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Proprietor salary

Rakesh kushwah (CA (Tax Management)) (132 Points)

17 August 2022

proprietor farm se kitni salary le sakta hai
minimum or maximum limit kya hai
Saving ac to Current account limit and
Current ac to Saving ac transfer limit

thanks in advance

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15 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177840 Points)
Replied 17 August 2022

Proprietor cannot take salary from his own firm.

No limit for transfer between accounts, but need to be ready for query in case of transactions are frequent.

2 Like

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 17 August 2022

Payment to proprietor has to be adjusted in proprietor capital a/c under " Drawings"

4 Like

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 17 August 2022

Proprietor khud ko salary nahi bata sakta . However his personal expenses shown as drawing under Capital Account.

2 Like

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 17 August 2022

Salary to proprietor is not allowed as expense under income tax and GAAPS

3 Like

Rakesh kushwah (CA (Tax Management)) (132 Points)
Replied 17 August 2022

Ok thank you sir @ Dhirajlal @ Eswar reddy @ Ca Rashmi @ Ca Rashmi Gandhi

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 17 August 2022

👍🏻👍🏻

1 Like

Chirag (Professional) (1979 Points)
Replied 18 August 2022

In The Eye Of Law Proprietorship is not a separate legal entity and taxability will be based on Individual's slab ,but for accounting purposes ,any drawings made is reduction of invested capital ..Even if you are debiting in Name of Salary it will not be separately allowed as deduction .

1 Like