It is advisable to do business in personal capacity. Have a current account. Take a Gumastadhara certificate and have business in personal capacity
Best option to save tax for a full time trader in stock market
Hi I want to be a full time trader in the stock market with the initial capital fund of Rs. 50 lacs. I am planning to employ couple of people as analytics with a dedicated office setup. What is the best option for me to save tax on the profits made from trading. Can I open an LLC or a Pvt. Ltd company or is a better option available?
Asked 8 years ago in Income Tax
Dear Sir,
I think private limited company should be the best option from income tax point of view because the maximum tax rate is low in case of private limited companies
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
The government in its budget decided to cut the tax rate for MSMEs with turnover of up to Rs 50 crore from the 30 per cent to 25 per cent. T
Sir please tell us whether you are taking a sub brokership of any company so as to treat it as a business income. Or else it will be Capital gains in case of equity. In case of F & O it will be treated as Business Income. You can open a LLP or Private limited . But to treat equity as business income you need to take permission or Subbroer or Broker of BSE/NSE
Would'nt a Pvt. Ltd company dealing in 100% equity market have to be registered as a NBFI with RBI? I plan to trade myself using Online Broker like ShareKhan and ICICI Demat.
Asked 8 years ago
Yes thats why only its not advisable to go for private company. There will be many other restrictions of SEBI if you operate and do business as Pvt. company
No you need to take a licence to show the same in Business as per our view.
Hello Sir,
I assume you are talking about an LLP and PVT LTD. It is any time preferable to opt for an LLP as it involves less compliance which also means less cost plus also delivers ease of doing business.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB
Hello Sir,
LLP is the best option of the lot as it involves less maintenance cost and less compliance as well.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
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