Murali received ₹ 1 lakh from the HUF of which he is a coparcener. The HUF consists of four coparceners including his father who is the Karta of the HUF. The amount paid was by way of debit to the capital account of HUF engaged in textile business. Is the amount of receipt chargeable to tax –
A. Yes, full amount is taxable
B. 50%, i.e. ₹ 50,000 is taxable
C. Nil, i.e. it is exempt from tax
D. 25%, i.e. ₹ 25,000 is taxable
Answer:B
Murali received ₹ 1 lakh from the HUF of which he is a coparcener. The HUF consists of four coparceners including his father who is the Karta of the HUF. The amount paid was by way of debit to the capital account of HUF engaged in textile business. Is the amount of receipt chargeable to tax –
A. Yes, full amount is taxable B. 50%, i.e. ₹ 50,000 is taxable C. Nil, i.e. it is exempt from tax D. 25%, i.e. ₹ 25,000 is taxable