Can salary be paid to a spouse of members in partnership firm?
Spouse will file ITR respectively based on income received
Partnership Firm will also deduct TDS on salary respectively
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SALARY PAYMENT TO SPOUSE
Replies (6)
Quick Summary
Yes
Salary can be paid to a spouse of a member.
However, section 40A(2) of the Income Tax act should be kept in mind where "excessive" or "unreasonable" payment is disallowed as an expenditure.
Yes Salary can be paid to Spouse of a Partner in a Partnership Firm. As rightly said by Mr. Shubham Sir, you have to keep in mind the Provision of Section 40A(2) of the Income Tax Act 1961.
Can anyone explain the same with an example?
Yes
You can paid salary to Partner Spouse if actually works in Partnership Firms
No restrictions
You can paid salary to Partner Spouse if actually works in Partnership Firms
No restrictions
@ Anirban Dey- Suppose partnership firm pays a high amount of salary, say 20,00,000 per year to the spouse. Now suppose rhe Assessing Officer is of opinion that someone with educational qualification and prior work experience of spouse is expected to be paid around 8,00,000. So he/she may disallow excess 12,00,000 under section 40A(2).
Very good reply by Mr. Shubhan
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