Want to confirm if I am salaried person. I have a wife and daughter. Whether i can create a private trust for income tax planning. Share my other income like bank interest with Trust. I want to create a trust where i will by trustee and my wife and daughter will be benificairy. So that every year i can gift some amount to trust. Which can than be transferred to them after the certain time.
Whether above case is possbile. If yes what is the rate by which they will charge for income tax. If the above case is not possible. Can u please confirm with any new tax planning.
09 June 2009
Dear Hemal, Private trust's income is chargeable to tax at the maximum marginal rate if the income of any member/beneficiary is above the basic exemption limit. So dont create a private trust. Instead give the gift to your HUF. create HUF account.
CAclubindia
