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Can an individual have both salary and business income?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

I mean can a proprietor of a firm also have salary income simultaneously?

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9 Answers
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Open uri20170510 32134 4ptgjl?1494421814 answered

Hello Vandana! Yes, a person can receive both salary as well as Business Income. However, the condition beside this is that The person cannot receive the salary from his own business (i.e. proprietorship). As Ms. Dimple stated, there is no Master-Servant relationship in the proprietorship. However, if you still want to show a payment to proprietor from the business, you can do the same by paying commission income or a professional income (applicable only if he is a professional as per the income tax laws).

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Being Proprietor a person cannot claim to pay salary to himself. This is because employer-employee relationship cannot be seen here. Being Proprietor only Business income should be shown that is profit from the business, But in a return of income both can be seen:- -Suppose a person has his own business but if for part time he joins in some other activities he can get salary from that. -Or if a person is owner of a business and is also a partner in some firm then his business income would be profit from own business and profit from partnership also. and also salary from the firm is shown which is exempt. But is required to be shown and then taken as an exemption. To understand or to grasp such things U need to widen ur thinking then u can really understand all such possibilities clearly.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Yes you can have both income from salary and business profession But as a proprietor you cannot get salary from your form. So you can show business income as a proprietor and salary income from other frim

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