Comment on Business Line: Read Section 44AD when filing return
commented on
19 Aug 2013, 09:01 AM
Nithish,
A partnership cannot have a demat account, but you can open a trading account in the name of the partnership.
So if it is only f&O trading, you can open a trading account in the name of partnership and you shouldn’t have any issues. You can send an email to [email protected] to get details of documents required to open trading account for partnership.
Demat account cannot be opened in the name of partnership and it can be opened in the name of any of the partners. So when you buy stocks for delivery through your partnership trading account, it will be sent to the partners demat account. This doesn’t cause any tax liability as the partner is just being the custodian of the shares and once the partnership sells the shares, if there is a profit the partnership has tax liability.