Taxation on commission given for trading tips

[nithin]

@SecretSloth

Good morning. I’m helping few of my friends trade in fno/intraday by taking a particular % of their profit. Assuming that the commission sent to my bank account and no cash transaction is done, will the commision given be eligible for deduction as an expense for the traders?

• If yes, is there an upper limit on this expense?
• If no, will it be acceptable if I get this money paid as salary. Can I draw salary from more than one person (business)? And can the salary amount vary each month?

While there is no issue for your friends to give you money and no limits as such, it is an issue for you as taking such a fees is not allowed.

Trading with other people’s money

https://zerodha.com/z-connect/rainmatter/trading-with-other-peoples-money This post talks about how you can manage money for others legally and also some grey ways wealth management is done.