20 April 2011
My aunty's husband have expired in 1998 and she is living with her two sons now.Her salary is Rs.84,000 per month and use to give huge income tax every year. Can she form HUF with her younger son as Karta? Also, can she contribute some money as gift to the HUF and what is the maximum limit to do so?
To reduce her tax liability; she may form trusts for her minor children ( if she has )where provisions should be made to accrue the income till they become major.
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If sons are major; then she can gift every year to her sons.
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More tax planning is possible if facts are more clear.
CAclubindia
