Showing trading income as business income


#1

Hi,

Am planning to setup a pvt ltd firm with me + 1 as a director and I had the below query:

  • In order to save taxes and to claim expenses ( rent/internet bills etc ), I need to show my trading income as business income and in order to do this, do I need to open a trading account in the name of my PVT LTD company or as I already hold an account with Zerodha and I am one of the director, I can still do this using my existing trading account which is under my name as an individual ?

Thank you to anyone who can throw some light !


#2

Anyone ?


#3

@aneeshcr When you set-up a limited liability company (Pvt. ltd.) essentially it separates you from your business. The company is distinct from it’s shareholders and that is why it has it’s own PAN , TAN etc. So, you cannot use your existing personal trading account. You need to open a new trading account in the name of your company.


#4

@aravindvlad Thank you !