I Pay tax of My Proprietor ship firm in my Personal account
what should i consider this amount as loan or investment for my person Account and my firm Account
kindly suggest
Replies (7)
Quick Summary
This discussion addresses a common query for sole proprietors: how to account for business taxes paid from a personal bank account. The core question is whether these payments should be recorded as a loan to the business or an investment. The consensus leans towards treating it as a loan, especially when TDS (Tax Deducted at Source) on expenses like rent has been paid from personal funds.
In my view, the amount of TDS paid out of personal account can be credited to Capital Account since this is a Proprietary Firm and he is the sole businessman.
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