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How is Income from forex trading taxable in India

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keziah gundampati

3 Points Posted on 15 August 2021

If suppose a person from other country(not an NRI) takes money from me and he invests in his forex account and does forex trading and gives me 50% of the profit earned. He sends me this money via third party payment systems like PayPal .

So how is income taxed in India ?

Also if I do forex trading with this amount will it be legal ?

Replies (2)

Quick Summary

This discussion explores the tax implications of receiving profits from forex trading conducted by someone in another country. It clarifies whether such income is taxable in India and addresses concerns about the legality of forex trading with personal funds. The conversation touches upon classifying profit as interest income and the distinction between direct and indirect involvement in forex trading.

Mohd. Nadeem Khan

AAO

93 Points Posted on 15 August 2021

When a person has borrowed from you...it is a loan...

so profit returned by him will be in the nature of interest income...so will be taxable as income from other sources..

forex trading is legal...and comes under speculative business