Reminder- Fund Raising

[Tony Thomas]

Dear All,   A gentle reminder of our on going fund raising for Balram sir.   Some of you have already transferred their contributions to sir's account. Others who are interested may transfer it at their convenience  as soon as possible so that we can wind up this round. Balram sir is consulting his lawyer on the tax implications. Let us not worry on this issue at the moment. He is not currently paying any tax as his earnings are lower than the taxable income limit. He has a PAN  and files his returns every year.   Please let me know the amount (if > 5000) you are transferring to sir, so that i can cross check with him that the amount indeed has been credited to his account.  Also, please enter the details in the spreadsheet  Manu provided http://www.cs.ucla.edu/~manub/tkdclub/form.html .   The account details of  Balram sir are:   Balram Yadav A/C: 10426038380 State Bank of India, IIT kanpur (Branch code: 1161)   His phone number is : +91-9336819254.   Thank you all.   Best regards, Tony.

[vinaya...@lavabit.com]

I'd recommend holding off on transferring funds till the tax issue is
resolved. It looks like he may have to pay income tax:
http://business.rediff.com/report/2010/feb/01/budget-2010-perfin-the-latest-change-in-rules-on-gift-tax.htm

A possible solution might be for for Sir's wife to open an account ...

Vinayak

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[Tony Thomas]

Please suggest some constructive ways to avoid/reduce the gift tax.   I am not sure whether  it is a flat 30% or the 10% slab in which he falls. If it is just 10% on the gross income, then I think we can ignore it.   Tony.    --- On Fri, 7/2/10, vinaya...@lavabit.com <vinaya...@lavabit.com> wrote:

[vinaya...@lavabit.com]

I article I linked to earlier would indicate it is 10%.
Even though it is not high, Sir might want to avoid it.
(I would, we have paid taxes already on our earned income, I dont want the
govt double dipping!).

As I mentioned, if it is being lumped into income, if Sir's wife opens an
account then it should be alright (women get 1.9lakhs income tax free).

Lets see what the tax attorney says..

Anyone know whether the gift tax is active or whether its now being lumped
into income ?

Vinayak

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[Manu Bansal]

Perhaps we could also split the transfer over multiple fiscal years, keeping it under the slab each time?

Manu

[A T Rajesh]

We can send some money to his account, some to his wife's, some to his daughter's, etc.
Shall we ask sir to create all these accounts.
It is correct that we should not allow the Govt to double tax.

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[A T Rajesh]

in this group, if there is anybody who is presently a student at IIT Kanpur, then some money can be sent to his or his friends' accounts as well. He can withdraw that money and hand it over in cash to sir.

[Saurabh Bose]

Here are my two cents...
Making all these proposed accounts I think won't be possible for sir. Although we all pay our taxes, we do utilize different legal procedures to reduce taxes..
So its not immoral to try to do so...:)
Anyway is it possible to transfer some funds to some existing reliable students at IITK and let him/her hand over cash to sir??

-Saurabh Bose

--
Saurabh K. Bose
Research fellow.
Dept. Of Physics
I.I.T. Kanpur.
India

[vinaya...@lavabit.com]

That would technically be illegal (non payment of taxes).
Lets ask Sir if his wife can open an account. 100% legal. And anything
beyond 2lakhs gift can be delayed to next year.

Of course, first we need to find out from the tax guy whether gifts are
indeed lumped under income now.
Otherwise with a flat 30% gift tax, nothing can be done.

Vinayak