08 July 2018
Hello Experts, Suppose Mr. X runs a business of turnover under ₹12 laks with his two sons and pays salary to them ₹1.8 lakhs each with assumption ₹10000 each first day and ₹5000 each next day in every month as he doesn't maintain books of accounts and opts 44AD for showing his income under basic exemption limit and doesn't deduct tds on salary paid to his sons as salary paid to them is less than basic exemption limit. So, is there any contravention to any law?
09 July 2018
Salary certificate can be issued to the sons and they can claim the allowable deductions. However, you must check about Professional Tax laws in the state where you are doing business. You may be liable to deduct Professional tax and pay the sons and they can reduce their salary income with the amount for tax on employment.
CAclubindia
