Salary pay to family member allowed

This query is : Open 

Quick Summary
It is permissible for a sole proprietor to pay their son a salary, and this can be claimed as a business expense. The Income Tax Act allows for payments to relatives, provided the amount is reasonable and not excessive. If the payment is deemed unreasonable, it may be disallowed under Section 40A(2) of the IT Act.

22 July 2021 Sir,
One of the individual status business person salary pay to employee (son)rs:10,000/- amount p.m.
Question:
Assess salary pay to son amount business expenses claim allowed in it act.

22 July 2021 Yes, the son can be an employee of the organization of the father and can receive salary and hence it can be treated as a business expense for the employer.

23 July 2021 Same is allowed as per IT Act. Payment to relative is disallowed u/s 40A(2) only if payment is excess or unreasonable.


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 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details