Comment on Taxation for Traders - Introduction

Hello Nithin,

I have opened a demat and trading account jointly with my wife with her name as the first holder. I get all the contract notes in her name and against her PAN number. The bank account linked to the trading account is also a joint account.

Both of us are pensioners and due to this, I fall in the 20% tax slab whereas my wife is under the 10% tax slab.

This is my first year of trading and I have made considerable profit by trading in F&O. I understood from your previous answers that this profit is a business income.

But my question now is:-

1) Under whose name this profit is to be shown, provided these are joint savings and there is no formal partnership agreement between both of us?

2) Or can the profit be split among both of us?

3) Or can it be shown in her name as she is in the relatively lower tax bracket?

Thanks in advance..

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