Comment on Taxation for Traders - Introduction

Mohit commented on 16 Nov 2013, 06:16 PM

Hi Zerodha I have three queries. I am doing investments in the name of my father/mother joint account. I invest in equity and F&O also.

1) Can I fill ITR4 and show STCG/LTCG fot equity and business income for F&O in my father’s name?

2) If I cannot go by option 1. then what is the best way to separate Equity Trading and F&O trading, so that one can claim STCG/LTCG on equity and show F&O profits under business income.

3) I have heard that one should maintain separate trading and investment portfolio. But I am not clear what does it mean:

a) Does it mean having one savings account and two trading accounts? But even then one will have to fill ITR4. So does that mean having separate two trading account means one can fill one ITR4 but show STCG/LTCG for equity and Business income for F&O?

b) or Does it mean having two saving account (one in mother name and one in father name) and having two trading accounts. This way I can fill ITR2 for mother (equity STCG/LTCG) and ITR4 for father (Business income from F&O)?

In short what I want to know is – what is the best way of setting up saving/trading account in my parents name, and what is bets way to fill the ITR so that I can separate the STCG/LTCG from the F&O business income?

What I do not want is to pay normal slab tax rates on equity STCG/LTCG just beacuse I have income from F&O also?

so please give your best suggestion. many thanks !!!!!


View the full comment thread »