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Salary of Proprietor

This query is : Resolved 
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(Querist)
21 December 2009 Dear sir,

I would like to know whether salary can be paid to the proprietor of the business

I would like to know the reply
by today

thanking you

dhilip
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MAHENDRA KUMAR BAGRECHA

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MAHENDRA KUMAR BAGRECHA (Expert)
21 December 2009 Dear Dilip,

Salary to proprietor cann't be paid and it is not permissible expenditure under income tax act,1961. The logic is proprietor is owner of the business and he enjoys gain of the business and hence he is not entitle for separate salary.
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Murtaza I Bhagat

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Murtaza I Bhagat (Expert)
21 December 2009 Its not Possible because in Proprietorship concern their is only one person who shares all the profit/loss. if you have to pay salary than you have to hire a person or persons that you can debit Salary Exp. in your books of account.
No otherway and no acts avaiable for Proprietor's Salary as per Income tax Act.
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CA Suresh Choudhary

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CA Suresh Choudhary (Expert)
21 December 2009 Agree with expert
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CA CHINTAN AJMERA

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CA CHINTAN AJMERA (Expert)
21 December 2009 Salary to proprietor cann't be paid
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CA Devanshi Gandhi (Ajani)

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CA Devanshi Gandhi (Ajani) (Expert)
21 December 2009 agree
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CA Ravi Sisodia

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CA Ravi Sisodia (Expert)
21 December 2009 agree
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