Salary of sole proprietorship owner
Akash Jain (9 Points)
27 January 2022
An owner of sole proprietorship can not take salary from the business; under which section of Income tax act..
2 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14868 Points)
Replied 27 January 2022
As per section 37 of the Income tax act 1961, expenditure personal in nature not allowed as deduction .One can not pay salary to himself , however he can withdraw from business as drawings , same is of personal nature . please confirm with others also.
Nidhi
(Chief Accountant)
(3150 Points)
Replied 28 January 2022
One can't pay salary to himself. There must be a employer employee relationship for Salary, which doesn't exist in this case, So, u can't pay salary to yourself
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