HUF Income

[Amit Kumar]

Can a HUF earn commission income and show it in its return of Income. Commission is received for the work done as a middle man.

[ARVIND JAIN]

Not At all advisable as most chances of clubbing in personal ITR and you yourself said work is done by middle man ...means Individual and not HUF. Don't do this.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Jain.

AI Summary

HUF income reporting: clubbing risk if commission stems from an individual's middleman activity, avoid declaring under HUF. Whether a Hindu Undivided Family (HUF) may report commission receipts in its return when the commission is earned by an individual acting as a middleman. Advisers recommend against attributing such commission to the HUF because the activity is carried out by the individual, creating a risk of clubbing or reclassification of the income into the individual's return; thus the practical advice is to avoid declaring such commission under the HUF.