Q. I would like to know whether I can earn income through consulting in my HUF(Hindu Undivided Family)?
Answer: As per the Supreme Court's decision in an identical case of Mr. Jugal Kishore Baldeo Sahai Versus CIT, if any remuneration is paid by the Hindu Undivided Family to the karta or any other member for services rendered by him in conducting the family’s business, the remuneration is deductible if it is: (a) paid under a valid and bona fide agreement: (b) in the interest of, and expedient for, the business of the family; and
(c) genuine and not excessive.
Warm Regards, For InvestmentYogi by Rekha N S.
The writer is Principal, Agarwal & Italia, Chartered Accountants. She may be contacted at rekha@agarwalanditalia.com