salary by HUF to Karta

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 July 2011 A HUF Running a hospital whose karta and his wife are Doctor and they are getting Professional fees for their services from HUF.


Whether HUF can pay salary / professional fees to Karta and member?


Whether clubbing provisions applicable here ?

02 July 2011 Can you make profit out of yourself. Let me give one example I purchased one pen for Rs. 10/- can I sell the same to me for Rs. 11/-? Since the doctor in his individual capacity is drawing salary he cannot take the saem in the name of the HUF as the HUF is not a qualified doctor.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 July 2011 sir,

Karta and members are drawing professional fees in their individual capacity.

they are getting professional fees for their professional sills and services in hospital.



02 July 2011 HUF is not a qualified docotr and hence no salary can be paid

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 July 2011 Sir,

I think you are not understanding my query

Hospital is running under HUF.

Karta is a qualified doctor.

Karta is getting salary from HUF in his individual capacity.

02 July 2011 So the profit is taken by the HUF. No remuneration can be given to HUF. I have understood your problem and question properly.

02 July 2011 I think queriest question is whether Karta & his wife can receive salary in their personal capacity for their services as doctor from a hospital run by HUF through Karta.

In my opinion, Karta in his personal capacity, and not in the capacity of Karta of HUF, is eligible for remuneration for his services as doctor in the hospital run by HUF.

Under Income Tax Act, there is nothing to attract clubbing provisions in this case.



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