can I take others people money for trading in my savings account with a business terms of sharing profit.
in fact how can I do this?
If I say legally, it will be no
Strictly prohibited by sebi. Client can file IGRP and Arbitration in case of any disputes.
You can show the amount as a borrowing. Profit sharing cannot be the basis of any arrangement. Profits if any earned in full are part of your taxable income. Your entering into a contract of borrowing on a profit sharing basis is equivalent to getting a deposit which is not proper or legally correct. Another point, what if you incur loss ? Then how will you proceed ?
Are they your friends or relatives? Why do you even need to ask permission for that?
my friend transfer Money into my account & i am doin stock trading. who is taxable if i earn capital gain from my friend given money. my friend or me?
thanks. also i need to give tax on borrowed money from friend.
supposed my frnd given me 1Lakh.so on that 1 lakh also i need to pay tax or not
In this case you are trading in your account so all transactions happen in your account.
No one knows whether you trade with your money or others money. This is totally informal.
So, it’s the mutual understanding between you and the person who gave you money to adjust taxes/fees/commission etc.
This is informal so it depends on mutual understanding.
I hope I’m right. Correct me if I’m wrong.
but while filing income tax, i need to give tax on borrowed money from friend.
you need a legal counsel.
Can you elaborate Jason ? It would be helpful. How to account the money received / source of money?
There is a nice write-up on this topic by Zerodha itself…
Account it as loan taken.