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Commission Income in HUF

1832 views 2 replies

Can we receive commission in HUF? If yes, In which circumstances ITO will add this income in Karta's individual

Thanks in advance

Replies (2)

Normally people do not take commission income as the income of HUF & it is Preferable also.

However it can be taken provided you can juystify the same by saying that the whole family involved in this business(from which commission is received.)

Hi Sunil Sir, 

I have one question.

Is the involvement of entire family necessary, for an income to be treated as a income of HUF? Can't Karta (or any other member) alone act on behalf of HUF?

U can link this case with that of a partnership firm....Involvement of all the partners is not a precondition - one can have sleeping partners....

I think, the agreement under which commission is being paid should clearly specify that this agreement is with the HUF & Mr A will be acting in his capacity of Karta of the HUF.


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