Hello everybody
Can we claim salary of share holder cum directors/ employees as preliminary & pre operative expenses?
The company was registered in march 2011 but this year only we are going to do business, till now we have not done ROC filing also due to unawareness. Now we are going to do ROC filing for 2010-11 with late fee & I want your opinion that if we can claim some salary as preliminary/operative expenses or not for founder directors & some employee who we have hired for office works.
Please note that we have not filed any income tax return or deducted any tax, as I understand if we claim salary then we should show income tax deduction etc as well. If so can we just show salary below taxation limit & claim it as preliminary expense? Also after incorporation we have been paying salary to 3 junior staff but it's under tax limit & directors salary we have not paid any thing but want to pay together later.
I hope i am clear, please advise.
CAclubindia
