HUF receiving comission from co-parcener's firm

Shefali Bajpai (Article Assitant & CA Final Student)   (1148 Points)

19 August 2008  

Hello Friends & Seniors,

     Does the Income Tax Act discourages a HUF (in any way) to receive commission from a family Firm??

     Secondly, if the HUF invests its Capital in the family members Frim  @ 12% p.a. shall there sill be any vioalation of provisions of Income Tax Act ??

Thanks & Regards,

Shefali.