India's super rich are tearing apart their brains to discover ways to soften the blow imposed by New Delhi's decision to impose a heavy surcharge on their income tax.
Many business families that keep their assets in private premises. trusts – Entities that are affected as badly as several FPIs and rich wage earners – are exploring options such as changing the character of the trust or housing assets in limited liability companies (LLP) that have to pay less taxes.
Family trusts, which have a "discretionary" nature in which the beneficiaries have nothing to do with the actions and payments, are taxed as "individual advisors."
ET spoke with several experts and high-level tax consultants to get an idea of ??what the rich think.
"By observing the impact of the surcharge on the super game, in addition to individuals and IPFs (which are trusts), Indian trusts would also be affected," said Dinesh Kanabar, CEO of Dhruva Advisors.Read more
Source web page: The Economic Times