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Seek I-T rebate on offerings to your ?personal god?

CAN YOU offer part of your income to your ?personal god? (deity) and then, seek an income tax rebate on that? Actually, YES! One of India?s leading tax laws? practitioner Subhash Lakhotia says an income tax rebate can be availed by a person under the head ?Artificial Juridicial Person? (AJP) by giving money to a ?personal god? as defined by the Income Tax Act. Lakhotia was speaking at an interactive forum on tax planning organised by CNBC Awaz titled ?Tax Guru?Aapke Shahr Mein? at Hotel Taj Residency here on Saturday. The event was sponsored by SBI Mutual Fund.

india Updated: Feb 26, 2006 00:52 IST

CAN YOU offer part of your income to your ‘personal god’ (deity) and then, seek an income tax rebate on that? Actually, YES!

One of India’s leading tax laws’ practitioner Subhash Lakhotia says an income tax rebate can be availed by a person under the head ‘Artificial Juridicial Person’ (AJP) by giving money to a ‘personal god’ as defined by the Income Tax Act.

Lakhotia was speaking at an interactive forum on tax planning organised by CNBC Awaz titled ‘Tax Guru—Aapke Shahr Mein’ at Hotel Taj Residency here on Saturday. The event was sponsored by SBI Mutual Fund. “Three decades back in Kolkata, there were 20,000 income tax files opened by the assesses in the name of their personal gods to seek income tax rebates,” he told a large gathering of professionals, students and senior citizens at the forum. He said a person should open an income tax file in the name of each member of the family.

There were other valuable tips from Lakhotia such as—A husband should not gift anything to the wife and the same applies to the father-in-law and mother-in-law who must avoid gifting anything to the daughter-in-law as it is taxable as per Income Tax laws. “Always purchase a house in the joint name of husband and wife. To seek income tax rebates, a husband can “charge” house rent from his wife or could even offer a “loan” to his wife at reasonable interest rates for purchasing a house and seek income tax rebates”, he said. Lakhotia says people should purchase an insurance policy in such a way that it matures when the daughters reach marriageable age. He added, “Get a video recording of the will done by the parents to avoid forgery”.

First Published: Feb 26, 2006 00:52 IST