03 November 2015
ABC HUF IN WHICH THERE ARE 2 MEMBERS, X KARTA AND Y OTHER MEMBER.(BOTH ARE HUSBAND WIFE)
MY QUERY 1.CAN X(KARTA) ON BEHALF OF HUF ENTERED IN PARTNERSHIP WITH ANY INDIVIDUAL. IF YES WHETHER INCOME SUCH AS INTEREST, SALARY AND PROFIT RECORDED IN THE BOOKS OF HUF?
2.IS THERE ANY RULE THAT IF IN A HUF THERE IS ONLY 1 COPARCENERS THEN INCOME OF HUF WILL BE ASSESSED IN THE BOOKS OF KARTA AND NOT IN HUF.
03 November 2015
An HUF directly or indirectly cannot become a partner of a firm because the firm is an association of individuals.
- See more at: http://taxguru.in/corporate-law/huf-cannot-be-a-partner-in-firm-but-it-is-competent-to-the-manager-or-karta-acting-on-behalf-of-the-huf-to-enter-into-a-valid-partnership.html#sthash.aP21ftVR.dpuf
Please also advice if in a huf there are only two members,(Husband & wife) then whether income from HUF is assesable in the books of HUF or Individual(Karta).
Please also refer 223 itr 45 cit vs Arunkumar Jhunjhunwala and sons case.
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