Profits from Proprietorship

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2 Points Posted on 19 June 2021
How can a sole proprietor take profits from his firm?
Can a sole proprietor of one firm act as a consultant for another firm?
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On 19 June 2021 at 16:14 Report
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As a sole proprietor, you can withdraw profits from your business by simply writing a cheque to yourself. This withdrawal is treated as owner's equity or a disbursement. These profits are considered drawings and can be taken without restriction, though they must be declared when filing your Income Tax Return (ITR).

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Chartered Accountant
24588 Points Posted on 19 June 2021
Profit is for the firm. Proprietor can take profit as When you do pay yourself, you just write out a check to yourself for the amount of money you want to withdraw from the business and characterize it as owner's equity or a disbursement. Then deposit the check in your personal checking or savings account. Remember this is "profit" being withdrawn
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On 19 June 2021 at 16:57
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CMA
13117 Points Posted on 19 June 2021

Profits of the concern can be withdrawn by the proprietor as drawings.

Yes, no such restriction. Such income shall also be included while filing ITR.

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On 19 June 2021 at 16:57

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