TaxTMI 
TaxTMI 
hi, I HAVE PROPRIETORSHIP BUSINESS. I WANT TO KNOW ABOUT IN PRESUMPTIVE TAX CAN SHOW SALARY TO WIFE OR SON OR DAUGHTER.
THANKS
44 ad taxpayer
20 Apr 2025 
2 Replies 
2551 Views Asked by
Presumptive taxation: Paying salary to family members is permissible but not deductible and may be clubbed if not genuine.
Payment of salary from a proprietorship to a wife, son, or daughter is permissible under presumptive taxation but must be genuine and commensurate with work; such salaries are not deductible against the proprietor's presumptive income, become taxable in the recipients' hands, and may be subject to clubbing or recharacterisation if paid solely to shift income. Maintain basic records to substantiate the employment. (AI Summary)
Payment of salary from a proprietorship to a wife, son, or daughter is permissible under presumptive taxation but must be genuine and commensurate with work; such salaries are not deductible against the proprietor's presumptive income, become taxable in the recipients' hands, and may be subject to clubbing or recharacterisation if paid solely to shift income. Maintain basic records to substantiate the employment. (AI Summary)