• Need help with Income Tax

Sir/Mam,
I'm an 18-year-old who recently started trading forex on Olymp Trade. In just three days, I've managed to make a profit of Rs 7,000 with an initial investment of Rs 26,000, which I saved up over the years. I'm concerned about the legality of using the Olymp Trade app in India. Am I unknowingly committing a crime by trading on this platform? Should I stop trading immediately?

Additionally, I'd like to know the procedure for paying taxes on profits exceeding Rs 2.5 lakh. I'm aware that amounts below this threshold are not taxable. Could you also assist me in filing my Income Tax Return (ITR) in the future? If so, what would be your fee for this service? I currently do not have a PAN card; should I apply for one?

I appreciate your serious consideration of these questions.

Thanks.
Asked 1 month ago in Income Tax

Ys, I can assist you in filling the return. Pl connect to discuss further

Vidya Jain
CA, Kolkata
1012 Answers
58 Consultations

4.8 on 5.0

Report profits exceeding Rs 2.5 lakh under 'Income from Business or Profession' for taxation purposes. Apply for a PAN card to fulfill tax filing requirements, particularly for incomes surpassing the taxable threshold. Maintain meticulous records of all trading transactions and expenses for precise tax calculation.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
238 Answers
4 Consultations

5.0 on 5.0

Yes you should stop trading immediately. Forex trading is not allowed in India.

 

You should show this as other source income for now and should stop trading.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4280 Answers
98 Consultations

5.0 on 5.0

- The broker on whom platform you are doing trading should be registered with the SEBI which can be vouched from the invoices generated for each trade

- Trade only in permitted currency pairs

- I can assist you in filing of ITR

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

Hello ,

Answer to your first query is 

Forex trading is legal in India, but it comes with certain restrictions and regulations imposed by the RBI. Indian residents are allowed to trade in currency derivatives on recognized exchanges, while trading with international brokers or through online platforms is illegal. 

So no need to stop trading but follow regulations.

First apply for PAN Card .

And for ITR Filing you can opt for phone consultation .I will explain full procedure deeply as it is not possible to explain here in writing .

It would be very great full of you  if you give rating and write your valuable feedback.

Thank you

Vaibhav Garg

 

Vaibhav RK
CA, Delhi
35 Answers

Not rated

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