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.
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.