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Expenses of huf

This query is : Resolved 

15 June 2014 sir , electricity bill of house which is my own name payment can paid from huf fund. please give examlpe of expenses which can paid by huf to members as travell bills yaga center bills also

15 June 2014 business purpose test should be applied for determining whether such expenses are allowable or not.

16 June 2014 please explain in details


16 June 2014 If you want to claim the expenditure, it should be for business. No personal expenses is allowed as deduction.

16 June 2014 not for claim expenditure only to save capital of members

16 June 2014 capital will be build by showing profit not claiming expenses. If you want to build capital, you have to show profit not loss.

17 June 2014 income earned by huf can be used for the house hold expenses of the family . please explain the house hold expenses

17 June 2014 you can spent your money as per your wish. If you spent the money of huf for household expenses, it will be treated as drawing. Household expense are food bill, cloth, water bill, electricity etc


18 June 2014 thaks a lot for proper guide , sir



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