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

Hindu Undivided Family advised not to report commission income as it may be clubbed with individual tax returns. A query was raised about whether a Hindu Undivided Family (HUF) can earn commission income and reflect it in its income tax return, given that the commission is received for work done as a middleman. One respondent advised against this, noting a high likelihood of the income being clubbed with personal income tax returns, as the work is performed by an individual rather than the HUF. Another respondent agreed with this viewpoint, supporting the advice not to report such income under HUF.