Trading as an individual is always better as you get benefit of income tax slabs, whereas as a LLP you have to pay a flat 30% tax.
So as an individual your income is 10lks, for the first 2.5lks 0 tax, from 2.5 to 5lks 10% or Rs 25k, and 5lks to 10 lks 20% or Rs 1lk. Together your tax outgo will be Rs 1.25 lks.
As a LLP you would have to pay 30% of Rs 10lks which is Rs 3lks as taxes.
Thats right. But with LLP will we be able to claim some additional benefits which otherwise you may not be able to claim from being individual trader like office space, staff salaries if they are employed etc etc?
Nithin is talking of normal traders… and as he proved… even upto a 10 lakh profit annually… with no other income… it makes sense to be an individual.
however if income is very high… then you could rent a home, an office, keep driver, maids, office staff… and also charge off all the reports you subscribe to.
Nithin - one doubt… since intraday is speculation income - will it not be possible for individuals to book expenses for reports, and some other expenses like internet, phone calls etc. since intraday is a business even for an individual.
Thank you sir that was really quick