it person maintained a private hospital 30 employees working in hospital yearly gross receipts rs:2 crores. question: assessess salaries paid to staff 30 employees allowed and any limit applicable.
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Quick Summary
This discussion explores whether there are limits on salaries paid to staff in a private hospital. The consensus is that salaries are an allowable business expense under Income Tax and Companies Act regulations, with no specific restrictions mentioned for employees. The query touches upon potential motives, such as avoiding PF compliance, but the primary focus remains on the deductibility of staff salaries as a business expense.