Trading in shares by partners
This query is : Resolved
28 January 2016
hello,
me and my friend decided to trade in stock market as a partner, he will invest and i will trade.
we opened a joint bank account, but the trading account and demat account are opened in my name with my details.
our joint account is linked with the broker.
all the inflow and outflow of cash for share trading purpose are made through are joint account.
at the end we distribute profits equally.
question1: How we both should compute income tax and under which head we should show it.
question2: is our business is fine in the eyes of Income Tax or any other laws(we belong from mumbai).
plz give suggestions/ideas if any
Guest
Guest
(Expert)
29 January 2016
I suggest that you and your partner get into a "Partnership Deed" and based on that deed, get PAN for your partnership firm. that should take care of many issues. But ensure that you file the return of income every year for your patnership firm.
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