23 June 2016
Can a HUF earn income by becoming an Insurance Agent? Whether a HUF is capable to earn a commission income as it is not a seperate legal entity? For example can a HUF become an agent of ICICI Lombard General Insurance and receive commission which will be taxed in the hands of HUF only but not in the hands of Karta or other members?
24 June 2016
[I think your query has already been answered on a different forum.]
Only an individual can be appointed as an agent.
GUIDELINES ON APPOINTMENT OF INSURANCE AGENTS, 2015
In view of the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 inter alia amending Section 42 of the insurance Act, 1938, relating to appointment of Insurance Agents, it has been decided to issue the following Guidelines in exercise of powers under section 42 of the Insurance Act, 1938 read with section 14 (2) (a) & (c) of the IRDA Act, 1999.
"Insurance Agent" means an individual appointed by an insurer for the purpose of soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance;
24 June 2016
Satisfied with your answer for becoming an Insurance Agent. But can a HUF earn "ANY TYPE OF COMMISSION INCOME?" as it is not a separate legal entity. Some people say that HUF can not have any Commission Income. Is it true?
CAclubindia
