sharing of HUF's profit

This query is : Resolved

Nimish Parsana (Querist)
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11 April 2009 can any 1 tell me that (capital)profit sharing of HUF to its member including minor members are allowed

and

what are the effects in books of account at the time of profit sharing

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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11 April 2009 HUF is considered as one unit. The members cannot share the profits every year like partners of partnership firm.

However they can withdraw the amounts through drawings.

Their capital can be taken only on division of HUF.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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11 April 2009 i support the expert

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Nimish Parsana

Nimish Parsana (Querist)
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13 April 2009 I HAVE A CASE,

AN AGRI. LAND OWNER OF WHICH HAVING IT BY HEIRSHIP, AND AT THE TIME OF SELLING I TOOK THIS LAND TOWARDS HUF OF THE PERSON ALSO CREATE HUF ACCOUNTS OF HIS 2 SONS AND SHARED THE PROFIT IN ALL 3 HUF'S EQUALLY
STILL THEY ALL HAVE TO PAY VERY HEAVY TAXES, IS THERE ANY WAY TO DECREASE IT BY THE HELP OF HUF'S MEMEBERS

I HEARD IT SOMEWHERE, BUT REALLY CONFUSED AS THE DEAL AMT IS 2 HIGH