Trading in US options

I am currently living in canada. I trade in us stocks and index options and have been profitable for more than 4 years. By profitable I mean 2-3% on a monthly basis after charges and taxes.

I am planning to move to India in the next 1-2 years. I have read that as an Indian resident I am not allowed to trade in us options when I am in India.

I have heard that an individual in India can open a free zone company in Dubai and trade in us options from that account by residing in India and visiting Dubai once every six months. It seems the best option for myself.

Can someone validate if this is allowed as the decision of me moving back to India or staying in canada depends on this.

Thanks in advance.
Trading
Taxation
F&O

@CA_Anand_Thakor
@ca.jainam
@CA_Keval_Shah
Adding for visibility

Tasty supports cash only accounts for Indian residents, so only CCs and CSPs as far as option strategies go. :dizzy:

For a margin account, you would be better off with the Dubai route. :white_check_mark:

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Unless one lives overseas above a threshold period (183days?), and has no income in India,
one would qualify as a resident indian, per Section 6 of the IT-Act right? :thinking:

I get it Even when I travel once in every six months for a week or so, I will still be a resident indian.

But I will be trading from the corporation that will be registered in Dubai. As the corporation is registered in Duabi it does not come under indian tax system right?

It’s good to know that we can have a cash account with tasty in India.
How do you account for taxes on income from CCs and CSPs and Leaps (This should also be possible in a cash account).

Is it added as a FnO income similar to Indian options trading?

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Yes, no difference. :100:

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