Bangalore:  You can earn in millions from your business, dividends, estates and gifts.  But earnings in millions would also mean paying tax in millions too.  Of course you don’t like losing a huge chunk of your money in the name of tax, but you cannot even evade paying tax. Hence learn the tricks by which you can make your wealth and property tax free. BusinessWeek has put forward some strategies used by the rich peoples, with the help of which you can reduce your tax liability.

1. No Property Sale

When you have some valuable property and you need cash, then don’t sell your property in exchange of cash. As by selling property you will become liable to paying capital gain tax. It is advisable to borrow a loan against your property to avoid paying tax. This strategy works best with the assets whose value keeps appreciating over the years, and then only it would compensate for the interest on loans.

2. Insurance Policy

If you want to gift your children some tax free monetary assets, which they can enjoy even after years after your death, then choose buying a life insurance policy from a trust. As your children who are the beneficiary of your policy are not he owner of the policy, would not become liable to pay any tax over the gains achieved from the policy.