Payment to wife from proprietorship concern
This query is : Resolved
10 September 2010
A person and his wife are running 2 separate proprietorship companies and are filing returns independantly. The earnings are not stable. The income fluctuates in such a way that some year wife's company earns much higher whereas in another year husband's company earns higher.
If in one year, the profit made by the company run by wife is low, then can husband make payment as proffessional charges to wife from his own company and claim that as expense?
Both have loans to be paid and need regular income. At the same time though the total income (husband+wife) is same over last few years, the taxation is higher because one company earns almost 70-80% of total.
If in one year, the profit made by the company run by wife is low, then can husband make payment as proffessional charges to wife from his own company and claim that as expense?
Both have loans to be paid and need regular income. At the same time though the total income (husband+wife) is same over last few years, the taxation is higher because one company earns almost 70-80% of total.
10 September 2010
you are not asked your query
10 September 2010
Although you have not mentioned your query , however i feel in this case sec 40A will attract and assessing officer may opined expenditure as excessive and also not reasonable.
I could not understand your second query i.e. payment of laon and excessive tax burden.
I could not understand your second query i.e. payment of laon and excessive tax burden.
10 September 2010
agreed, anyone can't understand what you want to know.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Is this income indian or foreign income?
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- RCM INVOICING FROM NOV-2024
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
CAclubindia
