• Binary option trading websites like olymp trades, binomo etc.

Is trading binary option on above websites legal as per income tax laws of india? Binomo website allows to trade in indian rupees , other sites in American dollars. If it is legal in india, how much tax is to be paid & which section is applicable.
Asked 4 years ago in Capital Gains Tax

Binary trading is no where prohibited specifically so you can do it.

Since same is trading and hence it needs to be taxed as business income and tax needs to be paid at applicable slab rate.

 

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Naman Maloo
CA, Jaipur
4292 Answers
101 Consultations

Yes it is legal since it only provides additional AI based boat to support trading and notthin which is not in line with the law.

You need to pay tax @ 34.20% since the income is considered as speculation income

Vishrut Rajesh Shah
CA, Ahmedabad
940 Answers
39 Consultations

Hello,

 

Such trading would be considered legal in India. As far as I understand it will be considered as Speculative Income.

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

Hi,

 

It would be considered legal in India.

 

The same will be treated as speculation income and you need to pay tax@30% plus applicable surcharge & cess on the same.

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
298 Consultations

- Income tax is concerned with the taxes on the income though it is an illegal income. It seems to be a speculative income which is taxable at higher rate of 30%. Also if the turnover would be on higher side, GST implications will take place.

Vivek Kumar Arora
CA, Delhi
4943 Answers
1101 Consultations

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