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SALARY TO HUSBAN IN THE FIRM OF WIFE

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)

06 January 2009

CAN A HUSBAND BE PAID SALARY IN THE FIRM IN WHICH HIS WIFE IS A PROPRIEOTR.

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9 Replies

Jeet Biswas (ACMA (in Service)) (5073 Points)
Replied 06 January 2009

I would like to knw if thr is any provision against the husband workin as an employee in his wife's firm. it seems justified to me as i dont think any such provision exists....but I'd like a concrete answer...

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 06 January 2009

Yes, Salary can be paid to husband from a concern of which his wife is a proprietor. It is subject to clubbing provision of sec.64 (1) (ii). However, the said provision will not be applicable if husband possesses technical or professional knowledge and payment of salary is solely attributable to the application of the said knowledge.

Sameer Medhekar (Student) (4140 Points)
Replied 06 January 2009

For the purpose of salary husbend need to be the employee in firm
If husbend is colified the post he has and
he get normal salary i.e. which he can derive from market at his compitence

Then husbend can earn salary from wifes firm

Sameer Medhekar (Student) (4140 Points)
Replied 06 January 2009

For the purpose of salary husbend need to be the employee in firm
If husbend is colified the post he has and
he get normal salary i.e. which he can derive from market at his compitence

Then husbend can earn salary from wifes firm

Piyush Jain (CA) (283 Points)
Replied 07 January 2009

he can receive salary, but the business has to disclose this fact u/s 40b in 3CD(relating to payment to relatives). but if the ITO belives that the amount received is more than reasonble than the excess amount will not be allowed as an business expenditure.

piyush

srilakshmi (ca final) (369 Points)
Replied 08 January 2009

SALARY CAN BE PAID BUT SUBJECT TO SECTION 40b OF IT ACT ,1961 .THE EXCESS OF UNREASNOBLE AMOUNT WILL BE DISALLOWED

Amit Sureka (Finance Manager-India) (251 Points)
Replied 08 January 2009

Payment can be made within reasonable commercial sense. There is no restriction in terms of employment of spouse.

HARSHIT KABRA (STUDENT) (81 Points)
Replied 08 January 2009

A Husband can be paid salary if he is an employee in the firm..the clubbing provisions of sec.64 shall be attracted..
If the same is received towards the professional or technical skill or knowledge of Husband then the clubbing provisions shall not apply.