Hello Frnds,
Please solve the case mentioned below :-
Mr. A [Karta of HUF]
Mr. B [ Member of HUF]
"B" invest Rs. 10 lacs into HUF in the year 2012-13. HUF creats FD for the same amount for 1 year and got interest income of Rs. 1 lacs. Now Rs. 1 lacs will be clubbed in the income of Mr. B and tax on interest will be paid by Mr. B.
Now Total Rs 11lacs again invested in FD by HUF in the year 2013-14. Now suppose interest income is Rs. 110000/-.
Now my question is interest income of Rs. 110000/- is income of HUF and tax on this full interest income will be paid by HUF or it is partly HUF (up to Rs. 10000) and the rest interest income will be the income of Mr. B ( Rs. 100000) in the year 2013-14.
Kindly suggest asap.
CAclubindia
