Tax implications for a partnership firm doing options trading

Income Tax
1

Could u provide info regarding tax rules and regulation for option trading as a partnership firm

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2

@Vinod_R

Here’s a comprehensive breakdown of tax rules for options trading as a partnership firm:

Business Income Classification:

  • F&O trading is considered non-speculative business income
  • Must maintain regular books of accounts

Tax Rates Applicable:

  • Partnership firm taxed at flat 30%
  • Plus applicable surcharge and education cess
  • Partners receive income as share of profit (exempt in their hands)

Compliance Requirements:

  1. Advance Tax:

    • Pay quarterly if tax liability > ₹10,000
    • June 15th (15%)
    • Sept 15th (45%)
    • Dec 15th (75%)
    • March 15th (100%)

  2. Audit Requirements:

    • Tax audit applicability check

  3. Loss Treatment:

    • Business losses can be carried forward for 8
      years
    • Can be set off against any business income

  4. TDS Compliance if any nature of payment upto
    31.3.25 ( From Financial Year 2025-26
    mandatory compliance requirement hence apply
    for TAN and make TDS compliance as any
    Remuneration and Interest received by partner
    required TDS)