Can one appoint family member as supporting staff for managing F&O business and can his salary be shown as business expense during income tax filing?
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Individual can appoint family member as support staff for managing F&O business and his salary can be claimed as business expense while filing tax return. However, keep in mind that you actually pay the salary and also deduct TDS if applicable on such salary.
What type of salary proof I will need to maintain (apart from bank statement containing salary cheque payment proof)?
You will require bank statement and salary payments receipts as proofs.
Is it legal to hire people to fire and manage orders on your behalf? Won’t that be considered as similar to fully automated algo trading?
And if it’s legal and if am hiring non family members to fire and manage orders, should my company structure be OPC or Pvt Ltd? Also don’t all such structures mean limited liability which is odd considering futures trading has an unlimited theoretical loss characteristic?