Save taxes on Trading income from F&O

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1

Hello,

I have one doubt regarding trading income - earned by futures and options trading on NSE in India.

1 Currently I am having Individual account and Trading in F&O
2 If my income goes above 2 crores then Surcharge will be 25% and there will be high effective tax rate
3 Wanted to open New Private limited company/LLP but need to know below points -
A) Can I Open One Person Company (OPC) or Company law do not allow to trade and Invest in stock market to OPC.
B) or should I open Normal Private limited company or LLP instead to save taxes.

Please let me know which is better option to save taxes OPC or Pvt ltd company or LLP

Regards,
Rahul

Hello,

I have one doubt regarding trading income - earned by futures and options trading on NSE in India.

1 Currently I am having Individual account and Trading in F&O
2 If my income goes above 2 crores then Surcharge will be 25% and there will be high effective tax rate
3 Wanted to open New Private limited company/LLP but need to know below points -
A) Can I Open One Person Company (OPC) or Company law do not allow to trade and Invest in stock market to OPC.
B) or should I open Normal Private limited company or LLP instead to save taxes.

Please let me know which is better option to save taxes OPC or Pvt ltd company or LLP

Regards,
Rahul

2

Hi @Rahul9, You can open a Private Limited Company to save taxes but there are some pros and cons to it. You can read more about the advantages and disadvantages in the blog below. Let me know if you need any further help. :blush: