05 January 2015
What will the tax liability(Income Tax and Capital Gain) on transfer/ distribution of Family Trust Property to its beneficiaries,
Implication of Revocable and Irrevocable Family Trust (having defined beneficiaries and their shares) on distribution of that family Trust Property to its beneficiaries.
Also whether answer will be same where settler and beneficiaries are same person in the family Trust Deed ?
What Should be incorporated in Trust deed regarding this distribution ?
06 January 2015
As and when any income arises to private family trust the same is taxed in the hands of the trust and then at the time of minor becoming major the property transferred is tax free.
This type of trusts were formed when the tax rates were very high and trusts were investing in tax free securities to give the benefit to the minor but now hardly anyone is forming these trust. Specially in Kolkata people are forming these type of trusts
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