Sole proprietorship

In a sole proprietorship business how do we treat salary paid to proprietor? 

Replies (5)

Salary to partner is not allowed as expense under Income Tax Act 

Salary paid is treated as expense in d books of accounts ...... Salary ac ..................dr to cash/ capital ac

Hi Vijay, 

My question was relating to salary paid to proprietor.. and not " Partner"

Typing mistake , actually salary paid to proprietor is not allowed under Income Tax

And for accounting purpose also, passing salary entry to prop. does not make any sense

I strongly agree with Mr. Vijay, how can a proprietor pay salary to himself/herself and the same is not allowed too in Income Tax. Instead the proprietor can pay salary to any other member/spouse

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