Can partnership firm do stock trading?
if yes, then what's the compliance for partnership firm.
what will be affect in profit loss account ?
What will be the GST on stock trading?
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COMPLIANCE FOR PARTNERSHIP FIRM IN STOCK TRADING
Replies (3)
Quick Summary
Yes certainly
Thank you sir
A firm can trade in stocks:
• A partnership firm can invest or trade in shares if the partnership deed's objects allow it (amend the deed if needed). Open a demat and trading account in the firm's name (PAN of firm).
• Tax: the firm is taxed at a flat 30% (+ surcharge above Rs 1 crore + cess). Trading income: business income (if frequent) or capital gains (STCG 20% / LTCG 12.5% for listed, with the Rs 1.25 lakh 112A exemption also available to firms).
• Intraday is speculative business. F&O is non-speculative business.
• Interest and remuneration to partners (Sec 40(b)) reduce the firm's business income.
• ITR-5, tax audit if turnover exceeds the limits.
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