Any way to save tax for Individual Trader

[bharat1080]

income proof to active FNO segment in partnership firm. if it is new firm.

[Ragav_oct]

Hi jason. Have sent you a private message. Could you please check?

[Piyush_S]

@Jason_Castelino

I have specifically mentioned investment and trading in derivatives segment as object of the firm.

Hi @Jason_Castelino - Hope you are doing well. I had a question regarding partnership firm taxation. Do you know how the equity/mutual fund capital gains (short/long term) would be leived, when we are trading using a partnership firm specifically for trading/investment purpose.
Thanks in Advance.

[Jason_Castelino]

Hi Piyush,

The treatment of gains remain same as it is for individuals.

[Piyush_S]

Ahh I see.
I don’t know why my CA mentioned to me that capital gains for stocks will be considered as business income and will be taxed as per slab. I tried to search but was not able to find any article about the same, please forward me any document or any link you may find that says otherwise. Thanks!

[Piyush_S]

By the way, thanks so much for your suggestion about trading using a partnership firm.

I am also working on opening a firm, bank, demat account etc. Hopefully will fully move by the end of this FY. I can see lot of savings not in term of taxes but I can also expense many things related to my trading and can claim depreciation on some.

[Jason_Castelino]

@Piyush_S

forward me any document or any link you may find that says otherwise.

Income Tax Act available in official income tax website.
Please share the link which says otherwise.

[Jason_Castelino]

@Piyush_S

I can see lot of savings not in term of taxes but I can also expense many things related to my trading and can claim depreciation on some.

Taxes? yes. Other expenses and depreciation? No. It is still the same.

[Muhammad_Maaz_Khan]

If for individual account, 30% taxes are levied on f&o post the upcoming July budget, would it be better to form a corporate account via a partnership/LLP for saving taxes?

Or the profits made through the corporate account would have the same 30% taxation?

@nithin @Jason_Castelino

[Jason_Castelino]

@Muhammad_Maaz_Khan

If for individual account, 30% taxes are levied on f&o post the upcoming July budget, would it be better to form a corporate account via a partnership/LLP for saving taxes?

Shall we wait for budget instead of speculating?

@Muhammad_Maaz_Khan

Or the profits made through the corporate account would have the same 30% taxation?

It’s anyways already under 30 percent.

[Ajay_Thakur]

If you live in Dubai or Singapore, but trade in Indian instruments, you will still be taxed by India
How do you save taxes by going to UAE/SG?

[Stonecold]

Hey Jason, if an individual’s sole income is from Stock market activities (STCG, LTCG and from F&O) then does he have the right to show the short term profits as STCG or he has to compulsorily show them as a business income.
Do we have any clarity on this in the income tax act ?

[Jason_Castelino]

@Stonecold

then does he have the right to show the short term profits as STCG or he has to compulsorily show them as a business income.
Do we have any clarity on this in the income tax act ?

He has an option to show it as STCG or business profits. Just make sure to consistently follow it year after year.