Hi, I am rinning a individual proprietorship firm.
Can I give commission from my individual firm to my own HUF ? Hope this is not treated as Manipulation of income.
Many thanks
Vishal
SAURABH NENE
(Chartered Accountant)
(226 Points)
Replied 20 July 2013
Dear Vishal,
Yes u can give commission to your HUF from your proprietory business. I dont think there is any restriction in Income tax. Only if the commission is found to be excessive than norma,l you may be questioned by the A.O and he may ivoke sec. 40 (A)(2b)
CAclubindia
