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HUF - Income from Commission

Page no : 2

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (175337 Points)
Replied 06 September 2024

  1. Subsequent sell of shares will be assessed in the hands of HUF only. No cascading effect.
  2.  Investment is not an special skill of any individual. HUF is allowed for shares investment, as such the gain will be assessed in HUF PAN and not in Karta's hands. 
1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (175337 Points)
Replied 06 September 2024

HUF can do businesses (& not specific professions). Shares investment is either investment or trading (i.e. business) which HUF can handle. As such any income earned from such events is HUF income, and not of Karta.

1 Like

Chintan R. Shah (Executive Auditor) (85 Points)
Replied 10 September 2024

What all contractual incomes can be taken under HUF ? and the said income not to be clubbed in Karta A/c ?

Please specify the list of contractual income. 



Chintan R. Shah (Executive Auditor) (85 Points)
Replied 12 September 2024

can HUF enter into Event Service Contracts ?

It will be pure income of HUF and not club to individual ?



Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (175337 Points)
Replied 12 September 2024

Yes.                          


Chintan R. Shah (Executive Auditor) (85 Points)
Replied 12 September 2024

thanks .. While filing ITR we need to mention "business income from Contracts" ? or else 


Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (175337 Points)
Replied 12 September 2024

The name, nature and some details of the business with its code.


steve warner (4 Points)
Replied 13 September 2024

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steve warner (4 Points)
Replied 13 September 2024

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Seetharaman (doctor) (66 Points)
Replied 15 September 2024

Dear Mr Dhirajlal Rambhia Can you throw some light in continuation of the HUF discussion (Gift of equities from Co Parcener to HUF and clubbing scenario)  , please.

lets consider the following scenario.

Initially, as discussed, The Co Parcener gifted some shares(Equities) to the HUF as a Gift, wherein,  as per the previous discussion, there was no Gift Tax but there was clubbing rule associated. 

Now, after holding those Gifted shares for a period of time, If the HUF Gifts the same shares (Equities) to a. Kartas mother, or b. the Co Parcenors mother , without selling the shares, will there be any Gift Tax to anyone and More so importantly, will there be any clubbing of tax to anyone, please


Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (175337 Points)
Replied 15 September 2024

It is controversial  issue. AO will tax it in the hands of HUF, with option for appeal against the order.

Refer:   https://www.caclubindia.com/articles/gifts-to-and-from-huf-20454.asp

As on date any sum received by members from their HUF is taxable, if 

i) It is above threshold limit as provided in Section 56(2)(vii); and

ii) It is not in conformity with conditions prescribed under Section 10(2).

In other words, if conditions stipulated in 10(2) are complied then the income itself will not be included in ‘total income’ and thus it will not reach to the stage of charging/exemptions under Section 56(2). Thus, in context of above statement, for making the income, being received by individual from his HUF, taxable in hands of individual, there should be a non-compliance of conditions of 10(2) and amount should exceed R50,000/- in aggregate.


Seetharaman (doctor) (66 Points)
Replied 15 September 2024

 

 


Seetharaman (doctor) (66 Points)
Replied 15 September 2024

Dear Sir

Many Thanks for the  explanation. Thanks for the link that you have provided. Just got a querry " As on date any sum received by members from their HUF is taxable" - Was it a Mistypo?  Is it Members or Non Members, Please?  WE are talking about Gifting the shares (Equities) held by HUF to either Members or Non Members.

A. Do you mean to say, Gifting of assets (Shares) by the HUF to the Members will be taxed?

B. What about , Gifting to Asset (Shares) by the HUF to Non Member of HUF, but Blood relatives, will be taxed?

The article was confusing to my interpretation. I would appreciate your kind explanation  please, If you dont mind  Many Thanks in Advance

 




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