Huf salary and as a patrner in a firm

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aakashgilda (Querist)
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16 January 2013 Can a HUF be a partner in a partnership firm,if yes then can he get salary as other partners get.If HUF can't then reason for it?

CA Neha Chauhan

CA Neha Chauhan (Expert)
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16 January 2013 Hello,

HUF can be a Partner in a Partnership Firm and can get salary as other partner gets...it will be taxed to HUF as business Income.

Regards,
Neha Chauhan

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aakashgilda

aakashgilda (Querist)
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16 January 2013 As in case of commission HUF cannot show commission as his income,as he is not individually has made the efforts to earn it,it gets clubbed under individual income. As HUF is not an individual working in a firm so how he can get salary? pls explain

CA Neha Chauhan

CA Neha Chauhan (Expert)
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16 January 2013 Dear as the Karta of HUF can act on behalf of HUF in a Partnership Firm, a HUF can get salary for that...

aakashgilda

aakashgilda (Querist)
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16 January 2013 If karta works on behalf of HUF,then Salary income earned by the HUF will be clubbed under karta na as he has earned by working for HUF.

CA Neha Chauhan

CA Neha Chauhan (Expert)
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16 January 2013 No dear, it will be taxed to HUF as HUF is a Partner in Firm and not Karta...and you can say that you can make tax Planning by creating HUF.

aakashgilda

aakashgilda (Querist)
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16 January 2013 k if Karta acts on behalf of HUF then the salary is earned by the Karta & the salary will be clubbed under karta na,as karta works for HUF,HUF does not earn salary because he has not done any work so.....

CA Neha Chauhan

CA Neha Chauhan (Expert)
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16 January 2013 No dear , u dont get me...in simple words...HUF can become a partner in a partnership firm and can get salary as other partner gets and salary earned by HUF is taxed to HUF as business income...thats all...do not get in much

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