HUF and Commission

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  1. shahsunny3699

    shahsunny3699 New Member

    Can a HUF earn income by becoming an Insurance Agent? Whether a HUF is capable to earn a commission income as it is not a seperate legal entity? For example can a HUF become an agent of ICICI Lombard General Insurance and receive commission which will be taxed in the hands of HUF only but not in the hands of Karta or other members?
     
  2. ZED

    ZED Well-Known Member

    GUIDELINES ON APPOINTMENT OF INSURANCE AGENTS, 2015

    In view of the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 inter alia amending Section 42 of the insurance Act, 1938, relating to appointment of Insurance Agents, it has been decided to issue the following Guidelines in exercise of powers under section 42 of the Insurance Act, 1938 read with section 14 (2) (a) & (c) of the IRDA Act, 1999.



    "Insurance Agent" means an individual appointed by an insurer for the purpose of soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance;
     
    shahsunny3699 likes this.
  3. shahsunny3699

    shahsunny3699 New Member

    Satisfied with your answer for becoming an Insurance Agent. But can a HUF earn "ANY TYPE OF COMMISSION INCOME?" as it is not a separate legal entity. Some people say that HUF can not have any Commission Income. Is it true?
     
    ZED likes this.
  4. ZED

    ZED Well-Known Member

    I think it can. HUF can be an agent in respect of trading in goods. I haven't read that there is restriction to that.

    HUF is a separate legal entity, has its own PAN.
     
  5. I HAVE HUF AND GETTING COMMISSION FROM OVERSEAS COMPANY IN US $ .CAN IT BE TREATED AS INCOME OF HUF , AS SEPARATE IDENTITY ? AND CAN I FILE RETURN AS INCOME OF HUF ?
     
  6. ZED

    ZED Well-Known Member

    If the commission is also received by the HUF and the agreement in respect of commission is with HUF then you can.


    Received by HUF -: In HUF's bank account.
     
  7. nkradha

    nkradha New Member

    Hello Sir,

    I wanted to know if HUF can show Insurance Commission as its still being a family business selling Insurance as a services to various contacts within Family & Friends.

    Example: Person X, Y & Z are part of HUF. X being Karta taken Insurance License Examiation. All members of HUF are procuring Insurance proposals & leads to Commission Income Generation. In this case is it fair to use HUF PAN for Taxation?.

    Thanks,

    Nirmal

    ([email protected])
     
  8. nkradha

    nkradha New Member

    Well client having both HUF PAN & a Valid HUF Bank Account as well
     
  9. ZED

    ZED Well-Known Member

    No, understand the difference.
    In none of the agreement, the HUF's name will be there.
    In any policy related document, the name would be of the individual and not of HUF.

    This type of agreement can not be with HUF because as per the provisions of the Indian Contact Act, such a contract requires execution by the individual himself.
     
  10. prolinc

    prolinc New Member

    I think it can. HUF can be an agent in respect of trading in goods. I haven't read that there is restriction to that.

    HUF is a separate legal entity, has its own PAN.
     
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