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Salary pay to family member allowed


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.

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.

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



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