Hi, I’m a salaried individual.
Currently, I’m having one demat account which I’m using for long term investing plus swing trading.
I recently came to know, that if I have two demat accounts I can use one for long term investment and another one for swing trading.
So, the income from swing trading can be classified as business income and I can show expenses against it.
Can someone tell, if this is true and will it have any tax benefit or what you’ll suggest - to stick to one single demat account or go ahead and open another demat account ? Please guide
Dude if everthing is on single PAN it doesnt matter if you have 1 or 10 demat.
But it might give some advantage to your C.A for easy book keeping… and for you to visualize and seggregate you funds…
Again i am not a C.A, nor any financial consultant/ professional but answering on my experience…
It’s easy to separate. You can report swing trades as business income. So the entire tax P&L from 2nd demat account will be business income
Of course you can do the same with 1 account but you can’t separate trades easily