Huf karta as a director

Constitutional 8590 views 3 replies

Venkat Iyer

Accountant

39 Points Posted on 15 March 2013

1. Whether a HUF Karta can become a Director of a Private Limited Company.

2. Is DIN No. in the capacity of a HUF Karta Director required.

3. Remuneration to a HUF Karta Director will be computed in his Individual Income Or HUF income

4. Interest on Deposit paid to a HUF Karta Director will be computed in his Individual Income Or HUF income

5. What are the other legal formalities to be fulfilled if a HUF Karta is a Promotor of a Private Limited Company.

Please reply..... ..

Replies (3)

Hanish Chaudhary

Chartered Accountant

333 Points Posted on 15 March 2013

As per Section 253 of Companies Act, 1956, only an individual shall be appointed as a director of the private limited company. No body corporate, association or firm can be appointed as a director.

An individual can be a Karta of one HUF on one hand and a director of the company on the other hand. The company compliances have nothing to do with HUF. The director salary paid to the individual shall be taxable in his own hand as Income from Salary. Simillary interest income shall be taxable in the hands of individual only under the head "Income from other sources". It is irrelevant that the individual is also a Karta in HUF.

Nagesh

Trainer

178 Points Posted on 16 March 2013

Hanish you are right

Kaveri Agarwal

15 Points Posted on 06 May 2017

please tell me that how can i apply din for huf......... for example, if Mr.A is going to be the director of company and Mr.A(huf) is going to be the subscriber of the company, while applying din the name will be used as Mr.A or Mr.A (huf)