Whether Remuneration To HUF Partner Is Allowable?
No remuneration is allowable to HUF. Remuneration can be paid to Karta of the HUF, if he is a working partner in his individual capacity. The Supreme Court in CIT vs. Trilok Nath Mehrotra & Others [231 ITR 278] has held as under: “If a member of a Hindu Undivided Family joins a partnership
Whether Remuneration To Partners On “Book Profit” To Be Worked Out At The Year End?
The payment of remuneration within the prescribed limits to working partners is allowable. Such remuneration is allowable on the basis of ‘book profit’ as defined in Explanation 3 to section 40(b) of the Act.