We pay tax. As a trading strategy to speculate, can we open trading account in the name of good lady to risk tax and do speculations. Have and idea to open an account, befor that just want to know the rules.
1 Like
Hello,
You can definitely open separate accounts on you & your wife's name. On taxes front, you will have to pay taxes as per the tax bracket you fall in.
For example, if your speculative income for the FY 2015-2016 is 4 lakhs, this will be added to your salary & you will be paying taxes on overall income. Lets say, your salary is 10 Lakhs, so net income on which you will have to pay taxes is 10 Lakhs+ 4 lakhs ( speculative income). Since 14 lakhs wall in 30 % tax bracket you will pay 30% taxes.
Similar is the case with your wife also. To get more details on taxes on speculative income, read this LINK:Â http://traderschowk.com/2014/12/05/tax-filing-nailed/
If you have any specific query, you may drop in your question HERE:http://traderschowk.com/qa-forum-2/submit-question/