Salary to proprietor cann't be paid and it is not permissible expenditure under income tax act,1961. The logic is proprietor is owner of the business and he enjoys gain of the business and hence he is not entitle for separate salary.
21 December 2009
Its not Possible because in Proprietorship concern their is only one person who shares all the profit/loss. if you have to pay salary than you have to hire a person or persons that you can debit Salary Exp. in your books of account. No otherway and no acts avaiable for Proprietor's Salary as per Income tax Act.
CAclubindia
