Answer

HNI wealth · Family Office

Holding company: the investment vehicle for family wealth

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    A family holding company owns investments, listed stocks, unlisted equity, REITs, AIF units, real estate. All investment activity happens at the company level.

  2. Provisions and law

    • Companies Act 2013 | IT Act, Sec 200 (old 115BAA) | Dividend, Sec 2(22)

  3. Analysis

    Tax advantages: Inter-company dividends between group companies: exempt under Sec 10(34A) (dividend from domestic company). Capital gains at corporate rate: 22% (much lower than individual surcharge at ₹5Cr+ income). Business expenses deductible against income. The dividend trap: Money stuck in the holding company, distributing to family members as dividend is taxed at slab rate in their hands. Planning: use salary, director fees, loan repayments (for original capital), and strategic timing of dividends to manage outflow tax.

  4. Conclusion

    Talk to a Savvy for the exact next step on your case.

A Savvy can do this for you

Significant beneficial owner declaration, BEN-1 / BEN-2

₹2,499

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask