Can huf have professional income ??

Tax planning 1542 views 3 replies

CAN HUF OPEN PROPRIETORY CONCERN AND HAVE PROFESSIONAL INCOME ??? IF YES, THEN PLEASE PROVIDE ANY CASE LAW IN SUPPORT TOF THIS MATTER ?? 

Replies (3)

Yes ,

His proffessional income is taxable in his Individual capacity not in HUF status.......!!!!!!!!!!!!!

 

Mr. A is the karta of the ABC HUF.and HUF is runnning ABC & Co.  

Income from profession is credited to the current account of the HUF and seperate books of accounts is manintaned

then this income is of HUF or karta ??? 

Income taxable in individual capacity only....!!!

 

If it is credited to Current a/c of HUF..then it will be treated as capital introduced and credited to Capital a/c in HUF business.


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