Taxation of H.U.Fs. An HUF is treated as a ‘person’ and is taxable as a distinct tax- ae 8 [Sec. 2(31)] : e total income of an HUF is computed in the same manner, as in case of individuals, under different heads of income.! The incomes ae then aggregated and after allowing set off of losses gross total income is arrived at, from which permissible deductions u/ss 80C to 80U? are reduced to arrive at the total income. evel Interest and Share Income from a Firm _ Where a Karta of the HUF is a ee ina firm, in his tative capacity, the income received from firm by way ofGntereston @pital, shall be taxable as income of HUF. Share income from firm shall, however, be exempt u/s 10(2A).Mlustration 37 : The Karta of an HUF fumishes the following particulars on the basis of which you are required's compute the gross total income of the family. (a) Profits from business % 90,000; (b) Salary received by a member from elsewhere & 15,000; (c) Director's fees received by Karta % 20.000; (d) Rental value of the property = 48,000; (e) Local taxes on property & 8,000; (f) Dividend from UTI (gross) ¥ 18,000; (g) Winning from lottery on tickets purchased by a family member from family funds & 10,000 (gross (h) LIP % 5,000 on life of Karta; 50% paid by HUF. Solution : srarus 48 NAME : KARTA ee PREVIOUS YEAR : 2018-19 ASSESSMENT YEAR = :Illustration 38 : (TET ale) 9° eee ; ‘The following details of income for financial year 2018-19 have been supplied by M who is Karta of Hindu Undivided Family : is (i) Profit from family business 1,44,000 (ii) Salary received by R, a member for looking after family business 20,000 (ii) Remuneration received by Karta for working as accountant in a company 30,000 (v) Municipal value of ancestral house let out 24,000 (v) Local taxes of house 4,200 (vi) Dividend (Gross) 12.800 (ui) Profit from a firrn in which karta is a pariner on behalf of HUF 28,000 (vii) Life Insurance Premium paid on life of members 26,000 Compute the gross total income of the family for the assessment year 2019-20.lilustration 39 > if _ The Karta of an HUF furnished the following particulars of the income of the HUF for the assessment year 2019-20. = nterest on debenture (gross) 45,000 interest on Govt. Securities (gross) 10,000 Dividend from UT! 6,000 Rent of house property 20,000 Profit from an Industrial undertaking 90,000 9 ‘The family paid % 12.000 by way of insurance premium of its members. Compute the taxable income » of the HUF.