A multi-year tax plan for a promoter with income across securities, alternative funds, and foreign assets

The situation

A high-net-worth individual earned income from salary, listed and unlisted securities, alternative investment funds, portfolio management services, and assets abroad. Each stream had been dealt with separately when returns were filed, with no view across years of when gains would arise or which exemptions could be used.

The challenge

• Gains across several asset classes, each with its own holding periods and rates
• Pass-through income from alternative investment funds, characterised in different ways
• Foreign assets and income with separate disclosure obligations
• Exemptions with conditions and deadlines that required decisions before transactions, not after

What we did

We built one view of every holding, expected realisation, and income stream over several years, and modelled the tax outcome of different sequences of sales and reinvestments.

The plan set out which exemptions were available, the conditions and deadlines attached to each, and the order in which transactions should happen. It was implemented with documentation for each position, and foreign asset reporting was brought fully up to date.

The impact

• INR 50 million, about US$550,000, of tax exemptions structured within a single financial year
• A plan that anticipates realisations instead of reacting to them
• Complete and consistent reporting of foreign assets and income

Client details are anonymised, and some facts are generalised to protect confidentiality.