to your business and paid salary must be added in her income in ITR.

02 April 2024 Madam, if she works then we cannot pay her salary.
If you take care of things like looking after accounts,

02 April 2024 You can pay salary to her for looking after account even she works in other place also. But paid salary must be added to her Income in ITR.

03 April 2024 Thanks you 😊 for good advice

03 April 2024 Dear roomi Gupta ji
Can you tell us the legal papers required to open a new hostel?

03 April 2024 Sorry i have no experience in this regard.

22 July 2025 Regarding your question about paying salary to your wife in a proprietor firm:

Yes, you can pay salary to your wife if she genuinely works and contributes to the business, like managing accounts, operations, or any other active role.

The salary paid must be reasonable, justifiable, and actually paid, and it should be included as income in her Income Tax Return (ITR).

Ensure you maintain proper documentation such as attendance records, work assignments, and bank payment proofs to substantiate the salary payments in case of any scrutiny.

If she does not contribute to the business, or the salary is not genuine, the tax authorities may disallow the expense.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details