Comment on Taxation for Traders - Introduction

Hi Nithin,

Thanks for all the knowledge sharing though blogs. It is very helpful.

I have 2 accounts with Zerodha. One is on my name and second is on my wife’s name..

I do long term investing through my wife’s account. Then I pledge those shares and do FNO trading. What happens if I close out my long term holdings(holding period > 1 year). Will the gains be tax free? I am actively trading in FNO through her account…

I do arbitrage trading in my account. Again I pledge the holdings and I do FNO trading on margin I get after pledging.. Now what happens if I hold on do equity part of Arbitrage for more than year? Will gain on that part be tax free? Arbitrage funds in market based on same principle are tax free if holding period is more than 1 year.

Please advise…I need a way out in this so that my long term holdings are not taxed..

Thanks

Rahul

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