Oh, I always thought you were trading in Personal Account.
I have two queries as I want to open a corporate account too.
- What is the Incorporation cost ?
- What are the Annual compliances costs ?
Thanks
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I have personal accounts too. But itâs too difficult to handle for me. Login to so many accounts. So slowly I have been moving funds to the firm. 25percent are now moved in 3 months. Long way to go. May take another 9 months to move around 70 percent. Remaining I may not move for many other reasons.
Partnership deed stamp paper 2k
Pan 107
Account opening 500 in zerodha. Some brokers donât charge.
For me itâs zero. 
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there is an Exemption Income section in ITR where Share of Profit and Firm details has to be entered. (Partner ITR)
This Share of Profit is only distrubuted Profit or Firmâs total profit (partnerâs stake) ?
(i.e. firm made 10 lac PAT, there are two partners with 50:50 ratio. now they only distrubuted 1 lac profit. now partner has to show 50K or 5 lac in ITR.)
This.
Is the maximum surcharge 12% in partnership firm?
It is 25% this FY for individual. So total tax is 39% with 25% surcharge and 4% cess.
But its only 34.27% in Partnership firm (30% tax, 12% surcharge and 2% cess). So thatâs 4.72% saving or not?
Yes it is. Why do you think I got a firm account done? 
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Please clarify:
-
If you take delivery of stock, itâs 10% of profits for LongTerm gains and 15% of profits for ShortTerm Gains, right? And those gains donât affect taxable income?
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Only the intraday stock and FNO are added to Taxable income, and taxed according to tax bracket?
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Curious, are most people doing FNO?
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Can you please let me consult you as my Tax advisor, on or off Quicko?
Thanks,
Correct. Though the term used by you as taxable income is inappropriate but I think what you are trying to say is right.
How would I know what people are doing? 
I do Fno. And many others also.
Am not associated with Quicko in any way. You can consult me privately if you want to.
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Hi Jason ,
Read your replies and I too had few queries on similar lines for opening a partnership firm and I would like to connect with you . Can you please let me know how can i connect with you .
Yeah sure. You can send me a private message.
Hello Jason,
I had a very similar query as being discussed in the thread and would like to connect with you.
You had suggested to connect via private message.
Apologies, I did not find an option to connect privately here. may be you can guide me a bit.
thanks again
Dear all,
In the entire thread, the discussion is on Partnership firm. Can the same not be done for LLP?
i.e. can we not open an LLP for the purpose of trading?
Are the pre-requisites too much (compared to a partnership)?
Hey @SanjibG,
Yes, one can incorporate an LLP for trading purposes. However, incorporating an LLP for trading comes with certain compliances that you will have to adhere to:
- LLP with objective investment activities and trading in derivatives will not be granted an incorporation certificate easily.
- You will have to obtain an NBFC license if 50% of your total assets comprise of financial assets and obtaining a NBFC license comes with its own regulations and compliances.
- LLPs need to submit the annual financial statements and audit reports every year.
Now, from the taxation point of view, the taxation for an LLP is similar to a partnership firm. The profit will be taxed at a flat 30%. If the income crosses âš1 crore then the surcharge will be levied at 12%.
Alternatively, you can also do trading as a sole proprietorship. In such a case, the tax is levied on slab rates and the surcharge rate is 10% if income crosses 50 lakhs and 15% if income crosses 1 crore. You can read more on surcharge rates for individuals here!
Based on above provisions, you can select the best suitable alternative.
Sir, if we do e-margin trading and not f and o ,how is e-margin trade profits treated for tax purpose, capital gain or business amount.e margin we pay 30% and 70% bank/broker pays and will charge 15-18% per annum rate of interest till we sell off.
The source of funds for your purchases is irrelevant for tax purposes.
You have the flexibility to classify the income as either capital gains or business income, as long as you maintain consistent treatment over the years.
Hey @SR_BP,
As rightly mentioned by @Jason_Castelino,
The taxation only depends on whether you do delivery-based trading, intraday or F&O. Based on that, the applicable tax rates would be applicable.
Delivery-based trading income is generally classified as capital gains which are taxed at 10% in case of long-term and 15% in case of short term. Moreover, income from intraday or F&O trading is classified as business income which is taxed as per slab rate.
Hope this helps!
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Forming a partnership firm may not be a good idea and I had given up such an idea only after consulting CA(my brother-in-law) for a similar income to yours but it was income from digital marketing and blogging. I may be wrong because your income here is from stock market and its purely Capital gain.
You can consider trading from another family memberâs account and yours too. I think you can manage trading from 2 accounts but it will become hard to trade from 3 or 4 DEMAT accounts. Suppose you make 50L, and 50L in two accounts, then you can claim all those tax benefits (80C, 80CCC, 80CCD, and 80D, & more) twice, i.eâŚ, in your name and your wifeâs name.
BTW, you should be happy with what you get. You are paying taxes only after making profits, so itâs not your losses.
BTW, many of my friends who are making 1Cr or more in revenue have moved to Dubai and Singapore to save taxes. Sadly India doesnât allow Dual Citizenship.
Yea, that is another option but I guess that makes sense if you are consistently making more than 1crore or your networth is may be 20-25cr. I currently donât fall in either of category but yes may be if may be in future I fall in those category i may have to explore those options.
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I am happy paying taxes although I want to be vigilant from my side and explore all the options and know pros/cons of all of them.
I donât want to regret later after some years when i had paid a lot of taxes because of my negligence and there was a legal way where I could have saved taxes as government is not going to refund me the taxes because of my procrastination.
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what is the point ? are they regarded as NRI or foreigner ?
and in any case ; if they are trading in fno in NSE in India ; they have to pay tax in India as per the tax structure which is same for all i.e. resident Indian , NRI , or foreigner !
am i right ?