Advice on income Sibling & Gift for tax saving purpose

POSTED BY Nirav Parikh ON January 2, 2013 10:45 pm COMMENTS (5)

Dear Manish,

Refer investment plan

 

net income

335335

HRA

23205

PF

27770

LIC

13944

MEDICAL

9500

TERM INSU

4262

LTA

 

PPF

10000

FINAL AMOUNT

246654

SUR PLUS AMUNT

46654

Intrest Income

15000

total

61654

TAX AMOUNT

6165.4

As above mentioned to avoide tax libility by inceasred in PF,INSURANCE POLICY,TAX FREE FD,BOND,OR NSC ETC.

But as intrest of no debt investment product can i avoide tax liability by income sibling or gifting method? 

if yes how?

5 replies on this article “Advice on income Sibling & Gift for tax saving purpose”

  1. Dear Nirav, the minimum possible time frame is Tax saver funds with 3Y lock-in. But do remember, as these are Eq. linked funds, the risk is very high.

    Thanks

    Ashal

  2. Nirav Parikh says:

    So, Any short term (up to 1yr to 2yr) investment option that hv advantage of tax benefit?

  3. Nirav Parikh says:

    thanks for yr information

  4. Sanjay says:

    Nirav,
    As Ashal says , you can’t save tax in your present status.
    But You can save tax by Opening a HUF account. Then you can create a corpus there. In last FY 11-12, Budget has allowed memebrs of HUF to also contribute to HUF accont which was not allowed earlier.

  5. Dear Nirav, the answer is no. you can not avoid your tax by gifting your income to your siblings or parents or any other relatives. you can save tax only by investing more.

    Thanks

    Ashal

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