Huf business

Tax queries 707 views 2 replies

Hi,

I work in a MNC and get paid as Salary income. I have now formed a HUF and doing business as Karta of the HUF receiving income in HUF (from totally different company than where I am employed). I am receiving USD in form of bank wire in HUF and the company paying is based in US.

Question 1 : My consulting business is bringing some costs, question is can I claim those expenses (For eg, I may need to hire a guy and pay him salary, may need to spend on IT equipments etc) under HUF ?

Question 2 : What should I do to avoid any income "clubbing" problems coming in future between my individual and HUF

Replies (2)

Please anyone? This is urgent.

yes, u can claim the ligitimate business expenditures like salary of the person , depreciation on office equipments etc. just liek any other business. HUF is a seperate legal entity and is taxed seperately. u need to file return for HUF wherein its business income and u may file ur own return as an individual with salary income.


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