TDS ON SELF SALARY

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

Message likes : 1 times

Dhirajlal Rambhia

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

sachin Alwadhi

sachin Alwadhi (Querist)
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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)
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25 August 2022 Dear Rashmi Gandhi!!!!

Thanks for justified reply!!!!!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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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