Hello Friends & Seniors,
Does the Income Tax Act discourages a HUF (in any way) to receive commission from a family Firm??
Secondly, if the HUF invests its Capital in the family members Frim @ 12% p.a. shall there sill be any vioalation of provisions of Income Tax Act ??
Thanks & Regards,
Shefali.
You have not clarified what you mean by family firm. HUF firm?
Family firm means firm owned by a co-parcener.
They Don't Discourage it
but if the payment is excessive as compared to mkt they tend to disallow it.
HKC | Chartered Accountants & Business Advisors
Ludhiana
CA
View Details
CCI
Pro
CAclubindia
