10 September 2008
HUF IS A PARTNER AND RECEIVED SALARY. KARTA SHOULD SHOW THE SALARY INCOME AS HIS TOTAL INCOME. NOW THE PROBLEM IS IN WHICH HEAD SHOULD IT TAKEN (SALARY OR BUSINESS INCOME)
11 September 2008
The salary to the Karta is not a Business Income in his hands. He receives salary in his individual capacity and as such is taxable under the head of SALARY INCOME.
11 September 2008
HUF does not have legal status to enter in to Partnership. As such the Karta in his individual capacity enters into Partnership and the funds belonging to HUF is being invested as Capital of HUF in the Partnership Firm. The Karta receives Salary in his individual Capacity and subject to tax under Salary Head in Karta's Individual Return. Where as the Interest on capital paid by the Partnership Firm is taxed in the hands of HUF as Business Income.
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