I am guessing your resident status is still normal resident - for your bank account, your trading account, etc. It if is, whatever discussed earlier applies .
If your status is non-resident and you have income generated internationally, with that you can do whatever that the country you are living in allows. Btw, if your resident status is non-resident, you can’t trade F&O in India directly. You have to come through custodial participant route. Check this
But What if i did. Is there any legal hurdles. since if i loose the job, again i will come back India and will look for a abroad job position until i get. and it will be like sometime resident and again after sometime non resident for 1-2 years.
this is my case. so i become NRI and again non-NRI then again NRI (in Loops, 1-2 Year → 03-06 months → 1-2 Year)
Confused Literally what to do. And I Think This might be the case with many abroad job seeker.
Your kind advise in this case will not only be helpful to me but for everyone else who is in same conditions.
The Residential Status of the taxpayer as per Income Tax Act is determined for each financial year based on your stay in India. If you are a Non-Resident for a financial year, the income that you earn in India is taxable. However, if you are a Resident for a financial year, the global income is taxable i.e. income earned in India and earned outside India. Check your residential status
If you hold the status of a Resident, you must report your global income in the Income Tax Return. However, if you have paid tax in the foreign country, you can claim relief of the same in your Income Tax Return if both India and the foreign country have entered into a DTAA i.e. Double Tax Avoidance Agreement.
Following is the taxability of your trading income:
Equity Delivery Trading
Equity Intraday Trading, Equity F&O Trading, Commodity Trading, Currency Trading
Note: Quicko can help you with the tax-related queries and tax compliance. You will have to check about the asset classes in which you can trade as an NRI.
For any further questions, write to us on [email protected]
Thanks @Quicko Team, Yesterday i have opened an account in your portal, Will be in touch soon over email, as i am stuck in Botswana, Near South Africa as of now.
Hi,
I was in USA for work and I have a US bank account . Once I come back to India can I use the funds in the USA bank account to fund the trading. Will the restriction on derivatives trading still apply ?
I am resident in India , but have us account with money earned while I was in USA.
Thanks
Yuva3814
All the restriction are applied on the money remitted from India. In your case, there won’t be a problem.
@siva-reddy, can an Indian citizen who earned money in US/UK?Canada as an employee use that money to trade derivatives as LRS is not involved after returning back to India? Assuming that money was never sent to India in the past.
Thanks.
@nithin: Can you answer this question?
Please clarify one thing
How many trades (not intraday) but swing trades
can one do without the implications of a PDT or GFV
if one has enough cash balance and there is no situation of a unsettled amount arises
Grey area. I wouldn’t know about this. Ideally no, but it may be a loophole as well.
Thanks.
Hi everyone,
So what i have understood from the above discussion is that opening margin accounts with brokers like TradeZero, TD Ameritrade etc. for day trading in foreign exchanges is not allowed by the RBI if you’re an Indian resident. I was wondering if there was a way to open a margin account if you had an NRE or NRO account?
@Pratham_Arya
See my bro, even if you are NRI or NRO its not easy to open margin account in USA , i have an margin account , they will approve only upto 3 level , first you want to understand level in usa Derivatives market ,
If you open margin account they will approve upto level 3
level 1 - you can buy option
level 2 - you can do covered call and cash secured put
level 3 - you can do spread
level 4- you can do level 3 and multi task option strategy
level 5 - you can do all level upto 4 and naked option selling also in level 5
level 4 and level 5 you need bulk cash and financial abilty to approve
Oh I forgot to mention, I am interested in day trading equities in the us market. I dont even want to use leverage, I just want to be able to short stocks and for that a margin account is needed. So is it possible to set it up?
is future allowed ?
Futures will allowed in 4 th level , mainly they will allow you to trade in cash segment to invest , if you have more money like 50k dollar they will allow you in 4th level
Can one with NRE and NRO accounts, short sell stocks in the us equity markets??? @nithin
i want to open a margin account with TradeZero
hmm… if u r an NRI, I guess you can.
Hi Karan
Did you try opening offshore company ?
I think that is the best way to do this…
Raghu
No…i havent tried that route yet…i talked to some offshore company formation agents…cost to setup a company is around 1000 $…you can setup a company in panama, belize, seychellas or other similer juridictions…thereafter annual cost of operating the company is about 900 $ per year…and you need to add a nominee director which they will provide for 570 $…you can choose not to add nominee director service…but it is necesary to further increase your privacy…nominee director will do all processes like opening a bank account, opening a brokerage account…there are some tax benefits also…
I havent talked to local adviser about this…if you find more information about it…please share it here.
I think this is possible…and as long as we are not transecting millons of dollars…we should be fine…