Demat a/c is used for intraday transactions

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Guest

Guest (Querist)

06 July 2013 Dear Experts

I am totally in fix and confused about my DEMAT a/c.

The query is as below
•I have a DEMAT a/c.
•I am working in an organization which deals in online trading of shares / scrip
•However, our clients’ intraday transactions are run by my organization through my DEMAT a/c. i.e. My DEMAT a/c is used by my organization for day to day transactions that too intraday.
•The scrip is bought and sold on NSE and BSE during trading hours. And I need to square off all open positions during trading hours.

•At the day-end, profit/loss arises through these transactions.
•Total turnover of the entire year is expected to be Rs.360 Crores
•Therefore, I want to know the consequences for Assessment Year 2014-15.

Should I allow them to use my DEMAT a/c for their transactions ?

Am I going to be scrutinized by the IT department in the Assessment?

How do the Income tax laws apply?

Shall my bank a/c be affected through these transactions?

Please guide me and help me

Very severe

Thanks in advance

Rupesh Jain

Rupesh Jain (Expert)

06 July 2013 you should stop transaction through you demat a/c due to you will
face income tax notice.

and also you have file income tax return and when you face income tax liability also.

Message likes : 1 times

Guest

Guest (Querist)

06 July 2013 Respected Rupesh sir

can you please elaborate ?
because my employer gives me Rs.2000 pm for each such a/c and I maintain 11 such accounts. and that is my remuneration.

If I stop this then I will be sacked by my employer.

then what is the solution of this dilemma because I want to save my job as well as clients of my employer.

Rupesh Jain

Rupesh Jain (Expert)

08 July 2013 at present SEBI not allowed to any one for sell his share in other name trading a/c

but I cannot under stand what procedure you follow for this.

and in income tax if select scrutiny
what will you reply regarding the source of investment in shares .
and then you pay amount from your a/c by cash or by cheque.

pls open client demat a/c

Message likes : 1 times

Guest

Guest (Querist)

09 July 2013 thanks sir
I thank you very much

Sir I traded these shares on my name .

My sir took money from clients and then credited it into my bank a/c

that's how it went on.

but I instantly stop this procedure and make my boss understand this,

thereby I will make our clients open Demat a/c

Thanks sir for your valuable guidance

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