Consultancy services by huf's karta

I think providing those consultancy services is not a business of H.U.F and if karth provide consultancy services on his own, it is immaterial whether amount is credited to Kartha personal account or  H.U.F'S account. It is just matter of Journal entry. If you want to tax such Income under H.U.F Status then show it as H.U.F's income or pass journal entry of Bank account Dr To Kartha account.

Thanks for your view point Nuli. But it will make a lot of difference if credited to my account and if credited to HUF's account as I am in 30% tax bracket whereas HUF is in 10% tax bracket.

How does taxman will see this transaction ?

Dear Anuj

Any income received by a karta in his individual capacity will be taxable in the hands of the karta as a seperate individual and not in the hands of the HUF. It will be taxable in the hnads of the HUF only if the income is a form of return on investemnt made by the HUF from their joint property. In your case, you provided the professional services in your individial capacity, so just because the income got credited to the account of HUF doesn't make it the income of the HUF.

Regards

Ajay

HI..

ANY FIRM OF HUF CAN EARN / PROVIDE PROFESSIONAL SERVICE FEES OF ACCOUNTING FEES

MEANS CAN I TAKE THE PAYMENT IN THE NAME OF FIRM OF HUF