TaxTMI 
TaxTMI 
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.
HUF Income
13 Jul 2021 
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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. (AI Summary)
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. (AI Summary)