At my home i do trade of my brother, father, friend and mine through mine demat my PAN only. It’s fair visible that i have to pay tax if it exceeds bar, but …if i want to centralized everything. Is there any way i can do it. Also tax and TDS is different from each other ?
It’s not a good idea to trade with a single PAN for multiple people.
There may be some aggregators/brokers who may allow you to trade on a single screen but with multiple accounts.
This way you will be able to save a lot of taxes and a clean book as well.
Hi @Rishi_Bawankule,
With regard to taxation, as you are trading in a single account, you will be liable to pay the taxes.
Moreover, TDS, which is tax deducted at source is a way of income tax collection. If TDS was deducted from any of your incomes, you can claim the same as tax credits while filing your ITR.
Hope this helps!
But there must certain amount till i can do trade/invest
Hey @Rishi_Bawankule,
There’s no such restriction as to how much a person can invest. However, if your trading turnover exceeds the limit of ₹10Cr, you’ll have to comply to the audit provisions and have your books of accounts audited.
@Surbhi_Pal
My concern is tax and tds filing. I may be confused with this two words. But here i wanna clear myself with an amount that i can trade without worrying of tax for a moment. As i heard it’s 30%. Even if there is a tax, does it have any connection with TDS filing. Does IT department gonna ask me from where you bring capital money etc etc
Hey @Rishi_Bawankule,
TDS is just a way in which the government collects income tax. For example, in case of salary, TDS is deducted as per your applicable slab rate and hence, your employer deducts the same before handing over your salary. As far as profits from stocks are concerned, they are classified as ‘Income from Capital Gains’. Moreover, capital gains are taxed at a special rate. For domestic equity shares, the rate of tax is 10% in case of LTCG (holding period > 12 months) and 15% in case of STCG (holding period <12 months).
In case of capital gains from stocks, TDS is not applicable if you are a resident. However, you will have to pay the tax liability in the form of advance taxes throughout the year.
Further, you will have to report your profits while filing your ITR as well. As you will incur capital gains, ITR-2 will be applicable.
Great ! 100% Clear.
What does it mean, “However, you will have to pay the tax liability in the form of advance taxes throughout the year.” Is there any online process to file it ?
Hey @Rishi_Bawankule,
Yes, advance taxes need to be paid online on the e-filing portal.
Here’s a detailed thread on advance taxes that will help clarify further.
Advance Tax: Eligibility, calculations and due dates
Hope this helps!
There are misleading information on internet. Somebody says in new tax regime individual below age 60 are getting rebate upto 3 lac. Here is the catch, my brother’s CTC is close to 5 lac but he is not doing e-filing nor even he is getting any notice. Does it has been taken care by employer as there is huge different between CTC and salary in hand. What is the case
Notice may come later, If your income is greater than 2.5 Lacs, you are liable to file the return.
Nope, there seems to be some confusion here.
You are getting funds from your friends and family to trade. ( You may say that you are trading on behalf of them.)
But you are borrowing the funds from them and YOU are trading. So all the tax liabilities are yours, you can not transfer it to the lenders i.e. your family/friends
You can give back the profit to them saying that’s the interest you are paying them back for borrowing those money. And if that interest amount is greater than Rs. 5000, then you as a borrower need to deduct the TDS. There is some waiver for this for some conditions, but mostly you will be crossing it.
And, they will have to pay income tax if any as applicable to them. (They can show this under the “Income from other sources.”
If you are trading F&O, then you will have to file ITR 3, and again the tax calculations will be changed.
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Hey @Rishi_Bawankule,
The basic exemption limit is ₹2.5L under the old regime and ₹3L under the new regime. If your income exceeds this limit, filing an ITR is mandatory.
But, you do get a tax rebate u/s 87A on income upto ₹5L on the old regime and upto ₹7L in the new regime. Hence, there would be no tax liability on the income within these limits.
Hope this clarifies your doubt.
Yes, buying and selling shares through one demat account can be a handy and environment-friendly way to manipulate your investments. Having a single demat account streamlines the system by supplying a centralized platform for protecting buying and selling securities, decreasing administrative hassles and paperwork. Additionally, it approves for less difficult monitoring of your funding portfolio and can also provide price advantages in phrases of account renovation fees. However, it is fundamental to make sure that the chosen demat account meets your precise wants and provides the vital facets and protection measures to protect your investments.