I am a salaried person & karta of HUF. I want to know whether profit of HUF will be added in my yearly income.
October 24, 2006 by taxworry · Leave a Comment
Someone Asked on this blog-24/10/06
See , the HUF is a separate entity i.e person for I.T Act. Hence, whatever is the profit of HUF, a separate return has to be filed in the status of HUF.Therefore the profit of the HUF is taxable separately .You will sign the return as you are the Karta of HUF. Any income which has already been taxed can not be taxed in your hand.Hence its not taxable in your hand.
Treat the profit of HUF as profit of any of your relative may be your wife, son or any body. Those persons are taxed separately as HUF will. And when they give you money , it may be GIFT or loan or Advance -depending upon facts. Remeber there is amendment in I T Act which made gift above Rs 25000 from persons other than relatives is TAXABLE as “Income from other sources ” under Section 56(2)(v) of the I T Act.I would advice you to go through Gift section of my blog.
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