Comment on Taxation for Traders - Introduction

sunny commented on 10 Nov 2014, 05:41 PM

Hi Nithin,

As you said, taking loan from a relative and using it in stock trading to derive income comes under ‘grey area’ as it is being done only by a registered portfolio manager.

I have done so and still doing trading on my brothers’ capital of 8 lakhs. Now if i show it as a loan and pay 8% interest to him annually and show the rest profit as my income. Will that be illegal? What will be the implications from IT dept (if any ) ?

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