No Tags Found!

SH

Shai89308

Executive Hr

AS

Ammu Shanvi

Human Resource

GS

G SHASHI KRISHNA

Senior Manager - Hr

AH

Aizant HR

Human Resources

MA

MARSHAL

Safety Officer

AK

Anish Katoch

Hr Executive

PR

PranjalR

Hr Recruiter

AP

Alka Pal

Hr Executive

Karthikeyan8195

Management Consultant

MK

Mohit Kumar Puri

Head Marketing

AU

Austex

Accounts Manager


p11986
1

I am running a proprietorship firm, which have about 8 employees, can I withdraw some salary on my name, or it is not allowed?
From India, Delhi
umakanthan53
5967

YES; But, I think it can not be shown as an expense for the purpose of tax deduction under the Income Tax Act for the reason the earnings of the firm and its soleproprietor are treated as one.
From India, Salem
saswatabanerjee
2358

The business belongs to and you can do want with the money. So if you want to give your self a salary that is ok and your choice.
But whether you give it to your self as salary or as drawings, it will be the same. From tax point of view it will be a non allowable expenses and considered as a part of profit withdrawn from business

From India, Mumbai
saswatabanerjee
2358

Why do you say it's better not to take a salary.
If you need regular money for personal expenses, it makes good business sense to factor it in as a salary and take that much home. It's then a part of operating cost in the business. Of course, instead you can draw whatever you need instead of salary.
The point we all made was from tax point of view, it makes no difference whether you draw a salary or not.

From India, Mumbai
srinivastanku
6

Yes, as a director you have to draw your salary every month. Like other employees, there should be a bank account (salary account) to director.
Director also has some roles & responsibilities and he has to get paid for it.
Director should enjoy all the benefits given to the employee.

From India, Vijayawada
loginmiraclelogistics
1063

I don't think a Prop. will be considered as a Director drawing salary. Of course the Prop. is entitled to Out of pocket exp./entertainment exp. etc. and drawings for his own or domestic uses. But drawings alone cannot be treated as expenses of the firm as all drawings will be accounted in Prop's Capital a/c but not in the Profit & Loss A/c treating as exp. of the firm.
My suggestions are, instead of 'as salary' you may draw money from the firm as 'drawings' and account various expenses that you incur as expenses like-staff welfare, repair & maintenance, vehicle running & maint. exp., business promotion, travel/local conveyance exp., stationery, upkeep of buildings etc. depending on the nature of payment based on the bills you could attach. This type of treatment might solve your query.

From India, Bangalore
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.




About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.