Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Remuneration to huf karta and members

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2013 can remuneration to HUF katra and members be paid from the business income of HUF (say if HUF is the prop. of a firm)

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

08 August 2013 Yes remuneration can be paid to the members. However, Section 40A(2) will be attracted and AO can disallow excess remuneration.

Prakash Kochar

Prakash Kochar (Expert)
Follow

09 August 2013 REASONABLE REMUNERATION CAN BE PAID TO MEMBERS OF HUF. ASSESSING AUTHORITY MAY EXAMINE THE EXTENT OF WORK DONE FOR BUSINESS OF HUF. IF ITO OBSERVES THAT REMUNERATION PAID IS EXCESSIVE COMPARING SERVICES RENDERED HE MAY REDUCE THE AMOUNT OF REMUNERATION ALLOWABLE.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now