Remunaration to huf partner
This query is : Resolved
30 September 2011
IN A PARTNERSHIP FIRM IN WHICH HUF IS ONE OF THE PARTNER.
CAN THAT FIRM GIVE REMUNARATION TO HUF?
IF YES,
WHETHER IT IS TAKEN AS INCOME OF HUF
OR
INCOME OF KARTA?
CAN THAT FIRM GIVE REMUNARATION TO HUF?
IF YES,
WHETHER IT IS TAKEN AS INCOME OF HUF
OR
INCOME OF KARTA?
30 September 2011
The firm cannot pay remuneration to HUF.However any member of HUF, in his individual capacity can have remuneration from the firm.
The firm cannot pay remuneration to HUF.However any member of HUF, in his individual capacity can have remuneration from the firm.
30 September 2011
Yes, remuneration can be paid to all the partners irrespective of their status.
Although, the Karta is the representatve of the HUF, The remuneration received by the HUF will be the income of the HUF taxable under the head Profits or Gains from Business or Profession.
Although, the Karta is the representatve of the HUF, The remuneration received by the HUF will be the income of the HUF taxable under the head Profits or Gains from Business or Profession.
30 September 2011
CAN ANY ONE OF YOU PROVIDE ME ANY REFERENCE OR CASE LAW, ETC.
30 September 2011
A HUF can become a partner in a firm only through its katra. CIT v. Seth Govindram sugar Mills (1965) 57 ITR 510 (SC).
When karta is a partner in a partnership firm gets salary then Unless the remuneration has direct nexus with investment of funds of the family, it will be Treated as personal income of katra. Laxman Das v. CIT (1982) 138 ITR 628/(1983) 12 Taxman 58 (all).
When a member who is a partner in a firm gets a salary then also It is his individual income. Unless it is the part of the return on investment of HUF. CIT v. Trilok Nath Mahrotra (1998) 98 Taxman 462 (SC).
When karta is a partner in a partnership firm gets salary then Unless the remuneration has direct nexus with investment of funds of the family, it will be Treated as personal income of katra. Laxman Das v. CIT (1982) 138 ITR 628/(1983) 12 Taxman 58 (all).
When a member who is a partner in a firm gets a salary then also It is his individual income. Unless it is the part of the return on investment of HUF. CIT v. Trilok Nath Mahrotra (1998) 98 Taxman 462 (SC).
06 October 2011
When karta is a partner in a partnership firm gets salary then Unless the remuneration has direct nexus with investment of funds of the family, it will be Treated as personal income of katra. Laxman Das v. CIT (1982) 138 ITR 628/(1983) 12 Taxman 58 (all).
i.e. Huf is not an active partner so it can not take remunaration it take only profit and interest from firm
i.e. Huf is not an active partner so it can not take remunaration it take only profit and interest from firm
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Applicable TDS for Purchase of Flat from NRI
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
