DISTRIBUTION OF INCOME AMONG YOUR FAMILY

Distribution of income among your family

As its not possible that one can divided its income between his family member and avoid income tax... because whatever income a person is earning income tax liability of that income is going to bear by that person but by adopting some way he can save tax ...

Taking money or gift can save tax

As gifts received by your family members and specified relatives are not consider as your income its treat as capital receipt.So tax liability is not create if you are getting any thing as a gift form your family of specified relative up-to rupees 50000 in that year.

but all other gift received from other are (official and other) are come under tax liability but exempt up-to rupees 5000 in that year.

So have different income tax files for different person of the family who are major so that you can mange tax liability like in hindu undivided family use to file ITR so that gift and settlement can be done easly.

Keep in mind sec 64 of income tax before giving gift that if there any direct or indirect transfer of fund between spouse. if that happen it will attract clubbing provision of income tax. So husband cannot give gift to his wife and wife can not give it husband who have substantial interest

but if spouse having possesses technical or professional knowladge and income is given to her or him for his professional assistant for his or her technical or professional knowledge and experience help. so this section 64 not going to applicable

DISTRIBUTION OF INCOME AMONG YOUR FAMILY

Inheritance property is also tax free

No income tax liability occur on you if you are getting any inheritance property from your elders after there demise , property can be moveable or immovable property.Also there no upper exemption limit in it .

Simple these inheritance property is not your income as per income tax rule therefore what ever your getting like shares , fixed deposit and immovable property that will tax free.