Need suggestion
This query is : Resolved
01 August 2012
Dear Experts,
One of our client (salaried) is at 30% tax bracket. He holds one Private Equity Investment of Rs. 70lacs which is into Reality Funds. He gets some payouts from the fund once in three months which eventually attracts additional 25k-40k tax liability.
The PE fund house provides form 16 for these payouts also.
The tax consultant of the client suggested him better transfer the ownership of the investment to his wife (house wife) and let her pay the tax which eventually may come to nil so that the client can save that 25k-30k of tax liability.
I feel it's not a right advice, client may get into some issue as he is trying to avoid tax.
If it has been exercised, what will be the tax implication then ? Can the client save taxes as the consultant suggested ? Or it will get clubbed again ??
Need your suggestion. Thanks in advance :-)
One of our client (salaried) is at 30% tax bracket. He holds one Private Equity Investment of Rs. 70lacs which is into Reality Funds. He gets some payouts from the fund once in three months which eventually attracts additional 25k-40k tax liability.
The PE fund house provides form 16 for these payouts also.
The tax consultant of the client suggested him better transfer the ownership of the investment to his wife (house wife) and let her pay the tax which eventually may come to nil so that the client can save that 25k-30k of tax liability.
I feel it's not a right advice, client may get into some issue as he is trying to avoid tax.
If it has been exercised, what will be the tax implication then ? Can the client save taxes as the consultant suggested ? Or it will get clubbed again ??
Need your suggestion. Thanks in advance :-)
01 August 2012
A TAX CONSULTANT is always expected to come up with such beautiful suggestions. What you need to assess is the RISK involved in this. The risk is very high. It is a clear case of transfer of asset without consideration. Since amount involved is 7 million, not justified to go for it.
Message likes :
1 times
01 August 2012
Thanks Amol for this quick and appropriate suggestion.
02 August 2012
You are most welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- Requirement of tax deduction at source by individual
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
