Comment on Classifying Your Market Activity

Nithin Kamath commented on 07 Mar 2017, 09:32 PM

1. When you are giving back 3lks, show it as interest you have paid for the loan taken. You will need to pay tax only on the remaining 3lks.
2. They will be exempt from taxes only if they show this as return of their original capital. If they show it as profits/interest earning, they will need to pay taxes. Best to do as in point 1.
3. They can’t show this as trading F&O income, they can show it as interest income.

Btw, borrowing/pooling money to trade markets is a grey area in terms of compliance.

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