Huf income

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 March 2014 Hi !

I am into IT business. I have created HUF account with my family members. My question is what kind of income i can earn & show under HUF account ?

Thanks in Advance

03 March 2014 You can show ANY income. However, please ensure that you DO NOT show income from IT business. Otherwise clubbing provisions will apply.

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 March 2014 Thanks for reply . Can i show IT consultancy as it is different then development

03 March 2014 It is a risky situation, since they relate to the same field.

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 March 2014 Ok thanks , In this case since i also deals with stocks , can i take consultancy charges from my IT company for portfolio management ?

03 March 2014 What is the nature of your company? Proprietorship, partnership or company?

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 March 2014 Proprietorship Company Offers Web Development services

03 March 2014 Then how can you give consultancy to yourself??

You CANNOT claim consultancy expenses against income from shares.

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 March 2014 You are right. My HUF is offering stock market consultancy
to me and i invest through HUF and pay fees to HUF . Is this possible?

03 March 2014 Yes this is possible. There is no issue in this transaction.


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