We are three family members having rental income of all around Rs.25 lakhs so there is so much burden of tax on us.We can taken all deductions. Is there any way we can reduce the tax by creating a trust or creating a firm.
07 November 2008
Create a private trust for the benefit of your children by transferring the property into it. The Rental Income will be taxable in the hands of a trust after claiming the basic exemption limit.
Hence, u can enjoy the basic exemption limit twice. Once, in ur hand and secondly, in the hands of the private trust.
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