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S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone who's in a high tax bracket to someone who is in the lower tax clump. It may even be possible to lessen tax on the transferred income to zero if this person, doesn't get other taxable income. Normally, the other body's either your spouse or common-law spouse, but it could even be your children. Whenever it is easy to transfer income to a person in a lower tax bracket, it should be done. If marketplace . between tax rates is 20% your family will save $200 for every $1,000 transferred into the "lower rate" relation.
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If any books of accounts, documents, assets found or seized belong to the transfer pricing other person, the concerned AO shall proceed against other person as provided u/s 153A and 153B. The assessment u/s 153C should even be completed with twenty one months over end for this financial year when the search was conducted like assessment u/s 153A.
Even if some on the bad guys out there pretend to become good guys and overcharge for their 'services' while you get nothing in return for your money, you've have the taxman working for you. In short, no bad deed stay in out of reach of the long arm of regulation for prolonged periods of time. All you have to enjoy is to complain for the authorities, and in case your complaint is discovered to be legit. the tax pro concerned will simply kiss their license goodbye, provided they'd one the particular first place, so to speak.
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