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Different sources of income of HUF

(Guest)

Hello,

I want to know the real life/practical example of different kind of sources of income for an HUF. Suppose, two brothers carrying on partnership in a cloth trading business which is a newly set up business in a partnership....Then the income from it would be considered as partnership or as HUF(as jointly carried on by 2 members of the family) . . What if that cloth trading business is a traditional business set up by their father.

What can be the other sources of income of HUF?

I hope i would get the solution of my question.

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5 Replies

(Guest)

Hello,

waiting for your reply...

M.M.SURANA (Director -Taxation ) (532 Points)
Replied 08 July 2009

Ms. Lucky

The Partnership is govern by the Partnership Act and HUF is govern by the Hindu Law. If you form the partnership it needs instrument in writting i.e. call partnership deed.It includes certain clause e.g. name of firm, share of profit/loss of each partner, capital contributed by the partners, names and addresses of partners etc. in HUF there will be co parcner. and it will call proprietorship concern and HUF will be proprietor of the concern In Incometax there is separate asst. for HUF as well as partnership. If two brother constitute partnership there should be instrument in writting containing certain clause, it can be register under Registrar of Firm. In HUF it is not like that. It is call Joint family business. If it is family business U can give status of HUF. If business is set up by the father and their is no family settlement U can constitute HUF and both will be the member of HUF not he partner.

Surana, Chennai

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