Ways HUF generates revenue
Ways HUF generates revenue, A Hindu Undivided Family (HUF) can earn income through various sources, similar to individual taxpayers.
Here are some common sources of income for an HUF.
Business or Profession:
An HUF can engage in business activities or professional services and earn income from such ventures. This can include trading, manufacturing, providing services, consultancy, or any other business activity.
Rental Income:
If the HUF owns properties that are rented out to tenants, it can earn rental income This encompasses both residential and commercial properties, making it a truly comprehensive range. Ways HUF generate revenue
Capital Gains:
HUF can earn income from capital gains when it sells assets such as stocks, mutual funds, real estate, or any other capital assets. The gains can be categorized as short-term or long-term, depending on the holding period of the asset.
Interest and Dividends:
HUF can earn income from interest on fixed deposits, savings accounts, bonds, or other interest-bearing investments. It can also receive dividends from investments in stocks or mutual funds.
Royalties and Licensing:
HUF can earn income through royalties or licensing fees if it holds intellectual property rights, patents, copyrights, or trademarks. Ways HUF generate revenue
Agricultural Income:
If the HUF is engage in agricultural activities and earns income from agricultural land, it may be eligible for certain tax benefits under the Income Tax Act.
Other Sources:
HUF can earn income from various other sources, such as lease income, commission, royalties, partnership income, etc. Ways HUF generates revenue
For more information visit this site: https://www.mca.gov.in
