Imposto de renda sobre o comércio forex na índia

Como pagar imposto sobre a renda Forex.
Qual é o valor do imposto a pagar sobre as opções que expiram no dinheiro?
Onde pagar o imposto.
Pagamento de taxa.
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Imposto de renda na negociação forex na Índia
Sendo da Índia, tive muitas dúvidas sobre aspectos legais do comércio de Forex. Então, aproveitei a oportunidade para investigar e encontrar respostas se o Forex Trading for legal ou ilegal na Índia.
Eu não sou um especialista jurídico, daí minhas respostas neste breve comentário não são escritas para advogados, mas para pessoas comuns que procuram operações de Forex na Índia. Assim, esta pesquisa curta baseia-se em uma série de breves conversas com especialistas locais, lendo o regulamento do governo sobre comércio de ETF e negociação de futuros para descobrir se o Forex Trading é ou não legal ou ilegal na Índia.
Primeira pergunta: você pode negociar Forex na Índia?
A resposta comum e mais direta para esta questão é, é claro: & # 8211; & # 8220; há uma vontade lá & # 8217; s uma maneira & # 8221 ;.
Você pode negociar Forex na Índia com intercâmbios indianos (NSE, BSE, MCX-SX) que oferece instrumentos Forex. No entanto, os intercâmbios indianos oferecem atualmente os pares USDINR, GBPINR, JPYINR e EURINR para fins de negociação.
Forex Trading na Índia.
Se você é um residente indiano e deseja trocar forex, não pode trocar todos os instrumentos, como mencionado acima. Assim, em breve, o mercado global de Forex é como não tão global na Índia. Embora, o mercado de divisas (forex) seja um mercado global descentralizado para permitir a negociação de moedas (comprar e vender trocas de moeda), há países que vêem esse mercado descentralizado como uma ameaça à soberania. Assim, devido a questões de soberania, o governo indiano tem operações de Forex limitadas na Índia.
Por que precisamos do mercado cambial?
O mercado cambial ajuda tanto o comércio internacional como os investimentos através da conversão monetária. Por exemplo, uma empresa nos EUA quer importar mercadorias da Índia, a empresa dos EUA tem que pagar os bens importados em Rúpias indianas, mas sua renda primária é em dólares americanos. Muitos comerciantes de varejo podem ou não saberem que a moeda estrangeira apoia a especulação direta. A avaliação relativa ao valor das moedas, especulação baseada no diferencial da taxa de juros entre duas moedas.
"Escrever leis é fácil, mas governar é difícil".
Assim, o governo da Índia não proibiu o comércio de Forex, mas limitou a negociação para os residentes indianos para negociar apenas pares de moedas marcados contra INR (Rúpia Indiana). Como residente indiano, enquanto você estiver negociando através de uma corretora indiana, que permite o acesso a bolsas indianas, como NSE, BSE, MCX-SX e fornecer acesso a derivativos de moeda é inteiramente legal. Esses instrumentos negociáveis ​​são EURINR, GBPINR, JPYINR e USDINR.
Mas, o Banco de Reserva da Índia, em 10 de dezembro de 2018, permitiu que trocas ofereçam contratos de futuros em moeda cruzada e opções cambiais negociadas em troca em mais três pares de moedas. O RBI permitiu trocas para oferecer contratos de futuros de moeda cruzada. As opções cambiais negociadas em bolsa nos pares de EUR-USD, GBP-USD e USD-JPY com efeito imediato.
Por que a Índia está limitando a negociação Forex?
Para responder a pergunta # 8211; & # 8220; Por que a Índia está limitando o comércio Forex? & # 8221; precisamos examinar a principal razão por trás da declaração do RBI.
Então, vamos estudar a lógica por trás do Reserve Bank of India (RBI). Quando você troca EURUSD com o & # 8220; non Indian & # 8221; comerciantes / corretores, se e quando você perder, você compraria USD da RBI. Isso resulta em um aumento no déficit da conta corrente (falta de reserva de moeda estrangeira). Se todos na Índia negociarem cambiais com corretores estrangeiros e comerciantes fora da Índia, com a notória natureza da negociação, onde a maioria dos comerciantes acabou por perder, a RBI perderá uma quantidade substancial de dólares americanos. Para contrariar essa saída de dólares americanos, o governo indiano então obrigou-se a comprar mais dólares americanos, vendendo INR a taxas mais baratas, levando à desvalorização do INR. Daí, a lógica simples por que o comércio de Forex na Índia é limitado.
Trading USD vs EUR na Índia.
Você se lembra, acima, eu mencionei & # 8220; há uma vontade lá & # 8217; s uma maneira & # 8221 ;, isso é exatamente verdadeiro no caso de negociação Forex na Índia. Supondo que você deseja negociar EURUSD, USDJPY ou EURJPY ou outras combinações possíveis, mas sua troca local não oferece esse instrumento.
Neste caso, você pode trocar USDINR e EURINR que o INR seja eliminado e, tecnicamente, acabar negociando USD vs. EUR. No entanto, há uma grande desvantagem de negociar Forex através de cruzamentos desta forma e é o aumento nos custos de transação e, muitas vezes, falta de liquidez.
Enquanto isso, você deve notar que as plataformas CFD não são legais na Índia, portanto, de uma perspectiva mais ampla, a negociação sobre alavancagem não é permitida na Índia. Você, como comerciante, deve conhecer seus limites e agir em conformidade. Até agora, o governo realmente não criticou os comerciantes de varejo, no entanto, houve grandes medidas de repressão contra vários corretores que operam ilegalmente na Índia.
Houve corretores regulamentados e não regulamentados tentando estabelecer seus ramos na Índia sob diferentes nomes, desde academias de educação até escolas de treinamento ou agências de consultoria. Essas entidades muitas vezes se afastam com suas atividades de alguns meses a alguns anos até que alguém as informe às autoridades locais. Como o ataque xDirect do escritório indiano no início de 2018.
Lista de países O comércio de Forex é restrito.
Bielorrússia Bósnia e Herzegovina Herzegovina Colúmbia Britânica (Canadá) Bulgária Burma China (Regulamentação estrita e proibição total do evento) Cuba Indonésia Costa do Marfim Irã Liberia Macedônia Malásia Montenegro Myanmar Nigéria Coreia do Norte Paquistão Quebec (Canadá) Romênia Coreia do Sul Sri Lanka (Recentemente relaxado) St. Helena Sudão Síria Ucrânia Zimbábue.
A Índia não é o único país a restringir o comércio Forex. Na verdade, o comércio de Forex é restrito em cerca de vinte países no mundo. Esses países promovem a propaganda para expulsar seus cidadãos da negociação Forex (on-line ou off-line). Muitas vezes, você vê alguns desses países pintando a imagem para o oeste como um mal.
Para a Índia, a negociação em outros pares, em vez de ser definida pela RBI, é ilegal ao abrigo da Lei da FEMA. Negociar forex na Índia através de um corretor online é uma ofensa não bailable na Índia. Com muitos corretores on-line que confundem os investidores de varejo que reivindicam a negociação forex realizada legalmente por meio deles. Além disso, a RBI afirma que as restrições estão lá para evitar que os investidores / comerciantes de varejo percam grande tempo. No entanto, muitos cidadãos da Índia acreditam que o principal motivo é parar a saída de moeda. Entretanto, acredito que o RBI irá diminuir seus limites no próximo período, já que a Índia está passando pela mudança financeira.
Penso que sentimos alguma coisa? Deixe-nos saber na seção de comentários abaixo.

Renda da Forex Trading.
Jigar Ver Perfil My Other Post.
Estou tendo a confusão de que, se eu ganhar renda da Forex Trading na Índia, sob a qual minha receita seria tributável e qual seria a taxa de imposto e as implicações fiscais por trás disso?
Por favor, me ajude.
Ratan Deep Saxena Ver Perfil My Other Post.
se a pessoa se entregar no negócio da negociação forex, tais rendimentos devem ser tributáveis ​​sob o título "Business Income". Em outro caso, pode ser coberto sob a cabeça " Renda de outras fontes ". A taxa de imposto aplicável aplicável ao indivíduo é cobrado sobre esses ganhos.
Sunil Ver Perfil Meu Outro Post.
Concordo com Ratan.
Se é sua vocação que você faz de forma contínua, em seguida, renda de negócios / profissão. Se for uma das transações, as receitas de outras fontes.
A taxa de imposto depende da forma como você se organiza. Se você comercializar como indivíduo / proprietário, sua renda é tributada de acordo com suas taxas de laje. Se você organizar o negócio como uma empresa de parceria ou empresa, as taxas aplicáveis ​​para essas entidades se aplicam.
Jigar Ver Perfil My Other Post.
Obrigado por responder. Ouvi dizer que isso é iligal na Índia. É verdade?
Ratan Deep Saxena Ver Perfil My Other Post.
Na Índia, apenas uma pessoa autorizada pelo Reserve Bank of India nomeada como "pessoa autorizada" só estão autorizados a negociar no forex. está regulamentado pela Lei da FEMA de 1999.
Sunil Ver Perfil Meu Outro Post.
Verdade. Eu assumi que Jigar era um corretor FOREX licenciado.
Ilegal ou não, o departamento irá taxá-lo de qualquer forma. Para os rendimentos obtidos ilegalmente, você está obrigado a pagar o imposto ainda. Sim, ele será processado sob a FEMA pela RBI se ele tiver feito qualquer coisa para violar.
Jigar Ver Perfil My Other Post.
Obrigado. Eu estava planejando trocar no Forex, mas ainda tenho que invadi-lo.
RAKESH Ver Perfil My Other Post.
Alguém pode me explicar o que é forex trading. Se é qualquer coisa relacionada com as vendas de exportação e quando a transação é liquidada, acabamos com flutuação cambial, isto é chamado de negociação forex.
O comércio de Forex não está relacionado com as vendas de exportação. Se algum comércio de moeda estrangeira, então, ele irá chamar de negociação Forex. As vendas de exportação são diferentes da venda de exportação, o lucro / perda não depende da variação da taxa de câmbio forex é apenas uma questão de chance, quando, como na negociação forex, o comerciante depende do lucro de flutuação e amp; perda.
rahul chauhan Ver Perfil My Other Post.
se for o negócio da pessoa, será o rendimento sob a posição PGBP e se for a renda casual do avaliador, então será tributável sob a receita básica sob outras fontes.

O que é Forex Trading na Índia? Legal ou não?
Poucos dias atrás, recebi uma mensagem de um representante da empresa no Facebook, obrigando-me a oferecer a "OPORTUNIDADE INTERNACIONAL DE NEGÓCIOS" # 8221; chamado FOREX TRADING para o meu cliente. Ela afirmou que os rendimentos variam de 8% a 95% em um mês. Então, deixe-nos olhar para esta oferta se isso é legal ou não.
O comércio de Forex na Índia é ilegal onde não há envolvimento da Rúpia Indiana. Você pode negociar com envolvimento de Rúpias indianas como USDINR, EURINR, GBPINR ou JPYINR.
A razão para compartilhar esta informação com todos vocês é, no futuro você pode estar sob essa armadilha. Então, pensei em compartilhar essas informações e informá-lo sobre o que realmente são regulamentos indianos sobre esta negociação Forex. Abaixo está a discussão interessante. (Nome do executivo e Companhia que ela representa mudou.)
Empresa Executiva - Olá senhor, eu sou Shilpa aqui. Trabalhando para uma Multi National Company chamada ABC Consultant. Eu tenho que saber que você é o planejador financeiro, então eu queria discutir com você proposta comercial sobre commodities internacionais e negociação de moeda!
Os lucros que você ganha são em Dólares e os rendimentos variam de 8% a 95% em um mês. Esta é a única indústria em que você pode ganhar enormes ganhos em curto prazo.
Estarei ansioso para a sua resposta, senhor!
Basavaraj - oh com certeza & # 8230; vamos começar agora.
Executivo da empresa - Você pode me enviar seu número de contato para que eu possa chamá-lo e explicar a imagem geral do ABC.
Basavaraj - Deixe-nos discutir primeiro a questão regulatória & # 8230 ;. Em que regulamento essa negociação será realizada?
Empresa Executiva - somos empresa do grupo do ABC International Consortium (HIC), ABC é um membro registrado da Agência Reguladora da Indonésia.
Além disso, ABC também está registrado com: Membro da BAPPEBTI da Câmara de Solução de Derivados da Indonésia Membro da Jakarta Futures Exchange Membro do Comitê de Comércio de Mercadorias Com sanções obtidas para Transações no Exterior, a HIF agora podemos oferecer aos nossos clientes um espectro mais amplo de oportunidades de negociação e investimento.
Basavaraj - Estou lhe perguntando, para operar na Índia sob qual regulamento você está registrado? Quem regula o comércio gerado na Índia? Esqueça a Indonésia ou outros países, eu estou morando na Índia e vamos discutir quem vincula essas transações?
Executivo da Companhia - Senhor, temos nossa sede em Jacarta, por isso estamos diretamente regulamentados pela troca.
Os índios residentes podem negociar moeda através de várias instituições financeiras indianas hoje. No entanto, atualmente, os índios residentes não podem negociar em pares de moedas que não envolvem a Rúpia indiana (como o USD / GBP) com qualquer banco agendado ou outra agência que caia sob a supervisão regulamentar de O Banco da Reserva da Índia Portanto, para negociar esses pares de moedas, um terá que negociar negociações cambiais fora da Índia.
Basavaraj - Jakarta está bem # 8230; mas o dinheiro será investido da Índia & # 8230 ;. e você está afirmando que você tem um escritório na Índia. Então, em última análise, você estará sob regulamentação. Então, quem regula suas pessoas? Ou no futuro minhas transações?
Executivo da Companhia - RBI, de acordo com as disposições da Circular N ° 64 da AP (Dir Series) datada de 4 de fevereiro de 2004, Circular nº 24 datada de 20 de dezembro de 2006, Circular nº51, de 8 de maio de 2007, Circular nº9 datado de setembro 26,2007 e Circular nº.05 / 2009-10 de 1º de julho de 2009, concedeu permissão aos indivíduos residentes para que pague livremente até US $ 200.000 por ano civil para aquisição e detenção de imóveis, para investir em ações, ações, fundos cambiais, instrumentos de dívida, opções de ações e opções de índice fora da Índia sem a aprovação prévia do Reserve Bank of India. Os indivíduos também podem abrir, manter e manter contas em moeda estrangeira com um banco fora da Índia para fazer remessas ao abrigo do Plano sem a aprovação prévia do Banco de Reserva.
Basavaraj - assim que você está afirmando que ninguém irá regulamentar e, de acordo com a lei da terra, isso não é legal?
Executivo da empresa - É legal, estamos fazendo CFD, por exemplo, contrato para a diferença Na Índia, forex não é legal mas não CFD Oferecemos e pedimos apenas a diferença de preço.
Basavaraj - A partir da resposta acima dos indivíduos residentes, que pagam livremente até US $ 200.000 por ano civil para aquisição e detenção de imóveis, investir em ações, ações, fundos negociados em bolsa, instrumentos de dívida, opções de ações e opções de índice fora Índia sem aprovação prévia do Reserve Bank of India e # 8221; A troca de moeda estrangeira está faltando & # 8230; Você pode elaborar sobre isso? Então, você está concordando que a negociação forex na Índia não é legal?
Empresa Executiva, sim! Estamos em CFD & # 8217; s. Não é forex trading.
Basavaraj - again & # 8230; . este CFD é legal? Sob a regra de quem você faz essa negociação? Espero que este link seja um abridor para você pessoalmente.
Executivo da empresa - não é legal. Estamos negociando de acordo com as instruções da BAPPEBTI (SEU COMO SEBI na Índia). E nós temos o nosso regulamentado pela Jakarta Futures Exchange.
Basavaraj - Preciso de um regulador indiano, não de Jacarta ou de qualquer outra fonte de país não regulamentada. Se algum problema com a sua empresa, o padrão da parte contrária ou alguma outra questão técnica, você quer dizer que preciso abordar Jakarta Future Exchange ou BAPPEBTI?
Simplesmente para dizer & # 8230; . você bateu a porta errada # 8230, desculpe.
Executivo da empresa - Senhor na Índia, o que você trocou, quando você perfurou a ordem para a Bolsa de Bombaim e não precisa ir a Bombaim para negociar. Então, aqui, somos diretamente membros de Jacarta.
Basavaraj - Agree & # 8230; . Eu estou perguntando se eu preciso processar sua empresa ou o meu padrão para o meu comércio, a quem eu preciso abordar? Regulador de Jacarta?
Executivo da Companhia - A partir de agora, tais coisas não aconteceram. Estamos registrados na Índia, temos escritórios físicos em Bangalore, quaisquer que sejam as consultas que você possa consultar aqui apenas.
Basavaraj - Você pode ter se registrado como uma empresa, mas você está registrado como corretor com o SEBI? Além disso, garanta que você providencie que nada acontecerá no futuro se não acontecesse no passado.
Executivo da Companhia - Não temos nada a ver com o mercado indiano, estamos no mercado internacional, então não precisamos nos reportar ao SEBI. Na verdade, o RBI e o SEBI devem se reportar à BAPPEBTI. Então, somos diretamente membros disso. Amanhã, mesmo se a Colheita não estiver lá, a BAPPEBTI lhe dará 2 opções como para continuar a negociação com outro corretor ou você pode retirar o montante total.
Basavaraj - Oh é isso? Eu não sei disso, o RBI e o SEBI serão submetidos à BAPPEBTI? Você pode fornecer a prova dessa afirmação?
Empresa Executiva - Você receberá duas cópias da documentação de Jacarta para que tudo esteja na documentação.
Basavaraj - não estou pedindo a documentação # 8230 ;. Por favor, limpe minha dúvida sobre o regulador. Você disse que o RBI e o SEBI irão sob BAPPEBTI & # 8230 ;. . então me forneça uma prova, então eu serei seu primeiro cliente.
Empresa Executiva - RBI e SEBI relacionadas à Índia, mas BAPPEBTI é órgão regulador da Ásia. A RBI deu permissão para que os indivíduos residentes pagassem livremente até US $ 200.000 por (agora é revisado para 75, 000 $) ano calendário para aquisição e detenção de imóveis, para investir em ações, ações, fundos negociados em bolsa, instrumentos de dívida, opções de compra de ações e opções de índice fora da Índia. Qualquer coisa acima, temos que pedir a permissão da RBI.
Basavaraj - Mas em linhas acima, onde eles incluíam o comércio forex? BAPPEBTI está regulando toda a Ásia? São assim que você pode fornecer a prova?
FINALMENTE & # 8230; NÃO RESPONDER AO LADO OPOSTO 🙂
Abaixo estão alguns links que garantem que o comércio forex na Índia não envolvendo a Rúpia Indiana é ilegal.
Uma lista completa de FAQs Instalações Forex para Residentes (Pessoas) por RBI (última atualização em 30 de setembro de 2018).
Esperamos que os links acima nos forneçam uma indicação clara de que tal negociação usando plataforma on-line é ilegal. Mas tenho dúvidas sobre a empresa acima mencionada, de cujo representante recebi uma ligação é de Bangalore e como eles estão oferecendo tão abertamente sem medo de regulamentos. Levante os reguladores. Don & # 8217; t agir ultimamente, como o que você fez com o Sahara, Harshad Mehta, Stock Guru India ou Saradha Chit Fund.
Basavaraj Tonagatti.
Basavaraj Tonagatti é o homem por trás desse blog. Ele é um Planejador Financeiro Certificado Independente (PCP), engajado em blogs desde 6 anos. O blog BasuNivesh é classificado como um dos 10 melhores blogs de finanças pessoais da Índia. Ele não está associado a nenhum fornecedor de produtos / serviços financeiros. O objetivo deste blog é "espalhar a consciência das finanças pessoais e torná-las a tomar decisões financeiras informadas". Observe que as visualizações dadas neste Blog / Seção de Comentários / Fórum são esclarecimentos para referência e orientação dos leitores para explorar mais sobre os tópicos / consultas levantadas e tomar decisões informadas. Estes não devem ser interpretados como conselhos de investimento ou opinião legal ".
Quero saber se é legal negociar crypotcurrency entre a Índia e fora do intercâmbio online da India por oportunidade de arbitragem. Neste caso, eu só quero manter o dinheiro na troca indiana e manter o comércio com uma moeda para arbitragem. Minha consulta é a seguinte.
1. É legal ou permitido? Estou pronto para assumir riscos.
2. Qual será a implicação tributária em ambos os países?
3. Será que vai infringir a lei sob FEMA e lavagem de dinheiro?
Brijesh - A partir de agora não é legal nem ilegal. Se algum tempo no futuro departamento de TI lhe solicitar a fonte de dinheiro, então você deve estar pronto para responder. Quanto à tributação, é imposto de ganho de capital para você.
hai, eu sou do bangalore ... e eu negocio com XM broker & # 8230; trading, commodity, forex e tudo, é seguro / gud & # 8230; ou há algum prblm com este & # 8230 ;. kinldy me sugere # 8230 ;.
Raj-Simple é verificar se eles estão registrados com o SEBI ou não.
Eu acho que você não tem idéia sobre o forex. O comércio de Forex é legal. Eu sou um comerciante. Agora eu estou negociando no forex. Não publique palavras erradas para o público se você não tem idéia.
Priyaranjan - Posso saber qual corretor com quem você está negociando. Deixe-me saber se ele está registrado com o SEBI ou não. Então, discutimos sobre quem está certo e errado. O que você diz? 🙂
eu não sabia das leis indianas no que diz respeito à negociação forex e abri on-line on-line. Eu até mandei 400 dólares. Agora eu não quero trocar depois que eu conheci os regulamentos. Era uma armadilha de empresas internacionais e entrei nisso. Eu sou inocente, como foi feito de maneira errada.
Neeraja-eu respondi ao seu e-mail.
Hariom Basavaraj T.,
Até estou com o mesmo problema. como Neerja kumar, estou com bforex, UK co. Eu também transferi 200 dollors, mas ainda não tenho lucro de retirada, cheguei a conhecer os regulamentos desde oito dias, daí eu parei de negociar e solicitando-lhes documentos legais para o comércio posterior, mas não obtendo uma resposta adequada, então você pode me ajudar Este assunto, como resultado disso, se for legal também, diga como?
Devaraj-Catch a pessoa que te apresentou.
O que devo fazer agora, posso retirar a minha quantia, por favor me guie, senhor.
Devaraj-Better para retirar imediatamente.
Devo retirar com lucro feito também, ou o montante depositado apenas, e se eles solicitarem alguns detalhes para a retirada, posso dar?
Devraj - Você pode retirar o montante total. Por que eles perguntam e por que você tem que explicar?
Olá, senhor, alguns dias atrás, uma pessoa veio até mim e me ofereceu uma proposta de depósito de contas ou FD (Depósito Fixo). a condição era: -
Se eu fornecer uma conta INR 1Cr para ele, segurando ele me dará 3Cr INR com antecedência através de RTGS.
Ele usará o dinheiro da conta de retenção na negociação de Forex. Não sei se é esse um processo genuíno ou não?
Você poderia dar uma luz nela?
Prashant - são alegações falsas. Nunca confie em tais reivindicações. Se ele ainda o insistir para o investimento, você pode se queixar contra ele.
Estou interessado em saber sobre o comércio de Forex ... se você me tiver alguma sugestão ou conselho, por favor, isso me ajudaria a aprender Forex trading & # 8230;
Eu preciso saber se podemos fazer negociação de commodities com corretor no exterior como residente indiano?
Animesh-Por que com o corretor no exterior?
Eu vi um tamanho de lote muito baixo e baixa perda e também a quantidade necessária é menor, o que está em.
O Animesh-Trade é seu próprio risco.
Obrigado pela resposta rápida, eu gosto de saber que tipo de risco?
Animesh - Como você os pega em caso de fraude?
Obrigado pela resposta, minha principal preocupação é que podemos fazer ou não, a FEMA será um problema ou não neste caso.
Animesh - Muitas leis podem desempenhar os papéis e prejudicá-lo. Por isso, eu disse no começo, vá com seu próprio RISCO. Descanse com você.
é uma ideia sobre o comércio binário & # 8230; .. ou é legal ou não.
O melhor formato plano dos EUA, Reino Unido e outros países permite esse tipo de negociação.
mas lezy indian govt & # 8230; nit passa qualquer regra sobre comércio binário & # 8230 ;.
Yogesh - eu não estou ciente disso.
bom Dia senhor.
Qual é a sua opinião sobre a pessoa que não conhece tudo isso sobre o forex e ele / ela pode entrar na negociação forex e fazer negociação forex agora?
Quero informá-lo de que, há 2 anos, comecei a negociar em 4xp com 250 dólares (aproximadamente 13000) Rs, mas depois de alguns dias perdi tudo à medida que a empresa saiu do escritório da Índia.
Chandan - Obrigado por compartilhar sua experiência ruim. Deixe os outros, pelo menos, entender sua experiência.
Senhor, como a negociação começa no Forex, nosso país não permite que o corretor autorizado na Índia fique assim, então eu começar a negociar na forex me responder.
A minha pergunta é se alguém está usando skrill ou paypal para transferir indiretamente dinheiro para frente e para trás para negociação binária em corretores confiáveis, como o banco é suposto saber de onde o dinheiro está chegando.
Por exemplo, se eu usar habilidade para transferir dinheiro de meus negócios para o meu banco a / c, o nome dos bancos da empresa descobrirá skrill. Não há nenhuma maneira possível de esquiar a informação de que era dinheiro forex e eles nos pedem que simplesmente podemos dizê-lo pelos serviços que eu forneci de freelance, blog, afiliação etc.
Mayank: primeiro verifique a CONFIANÇA do seu corretor confiável e depois atue.
Obrigado pela resposta tão rápido senhor.
Digamos que o corretor é 100% confiável por alguns motivos e também não vou colocar apenas uma pequena quantia do que a minha teoria correta ou ter algum buraco.
Desculpe por erro, quero dizer, eu não colocarei dinheiro mais de 10 $, nem muito dinheiro.
Mayank - Minha resposta simples para todos esses comentários para esta publicação em particular é # DOWN SEJA SEU PRÓPRIO RISCO, PORQUE NO FINAL É O SEU DINHEIRO, MAS NÃO É MINE & # 8221 ;.
Sir Evan, você pode nos sugerir corretor jurídico da negociação forex. Não somos profissionais como você.
Jagdeep - Para você informações, não sou o corretor profissional 🙂
Mas senhor, você pode nos ajudar para corretor direto, porque você tem muitas habilidades que você pode compilar corretores policiais nos ajudar. Você não é corretor, mas você já está nos ajudando a aumentar a fraude do forex.
Jagdeep - Existem milhares de corretores. Como posso? É o seu conforto que você pode escolher no final.
Posso trocar com par INR / USD em iforex. in, forex, mtraders. in etc? legalmente?
Shubhanshu-Se eles estão registrados com SEBI, então por que não?
Obrigado por isso. Uma pergunta, entretanto: posso investir em MBS nos EUA sentados aqui na Índia. Como isso é feito? É legal e é regulamentado. Está presente no nosso sistema (mesmo ilegalmente?).
Ashok-O que é MBS?
Isto é sobre o comércio de Forex na INDIA pelo nome da empresa SIX Capital (Singapore Based). SIX Capital está fornecendo treinamento de negociação Forex e, após o treinamento, eles selecionarão para negociação como comerciante. Aqui, mais de 200 estudantes estão participando do treinamento deles e a empresa vai abrir seu escritório em Mumbai muito cedo para negociação Forex. Mas, como você já falou anteriormente, o comércio de Forex na INDIA NÃO INCLUINDO INR IS ILEGAL e isso é absolutamente correto, de acordo com o regulamento RBI. Minha pergunta para você é que devo sair desse treinamento ou questioná-los sobre esse problema.
ou é possível que eles possam fazê-lo por terceirização.
Por favor, sugira-me sobre isso, esperando por sua resposta.
Sumit-Por favor, questione os problemas do que eu disse acima. Deixe-os mostrar o registro SEBI. Caso contrário, você informa que você primeiro escreve uma carta à SEBI sobre sua empresa. Se o SEBI não tiver problemas, então você continuará. Eu acho que fugiram 🙂
Oi, estou atualmente ficando 7 meses no exterior e 5 meses na Índia para qualquer ano financeiro.
Tenho uma conta NRI e recebo as remessas do meu salário no exterior.
Deseja iniciar a negociação FOREX.
A renda que recebo não é tributável e planejo investir em FOREX.
Posso começar a negociação forex sem problemas legais.
Aditya - Em seu próprio risco SIM.
O comércio de commodities ((xau / usd) é legal? A alavanca é 1: 100.
Purvi-Primeiro verifique se o corretor que oferece essa plataforma está registrado com o SEBI ou não. Isso também verifica com o portal SEBI. Se ele é registrado com SEBI, então legal.
não é, mas já fiz investimentos. O que eu faço agora? perdi 75% do meu investimento.
Purvi: você não pode fazer nada além de uma BATALHA LEGAL GRANDE. Prepare-se se precisar de dinheiro de volta. Espero que você tenha entendido a legalidade de tais plataformas.
Posso declarar-me culpado de quaisquer encargos por investir? A empresa me fez assinar alguns formulários que os libertaram de qualquer responsabilidade que eu suponha.
Purvi: é o que eles fazem. Eles assumem a assinatura e assinamos cegamente esses documentos. Você não será condenado, mas se a quantidade de dinheiro que você perdeu é MAI para você, então sugiro que você dê o passo legal imediatamente.
Por favor, deixe-me saber se eu vou enfrentar qualquer problema que segue abaixo o método,
1. Vou enviar dinheiro para minha conta amiga Índia.
2. Abra a conta forex no nome do meu amigo e ele irá financiar a conta de sua conta estrangeira.
3. Retirar lucro para sua conta externa.
4. Transferir dinheiro para a minha conta na Índia.
Em seguida, pague o imposto sobre o rendimento sobre este montante na Índia declarando como outros rendimentos do negócio (como freelancing, consultando etc.) ou como GIFT.
Sanjay: primeiro tente encontrar um amigo pronto para ajudá-lo neste ato ilegal. Se ele pode se juntar a você. Então, minha melhor sorte 🙂
Bem, de acordo comigo, não é um ato ilegal! É apenas uma maneira de fazer coisas, não nada ilegal.
Abhishek-Advance congratula-se 🙂 Vá frente irmão ...
Aqui está como você pode se queixar contra o RBI.
você terá que enviar-lhes e-mail com detalhes e eles precisam reproduzi-lo dentro de 35 dias.
Você tem alguma idéia sobre os regulamentos para negociação de opções binárias na Índia?
Prateek - eu não estou ciente disso.
Existe alguma plataforma legal para negociar forex na Índia se não devo sair do forex porque eu sou novo no pensamento comercial para ganhar algum dinheiro decente.
Satish-Há muitas maneiras de ganhar dinheiro digno como a equidade.
Olá, senhor, primeiro sinal, obrigado pela orientação ... estou no mercado de commodities, estou recebendo meus fundos pelo corretor diretamente no banco. Eu acho que no mesmo formato, o Forex também funciona. Minha pergunta é # 8220; é possível se o banco ou TI me pergunta a fonte de dinheiro ... se eu disser que ganhere do mercado de commodities se eles vão aceitar ou não eu quero saber. porque a mercadoria é legal ...
Venkatesh - Depende da sua sorte e do seu clima 🙂
Diga-me Forex Trading Oportunidade fantástica é legal ou não?
Acabei de receber uma mensagem sobre uma oportunidade fantástica para investidores em Forex Trading:
1) Min 30 Lacas para. Investimento máximo de 50 lacs.
2) Período de investimento & # 8211; 2 opções: opção de 20 dias e opção de 40 dias.
3) ROI: 60% de investimento após 20 dias (por exemplo: Para 50 investidores Lacs recebe 80 lacs após 20 dias. Lucro de 30 lacs). 4) O acordo será assinado.
5) O ROI será transferido através do RTGS para a mesma conta bancária de onde o investimento é feito.
Kalpana - ainda é ilegal. Se a pessoa está tão confiante de retorno de 60%, então por que ele está correndo atrás dos clientes por investimento? Se isso é o retorno, em alguns meses ele pode ser a pessoa mais rica do mundo. Então, por que ele está implorando para você investir? Basta entender o básico das regras de investimento: 1) Qualquer coisa ilegal é sempre perigosa e pode levar a perda em seu diretor também. 2) O retorno mais elevado sempre leva a um risco maior. Pense e decida.
Olá, senhor, mas ainda há um grande número de pessoas que negociam nos mercados cambiais e corretoras que operam livremente no país, como diabos estão fugindo com isso. Depois de tanto tempo, como é que nenhuma ação foi tomada. Além disso, não acho que os bancos congelem contas como tal também.
Abe - eu não tenho certeza de como eles operam.
Eu sou um NRI hospedado na Arábia Saudita, neste caso, posso trocar mercadorias internacionais? mercado cambial.
Por favor, forneça mais detalhes ou link do site, no meu caso.
Kumar - Confira a legalidade da Arábia Saudita.
Eu sei o significado do RBI & # 8230; por favor, você pode me dizer o significado do SEBI.
Vijai: você pode GOOGLE? 🙂
Prezado Sr. Basavaraj,
Sou engenheiro mecânico com mais de 20 anos de exp.
Quero mudar minha carreira e planejar para persuadir.
uma carreira em finanças ao fazer CFP. Como é o escopo.
e perspectivas de emprego para um profissional CFP na Índia?
Por favor, me dê sua franca opinião.
Desde já, obrigado.
Shivashankar - Cada profissão vem com as próprias coisas positivas e negativas. Ao mesmo tempo, não vou derrubá-lo por não prosseguir com o PCP. As oportunidades são melhores, mas a CFP é apenas uma porta para aprender finanças pessoais. Além disso, considerando a natureza dinâmica do conhecimento, questões regulatórias, você deve optar pelas maneiras com muita sensibilidade.
Me sugerirá as fontes legais do forex e compartilhará a negociação na Índia.
Sanjay-Google o RBI e SEBI Guideliens.
pode ser um site web web legal. Tenho uma conta ativa e deposite 100 $. agora, como eu retiro este mony. plzz, ajude-me.
Brajagopal - Se é SEBI registrado, é legal. Verifique o registro da empresa com o SEBI e siga as regras acima.
E se os comerciantes ganharem o prêmio em dinheiro do prêmio no corretor forex e negociarem com esse dinheiro? Essas retiradas são aceitas na Índia porque não há depósito do final dos comerciantes.
Também se pode considerar ser provedores de sinais através de contas de demonstração e se eles estão ganhando dinheiro com sucesso através do seu serviço de fornecimento de sinal. Isso não tem regras para violar.
Ashvini - Ainda é ilegal (se o dinheiro depositado no comerciante termina ou não). O comércio virtual é diferente e pode haver qualquer tipo de ativo subjacente ao comércio e não há tal restrição.
Obrigado pela resposta rápida. Assim, fornecer serviço de sinal através de contas demo deve servir como trabalho de analista. Existem muitos gerentes de contas que gerenciam fundos de clientes estrangeiros e qualquer remessa para a Índia é considerada como uma renda legal.
Eu sou totalmente novo na negociação e não conheço os termos básicos.
Eu fiz uma conta no site da IFOREX e eu disse ao representante do site por telefone por telefone que o FOREX é ilegal na Índia. Ele disse que se você investir em Gold / Platinum, etc, que envolvem transação no INR, então não é ilegal. Ele me enviou o seguinte link para verificar que até US $ 250000, é legal:
Pls me guia o que devo fazer.
Sachin - É puramente ilegal e se eles estão fazendo o comércio com uma combinação de INR, então deixe-os mostrar o registro do SEBI. O link diz que o investimento não especifica forex.
É legal abrir uma conta de demonstração (lidar com dinheiro virtual) com um site de negociação de forex no exterior.
Jaskaran - Se é DEMO sem transações de dinheiro como plataformas de negociação virtual, então não há problemas.
Um corretor pode ser registrado com a Sebi e estar trabalhando em um site de negociação forex no exterior? se assim for, as transações e negociações em pares envolvendo a rupia indiana serão consideradas legais.
Mukul - Promover tal forex também é ilegal.
Ei senhor, minha irmã mora nos EUA se eu depositar dinheiro no forex dos EUA e operar o comércio forex da Índia, é legal?
Jignesh - Como você se certifica de voltar esse dinheiro na Índia? Quais os motivos que você diz ao Departamento de TI ou Banqueiro? Quais serão as implicações fiscais para a sua irmã nos EUA? Se você tem respostas para todas essas questões?
Senhor Qual é a melhor alternativa do Forex Trading na Índia com Legalidade e qual é a idade mínima para fazê-lo.
Aman-Qualquer adulto pode começar a fazer negócios. Você pode trocar comércio de moeda.
Ei, diga-me, posso fazer Forex Trading via Nord Forex India Pvt. Ltd.?
RAvi - Se estiver dentro do quadro legal que eu mencionei acima, então você pode fazê-lo.
Sir & # 8230; ele está dizendo que eu posso fazer no INR, que é legal, eu acho que sim, eles estão usando a plataforma NOW para negociar no INR & # 8230; eu tenho que dar-lhes um cheque para abrir minha conta e amp; último extrato bancário de seis meses & # 8230; então eu posso ir para este & # 8230; Sugerir & # 8230; & amp; também me diga quando ele se tornará ilegal.
Ravi-Verifique se eles são corretor registrado com SEBI.
Um comerciante privado na Índia está pedindo algum dinheiro para fazer algumas coisas de forex. Eu não sou nada em finanças e não sei nada sobre finanças. Mas ele está oferecendo 10% a cada mês no investimento. Ele é conhecido por meus parentes. É tão lucrativo que ele pode me dar 10% a cada mês. Ele não tem nenhum escritório, ele está negociando de sua casa. Por favor, guie.
RSA - Meu conselho simples é ficar parado. Mais retorno significa mais risco. Se ele está tão confiante em oferecer-lhe mensalmente 10%, então por que ele está implorando dinheiro?
Uma coisa que eu gostaria de falar sobre negociação forex legal ou não?
& gt; O RBI tem poderes absolutos para decidir e regular qualquer atividade financeira na Índia.
& gt; Como eles (RBI) não mencionaram exatamente nada sobre o status legal da negociação FOREX.
& gt; Então, as pessoas estão chegando com sua própria teoria de & # 8221; Legal & # 8221; ou & # 8220; não legal & # 8221; .
& gt; Devido à ausência de qualquer status exato de legalidade da RBI, algumas pessoas não estão fazendo isso e outros estão fazendo isso sem nenhum problema.
Vinay-Por favor, consulte os links que forneci, em seguida, decida se o RBI é específico sobre este problema ou não.
Recebi uma ligação da svsfx. Eles alegaram ter uma empresa subsidiária na Índia, que gerencia suas finanças, de acordo com as normas rbi e sebi. Inicialmente, pensei que isso fosse legal (eu sou um pouco burro !!) & # 8230; abriu uma conta com eles. Mais tarde eu entendi que o que eles estavam fazendo é na verdade transações hawala. Eles têm uma conta na Índia e nós depositamos dinheiro em inr que é convertido em dólares eo processo é o mesmo quando temos que fazer uma retirada.
1.O problema é que eu abri uma conta com svsfx.
Como eu deveria sair disso.
Quais serão as conseqüências se eu não operar a conta ou se eu retirar o dinheiro que depositei e deixar o resto?
Rbi circular diz forex é permitida, mas alavancar é ilegal. Até que ponto isso é verdade.
Arjun - Entre em contato com os mesmos funcionários para fechá-lo. Não sei muito sobre isso. Além disso, espero que outros leitores desta postagem compreendam agora a minha opinião de como essas empresas operam ilegalmente.
deat sir plz me diga que a negociação forex é legal ou não e por que porque o ufx excuente diz que não há problema quando você tira 10 lac abaixo do valor e nenhum inquérito rbi acima dele 10 transacção lac rbi proibido, então eu quero 100 dólares de investimento não superior, então pode Eu faço isso ou não e, se eu fizer isso, então, qual tipo de punição tem que me fazer responder por mim porque muitos não. as pessoas estão negociando no estrangeiro que vivem na Índia.
Kamal - eu expliquei a legalidade já.
Por favor, diga-me que muitas pessoas estão negociando no estrangeiro que vive na Índia e ainda não há ações legais tomadas por nosso governo por quê? E diga-me que posso negociar em moeda futura e o banco também envolveu transações estrangeiras e nenhuma ação por elas tomadas. Em menor quantidade, posso trocar no forex ou não e fazer o que acontecerá.
Kamal - Se Govt agiu ou não é deixado para ele. Mas aqui estou colocando a legalidade. O resto é deixado com você para decidir.
é realmente conhecedor do blog # 8230, além do forex, há muita informação sobre o planejamento de investimentos, mas posso saber porque o comércio forex é ilegal na Índia e # 8230; eu tento descobrir por que ele é ilegal? # 8230; embora haja um país mais imerso Como a india dá permissão para negociar no mercado forex & # 8230;.forex broker, eu acho que não é um trapaceiro, eles são regulados por alguma autoridade projetada como FCS, MIFID, CYSEC, # 8230; e muito ... eles têm sua plataforma adequada e adiantamento plataforma para negociação # 8230; seu depósito e processo de retirada também muito esay & # 8230; agora a pergunta vem & # 8230; como eu sei sobre isso & # 8230; eu estava em Dubai por volta de alguns anos e # 8230; revivei uma ligação de um dos representante do corretor forex, ele me ensina alguma coisa sobre isso ... semana passada eu fiz pesquisas nisso e # 8230: primeiro eu investei 5 usd que eu perdi com em 1 mês e # 8230; novamente eu deposito 5 k usd e 4 meses eu trado com Eles depois de 4 meses retirei 46 k usd & # 8230;
O corretor também estava chateado comigo, mas ganhei dinheiro com o meu conhecimento & # 8230;
então descubra alguma maneira de fazê-lo ... não vai contra a regulamentação ... mas haveria uma maneira como os grandes ministros corruptos e # 8230; fazendo.
Arun - Se os grandes governos corruptos violarem a lei, nós também? O Forex é apenas o modo de ganhar dinheiro? Há oportunidades suficientes para os comerciantes na própria Índia, então, por que isso SOMENTE?
Hyip é legal na Índia.
Kishore - o que você quer dizer com o HYIP? Nunca ouvi falar sobre isso.
Programa de investimento de alto rendimento (hyip) semelhante pago ao clique (ptc)
É legal ministrar bitcoin da Índia? Outra questão é: se eu transferir o dólar do dinheiro perfeito para o paypal e depois para a minha conta bancária, existe algum problema de regulamentação indiana?
Basant - não estou ciente de muita coisa sobre a legalidade de Bitcoin. Obviamente, será problema se for dinheiro ilegal, primeiro o seu próprio banco solicitará a fonte de dinheiro.
Senhor, o banco solicitará a fonte de dinheiro se o valor da transação for muito pequeno, cerca de 20000 por mês?
senhor, dê alguma solução.
Basant-Sim, eles perguntam especialmente se é de fora do país.
O que acontecerá se eu disser isso a partir da mineração bitcoin? E, por favor, sugira o que seria seguro dizer sobre a origem?
Basant - Então eles querem saber se a fonte que você disse foi adequada ou não. Desculpe, não estou aqui para quebrar a lei e ajudá-lo. Em vez disso, sugiro que você opte pela maneira legal. Agora fica com você.
Eu só quero saber sobre o regime liberalizado de remessas? por favor, explique.
qual seria o castigo máximo para esta atividade como incapaz de dizer a fonte de renda ou fonte de renda ilegal?
Basant-Contact Bank Officials.
Oi Basavaraj Tonagatti,
Seu artigo dá uma visão clara sobre o Fx. Você tem alguma sugestão ou visão sobre os ditos de Kumar em 1 de março de 2018 às 12:20.
Ram-1) Por que eu tenho que ir para estrangeiros por causa do Forex Trading? 2) Formação da empresa para um indivíduo para o mesmo de Forex Trading? Parece ser um pouco mais exicitado para fazer a qualquer custo 🙂 3) Ele parece ser comerciante ou alguém da empresa de corretagem, que alegando que apenas a negociação FOREX é uma profissão MELHOR. Mas negando os riscos envolvidos. É assim que o homem comum está em armadilha e dinheiro solto. O comércio é muito arriscado. 4) Se a negociação no Forex é apenas uma forma de elevação comum do homem? Muito estranho. 5) Por que apenas o recuento atrasado permitiu tal negociação e por que não países desenvolvidos? Além disso, é necessário seguir outros países cegamente? 6) Ele parece ser mais um ativista do que um comerciante experiente. Deixe-o obter mais expeirência e maturidade sobre TRADING 🙂
Espero que você tenha minhas respostas para o seu longo comentário 🙂
Eu sou um comerciante de forex e adoro negociar no forex. Também troquei em Nifty e assisti a USDINR ou outros pares de moedas nas trocas indianas. Eu quero dizer-lhe ... se você quiser ganhar um bom dinheiro ... vá para forex & # 8230; sim, é a melhor opção para o momento. Melhor volatilidade e melhores volumes. Se você não conhece a análise técnica, então a negociação é um jogo para qualquer um em qualquer mercado. Se você sabe como negociar, então você pode ganhar dinheiro em qualquer lugar, mas se você quer ganhar muito dinheiro, então o lugar é forex. AND MOST IMPORTANT EVERYONE KNOWS WHO MOVES INDIAN MARKET . IT IS BETTER TO TRADE IN FOREX WHERE NO ONE CAN MOVE MARKET IN THEIR FAVOUR.
Suhas-Best of luck 🙂 May I know the exact meaning of IF YOU KNOW HOW TO TRADE and LOT OF MONEY THEN ONLY PLACE IS FOREX.
You think you re an expert in english? Oxford university certified?.Try to answer the questions rather than asking silly questions.
Sarath-I am not proclaimed myself as an EXPERT 🙂 Please check your facts and let me know where I mentioned myself as an expert. Silly questions? Let the readers of the post decide. I don’t know why it is hurting you so much if I input legality of Indian law 🙂
I have answers for all your questions.
1) Forex markets are extremely volatile and have a lot of money making oppurtunites. The amount traded in EUR/USD alone is equal to 10 times the amount traded in all stock exchanges in the world together in a day and 1,00,000 times the amount traded in nifty.
2) Trading is not too risky if you have proper money management and pre determined rules. This is what you know as an expert? A simple assertion that “TRADING IS TOO RISKY”.Risk is everywhere. You work for hours in office. You risk obesity and diabetes sitting in the same place.
3)Many countries in the world including DEVELOPED countries allow forex trading. Of course, FOrex trading is where money exchanges hands and there is a good chance you can make money from a small investment.
4) Indian market is riskier than forex market, here promoters control equities and rob poor people off their money. RBI, with all its money put together cannot manipulate the EUR/USD pair by even 0.01%.The market cap of Indian equities is simply too small to eradicate such manipulations.
5)Oh!! You can measure a person’s trading skill by a few comments? Lol.
Hope you got my answers for your lengthy comment 🙂
Sarath-Volatility is Good or bad? Trading is too risky a simple assertion is same as MONEY MANAGEMENT and PRE DETERMINED RULES 🙂 May I know those DEVELOPED countries please…Do you know who the manipulator of Indian market? It is not the promoter. Please check your facts of how much % the promoters hold and how often the buy and sell. Hope you correct your facts before stating that FOREX is the only money making strategy of this world 🙂
You Know why Rasoya protiens trading at 20 fell to 0.8?
You know why Allied Digital Services trading at 250 fell to 20?
You Know why India Bulls Wholesale services fell from 30 to 10?
You know why gitanjali jems fell from 600 to 40?
You know why C Mahendra Exports fell form 150 to 6?
You know why Subex fell from 600 to 6 ?
Promoters are manipulators in all these cases. Promoters create bullish sentiment for poor retailers to buy. When everybodys in, the promoters dump the stocks creating panic among retailers again. Thats ho they steal the money. Retail traders who dont have enough money to manipulate anything are the losers finally. This is how stock market works. Now tell me. Forex trading is banned only in Belarus.
Bosnia & Herzegovina, British Columbia (Canada),Bulgaria, Burma, China (Strict regulations if not total ban),Cuba, India, Indonesia, IvoryCoast, Iran, Liberia, Lithuania , Macedonia, Malaysia, Montenegro, Myanmar, Nigeria, North Korea, Pakistan, Quebec (Canada),Romania, South Korea, Sri Lanka (Recently relaxed but not confirmed),St. Helena, Sudan, Syria, Ukraine Zimbabwe. Rest all the developed countries allow forex trading - France, Germany, Italy, Spain, England….
I know all about crap indian equities and why L&T finance always lingers in the range 65-75.Please try to accept. Risk is everywhere. You as a financial expert should know about these more than me about all these manipulations. Nobody Cares about rupee at all. Even Indians dont buy rupee against the USD then How do you expect some Foreign Investor to buy our countrys’ stocks and currency. Thats the pitiful situation of our country , equities and ever deteriorating rupee..
Sarath-It the lack of knowledge that makes you to invest in such companies which you named. When I am INVESTING then the current L&T range of 65-75 not matters to me. Also, do you feel there is no manipulation in forex trading??
Those companies were really good before promoters started robbing investors money. Its not the lack of knowledge. Well, Can you name a few companies with your great knowledge that will give me returns 5 years from now? I am ready to invest. Moreover if I make losses from the names you suggest, will you compensate me for the losses incurred because of your advice. You said I lack Knowledge. Well, no one can suggest anything. Because RISK is everywhere. Lol, if you invest, it doesnt matter how the stock moves. What a joke. Imagine a person who invested 65 lakhs in L&t. He will lose a lot even if stock moves by a small fraction. Whats the guarantee that stock will always move up after you invest? What if it doesn’t even after 20 years.?Will you keep the money INVESTED adamantly till you reach 70?
And coming to your final question. Manipulation in forex. I already told you its not easy to manipulate forex as it is to manipulate a stock. Simply because huge amount flows in and out. Since it involves huge amount of risk to manipulate forex, even banks are not brave enough to take the risk of manipulating forex, as they appoint qualified traders to trade on their behalf who trade with strict rules. Not like as you said, invest and forget. You are wrong. The current range should matter to you even if you invest. May be as a certified financial planner, you only throw pieces of advice to your clients to INVEST AND FORGET ABOUT CURRENT RANGE. IT DOESNT MATTER AS YOU’RE INVESTING. After a few years your clients will be after you. Caution.
Sarath-Equity investment meant for 5 years? This where you and me getting different views 🙂 Check your facts about equity INVESTMENT. Volatility is inherent. But it subdue when we invest for long term. When you invest in cheap stocks or the stocks which recommended by the so-called experts (who in turn brokers) then there is high possibility that they turn to negative. Look at people who look for value investment. For example Basant Maheshwari and Manekar (a person recently in news due to UB). Invest and Forget is not meant for any investment.
The difference between you and me is, you are negating the views of stock market TRADING, but I am putting the views of stock market INVESTING. Hope you understand the difference 🙂
Oi! Mr. Sarath i like very much your opinions and comments , i agree your comments regarding this issue..
i am alos professional Forex trader like you sine 2018, plz send me your contact to my mail, we can share our views which may help a lot both of us.
desde já, obrigado.
Bro, i have read allot about this Forex illegality in INDIA, and fed up reading.
I am also a trader earning a good amount. Not only me but there are so many traders earning through forex and withdrawing in lacs per month in INDIA, still no problem.
-So i am planning to go to foriegn country and open a bank account there and withdraw all my PROFITS in that bank account, and there are some banks in foriegn countries which provides instant bank account opening to Foriegners within 1-2 days. Then tell if i do like this and come back to india , and use that money here is it still illegal. i dont think so it will be illegal.
-And as per RBI it is stated that, We can transact $75,000 per year, and we dont have to give any reason for such transaction to RBI or Bank. If it is done in a safe way.
& # 8211; Read carefully and reply back what you say about this.?
Exorcist-Best of luck 🙂
Thanks bro, I am just happy that i’ll be doing trading legally in some months. 🙂 Being a Forex trader is a Proud moment for me.
Exorcist-Is the tag “FOREX TRADER” or “MAKING MONEY” makes you proud??
I am Proud of Being a “Successful Forex Trader”. And I am also Proud that i will be living a “ROYAL LIFE”. “TRADING IT’S A LIFESTYLE NOT A JOB”. 😉
I want to tread in forex. what ways to tread in fx??
Many readers of yr blog they say by opening nri account. And etc…
Tell me ways i am confused.
Pls reply on my email.
Hardik-For what purpose you want to trade?
an I do forex trading for research/ education purpose? e como?
Ashish-Trading is trading, whether you do it for business, learning or whatever reason.
for educational purpose u dnt need any ones permisiion or real money open a demo account and trade as much as u want.
SK-Such facility is called Virtual Trading.
I am also a forex trader, a signal provider and pool account manager in forex business from last 4 years and able to develop a very big and good forex earning business model where a comman man easily can earn from 10,000-50,000 INR sitting at home and can improve the life of a comman man or weaker section . After reading all the points above i would like to mention few points here please and need support –
1. Forex trading from India is illegal and there is no doubt about it but we want to do it legally from India and its legal way is you can be NRI and use the own account into that particular country where forex trading is legally allowed and can remit your profits into NRE account and can show the concern authority about your earnings and pay taxex accordingly and it is legal because you have used your stored capital for the forex trading there not by remitting funds from India.
2. You can form a company out side India ( where forex trading is legally allowed ) as a subsidiary of your Indian company ( Indian company will be parent company but this for those who have already own any company in India ) and remit funds outside to subsidiary company and subsidiary will do forex trading and will revert you the benefits as a dividend and it is legal.
3. As this is the world’s largest business ( more than 5 Trillion USD per day ) so no doubt if someone has its knowledge and proper risk management then life can be changed in short span of time and i do not feel personally that there is such a good earning opportunity on earth except Forex trading and for indian people where unemployment and poverty too high then why Indian Government is not allowing to do for a comman man ( whereas all political party and leaders talk about comman man so i think they should be serious on this business opportunity and make the laws accordingly ).
4. Its my view that most of the Indian Political Parties and Leaders ( except few leaders but may be they do not know about forex trading potential so could not be focused on this ) talk about the welfare of the people but never think seriously to do for them because if comman man will be financially strong then never will accept their dirty politics so they think that comman man should be always poor and struggler with there problems.
5. If this business have not good potential and liking with mass then why millions of millions of people attracting towards it. Very small small countries like Mauritius. Singapore. Hongkong, UAE, Indonesia, Japan and many more have allowed forex trading legally in own country then why not India. I think it is the totally matter of intentions and nothing else. Is there not involved risk for the comman man there ?
6. I am not a follower of any party but i know the power of aam aadmi ( comman man ) its result we have seen in Delhi election so my view is that we should all forex trading lovers should organise and make a common sign letter and give to Shri Narendra Modi sir who is our hourable Prime Minister as he thinks always about comman man and think for the bottom people and when we all shall be together present our interest and concern then we hope that sure he will re think and talk to the concern authorities to do it legally from India. As he has also own drive for online ( Digital India ) concept and Skill Development program. I think Forex Trading skill should be covered into his skill development program. We are also interested to do it legally from India and i am more confident that India has the best tallent in world and best growing your population so we can bring huge capital to our financial institutions through forex trading and can change jointly many comman man life. I am also a trader and can generate up to 30% per month profits easily from forex trading.
7. Already millions of people doing this business by wrong way which is also a huge loss for the government and my view is that indian government can get good revenues through this business if legally allowed.
8.So i think for this program please email me and decide jointly how we can be collective for this concern and can be reach our message to the government. I think huge unemployment can be remove by this business . I need your valuable feed back or suggetion please. Muito bem sucedida.
I agree with your views and ready to support your campaign. Let us make a concrete plan and put before Mr Narendra Modi. If lakhs of Indians support definitely we will win.
Mr. P. Kumar sir plz contact with me i want to talk with u via phone i m also Forex Trader .
i have read ur thoughts i m fully agree with u.
Hope u contact me.
Mr. P. Kumar, even i would support for your campaign. I have always thought of this but no support.
How do we move this forward to the government, please let us know of this.
If I do options trading with ICICI bank, will the bank ask for clarification? ICICI seems to be liberal. Do they oppose forex trading and binary trading? Obrigado.
Ashish-Option trading they allow. But forex trading where Rupee not involved is hard for you to get it from ICICI. They may be liberal, but not to that extent that to close the business shortly 🙂
Is the above mentioned option refers to the Binary options ?
Sim. Its binary options Ommi.
Sir is exness is fraud company or not.
Sudhir-I don’t know about this.
Is there any amendment made on FMEA . Is the forex trading still Illegal in India? Recently i am seeing lot of advertisements and people involvements in this trading..
Also resident Indian can hold foreign stocks?
Sokkan-As of now there is no such amendment and the above post still holds valid.
What about holding a foreign stock? Consider stock of Accenture which is registered with NYSE….Is a resident Indian allowed hold that stocks?
Sokkan-Stocks will come under investment but not trading and hence allowed.
Have you read through the following notifications….is this anywhere related to this topic?
Foreign Exchange Management (Deposit) Regulations, 2000 – Exemption thereof, RBI/2018-15/360 A. P. (DIR Series) Circular No.51, 17-12-2018.
Overseas Direct Investments by Indian Party – Rationalization / Liberalization, RBI/2018-15/371 A. P. (DIR Series) Circular No.54, 29-12-2018.
Sokkan-It is nowhere mark to Forex Trading.
I want to ask that is Binary trading legal in India or not ?
If you are not aware of above question can you suggest me anyone legal person who can answer the question ?
Ommi-I think Binary trading is a strategy of trading than a platform. If my understanding is correct then you can do so in India.
Sir, I want to know basic difference between forex and binary trading.
Suppose, if I earn any money using binary then am i suppose to pay any tax? Etc.
Thanks for helping.
Sir plz reply, waiting for your precious answer….
Hello Mr. Basavaraj,
Do you know about binaryoptions? Is it also illegal in India?
Vansh-I am not aware of it. Because I am not trader.
Trading in international commodity market is legal or not. can i choose hic platform for commodity trading or it is also illegal.
Kiran-It is already answered above.
Yes but in above article it is mentioned for currency trading only. i am asking for commodity.
Kiran-Check with your broker before going ahead. I don’t feel it is necessary as currently in India commodity trade is very much active.
sir plz tell me that xforex is safe site for forex trading and if i deal with my icici ac than it is permissable . plz reply as asap.
Varun-I am not sure about the firm you mentioned. So trade at your own risk. But yes if you do with ICICI then no problem.
nordfx. in is Certified by SEBI can i trade with this broker?
Hari-They are registered and you can trade with INR to Dollar like that. So you can do that. But I can’t guarantee about broker and trading facilities they provide or the profit or loss you bear by going with them. Do at your own risk.
hello sir i request some details.
I live in india my BROTHER PR in singapore . can i trade FX using His bank a/c .
if i get money from his bank to my indian bank account is illegal?
plz give me advice.
Mani-You can trade in your brother’s account. But what income source your brother shows when they ask for source of income?
If I intend to provide my skills on forex trading to NRI’s under PAMM account. And earn commissions or service charges from those accounts, will it be treated as legal?
Posso fazer isso? Can it be shown in my tax return?
Awaiting for your reply soon.
after reading your blog i came to know forex trading is not leagal.
i wanted to know if suppose we wanted to withdraw our amount(big amounts) from the trading a/c to our bank a/c.
then is it also not legal(after paying the taxes),as up now the dollar is getting converted to rupees.
Yuvraj-But what you will answer to Bank officials or tax department about the source of transfer?
so is there any possible way to get the withdrawals. and is it possible to get it in small denominations. like 20k per month so that my total income remains less then 2.5 lakh.
and one more thing if i go abroad for further studies and then withdraw it in my NRO a/c, is it possible.
Yuvraj-I am not aware of the ways which are illegal. So not aware of such things.
ohk. sem problemas. i’ll find the way out.
Dear Basavaraj Sir.
Could you please share how could we trade in Indian Forex if we want to replicate the same movement / trade from International Pair like EUR/USD or USD/JPY.
Am highly grateful to you for Creating this Post.
Ankit-As I said above, you can only trade with rupee as one currency against rest of currencies.
hello sir, recently i opened an account in bigoption/ i can trust this because they asking for documents to submit. so in future we may not face problems from money laundering issue.
Vikram-What documents are they asking? Also how you arrived to conclusion that there will not be any issue if they are asking for documents?? It is completely an eyewash.
Hi, I have a question can we advice forex scrip (e. g USD/EUR or NZD/USD) in public domain at what price to buy and sell as I am in India. Will it be legal.
Sharma-You can give advice if you follow the rules and regulation stipulated for an EXPERT. I am not aware of the regulatory framework of currency expert advisory.
TradersWay is legal or not legal.
I have invested @ Rs 6000 ($100 Dolar). Pl advice.
Yajuvendra-Check it’s legality if for currency trading then it must be with rupee otherwise it is not legal. I will not comment on any organization or company. It is up to them to take risk and it is your wish to put your money.
I have read one article which contains “100% LEGAL WAY TO TRADE FOREX FROM INDIA”
As of content of the article – A person has to open an International Bank Account in his name and then transfer funds from India to his International Bank Account by using LRS Scheme of RBI, and when your funds trnasferred from India to International, the legality of India is closed. And then open a Trading Account which operated under a regulations by the Same Country. Then all the legalities shall apply in their country and it should be treated as LEGAL.
My Question is : “IS IT LEGAL FORM TO TRADE FOREX” by using the said manner ?
Please reply with your best answer.
Awaiting your reply very very soon.
VNS-This may be way of avoiding the legality. But how you bring back the earned income to India bank? The answer to your question is explained by themself only stating that it illegal 🙂
no Forex trading is iligal in India. My one friend is working that like field.
is CFD allowed in India?
Parth-It is not allowed to trade.
how to open account &broking office.
Mahesh-Please contact SEBI.
According to law Funding from India in forex trading is illegal. So what? Nothing is impossible. There are many other ways to fund that can be hide from RBI. Like paypal and money bookers. so dont worrry guys. Funding through money bookers is safe and RBI cant see what you doing from this account. So, Invest it, Trade it and Live it…..
Vijay-You are free bird to take risk at your own 🙂
Dear Basavaraj , it is great to share such things. Enlighten me if I may do forex trading with Indian Infoline IIFL, is it legal.
Bijen-Yes it is legal as they abide by law of land.
Dear Mr. Tonagatti,
Bom artigo. Good insight about Forex trading in India and government regulations.
One thing which I did not like here is the negative views about Forex trading. As you may be aware of the fact that several people are trading Forex successfully using some consistent strategy/method. The problem with Indian laws and lawmakers particularly in last couple of decades – they lack balanced thinking while making any laws. They lack vision and mostly their thinking is one-sided while framing any law. Laws are meant to cover almost all situations and almost all people and benefits almost all those come under law. Also, they are supposed to provide checks and balances to make it harder to violate such laws. Of course there will be exceptions and few corner cases but in this Forex laws they are totally ignorant about the people who can successfully trade Forex and change their lives for better. Person from poor background can become financially well-off with Forex trading if he has right skills. I am not suggesting that Forex trading is easy and everybody can trade successfully. But, there are certainly some people those who can Trade successfully. And these so called laws are not fair to these people.
Ash-I am also not against Forex Trading but against crossing legality of land. You may say many things but still there are risks involved and common Indian investors who are more of FD savvy can’t understand these products. But let us hope for future Govt regulations and law changes for few intelligent investors 🙂
I’m from India, and I’m forex traders, and I can say that it is the best thing that has ever happened to me.
Forex trading is not legal in India, however it is one of the most risky business, but I can say that Forex has changed my life!
And I would never ever quit forex trading, so I have decided to go abroad to establish my trading Skills.
I already have offer from Canada, Australis, UK and Poland. So I have decided to go to Poland!
I also think that people should get into this business to change their life. 🙂
Shivam-Wow….Best of luck 🙂 I am the Indian citizen and I do trade in legal way 🙂
you are a lucky one…
could you tell me exactly how can i start in forex?
I am also intending to migrate USA as I am a Graphic Designer but I am also very interested in Forex too,
what suggestions you have for me to get successful in future in forex in another country?
heloo shivam..i loved your post…i have started forex trading…i m taking coaching about technical and fundamental analysis from delhi..i love forex business..but recently i came to know that it is illegal in india. but i have decided to make forex as my future business. i am serious about forex..but please help me..i want to trade in eur/usd not in eur/inr….please help me..what should i do.
it is really informative blog. thanks for that. See i am looking for investment where i could get easy returns. recently i came across same kind of company “iforex”. they have website “iforex. in” please i need your guidance if i want to invest in forex currency trading then which company i should refer too. thanks for anticipation.
Amit-Do remember that there is nothing called “Easy Money”. If it is so then think that it is illegal or risk involves is more. First understand your risk appetite then start investing. I am against any such sites which offer these services. Rest is left at you.
Dear Amit, threre are lot of ways to trade forex from india. Im providing forex signals which means when to buy & sell forex currencies. So that you can make atleast 20-30 % every month with a proper Risk and Money management. Pls contact me on [email protected] .
Vendan-What if the result is negative 20-30%? What guarantee you provide? Are you certified?
Hi sir(Basavaraj), i am not invested my own money in forex, I am teaching forex trading in online, and few of my students outside India invest some good money in their forex a/c, and i will trade on that a/c for training them with their own real forex a/c’s (forex a/c’s with my student’s name). I will recieve the payment from my students for my trading performance on their real a/c’s. I just act as a working partner and my student act as an investor.
I will recieve my trading payment of the students a/c through e-currencies like perfect money, neteller, skrill, etc..
i want to know that ” i am trading only in foreigner a/c’s (students outside india) and getting profits from their trading a/c’s through ecurrencies, so my activities are legal or illegal to RBI ?”
If I want to pay Income tax, how i can pay for my income from my student’s a/c(foreigner a/c’s)
Arun-In your case I am not aware whether your status is NRI or not. Second thing is, you are acting on behalf of your students and using their account details to do trade. Also you get your share from your students account to your account. Then legally how you can be liable for any trading done on behalf of your student. But at the same time doing such set of transactions, do you think you are doing right thing on behalf of student who may face some legal issue if their money is transacting from Indian original bank account? You are claiming to be teacher but before giving suggestion better to understand what will be percussion of your student and whether they are doing such acts within the law of land or not. So think yourself and act.
I am trading in forex for 4 years, and till today, there is no problem I faced, I made withdrawal and successfully get money.
I start with free money (Contest).
Last week I made another withdrawal. This time I used another bank account. Today I got call from this bank and they asked about money they received in my name. I told them that this is from forex trading. They said forex trading is not legal in India. Shock time for me, I made another withdrawal in last month and got money without any problem,
What I need to do to complete this transaction. (355 EUR)
Pawan-Good to know 🙂 God bless in your risk taking ability in terms of return and legality.
Just say that you are orking as an affliate for the forex company.
Sarath-When I said it is illegal to do Forex Trading in India (based on facts) then how I be affiliate to Forex Company (which is purely set up on breaking the rule of land)?
I saw all u r commends and what I noticed that apart from this legal issue ….. Here is small story of my trading history with forex currently I am trading in international market from past 4 years prior to this I was ex employ of Indian commodity company heading regional branches in Karnataka for almost 8 years and m also a financial planner for my respected clients now here is comparison between indian commodities and international commodity.
Step 1 : not hedging is allowed in indian market with but hedging is allowed in Cfx there u avoid lose.
Step 2 : fundamental and technical analysation is very easy in international market but here in indian market is possible ?
Step 3 : margin utilisation is very low in Cfx 1:400 leverage and profit spreads also is same but in indian market let me u can’t ?
Step 3 : afcourse I agree that non of indian regulatory are involved in forex but FSA is involved its international govt boby to safe guard the investor money because I trade with ECN brokers they are not a market maker.
Step 4: if u r forex or CFx platform is registered under FSA and listed under ECN brokers then there is no issue with u r investment there are lot value added advantages in international market if u r a smart trader u r going to make money with out fail indian people are fails to make money even thow with smart because market tuning it’s very harder to cone with profit in commodity.
Madhu-Thanks for sharing your views. But do you think that such complicated product (when we look at normal Indian investor) will understand product easily and do his own technical and risk appetite things? Also barring such trading in India is due to some money laundering issues. When you say easy to analyse the international market, may I know in what context you are saying this? Regarding regulatory framework, do you feel for retail investor it is very much easy to interact with international regulator to deal? Also Indian market or investor not to that extent that they can think of international market, because of low penetration to equity market itself. Apart from these for investor there are lot of other options to understand and trade. Why to take such complication and risk your money??
Madhu sir, i’m a Forex trader too but newbie thank you. I have bit confusion in financial matters, i need you guidance on how to withdraw and all. I’m really hving so much hope on this business, Please give your mail id or skype id so that i can contact you personally. Thank you.
I am an indian citizen living in australia on work permit Visa. I have been living abroad from last 2 years and might live for another 2 years. Forex Trading is legal in this country. So If I do forex trading in Australia, will it be legal?
I am not paying any taxes in india and not making any remittances from India to Australia account.
Jay-If no remittance from India or to India then no question of asking. But you have to act according to Australian law.
I might make remittances to India Ultimately when I get any profit. Will it be considered illegal?
Jay-Once you get profit then it get transferred to your Australian Bank Account and from Australian Bank Account to Indian Bank means no issue. But your Indian Bank Account is attached for trading then there will be issues.
Thanks Basavraj, Information you have provided has been very useful.
Thanks for sharing excellent information. I have some questions. Could you please clarify:
Question 1: My situation is also same as “Jay” situation. Having an Australian bank account and have work permit visa. Only problem is after working in Australia I came back to india and I am residing in india now. Now can I do forex trading online from india using my Australian bank account only but not any indian bank accounts.
Question 2: Also if I get any profit in forex trading can I transfer the amount from my Australian bank account to NRE account. Do I need to explain the source of income to RBI. Could you please let me know.
Obrigado pelo seu tempo.
Rohit-You can do so. But how you bring that money to India? You need to explain the source of such amount if tax authorities asked for the same. Because you are staying here and definitely Indian bank officials raise the issue. Then what you say them?
Thank you Sir. Sorry for the delayed response. I have one more question.
I have stayed more than 6 months outside india. In that case I think I attain NRI status. I would like to know.
if there is any provision that NRIs can do forex trading while residing in india temporarily. Could you please.
Rohit-The status of NRI will not come into picture. Because if you are using money transfer facility of Indian origin like your savings, current or NRE accounts then definitely it will be an issue.
Dear Mr Basavaraj,
I have a similar question which I’d be very grateful if you can answer!
I worked for several years in Australia, later became a citizen there and am also an OCI (dual citizenship in India). Now I’m working in India for the past few years, so I’m a resident of India.
I still have some savings left in my Australian bank account – can I use that for forex trading in an account opened there itself?
& # 8211; & gt; I will use only the existing savings held in Australia and not remit any forex from India.
& # 8211; & gt; I will take care to correctly report/pay applicable taxes in Australia and India.
& # 8211; & gt; I would be receiving the profit withdrawals in my Australian bank account, which I would remit to my SB (Resident) account in India as and when required.
& # 8211; & gt; the trading account is provided by a reputed company having offices in UK, Australia and a few other countries and registered with the appropriate authority/body.
In this scenario would it be legal to trade forex? Please advise soonest possible!
Muito obrigado antecipadamente!
Shrikanth-But what source you mention when you remit the cash from Australia to India??
I will mention as ‘own funds’ & # 8211; as it would be out of income earned in AUS (on which I would have paid the tax there).
(I have transferred this way several times without any trouble.)
Shrikanth-Currently you are staying in India then how this “OWN FUNDS”? I don’t know what is prompting you to take such risk, when rest of the investments are easily available legally for you.
The legality is what I’m checking with you. Since (a) I’m not using forex remitted out of India and (b) it is openly declared, tax-paid income and (c) I’m a foreign national / dual citizen – does it not fall outside the scope of the FEMA/RBI rules? Can you please explain in detail.
I know there are other options for investments in India but as I have acquired substantial skill & knowledge of forex trading I want to include that in my portfolio if feasible.
I also want to want to check – in case forex trading & and CFDs are not allowable (because they are margin products), how about forex Options (e. g. those offered by Saxo Bank) and Binary Options?
Shrikanth-There is no illegality if you do trading using the Australian Bank. But my question is how you justify the source of amount when you remit the cash to Indian? To be frank, I am not a big fan of trading. But a huge fan of equity investment.
Hi, thanks for confirming there’s no illegality when using AUS bank account… would help if you can point out the specific section or circular for my reference. Regarding the source for remittance to India I will re-check with my bank and CA. I too agree equity investment is good for stable/long-term returns but think this trading has it’s own significance and can be a small part of the total portfolio.
Obrigado mais uma vez!
Having read and heard abut this a lot there is not doubt that Forex trading is illegal in India. But thousands of Indian traders are still involved in it and the numbers are continuing to increase. I’m not yet involved in any such trading but the question that crosses my mind is “What is it in Forex trading that makes it so illegal?” Why RBI has problems with Indian traders trading Forex?
Vipul-Place where trading takes place are the countries which have loose law against money laundering. So if RBI permits this then easily a best route for illegal activity.
So if money laundering is what RBI is trying to prevent that means Indians are being kept away from an amazing money making opportunity just because there are no proper regulations in India towards Forex trading. Instead of restricting people don’t you think RBI should have a proper regulating body for Forex trading to solve the issue.
O que você acha?
Vipula-It is not a problem of RBI but the problem of countries where trade get executed. These countries have loose laws. Hence to safe guard the Indian economy RBI must act so.
“Safeguard our Economy” Is this what RBI says?
I wonder why in the US, Europe, Australia and UK the regulating bodies feel otherwise. Why don’t they feel it necessary to take such steps to “safeguard their economy”?
Vipula-Economical or in other words the countries you mentioned are not reeling under black money or some other financial threats to that extent than India. Also what is the point in following the so called BIG BOSS blindly? To be frank such forex trading offerings will not be from US, Europe or Australia but from the countries like Indonasia or some other third world countries.
thank you I appreciate the response.
there are forex company’s based in australia, uk, new zealand, germany etc, and that info provided by him that forex services are provided only by third world countries is inaccurate and very prejudiced, there are many local and international traders in fx based from those countries, money laundering are allowed by big indian fishes to hide their black money but not by law abiding regular resident indians who does forex for bread making activity is a very dual sided, discriminated, prejudiced and marginalized policy… hope rbi at least check on the indian traders credentials and allow them to do conditional forex trading if they are that scared of loosing money by sending amounts less than 5000 usd per year.
Bharath-Thanks for commenting 🙂 But why those Australian Forex Brokers not luring Indian investors? Why only from third world countries??
Hello Sir! thanks for bringing your experience in to public, this gave me chance to clear my doubts about Forex Trading 😀 Sir i’m good at Forex trading and i’m earning decent income there, but i didn’t invest any money on my own, i received a bonus from a broker for winning a contest and using that bonus i improved my trading balance and planning to withdraw some. So, when i read about RBI regulations i haapened to see this FAQ.
“Q.27. Can a person resident in India hold assets outside India?
Ans. In terms of sub-section 4, of Section (6) of the Foreign Exchange Management Act, 1999, a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.”
So my first question is can i receive money from a Electronic payment processor like Moneybooker or Skrill instead of individual outside India? As this company is situated out India but has a branch in India, so even i withdraw through this processor and mention source of income as “Forex investment” that shouldn’t be a problem right? I mean it should be like Gift or insurance for sure?
If above process is not available the only way is to open a bank account outside India 🙁 Is it possible?)
Sidhu-You are understanding it wrongly. Please add your shared RBI ruling with what I shared above regarding holding currency derivatives. Then you will find differentiation. Se você transferir por qualquer meio e mencionado como Investimento Forex, eles podem descobrir a fonte de investimento, onde é investido e se é legal ou não. So you need to answer all those questions. Opening bank account in your name outside India is solution. But will the country where you are intended to open account is so free that any outsider can open account and transfer funds as their wish?? Think and decide.
Sir I have already transferred some money in the account of aforesaid company but yet not started any transaction. After reading your article now I don’t want to trade with them. Can I withdrawn my money safely?
Ravi-It is better to withdraw immediately, stop trading and if possible close the account.
Sir my question to use is supppose I withdraw funds from these online brokers via e-banks like neteller, moneybookers, etc will it be legal as in my bank statement it will show these e banks names and then I can pay taxes as income from other sources.
Ranmeet-You are right that in bank transactions it will not reflect directly to broking firm. But the question is how and what you mention the source of income, even if you mentioned the income category as “Income from Other Source”?
I think only particular comment you are allowing to post on your blog so only i am not able to post the comment so here is my reply from another mail id…you telling about a company rubbish where i invested and getting proper withdrawals. But i have checked about you DSP blackrock where there are lot of withdrawals in pending, so how can you say yourself you are a certified financial planner? so try to sort out the issues in your DSP blackrock where you act as a certified financial planner adviser bla bla bla…
Pandian-For your information any new reader who comment on blog will first need to approve by me. This is done to protect genuine commenting. Now you are very much free to view your comment and my reply. Also changing name from “Arun” to “Pandian” by commenting from the same IP Address will not mean that you are different reader who is commenting as “Arun”. Both of yours IP address are same. Hence technology is very advance and don’t do such silly things here 🙂 Also for your information I am in no way associated with DSP BlackRcok (as you both are thinking), I think the blogger meet photo published on “About BasuNivesh” is prompting you arrive this decision. But for your information DSPBR actually conducted Blogger Meet and I was one of them among top Indian Bloggers whom they called for meet. You can very much raise your voice against DSPBR, I don’t have any issue. Because I am independent planner.
Since i am not able to comment on the previous mail id replied from another and in that itself i clearly told that i am replying from another mail address…,So i just checked with the change in name can approve the post in the blog….Now all same my full name is arun pandian u can check my mail id…and can u explain me about the question i asked in the previous message.
Arun Pandian-You can check my reply and for your information, I am not at all connected with any company. I am working independent. So no need to name any one company. You are very much free to raise that particular company issue (DSPBR). I don’t have any issue. Please check my previous comment where I already replied.
Mr. Basavaraj I have invested in the same company which you told and i am getting good returns…and one more thing to be added SEBI have no work with NYSE similarly SEBI have nothing to do with (JFX Jakartha Futures Exchange)..I have gone through the conversation the executive reply for all your queries is wright…If u keep on asking doubts no one will answer…if the doubt is really good every one will answer….and one more doubt are acting as a consultant for any other trading company.
Arun-Thanks for your defensive stance 🙂 Being an investor I have every right to ask questions. If something is not as per rule of land then one must not proceed. That is what I pointed. Also may I know what is connection being me being consultant of any trading company and to this issue? Please elaborate more on this so that readers will come know who stands where.
As a investor you have rights to ask n number of questions but when the answer is given you have to realize.
the gen unity of the answer…so from the things i told in previous conversation i think you might have got the knowledge about the participation of sebi in international market….When a person from abroad coming India to trade in Indian market which SEBI? is going to help him in his country where he is staying(e. g Canada)…And do you have any relationship with DSP Blackrock??
Arun-Thanks for commenting. May I know how it is taxed in India on the gains from such trades? I need to pay tax to Govt as I earned from my investment. Hence let me know which Income Tax rule govern such earnings? Never try divert issue about rising the Canada citizen. Regarding my relationship with DSP BlackRock…why can’t you ask them directly? You are more concerned about my relationship with other existing financial institutions rather than resolving the basic point like “Forex Trading in India is legal or not” (from regulatory point of view, but not from your point). If I have any relationship with Indian financial institution also then it will be very much within the legality of Indian law. So I am very much open to this. Can we proceed further on this?? 🙂
All the the investments Which goes from India comes under NRI scheme of investment..The company Which i have invested is fully regulated and i have never faced any difficulties in withdrawal either the Equity or profit…but when i checked with DSP Black Rock…there are lot of issues in the withdrawal which are pending for such a long time and i saw the review of your concern and the reviews are relay bad..So, how you can be a certified financial planner please explain me…
Arun-According to Income Tax law I am Resident Indian and If I do this trade then suddenly how my status will change to NRI? Also let me know one thing, what type of withdrawal are pending since long with DSPBR? If you are pointing towards mutual fund, then friend please read the redemption procedure set by SEBI-maximum time it will take up is 5 working days. No one can delay the withdrawal (apart from genuine reasons). May I know which of my review is bad? May I know in which company you invested so that I can take up with issue further to doorstep of SEBI or RBI please 🙂 I am certified financial planner because I am promoting legality and rule of land. If you have any concern on this then you can very much free to complain to rewarded body.
I seriously laugh at Arun Pandiyan. He has absconded when asked about the company name. Ri muito.
Elam-Because they know what they are doing 🙂
Nice article…..I know this company and believe me investors are making huge money ranging from 25k to 50 k dollars….and transaction happening through Indian banks…but y they r not getting caught??….the company is running In Bangalore for past 5 yrs and have around 8 branches across india….how the company still surviving?!…even broker’s working thr earning commission in dollars..if it is illegal how the company still surviving. now they stopped trading in currencies but still trading in commodities and US stocks claiming that it is legal and they got certifications which is mentioned in website.!
Abdul-You are right and are operating in a daylight without any fear or regulators. It happens only in India 🙂
I am planning to buy a BDA site in Bangalore and then came to know the original documents are missing from the current seller but all other relevant documents are available like alotment from BDA and sale deeds from the previous seller and EC is OK and in BDA office all the documents are no issue.
Ramakrishna-This is not relevant to the above post. I request you to visit the “Contact Us” page and submit your request there. We will reply.

Part VIII – Getting Started With Trading – Tax Guide for Traders in India.
Traders today have so much of compelling options to trade in the stock market varying from stocks, futures, or options to manage their capital more wisely and achieve their trading objectives. But on the other side, they are obligated under income tax regulations to file their returns in right manner and pay taxes on their trading profits. So, it becomes important for any trader to understand the taxation treatment of trading business in India so that they can plan their trading activity accordingly and achieve their goals.
In an attempt to make your task simple and easier while filing your income tax, we are writing these series of posts to help you understand how we traders are obligated under the law to take care of filling of our trading activities.
Classification of Trading / Investment Income.
Income from trading or investment activity can be classified into four different sets:-
Long Term Capital Gain Short Term Capital Gain Speculative Business Income Non-Speculative Business Income.
Long Term Capital Gain.
Stocks sold after holding for more than 365 days – Tax Free.
Investments for more than one year (365 Days) are considered to be long term and profits arising out from selling a stock after holding it for 12 months will be treated as a long term capital gain (LTCG) which as per the section 10 (38) of the income tax act is exempt from tax provided such a transaction is done through a recognized stock exchange for which Security transaction tax (STT) is paid.
Enjoy 100% of the profits you made out of your long term investments.
Short Term Capital Gain.
Stocks sold after holding for more than one but less than 365 days – 15% Tax.
Any profit arising out from selling a stock after holding it for less than 12 months will be treated as a short term capital gain and will be taxed at 15% provided you take the delivery of shares in your demat account (Exchange has a settlement time of T+2 working days, so any stock that you bought on Monday comes in your dmat account only on the 2 nd day from date of purchase i. e. Wednesday).
Speculative Business Income.
Equity Intra-Day or Non-Delivery Trading – Taxed as per Tax Slab.
Any transaction where you buy and sell the shares on the same day is a Day Trade . Any profits and losses arising from any such transaction will be considered as Speculative Activity.
As per section 43(5) of the Income Tax Act, 1961, profits earned by trading equity for intraday or non-delivery is categorized as Speculative Business Income and will be added to your other income under the head income from business / profession and will be taxed according to your total income slab.
Non-Speculative Business Income.
Futuros & amp; Options Trading – Taxed as per Tax Slab.
Income from trading Futures & Options (F&O) on a recognized exchanges (Equity, Commodity or Currency) will be considered as Non-Speculative Business Income . These income must be added to your total income and taxed according to your new respective tax slab.
As these incomes are considered as business income, so you can offset it with business expenses you incur to earn it like depreciation, internet bills, advisory fees, software charges, and more.
For those who are active traders and would like to make up a trading plan specifically for F&O trading, here are couple of articles to help you learn more about Futures Trading, Important Aspects of Trading, important trading rules and how to trade Nifty & Bank Nifty Futures?
Are You an Investor or a Trader?
The first and foremost decision that any market participant has to make before filling Income tax is to declare whether he / she is an investor or a trader? Income tax regulations in India treats the activity of a trader and investor in different ways and have in-turn different taxation treatment and obligations. An investor can treats his short term income from equities as capital gains and pay a flat tax of 15% while a trader has to declare his income from short term equity trades as business income and is obligated to pay tax as per his taxation slab which in case of higher tax slab individuals can mount up to 30%.
Still a lot of ambiguity is there in Indian taxation laws specially in case of how to treat short term income from trading in taxation. So, there are some important questions which comes to the mind of most market participants in India while declaring their investment activities in their yearly tax fillings.
& # 8211; Whether to declare self as an investor or trader?
& # 8211; Whether to declare your short term equity trading activity as investments or business?
& # 8211; Whether you can declare self as an investor if you don`t trade in f&o segment?
& # 8211; Whether you can declare self as an investor if you don`t trade in f&o segment but engaged in trading as a full time business?
To clarify some of the doubts read the article below to get a glimpse of who is an investor or a trader as per tax laws and how to treat your short term trading activity while filling income tax (the most un-clarified and ambiguous clause)?
Rakesh Jhunjhunwala who is an investor and a trader must also have a lot of disputes with tax authorities on how to declare his trading as against investments.
Read the story of inspiration of a young dreamer who started back in 1985 at the age of 25 years with limited capital of only Rs. 5000 but with big dreams, who spent day and night to understand the rules of the games, whose courage and dedication made him a billionaire & surely one of the most followed and respected investor / trader in India & em todo o mundo. The one who broke all the fixed rules of trading and laid down the foundations for others to follow.
Earlier, a lot of disputes use to exist since it was difficult to prove the intention in acquiring shares/securities. So, to to reduce litigation and uncertainty some clarity on how the surplus generated from sale of listed shares or other securities would be treated as Capital Gain or Business Income was published by the Ministry of Finance on Feb 29th, 2018 which will reduce the disputes raised by the Tax Assessing Officer.
Section – I Taxation for Investors in India.
Taxation on Trading Stocks in India for Investors.
Long Term Trading Tax in India / Long Term Capital Tax on Stocks in India for Investors.
Stock hold for more than 12 months – Long Term Capital Tax.
Investments for more than one year are considered to be long term and attract no tax on profits. Profits arising out from selling a stock after holding it for 12 months will be treated as a long term capital gain (LTCG) which as per the section 10 (38) of the income tax act is exempt from tax (provided such a transaction is done through a recognized stock exchange for which Security transaction tax (STT) is paid). Enjoy 100% of the profits you made out of your long term investments.
While on the other hand, any loss arising from selling the stock after 12 months will not be adjusted against any short or long term capital gain from any source.
Suppose, Mr. Shrinivasan has bought 1000 shares of Tata Motors at Rs. 260 on April 9th 2018 and he sold it at Rs. 500 on Sept 17 th 2018, then the total long term profit of Rs. 2.4 Lacs arising from this investment will be exempt from tax and he can enjoy the 100% profits and don`t have to pay any income tax on it.
While on the other hand, if he has bought 1000 shares of DLF at Rs. 230 on April 9 th 2018 and sold it at Rs. 167 on Sept 17 th 2018, then the total short term loss of Rs. 63,000 arising from this investment will not be adjusted against the profit made from Tata Motors or any other source.
If the investment and the consequent sale were done via an off-market transaction (transferring from one DP to another persons DP), then the Long Term Capital Gain Tax on:-
Short Note for Taxation for Long Term Investing In India.
# 1. Profits or Losses from long term investments will be treated as Long Term Capital Gain or Loss.
# 2. Profits from Long term investments will be tax free (Provided they are done through an exchange and sold after holding for more than one year, i. e. 365 days)
# 3. Losses from Long term investments cannot be adjusted against any short term and long term profits.
# 4. STT paid to the Govt cannot be claimed as expense for Investing.
Short Term Trading Tax in India / Short Term Capital Tax on Stocks in India for Investors.
Stocks hold for less than 12 months – Short Term Capital Tax.
Any profit arising out from selling a stock after holding it for less than 12 months will be treated as a short term capital gain and will be taxed at 15% provided you take the delivery of shares in your demat account (Exchange has a settlement time of T+2 working days, so any stock that you bought on Monday comes in your dmat account only on the 2 nd day from date of purchase i. e. Wednesday).
While on the other hand, any loss arising out of the short term trading can be carry forwarded to a period of 8 years against any short term capital gain or long term capital gain, if these loses are declared while filling the income tax returns.
Suppose, Mr. Shrinivasan has bought 1000 shares of Tata Motors at Rs. 260 on April 9 th 2018 and sold them at Rs. 420 on Mar 04 th 2018, then he has to pay a short term capital gain tax of 15% (i. e. Rs. 24,000) on his profit of Rs. 1.6 Lacs.
While on the other hand, if he has bought 1000 shares of DLF at Rs. 230 on April 9 th , 2018 and sold them at Rs. 140 on Mar 04 th 2018, then the total loss of Rs. 90,000 arising from this investment can be netted against the profits made from Tata Motors or any capital gain arising within the period of 8 years.
Short Note for Taxation for Short Term Investing In India.
# 1. Profits or Losses from short term investments will be treated as short term capital gain or loss.
# 2. Profits from short term investments (within one year) will be treated as short term capital gain and taxed at 15%.
# 3. Loss from short term investments can be carry forwarded to a period of 8 years against any short term capital gain or long term capital gain, if these loses are declared while filling the income tax returns in respective years.
Investors should take a good note of the total holding period of any stock they are planning to sell, as any stock sold after holding it for even 364 days will be considered as short Term and not Long Term. So, to take the benefit of the long term capital gain keep a fair note on the holding period of the stock.
Another important point to consider here is that if you have bought and sold the same shares many times, then you will have to use FIFO method to calculate the holding period and in-turn your Capital Gains.
Section – II Taxation for Traders in India.
Taxation on Long term Equity, Short term Equity & Tax on Futures and Options in India – Non-Speculative Business Income / Loss.
Equity Delivery and F&O Trading – Taxed as per Income Tax Slab.
If you are trading futures & options or day trading stocks on a recognized stock exchange, then you have to declare yourself as a Trader. So, equity trading for short term or long term will be considered as Business Trading and will be taxed just similar to taxation of ‘Futures & Options’.
Profits arising out from selling a stock after holding it for 12 months or less than 12 months (excluding equity day trade or BTST) or from trading derivatives will be treated as a Business Income and added to your total income and taxed according to your new respective tax slab.
As these incomes are considered as business income, so you can offset it with business expenses you incur to earn it like depreciation, internet bills, advisory fees, software charges, and more.
While on the other hand, any loss arising from trading derivatives will be considered as Non Speculative Business Loss and can be offset against any other business income including speculative business income (Income from Day Trading) except salary in the same year. So you can set-off against bank interest income, rental income, capital gains, but only in the same year .
The balance, if any, can be carried forward and set off only against non-speculative business income within eight assessment years immediately succeeding the assessment year in which the loss was first computed.
For Example, In the year 2018-14, Mr. Shrinivasan has a annual salary of Rs. 6 lacs and he has incurred a total loss from derivatives of Rs. 1 lac and his income from day trading is Rs. 25000 and other business income (apart from salary) is Rs. 1.5 lacs then his loss from derivatives (1 Lacs) can offset from day trading income (25000) and other sources (75,000).
Therefore, his taxable income will be Rs. 6 lacs + [25000 + 1.5 lacs – 1 lac] is Rs. 6.75 Lacs and will be taxed according to his tax slab of 20%.
The above criteria are very much applicable to those whose only source of income is trading business but if you are salaried or you have some other business income as your primary or core income source then it becomes easier to show your equity profits as capital gains.
If you are trading F&O and doing frequent short term equity then you have to declare self as a trader but even then you can declare your long term profits as long term capital gains and be exempt from taxes. So, you can be a trader as well as an investor at the same time.
So, taxation rules are clear for speculative day trading and non-speculative futures trading, as any income from these two sources will surely has to be declared as business income.
But for long term investments, all the stocks that you have sold after holding for more than one year can be declared as long term capital gain and thus exempt from tax while if you are trading stocks frequently then all these income should be declare as speculative rather than capital gain.
Therefore, it becomes important to stay consistent with what you are declaring self while doing tax returns. So, consult a CA to determine what to declare self while filing tax returns to achieve your trading objectives in futures.
# 1. Speculative Trading in Stocks or F&O trading requires you to declare yourself as a Trader.
# 2. Profits or Losses from equity trading for long term or short term and derivatives trading will be taxed as Income from Business/Profession, if trading is your only source of Income.
# 3. Profits will be added to your total income and taxed according to your respective tax slabs.
# 4. Losses from derivatives trading cannot be deducted from salary income but can be offset against any other income (including day trading income) in same year.
# 5. Losses can be carried forward and set off only against non-speculative business income within eight assessment years immediately succeeding the assessment year in which the loss was first computed.
# 6. Business expenses including depreciation, internet bills, advisory fees, software charges, and more. can be offset against your profits income.
# 7. ITR 4 should be used while filling taxation for individuals trading derivatives.
#8 . The only thing that you’ll have to know is whether to get your books audited or not. So, If you turnover for the financial year is > 1 crore and your profits are less than 8% of the turnover, you have to compulsorily get your books audited. But if you total income is below the taxable limit, then there is no need to undergo tax audit.
# 9. Taxation rules are clear for speculative day trading and non-speculative futures trading, as any income from these two sources will surely has to be declared as business income. If you are trading F&O and doing frequent short term equity then you have to declare self as a trader but even then you can declare your long term profits as long term capital gains and be exempt from taxes. So, you can be a trader as well as an investor at the same time.
Taxation on Intraday Trading (Equities) in India – Speculative Business Income / Loss.
Equity Day Trading (Intraday Trading) or Non-Delivery Trading – Taxed as per Income Tax Slab.
Any transaction where you buy and sell the shares on the same day is a Day Trade. Any profits and losses arising from any such transaction will be considered as speculative and will be added or netted of against your income from business/profession.
So, any profit from day trading (equities) will be considered as a speculative income and will be added to your other income under the head income from business / profession and will be taxed according to your total income slab.
Suppose, Mr. Srinivasan`s total salary income is Rs. 6 lacs and his day trading profits for the year is 1.5 lacs, then his total income will be 7.5 lacs and will be taxed as per 20% slab.
While on the other hand, any loss from the day trading will be considered as a speculative loss and can be carried forward against only speculative profit within the period of next 4 years and not against long term or short term capital gains or non speculative income (F&O Income) as per Section 73(1) of the Income Tax Act, 1961.
Suppose, Mr. Srinivasan had incurred a day trading loss of 1 lac and booked a short term profit of 2 lacs during the same year, then the 1 lac loss cannot be netted off against 2 lacs profit. So, he has to pay short term tax on 2 lacs profit and 1 lac loss can offset against any speculative profits within next four years.
# 1. Profits or Losses from day trading equity will be considered as Speculative Profit or Loss.
# 2. Profits from day trading equities will be considered as speculative income and will be added to other income and taxed as per your tax slab.
# 3. Any loss from speculative (day trading equities) cannot be adjusted against short or long term profits or non speculative income (F&O Income) but can be offset against speculative profits within the next four years.
Set-off & Carry forward the Business Losses.
To carry forward the losses in the subsequent years, the perquisite is that they should be filed in the same year the losses were incurred, else you cannot carry forward them in the subsequent years.
Speculative business losses (Equity Intraday Trading Losses) can be carry forward for a period of 4 years and can be set-off only against any speculative gains and not against non-speculative (F&O) gains,
Non-Speculative Business Losses (F&O Trading Losses) can be set-off against any other business income ( bank interest income, rental income, capital gains) except salary income in the same year and balance if any can be carry forward for the next 8 years and can set-off only against any non-speculative gains made in that period.
We can understand the pain you might have felt by having losses in your trading positions at the end of the financial year. Its really a pain which needs to be addressed and surely can be rectified.
We all traders commit similar trading mistakes and felt into the trap. If you had huge losses from day trading then you must have been trapped into the general philosophy of confusing day trading with trading every day. Actually it is not. We have addressed the issue and elaborated the same Why Trading Everyday is a Silly Plan & What to do Instead?
Also, if you have been trading futures market, then its important to note that trading is all about planning and following your trading rules strictly and nothing else. So, preparation is generally the key for the success of most professional traders and for traders it all about understanding the importance of designing a trading plan and implementing it. They are no different than us, but just they remain stick to what they planned and follow it blindly. There are 12 Step-wise Trading Rules for New Traders to be Safe in the Market which can help you stay in the market forever and be successful.
Every trader or an investor goes through this stage but its important to take steps to rectify it and not repeat it again. And there is no better way than to learn from the Legends themselves. Refer to the below books and other recommended books on investing and trading to help you learn how some of the successful traders or investors deal with their losing steak, recovered from the bad days, make a mark from this business and made millions.
Mandatory Tax Audit for Traders.
Any trader will have to undergo the audit of accounts if the Turnover for the financial year is greater than Rs. 1 crore (provided his annual income is more than 2.5 lacs). So, if your total income (trading + Salary or other business) is lesser than Rs 2.5 lacs, you don’t need an audit even if the turnover for the year is greater than 1 crore.
How to Calculate the Turnover for Tax Audit?
Turnover is being calculated to determine if you need a tax audit or not?
For Intraday equity — absolute sum of settlement profits and losses per scrip For Delivery equity — sell side value of the stock For F&O (Equity, Currency, Commodity) — absolute sum of settlement profits & losses for F&O) per scrip and the sell side value of option contracts.
Suppose, you bought 1 lot (25 units) BankNifty futures at Rs. 17700 and sold it at 17800, then you made a profit of Rs. 2500 and say on some other day, you had a loss of Rs. 1500, then the total turnover will be summed up as 2500+1500 = Rs. 4000. So, all such settlement profits & losses added together (absolute) summed together forms up as turnover.
Suppose you bought BankNifty 19,000 CA @ 100 and sold it @ 300, then turnover will be 25 x (300-100) = 5000.
In another case, suppose you bought BankNifty 19,000 CA @ 100 and sold it @ 50, then total turnover will be 25 x (100-50) = 1250.
Lastly. suppose you bought BankNifty 19,000 CA @ 100 and it expires worthless, then the total turnover will be 25 x (100-0) = 2500.
Difference between Trading Turnover and Settlement turnover for audit?
To understand the difference between the trading and settlement turnover calculation for audit, Refer to the illustration.
Suppose, Mr. Srinivasan bought 100 shares of Tata Motors at 400 and sold 100 shares at 380 then his trading volume will be Rs 78000 but his settlement turnover will be just Rs 100×20= Rs. 2000. So, All such settlement profits and losses summed up together if exceeds Rs 1 crore, only then is the audit required.
More generally referred to as ‘pay-as-you-earn’ tax structure. When you have a business income you have to pay most of your taxes before the year ends on March 31st. Advance taxes are required to be paid by individuals as well as corporate, so there are no exceptions. So, if you think at the end of the year, you will have taxable income say apart from salary, then advance tax has to be paid.
As per our tax laws, any business income earned in India will attract the tax to be paid in advance as.
– 30% by 15th September.
& # 8211; 60% by 15th December, and.
& # 8211; 100% by 15th March.
So, if your tax liability comes out to be more than Rs. 10,000 in a financial year then you need to pay it in advance as per the % structure mentioned above.
This is very simple to calculate and pay if we talk of business income which is assured. But the issue comes with the business income or capital gains from trading as the income which was positive say till end of 15th September may turn out to be less if the trader incur losses in the subsequent months. The net income at the end of the month may be less or even negative.
Do we need to pay advance taxes in case of short term capital gains & profits from trading futures?
Yes, if you have any short term capital gains then advance tax is required to be paid on the booked profit but on the other hand if the gain is notional i. e. you are still holding the stock, there is no need of advance tax.
In case of Futures, since it is considered as a business, you will have to pay advance tax on the estimated profits and say if you had a net loss in the year end then you can claim refund of the advance tax paid.
The problem arises when you didn`t had any profits in the first few months and later your profits rises in the last few months.
Therefore, Payment of advance tax depends on your projected ‘Total Income’ and not income from trading only.
So, you can pay advance tax by Sept 15th for what was earned till that period and you can make the balance tax payment by March 15th. So if you have booked profit from stocks, you can pay advance tax only on that profit.
Also, if you have paid more tax than what was supposed to be paid as per your total business income for the financial year, you can claim a tax refund.
And yes, not paying may have a penalty of 12% annualized interest for the period by which it was delayed.
You can visit Advance Tax Calculator on Income tax Department website to calculate the tax to be paid.
What about Advance Tax for Salaried?
If you are salaried, you need not pay advance tax on your salary income as your employer deducts tax at source (TDS) from your salary regularly and pay it in advance to the government.
But if you have any other income apart from salary then you are required to take care of your advance tax laibility. So, any income from capital gains on shares or house property, interest on fixed deposits are required to be included and advance tax is required to be paid after adjusting for expenses or losses, if any.
So, advance tax for salaried are payable only on their other income and not on salary.
Can we choose the tax only at the end of the year as it is difficult to estimate the earning from trading?
If our tax liability comes out to be more than Rs. 10,000 in a financial year then we need to pay it in advance as per the % structure mentioned above.
But what if we don`t?
Then it will attract the interest of 1% per month on the non paid tax.
How is Interest Calculated for Non-Payment of Advance Tax on Trading?
The Income Tax Act has prescribed sections to provide how interest for non - payment/short payment/deferment in payment of advance tax will be calculated:
(i) INTEREST U/S 234A: For late or non furnishing of return , simple interest @ 1% for every month from the due date of filing of return to the date of furnishing of return, on the tax as determined or on regular assessment as reduced by TDS/advance tax paid or tax reliefs.
(ii) INTEREST U/S 234B: For short fall in payment of advance tax by more than 10% , simple interest @ 1% per month is chargeable from 1st April of the assessment year to the date of processing or to the date of completion of regular assessment, on the tax as determined or on regular assessment less advance tax paid/ TDS or tax reliefs.
(iii) INTEREST U/S 234C: For deferment of advance tax. If advance tax paid by 15th September is less than 30% of advance tax payable, simple interest @ 1% is payable for three months on tax determined on returned income as reduced by TDS/TCS/Amount of advance tax already paid or tax relief.
Similarly, if amount of tax paid on or before 15th December is less than 60% of tax due on returned income, interest @ 1% per month is to be charged for 3 months on the amount stated as above.
Again, if the advance tax paid by 15th March is less than tax due on returned income, interest @ 1% per month on the shortfall is to be charged for one month.
(iv) INTEREST U/S 234D: Interest @ 0.5% is levied under this Section when any refund is granted to the assessee u/s 143(1) and on regular assessment it is found that either no refund is due or the amount already refunded exceeds the refund determined on regular assessment. The said interest is levied @ 0.5% on the whole or excess amount so refunded for every month or part thereof from the date of grant of refund to the date of such regular assessment.
If you are a salaried person, then profits from derivatives will be added to your salary income and will be taxed according to your tax slabs. While on the other hand, losses from derivatives trading cannot be offset against the salary income but can be offset against any business income in next 8 years.
Supporting Documents Required while Filing Income Tax for Traders in India.
# 1. Lucro & amp; Loss Statement.
# 2. Contract Notes.
# 3. Depository Statements.
# 4. Extratos bancários.
Due Dates for Filing Income Tax Returns in India.
Any individual trader carrying out trading activity be it long, short or day term are obligated under the income tax law to file their returns before July 31 (This year the date is extended to September 7, 2018) and it is September 30th for companies.
In case your turnover exceeds Rs. 1 crore in a financial year, then the book of accounts needs to be audited and the due date for filling returns is September 30. Under section 271 B, failure to submit the tax audit in time has a penalty of 0.5% of turnover or Rs 1.5 lakhs, whichever is lesser.
STT, Brokerage & other Expenses for Traders.
Business expenses including Brokerage Charges, Internet Charges, Advisory Fees, Research Reports, Computer & electronics Depreciation, Electricity Bill, Telephone, Software & Data Feed Charges, Newspaper, Books, STT and rent, etc can be used to reduce the taxable income from Speculative/Business Income. You can mention any other expenses that is incurred for undertaking your trading activity under the section “Other Expenses”. So, for any expenses you mention maintain the supporting documents for any future reference.
STT, or Securities Transaction Tax , is a tax levied on securities trades (excluding commodities or currency trades). Different STT rates are applicable for Equity (cash) and Futures and Options (F&O) transactions. STT is levied on trades on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other recognized stock exchanges. For commodities, CTT (Commodities Transaction Tax) is levied.
If the trade is a equity delivery trade, than a tax of 0.1% on the turnover is levied on both the buy side and sell sides of each trade. However, if the trade is squared off (closed) within the same trading day, meaning it is a intra-day transaction, then the STT rate applicable is 0.025% on the sell-side trade(s) only.
Which ITR Form to use for Traders & Investors in India?
ITR 1 – Individuals having income from Salary and Interest.
ITR 2 – Individuals having income from salary, Interest and Rental.
ITR 4 or ITR4(S) – Individuals and HUF’s having income from a proprietor business or profession.
Income Tax Slab – FY 2018-16.
In case of companies, income tax is a flat 30% and no tax slabs exist.
Important Q&As while filing Taxation for Traders in India.
# Is there any loss we can net off against salary?
# Can we deduct long term capital loss from stocks with business income for computing income tax?
# Can we carry forward the losses if not filed in the financial year?
For Complete list of Q&As, Please Visit.
Disclaimer : Please note that all the information shared is solely for the general information purpose only. No information, views, opinions or examples constitute a solicitation or offer by JustTrading. in to buy or sell any securities or to furnish any investment & trading strategy / advice or taxation advice or service. Every attempt has been made to assure accuracy & completeness, we assume no responsibility for errors or emissions.
JustTrading. in advises you to consult with your certified professional finance advisers, chartered accountant & tax advisors before making any investment, trading or taxation decisions. For more, Please Visit & Read: Disclaimer.
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36 pensamentos sobre & ldquo; Part VIII – Getting Started With Trading – Tax Guide for Traders in India ”
This very neat and thanks for the info. I mostly take delivery and have done some 10 times Intraday made about not more than Rs.2000 . Can I declare myself Investor.
Income tax regulations had wide aspects to classify your trading activity as Business or Investment.
Intraday trading (i. e. non – delivery trading) is considered as Speculative Business activity which requires you to declare self as a trader. So any income from equity day trading is speculative business income needs to shown under the head income from business / profession and will be added to your other income and taxed as per your Tax Slab.
There are other criteria`s to classify self as a trader or investor like if you are buying and selling stocks frequently within weeks for short term or engaged in equity day trading or futures trading or your primary source of income is trading/investment or you are declaring self as a Trader in previous tax returns then you have to declare your trading activity as Business.
My main source of income is FDs and Intraday + BTST + short term. Income below taxable limit. Still I received notices asking why I have not submitted returns for past 2 years. They are referring to my above trades under STT-01, STT-02 and STT-03.
So I have decided to file this years return and I know I need to file ITR 4. Please help in providing some ITR4 specimen for stock market traders…..
Suppose as per portfolio position from backoffice I have:
Delivery purchases = 500000.
Delivery sales = 492000.
Speculation purchases = 6200000.
Speculation sales = 6215000.
Total of positive and negative values of speculation entries = 50000.
Cost price of Stocks with me on 1 Apr 2018 = 56000 (Calculated my be from last year reports and not available directly)
Cost price of Stocks with me on 31 Mar 2018 = 110000 (Calculated my be from this year reports and not available directly)
Market value of stocks (available from backoffice) held on 1 Apr 2018 and same day value = 67000. I dont now why it is required. So I think this is to be ignored and 56000 is to be taken as opening stock.
Market value of stocks (available from backoffice) held on 31 Mar 2018 and same day value = 95000. I dont now why it is required. So I think this is to be ignored and 110000 is to be taken as closing stock.
Margin money in trading account on 1 Apr 2018 = 9000.
Margin money in trading account on 31 Mar 2018 = 10000.
Please help me with sample ITR 4 for this data.
Assuming that FD + above data is less than taxable limit and my profit is less than 8 percent, am I required to get myself audited?
The first thing we need to evaluate is the profit or loss you had on your trading activity separately for long term, short term and speculative. So, consider all the delivery stocks that you sold this financial year (as there must be some stocks that you purchased last year and sold this FY or some you bought this FY but not sold off) for calculating the profit or loss and your speculative profit & loss also.
As your turnover is less than 1 crores and your total income is below the taxable limit of Rs. 2.5 lacs, you are not required to undergo the tax audit.
All the intraday profits should be shown under speculative business income while all short term equity delivery profits under capital gains head.
As for ITR 4, you are required to prepare your balance sheet declaring your assets (Cash in hand, deposits with Bank, investments, Property, Automobiles and Other assets and liabilities (loans, credit card balances, mortgage loans etc) and profit & loss statement summarizing your income and expenses just like a business.
So, it is advisable to file the same with the help of a CA so that you remain consistent with your future tax returns.
Sir, My main source of income is farmer + fd + btst and intraday trading. My income below taxable limit. Still I received notice asking why I have not submitted returns past 3years. Because my income laser than one lack all sources.
My income source…
farmer 40000/- per year.
Fd interest 10000/-
And share trading I am loss 20000/-some thing.
My portfolio about 2lakh 70thousand.
I have loss in 20y4-15 in day trading about 20000. My day volume buy and sell total is 50lack. My income not more than one lack so I am not file income tax past year’s. Can i file income tax this year? Please give me advice.
Income tax compliance is getting very strict these days.
So all the traders or investors participating in the market are required to file their tax returns even if the total income is below tax limit.
Many traders are getting notices from IT department for non filling or wrong filling of returns specially those day trading, short term trading and, trading f&o as all the traders trading the markets have to consider their profits or losses as business income or losses, so they are required to file ITR 4 or 4S.
As per law, Electronic filing of income tax return is mandatory for the taxpayer if the total income is more than Rs. 5 lakh or if there is a claim of refund except for super senior citizen (Age above 80 years) or if ITRs 3, 4, 5, 6 or 7 have to be filed (Rule 12 (3) of the Income Tax Rules, 1962 as amended)
Even many of the traders we are connected with are getting notices for non-filling of income tax returns.
IT department are filtering out the accounts who are participating in the capital market but not filling their tax returns under STT-01, STT-02, STT-03, STT-04, STT-05 and asking them to submit their response electronically under Complaince module.
Hi, request you to explain the taxation of Gold ETF and Liquid BEES ETF trading. Can I calculate turnover for these like Equity trading or only capital gains tax applicable for these.
Liquidbees & Goldbees are taxed as the debt funds.
So, Investment in any of them, if held for 3 years or more, is considered as Long term and taxed at 20% with indexation. While for any period less than 3 years, short capital gains from these investments will be added to investor’s income and taxed as per his or her tax slab. But any dividend received from liquidbees are tax free as they are taxed in the hands of the companies and not the investors.
I just saw your article on Getting started with Trading – Tax Guide – Part VIII. The article is highly informative and has been written in a lucid manner. The language is simple and very expressive. The examples added are making the points crystal clear with out any ambiguity. Indeed an excellent article.
By the by, I need to have a copy of the said article. How do I get the same? Will you please email me to my id.
Thanks for your great words. Will share with you the copy of the updated article on your email once the union budget 2018-17 is out this month end. We really appreciate your for taking time to share your thoughts.. Thanks @Rajamani.
hello team just trade ,
i have read your article, its very informative and simple to understand. Kudos to your team for explaining a complex issue so easily. Please mail a copy of the updated article . obrigado.
Thanks Yatin for taking your time for sending us your wonderful words. We are really happy to hear the positive outcomes of our heart full efforts and initiative to help traders across to be independent and learn the skill of trading. Really motivating for us.
But at present, due to large number of requests from traders & limited time, we are unable to provide the copy on email to each requests. So, we will try to find some solution to deal with requests and to serve you all in a better way.
Thanks for giving us an opportunity to serve you & be of any help. Also, we are very happy to connect with the traders like you.
Please let us know if you have any further questions; We are more than happy to help.
As there are many technicalities regarding taxation, We advice you to consult a Professional Chartered Accountant who can look into your individual accounts and get the taxation requirements completed as per the laws.
*The comment is edited on request*
I have received the below mentioned notice first time on 14th June 2018 by post.
The notice have dated 16/10/2018.
SUB: NON FILING OF INCOME TAX RETURN-REG.
FINANCIAL YEAR 2018-2018 ASSESSMENT YEAR 2018-14.
Use the REGISTER YOURSELF.
STT-01,STT-02 , STT-03.
Right now my age is 44, since July 2018 I’m a full time student.
Now this time when my college final project is on my head this income tax notice I have to reply as priority on price the loss of my study.
Now the question is about non - filling first I was totally unaware about this.
In beginning of FY 2018 I have saving and support amount by family total of >> 2 lakh less than 3 lakh in my account and.
Some time I fix some amount in short term FD from 3 months to one year….and with some amount <> 2 lakh for study and living expenses.
IN 2018-14 very small three with profit around 300/- And Completly leave trading job before beginning of April 2018.
So I decided myself to stop this way and priority focus on my study. so since august 2018 to update June 2018 I’m full time student.
I have all trading documents, bank statement and student proof.
Now in this current situation how I reply to this notice kindly help me…?
*The Comment was sent via email and is edited on request*
errorr in post before so kindly add after 2 lakh expenses >> these lines :So for earning job in 2018-13 I was doing share trading through broker as full time speculation, day trading and short term delivery.
In between I have start study full time and get admission in college July 2018.
So around six months up to sept 2018 I have done equity trading and make loss more than 20,000/- and same amount I lost in commodity trading ( sept 2018 to march 2018 ) so around more than 40000 forty thousand I make loss in FY 2018-13. And it’s shocking lesson to me and I stopped trading because I was thought for independent earning along with my study but I suffer big loss so I stopped before complete financial year 2018-13.
I have no earning because no working so no taxable any income upto financial year 2018-2018 instead of this from a friend i have a loan in instalments since may 2018 to 2018 of rupees >> 2 lakh for study and living expenses.
*We have edited your query and important points undisclosed.*
We can understand the situation you are in right now. You can deal with the notice by stating them online your reason for non-filling of income tax return as we are not the only one getting the notices. IT department has send notices to almost 50 lacs for non-filling of return for assessment year 2018-15.
As Income tax compliance is getting very strict these days so they are capturing information on financial transactions /activities relating to you through annual information return, tax deducted at source statements, banks, equity, mutual funds, etc and are sending notice for who do not file returns.
Regarding Equities, IT department are filtering out the accounts who are participating in the capital market but not filling their tax returns under STT-01, STT-02, STT-03, STT-04, STT-05 and asking them to submit their response electronically under Compliance module. So, any individual who have made transactions in stocks under the below heads and have not filled tax returns are getting the tax notices.
& # 8211; STT-01: Purchase of equity share in a recognised stock exchange.
& # 8211; STT-02: Sale of equity Share (settled by actual delivery or transfer) in a recognised stock exchange.
& # 8211; STT-03: Sale of equity Share (settled by otherwise than by the actual delivery or transfer) in a recognised stock exchange.
& # 8211; STT-04: Sale of option in securities (derivative) in a recognised stock exchange.
& # 8211; STT-05: Sale of Futures (derivative) in a recognised stock exchange.
Many of the traders we are connected with are getting notices for non-filling or wrong filling of income tax returns specially those day trading, short term trading and, trading F&O.
So, if your income (including interest from salary or business / profession, saving account, FDs, and other sources) for the respective period was less than the tax slab then and you have received the notice, then you reply them on the official website and explain the reason for not filing return as you were below the minimum tax bracket. (Check attachment)
It is advisable to file tax returns if you participate in equity markets and even filling of losses will help you set off your losses against profits in the next few years.
So, ask your friends or relatives for any known certified professional chartered accountant or tax advisor and file the submission with help and ease for a very small fee as any incorrect submissions can lead to further notices from IT department. Carry all your bank statement, p&l statements, ledger report of your trading account and take the help of CA to take care of all technicalities of tax rules for your loans, interest income and trading activities.
Also, as you have participated in the market earlier and had losses we request you to go through the various articles that we have written on our website to help new traders or investors get an edge on their trading by learning the art of trading. Trading is all about formulating rules for your trading plan & strategies, putting your strategies to test, trading on facts and strictly following your trading plan and strategies and keep on refining it to achieve your trading goals. Then you will be in a position to look at the nuggets all together.
Once you are done with your tax filling, do visit the articles and start getting back to trading with new goals in mind but this time with pre planning and with rules for trading, capital management. We truly believe that learner and effortful people like you will surely have a reward full and better trading career. All the very best.
*The Comment was sent via email and is edited on request*
Thank you for your warm help. I really like your website contents the articles which you write so informative and knowledge able. For beginners and people like me have lesson after loss because of unaware in that situation your website is helping to many people.
Kindly keep this spirit of help.
I request if you provide me contact number of expert to handle share trader case CA OR TAX consultant in Delhi for filling in my case .
It will be great.
We are in talk for tie up with some Chartered Account Company to help our users file and take care of their tax returns for equities. So, you can check online to locate a practicing CA near by your area or ask some friend for reference. As mostly all CAs file income tax returns for clients. They can easily guide you, take care of the notice from income tax and file your future tax returns.
Also, Thanks a ton for sharing your wonderful thoughts. We are really happy to hear the positive outcomes of our heart full efforts. Motivating words always inspire us to share more amazing articles. Will ensure writing & sharing more amazing work.
*The Comment was sent via email and is edited on request*
hello Just trading team,
kindly guide me ?
can you guide me about turnover term consider at time of tax assessment or account maintain. FY 2018-13.
the turnover in brokerage report is 1,43,09814 rupees.
the turnover in STT certificate for NSE is 7403885.
the turnover in STT certificate BSE is Rs 33850.
in statement of capital gain/loss buy turnover 7176898.36.
n statement of capital gain/loss sell turnover 7166780.60.
what is Turnover figure here for consider at Income tax dept capital gain purpose ?
kindly guide me why and how these differences comes.
To calculate the capital gains, you have to make a distinction of your speculative transactions (intraday trades), short term trades (Within one year) or long term trades (More than 365 days) & non speculative trades (F&O).
To know the capital gains on your transactions, you can ask your broker to provide you with the short term, long term capital gain or loss reports, ledger and F&O profit and loss statement. As it needs to be calculated script wise and not according to the total turnover of transaction you did within the year.
You can refer to the article Tax Guide for Traders in India again to understand the whole taxation mechanism.
Turnover is generally calculated to know whether a trade needs an audit or not? And also by turnover it means the addition of the settlement profits and losses combined together.
*The Comment was sent via email and is edited on request*
hello Just trading,
without hesitate is my next question is for clarity and guidance from you.
i have turnover >> 1 crore but capital loss statement of rupees > > 10000 in equity then 25000 loss in commodity trading in FY 2018-13 and same year i have changed career direction become full time student so left the trading. And i have no taxable income upto FY 2018-16. since last four years i m living on small saving for continue study and living expenses. so how i reply this notice kindly help me. when i have lost of Rs 35 to 40000/- and no taxable income.
Is still after four years this time in 2018 july can i fill return for loss in FY 2018-13 AY 2018-14 and carried forward loss? when i already left trading but not closed demat and broker account. i need CA or just my self register and fill reply of IT notice STT-01,02,03 for non filling. kindly guide me !
To get the benefit of the carry forward of losses, the same needs to be disclosed in the tax returns in the same year before the last date.
As you are new to this, we recommend you to consult a chartered accountant who can take care of all the technicalities of filling the tax returns and this notice also. Incorrect submissions can lead to further notices from IT department it is better to take help of a CA as they will charge you a very small fees for this. Also, the CA can help and guide you regarding all the loans and interest payments and income you have generated during the last few years and also for the future tax fillings.
Do carry all the bank statements, ledger, short term long term and F&O profit & loss statements of your trading account.
I started trading in AY 2018-14. As I am retired and did trading online, I did not claim expenses. IT officer during assessment quoted ITR rule 8D. He said and amount equal to 0.5% of total value of investment, will be added to taxable income. As in F&O transactions, the turnover is large (not margin or profit/loss), it is adding huge tax liability. Kindly advise.
Dear Shri Subhash Ji.
The Rule 8D provides the method for computation of dis-allowance by the Assessing officer in case he is not satisfied with the correctness of the claim of expenditure made by the assessee. We are unaware with the legality of Rule 8D, so will update you once we had a discussion with our known advisors and chartered accountants.
Also, one written by Subhash Lakhotia Here is why all tax payers should know the new 8D rule in 2018 on moneycontrol.
We suggest you to consult a Chartered Account who can look into your account to deal with this complex issue.
I am a retired person availing pension under taxable limit. If I do only delivery base trading with short term gains and if the no of trades are about 15 per month, then can I use ITR2 for filing return ? i do not have any other income.
Ministry of Finance has published a new circular in Feb 2018 which states that the trader if chooses so, can declare in the income tax returns all the profits arising from selling the shares whether they are from day trading, short term trading or long term trading as Business income.
Also, if chooses so, can declare the profits from his long term investments as capital gains, but he has to be consistent while declaring the same in tax returns in the subsequent years.
Therefore, the income tax laws allows you to declare your long term profits as capital gains but same has to declared in the similar fashion in the subsequent years and all your short term trading as your business income.
Thank you very much for the reply. I will be thankful if you can kindly clarify my doubt little further. If all my trades are delivery based for which both side STT is paid and if I do not carryout any day trading then can I file my return in ITR2 and pay applicable tax for short term capital gain irrespective of number of trades.
Dear Shri Raghu Sir.
We can understand the confusion you are into regarding your filing of capital gains as our tax laws are still unclear on these many aspects.
But recently as we shared earlier, Ministry of Finance has clarified that now traders can declare their all trading income as business income and get it taxed as per their tax slabs and long term as tax free. Following this will not be put under any kind of dispute by the income tax officer. But still unclear whether we can show it as capital gains if we are trading in F&O, day trading or actively trading.
Because there are other factors that the accessing officer might consider Frequency of Trading, Primary Source of Income, and Consistency of Declaring Self in Subsequent Tax Returns as discussed in the article Income from Equity Trading – Business Income or Capital Gains?.
Like if your primary source of income is trading or you trade very frequently or sometimes you declare your short term gains as capital gains while sometimes as business income in tax returns then he may put a dispute.
But, still the most important thing here is to stay consistent in filing your tax returns. So, if you do short term and long term trading and not indulging in F&O or intraday, then remain consistent in showing your short term gains as short term capital gains and long term as long term capital gains.
Thank you for the clarification. As my primary income is NOT from Trading, I will show my short term gains as short term capital gains and long term as long term capital gains in ITR2 CONSISTANTLY.
Thank you very much for the support.
Dear Shri Raghu Sir.
We are happy to be of any help.
Do consult some of your known Chartered Accountant or Tax Advisers. They can guide you as per your individual case so that you can dedicate your time on your trading and investing business. Also, stay updated with new changes in the tax filing rules.
We wish you a profitable and successful trading ahead in the coming years. Also, do share your story or ideas that worked for you with other aspiring traders to help them in their trading journey that will be highlighted in our section My Story.
It will be amazing to know your story and connect with a experienced person like you.
I am new to stocks. If I were to declare myself as trader and pay income tax as per my tax slab, can this be done by March. Is advance tax necessary and will it cause any problems? I have no idea how much I might invest, trade, gain or loss. So how does advance tax work?
As per our tax laws, any business income earned in India will attract the tax to be paid in advance as – 30% by 15th September, 60% by 15th December, and 100% by 15th March.
This is very simple to calculate and pay if we talk of business income which is assured. But the issue comes with the business income or capital gains from trading as the income which was positive say till end of 15th September may turn out to be less if the trader incur losses in the subsequent months. The net income at the end of the month may be less or even negative.
So, you can pay advance tax by Sept 15th for what was earned till that period and you can make the balance tax payment by March 15th. So if you have booked profit from stocks, you can pay advance tax only on that profit.
Also, if you have paid more tax than what was supposed to be paid as per your total business income for the financial year, you can claim a tax refund.
And yes, not paying may have a penalty of 12% annualized interest for the period by which it was delayed.
You can visit Advance Tax Calculator on Income tax Department website to calculate the tax to be paid.
Thatswhy we always suggest our traders community to consult a chartered accountant or a tax advisers as they can file your tax returns as per the laws and which will make you free from all the worries of the complexity of tax rules so that you can focus on your trading.
Thank you for the advice Sir.
If my earning till Sep was NIL and I choose to trade after SEP and earn say Rs.2,00,000/- profit by March. As per the rules I have to pay 30% advance tax by Sep, which amounts to Rs.6000/- (assuming overall tax liability is Rs.20,000/-) But I would have paid NIL tax in Sep because I haven’t started my trading business yet. How does Income tax account for this? Will there still be a penalty?
Need to clarify that from the Chartered Accountant how they treat this.. You pointed out right that if income is not there till September and at the end of the year you ended up making money (which may happen with many traders) then how we are supposed to pay advance tax in September installment…
Let me share the query with my CA and let`s see what she has to say for this..