Salary to close relatives

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I have taxable income from profession and paying salary to close relative engaged as driver and secretary. Is there any ban to deduct their salay from my total income as expenditure. 

Replies (3)

No, there is no ban.

If you have actually taken their services and paid them salary, then definitely you can claim these expenses, irrespective whether they are related to you or not.

 

Regards,

CA. Devanand Jethanandani

you can pay any amout in relation to the service rendered by him & if Assessing Officer is of opinion that such expenditure is excessive or unreasonable or the benefit derived by or accruing to him therefrom is unresonable then the payment shall not be allowed as a deduction and payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure

Sir,

There is a employer and employee relationship so payment to close relative or any body else doesn't matter. 

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