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HUF and Commission Income

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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?

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Open uri20170510 32134 1uwcnoc?1494421631 answered

**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;

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