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Huf query

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Can Karta or any member of the HUF Draw Money from The HUF for his/her personal expendiure or investments??

Replies (3)

Sec 10(5) reads as under

In computing the total income of a previous year of any person  any sum received by an indiviual as a member of a Hindu Undivided Family , where such sum has been paid out of the income of the family shall not be included.

In other words, any member can draw money from HUF and that sum shall not be taxable in his hands and the member is free to apply the money for meeting his personal expenditure.

 

Hi Sonam,

Thanks for your reply.

 

But I have one question. The SHARE OF INCOME from an HUF is Exempted in the hands of the members.

I am asking whether DRAWINGS FROM AN HUF is possible or not? Share of Income is not Drawings from an HUF.

P.S. If it is possible to draw money, then is there any limit specified??

 

Regards,

Looking forward to ur reply.

I am also talking about drwing of money and not about share of income............i am not saying that it is necessary to give share of income of huf to every member...huf may give, at its discretion, to any particular member........in other words, If A(HUF) has four members A, B, C and D............HUF can give any amount out of its income to its any of its member say D........and that amount will not be taxable in the hands of D......

In simple words.......

Drawinf from HUF is possible subject to Sec 64.


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