The Direct tax Committee – PHDCCI organised a Conference on Family Trust and Business Succession Planning on Thursday 7th August 2025, at PHD House, New Delhi.
Mr. Mukul Bagla Chair Direct Taxes Committee said that the “Family trusts are no longer optional—they’re essential,” As families grow, so does the need to protect generational wealth. He emphasized the importance of structured mechanisms like family trusts to safeguard assets and ensure smooth succession. Open conversations and awareness within families are key to preserving both values and wealth across generations.
Mr. Sandeep Bhuraria, Partner Zeus Law a seasoned expert shared powerful insights on the legal risks under Section 53 of the Transfer of Property Act and Section 66 of the Insolvency and Bankruptcy Code. He emphasized the importance of understanding the core elements of a trust as defined under Section 3: A settlor who transfers the property, A trustee who manages it, A beneficiary for whose benefit it exists, And importantly, a clearly identified trust property. He emphasised that in a landscape of increasing legal scrutiny, getting these fundamentals right is not just compliance—it’s protection.
Dr. Rakesh Gupta, Co-Chair Direct Taxes Committee said that Trusts have long been debated in the context of taxation. While historically used for tax planning—and often under scrutiny—their role in long-term financial and estate planning is now gaining well-deserved recognition. He explained that every trust begins with a settlor, who must be legally competent, and a trustee who manages the assets.
Ms Pallavi Dinodia, Co-Chair Direct Tax Committee shared valuable perspectives on the recent SEBI guidelines designed to ensure transparency and prevent misuse in share transfers within promoter groups, while still facilitating legitimate restructuring. She emphasized that while expert guidance from trustees and lawyers is essential in drafting trust deeds, how you think about succession is just as important as what you draft.
Mr Suyash Raj Nahata, Co-Chair Direct Tax Committee provided a compelling discussion on case studies involving discretionary trusts and the application of Section 164(1) of the Income-tax Act, 1961. Mr. Suyash explained how such scenarios may still attract taxation at the maximum marginal rate and how judicial precedents have interpreted “indeterminacy” in this context.
Mr. Gagan Kumar Advocate , Krishnomics Legal discussed the importance of succession planning, the ways to structure an effective succession planning and the tax and other practical challenges which often arise and how to address them.
Ms. Babeeta Sharma, Senior Secretary, PHDCCI, moderated the session, and Ms. Minakshi Srivastava, Deputy Secretary, PHDCCI, efficiently coordinated the conference.