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REGISTRATION OF MINOR TRUST: REVISED

CA Nitesh Kumar More 
on 20 January 2010

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REGISTRATION OF MINOR TRUST: REVISED
                                              BY CA NITESH KUMAR MORE 
                                                              9883157484 
 
Trust can be formed for a minor by executing a deed for a specific period, say 21 years.
This trust can be registered under the Indian trust Act.
 
TAX IMPLICATION:
 
1 Tax implication every year during the period of trust: This private trust will be taxed at a slab rate applicable for individual provided it does not have business income.
Any business income may be taxed @ 30% or at slab rate.
 
2 Tax implications at the end of specified periods: At the end of the specific period, the trust property will be transferred to the beneficiary minor (who become major till that period) and will be a capital receipts in the hand of beneficiary and hence not taxable.
 
BENEFITS:
 
1 Enjoy tax exemption limit and lower tax rate applicable for individual every year.
2 Transfer of the assets of trust to beneficiary at no cost/ negligible cost.
3 Transfer of the assets of trust to beneficiary will be tax neutral provided he attains      majority.
 
LIMITATIONS: Any business income of trust may be taxed @ 30% or at slab rate.
 
 INFORMATION AND DOCUMENTS NEEDED: Details about trustee, beneficiary and settlor.
 EMAIL:
Email: moreassociate@gmail.com
 
 
 



Category Income Tax
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