Income tax on proprietorship firm

Hi Sir / Madam,

I have started Proprietorship firm,  I operate my business from my residence. Can I show the foll expenses as reimbursement to my family member in firm's books of accounts:

  1. Landline Telephone Bill, which is in the name of my Mother in Law used for my business
  2. Mobile Bill, which is in the name of my husband used for my business
  3. Petrol bill of Car of my husband which is sometime used for my business purpose
  4. Medical expenses on myself & my family member

Request your revert on my above query.

Thanks,

Bharti Somani

 

Replies (2)

You can claim expenses for family members if they are shown as working for your proprietor firm.

Medical expenses cannot be claimed for propreitor firm expense.

1) Landline is sometimes used for Personal use - take 50 to60% for Biz puposse

2) Electricity is not fully utilized for Biz purpose - again take appropriate Proportion

3) I just to convert the mobile no from person to Prop firm's name and take full. But this year take  60%

4) Car expenses can be taken full

5) Medical expenses can only be taken if you prove that there is risk of injury while doing work. if no such thing ignore.

6) You can give salary to your family members if they are in working state of health.

 

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