Payment of Salary to Karta

hello sir, there is no problem for the karta of an huf to claim salary for managin the huf business. the salary so claimed becomes his individual income.

does huf have to deduct tds on the salary paid to the karta??

what if there is the relationship of proprietorship firm and the proprietor??

hi shweta,

if the salary exceeds the maximum amount not chargeable to tax after claiming deduction under chapter VIA.HUF hav to deduct tds on salary paid to karta.in case of proprietorship salary paid to proprietor will be treated as Drawing.

Mr. Deepak

I agree with Mr. Parthsarthy & Ms. Silky Jain. The Salary paid to karta is a allowable as an expenditure. but  salary paid should be reasonable, as per nature & size of business, otherwise to some extent it may disallow. Further, HUF is holding separate status, and salary paid to karta for the running & management of business will be in the capacity of individual, hence TDS can be deducted if it is applicable as mentioned by Ms Silky Jain.

Surana, Chennai

9952967237