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SALARY TO HUSBAN IN THE FIRM OF WIFE

Tax queries 1647 views 9 replies

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

Replies (9)

 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...

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.

 

  • 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

  • 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

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

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

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

  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.

What Harsh*t Kabra has stated is correct and I agree with him.


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