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HUF

CA. MOBIN SAYYED (Sr. Team Leader) (114 Points)

27 November 2009

Mr. A is a director of company as well as a Karta of HUF. He receives his remuneration as professional income from the company. Can that income be treated as professional income of HUF and taxed in the hands of HUF?

Please reply soon its a bit urgent.

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10 Replies

CA CS Bhumika Thakkar (CA,CS) (1618 Points)
Replied 27 November 2009

No.mr A recives separate professional income frm d Co..It is in d position of director and cannot be clubbed in HUF's income...

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CA Namita Ganatra (Self) (70 Points)
Replied 27 November 2009

Mr. A is director of company in his own individual capacity and not as karta of HUF. Hence remuneration he received from company cannot be treated as income of HUF.

machender (student) (190 Points)
Replied 27 November 2009

here professional income means what?

wheter it is dorector remuneration or anything else?

CA. MOBIN SAYYED (Sr. Team Leader) (114 Points)
Replied 27 November 2009

Originally posted by :bhumika
"	No.mr A recives separate professional income frm d Co..It is in d position of director and cannot be clubbed in HUF's income...	"

thanks a lot

machender (student) (190 Points)
Replied 27 November 2009

if the professional income earned by Mr.A is in the nature of Director Remuneration there will be two implications

1. Mr.A is Director in the said company in his individual capacity, in this case the such professional income should be taxed in the hands of Mr.A

2. Mr.A is Director in the said company as a representative of his HUF then, such professional income will be taxed in the hands of HUF.

if the professional income earned by Mr.A is in the nature of any other professional income the income so earned will be straight away taxedd in the hands of Mr.A