BANGALORE: Times are difficult to Hold Black Money. Why not Plan in Advance and Save on Taxes. Tax evaders are under more pressure now than ever before. A number of scams promote tax free havens and loopholes, but what most people don't know is that there are a number of legal ways to avoid paying income taxes.

 You can effectively lower or altogether avoid paying taxes, but some techniques will require that you make changes to your tax situation so that you can qualify for the deductions and exclusions to income.

There are few ways if applied can be huge potential to save your hard earned money:

1. Trust for minor children eliminates clubbing of income

The gifts made to a minor child would similarly result in clubbing of income. Hence, from the point of view of tax planning a trust could be created for the welfare of the minor child with a specific condition that no part of income should be spent on the minor child during the period of minority.

If this simple technique is adopted then there will be no clubbing of income of the minor child with the income of the parents. The clubbing provisions do not apply when you make gifts to your major children.