Huf business - can a minor generate income

Silki Garg (.) (30 Points)

04 August 2014  

Hi seniors,

Need advice of seniors and professionals on this great forum.

I am a Government Employee with an HUF consisting me as Karta, my wife and two minor daughters. My wife is doing some online freelancing work, which generates some income. Some part of this income gets collected in her name and rest gets collected in the name of HUF.

Now my query is...

Is it necessary to show the entire income in my wife's name?

Is it possible to show that the my wife is doing the business in two capacities. One as an individual and one as the member of HUF owned business. Can I show that my minor daughters are also engaged in the HUF owned business and the income generated out of the combined efforts of the three gets collected in HUF account. The income generated out of the individual efforts of my wife gets collected in my wife's account.

Is ther any inherent flaw in this arguement?

Kindly guide and advice.