Comment on Classifying Your Market Activity

Shankar commented on 07 Mar 2017, 06:30 PM

I have borrowed money from family and friends upto Rs20 lakhs, I have used that money to Trade in the Nifty Options(Intraday), now for about 6 months I have Traded in a discipline way and made about 30%(Rs 6,00,000) returns, I had agreed to share Half of the Profits that I make with the people from who I borrowed the money.

1.) Now Should I pay taxes from my account for all the 6lakhs or should I pay it only for 3lakhs which is 50% of the profit generated.
2.) If I pay Taxes for all the 6 lakhs, which is around Rs 45000, and transfer half of the remaining amount to my lenders (either online or by cheque) will they be exempt from the Taxation for this income, If yes, what forms should I use to show this legally.
3.) If I pay Taxes for only 3 Lakhs, and transfer the remaining amount to them, what forms should they use to show this as income from trading F&O, (because it will not be traded in any of their accounts)

Thanks in Advance

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