Hi,
I have following queries, may you please resolve some:
Can I register a company whose sole purpose will be to trade in FnO segment and invest money in stocks , with following condition :
I will be the only person transferring my money to the company.
I will hire myself as professional to do some tasks and company will pay my professional fees.
If yes, which company is best to register ?
Thanks
Like Berkshire Hathaway?
Well, you could but in India, I think you might be classified as an NBFC and a lot of red tape with RBI and maybe even SEBI would kick in.
Why make a company and not just trade in your personal name? It would be more tax efficient and give you less headache given that you are the only person putting in money.
professional person pays tax on only 6% of income upto 3 crores i.e. almost 5.4 lakhs tax which is almost nil, on 3 crore. so getting money as professional is super tax saving.
I think you are referring to Presumptive Taxation for Business and Profession.
This is 6% of TURNOVER - NOT PROFIT.
lol. I wish it was.
Dude his statement gave me a mini heart attack i was like heinnn??? what the f am I studying fir 
yeah, and for professional, the receipts are turnover which are approximately equal to profit
Most people think this. But PT is “6% or actual”, whichever is higher.
Presumptive means you’re not required to do bookkeeping, right? In that case 6% / 8% is what you’ll pay (within the turnover/ income threshold I guess).
Assuming hypothetically you do not make any losing trades, turnover=profits, and in that case isn’t OP correct here?
So if I have a family of 4, 3cr in each account, 12cr profit goes untaxed. Wah. I will buy a car of 5cr and I won’t get an income tax notice. Think about it.
That’s why don’t blindly believe what you read on the internet. Do consult a tax professional.