TDS ON SELF SALARY

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This query is : Resolved

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A proprietor running their own firm asked if they could pay themselves a salary and claim it as an expense, citing an example of a company director. However, it was clarified that a proprietor and their firm share the same PAN, making salary deductions as an expense not permissible in the same way as for a director in a separate company. The discussion also touches upon TDS provisions and the procedure for filing a first-time TDS return, including the possibility of a nil return.

sachin Alwadhi

sachin Alwadhi (Querist)

11 August 2022 Hi

I am running my own individual firm as a proprietor and taken tan no first time in my personal name in fy 2021 and now i wanna to put salary to myself because of running my firm without any employee and now i wanna to show my salary of myself as an expenses in my firm balance sheet.Kindly guide can i do like this ? what will be the provision of tds for salary I crossed exemption limit of income tax slab rate and what is procedure to file tds return for first time after taking registration in tds and tan ? Do i need to file nil return for fy 2021-22 as first time registration with nil tds liability in fy 2021-22?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

11 August 2022 You can't give yourself salary in your own firm.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

13 August 2022 From where you got the idea, of salary deduction by proprietor from his own proprietorship firm?

sachin Alwadhi

sachin Alwadhi (Querist)

25 August 2022 Sir I have got this idea When i Heard news about Mr Makesh Ambani didnt take Salary during covid time from company for 2 years .So from that i picked that idea.

sachin Alwadhi

sachin Alwadhi (Querist)

25 August 2022 Dear Rashmi Gandhi!!!!

Thanks for justified reply!!!!!

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

25 August 2022 But didn't you make any difference between a director of public ltd. company and a proprietor of own firm?
For Mr. Mukesh & RIL the PANs are different, while you & your firm have same PAN...

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