Queries for Sole Proprietor Business

I have a few queries for Sole Proprietor Business.

 

  1. I am running the business from my home. Can I claim expenses towards rent to be paid to my parents as business expenditure?
  2. Can I claim the following expenses which I incur - Mobile Phone Expenses, Electricity, Computers & maintanence/upgrades of the same, some conveyance / travel. What bills / invoices do I need to support them? Do these bills need to be in the name of my business or they can be in my personal name (since its a proprietorship business maybe  it should not really matter)
  3. Can I also claim interest expenses for a personal loan / credit card that I may use to buy items for business? Do I need separate documentation for that?

 

Appreciate your support.

Replies (1)

1. For claiming rent as your expense,you need to show  the i) rent receipt from the landlord ,ii) the place for which rent is paid should be used for business purposes only.

2.Mobile phone expenses can be shown but  should be relevant one.

3.Electricity --Bill should be in your name.

4.Computers,upgrades etc ---capital expenditure,depreciation is allowed.

5. Interest expense for a personal loan will be accounted in individual  results sheet.

6.Purchase of goods by credit card for business purpose can be shown in business head depending revenue or capital nature.

With Good Wishes for Business,

Sanjoy 

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