06 February 2013
An individual conducted transport business then his wife is worked as a manager and salary paid to her is allowable or dis allowable as per income tax act?
06 February 2013
Salary paid to wife is clubbed in the hand of husband in case the wife does not possess technical or professional qualification. The word "Technical" or "professional" should be understood in the parlance of the concerned business so that such knowledge finds an application in the concerned business. . Suppose wife is having a computer diploma - and working as a computer operator-remuneration given to her will be allowed. . If the wife is merely a house wife, such remuneration will be disallowed. .