I want to start pvt limited company for F&O trading, is there any rbi rule that if more than 50% income is from this activities then it needs to be registered as NBFC with rbi? I want to take benifit of car and other assets depriciation from the profit. Pls share information if anyone has.
If a private limited company is engaged solely in F&O trading, it needs to obtain an NBFC license from the RBI. According to the rules, if more than 50% of a company’s assets are financial assets and over 50% of its income comes from these financial activities, the company must register as an NBFC with the RBI.
For individuals, F&O trading is considered a non-speculative business. This means you can claim all business expenses directly related to your trading activities while filling out your ITR-3.
Hope this helps!
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