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How do private equity firms generate returns?

Curious about private equity

How do private equity firms generate returns?

In India, estate and gift taxes are governed by the provisions of the Income Tax Act, 1961. Here are some steps that can be taken to minimize estate and gift taxes:

1. Plan your gifting strategy: One way to reduce estate taxes is to gift assets to your loved ones during your lifetime. You can gift up to a certain amount each year to an individual without incurring gift tax. In India, as of 2021, the limit is Rs. 50,000 per year.

2. Use trusts: By setting up a trust, you can transfer assets to your beneficiaries while retaining some control over the assets. This can help minimize estate taxes as the assets are no longer considered part of your estate.

3. Make charitable donations: Charitable donations can help reduce your taxable estate. You can donate to a charity of your choice and receive a tax deduction for the amount donated.

4. Consult with a financial planner: A financial planner can help you develop a comprehensive estate plan that takes into account your unique circumstances and helps minimize estate taxes.

It is important to note that tax laws and regulations are subject to change, so it is important to stay uptodate on the latest tax rules and regulations. Consulting with a qualified tax professional is recommended to ensure that you are taking the appropriate steps to minimize estate and gift taxes.

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