Hi.
I’m currently a salaried person who trades a bit in Equity and F&O. I m considering to have this as my full time profession but I do not want to quit my job immediately and do it. I’m in 30% tax bracket. I’m considering to register a company in either mine or my wife’s name and open a Dmat plus trading account in name of that company. Now, the source of funds to the company will go from my savings so far. I want to understand if the profits in that trading account will get added to my income and taxed at 30% straight away or will they be treated separate. I understand the concept of individual vs entity but i’m asking this because I will feed the money into the company. I understand there is a clause in IT Rules which says if a husband gives money to house wife to house wife to trade then the profits made from her trading activity are clubbed with income of husband and taxed at his slab. Hence I m asking this question.
Thanks in advance.