25 April 2011
We are a joint family where my aunty is having two minor sons. She is drawing a salary of Rs.84,000 per month and we are in the process of forming a family trust for the benefits of her two minor sons with aunty as settlor. I will be the trustee and she is having LIC policies of Rs.1,00,000 for her and the two sons. What is the maximum limit to avail tax benefits by contributing to the above said discretionary trust? Which one will be more beneficial - discretionary or non-discretionary trust? Will maximum marginal rate of tax be applicable here or not? Kindly provide the detailed work-out of tax planning in AY 2011-2012 for my aunty and the family trust.
25 April 2011
iF U WANT TO SAVE TAX U CAN CREATE A TRUST FOR THE DEFFERED BENEFIT OF THE MINORS WITH A STIPULATION THAT THE INCOME EARNED BY THE TRUST PROPERTIES SHALL BE ACCUMULATED TILL THE MINORS ATTAIN MAJORITY AND THAN U CAN AVIOD CLUBBING OF INCOME IN THE HANDS OF UR AUNTY CA MANOJ GUPTA JODHPUR 09828510543
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