Money From Others For Trading

As @nithin mentioned in one of his online interviews, that somebody gave him a cheque for trading in his initial trading days, which helped him scale up.

How you treat the money taken from someone else and returns you are transferring to them, in your “tax return”?

Money taken (Capital) as Loan and Money given after profit every month as Interest on Loan?

Yep, you can treat it this way.

And is it legal to do it in Informal Capacity, like you did? @nithin

Or we must do it in a formal way as PMS, or AIF.

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If you are taking a loan to your account, then there isn’t really too much issue. But you take crazy amount of liability if you blow up the money.

If you trade in customer account, then you will need some sort of license.

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