How can a sole proprietor take profits from his firm?
Can a sole proprietor of one firm act as a consultant for another firm?
2 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 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 Remember this is "profit" being withdrawn
CMA Poornima Madhava
(CMA)
(13117 Points)
Replied 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Profits of the concern can be withdrawn by the proprietor as drawings.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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