Comment on Taxation for Traders - Introduction

1. It is a little tricky to keep equity and f&O separate because they are related, but you can. Speak to your CA about it.

2. Ideally if you are trading f&O, it means your activity in the markets is as a business and hence need to show the same for equity trading as well. But as I mentioned earlier, if the books can be kept separate by your CA.

3. Many people keep 2 trading accounts, one for equity long term and second for active trading be it in equity or f&O. It is not an ideal practice though. I’d probably suggest to open one trading
account in your fathers name and another in your mothers name, keep one for f&o trading and other for equity trading. The demat account can still be a joint account with your father and mother.

Cheers,

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