Proprietor salary

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 17 August 2022

Proprietor cannot take salary from his own firm.

No limit for transfer between accounts, but need to be ready for query in case of transactions are frequent.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 17 August 2022

Payment to proprietor has to be adjusted in proprietor capital a/c under " Drawings"

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 17 August 2022

Proprietor khud ko salary nahi bata sakta . However his personal expenses shown as drawing under Capital Account.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 17 August 2022

Salary to proprietor is not allowed as expense under income tax and GAAPS

Rakesh kushwah

CA (Tax Management)

132 Points Posted on 17 August 2022

Ok thank you sir @ Dhirajlal @ Eswar reddy @ Ca Rashmi @ Ca Rashmi Gandhi

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 17 August 2022

👍🏻👍🏻

Chirag

Professional

1979 Points Posted on 18 August 2022

In The Eye Of Law Proprietorship is not a separate legal entity and taxability will be based on Individual's slab ,but for accounting purposes ,any drawings made is reduction of invested capital ..Even if you are debiting in Name of Salary it will not be separately allowed as deduction .