08 December 2007
A friend of mine gave a suggestion of creating a minor beneficiary trust ie income of the trust is to be accumulated till age of majority and till such time, the income of the trust will be charged as AOP under the individual rate of taxes. I would like to know whether is this possible
Yes, it is possible. Such private trust will be subjected to tax rates applicable to individual's rates. Necessary care needs to be taken while drafting such trust deed.
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