Income tax

Dear Friends,

Hello!

Would you kindly help me on the following subjects/queries:

1.  Can an individual or a business firm doing business in share market/commodity trading accept investments from individuals for the same and give them a fixed returns @ 4-5% per month?  Does it violate any Indian law/Income Tax rules?

2.  If it is permitted, what is the TDS which is to be deducted from the payment made to the investors?

3.  If the above is not permitted, then can the individual or the firm accept under 'loans' repayable with interest @ 4-5% per month?  If so, what will be the TDS applicable?

4.  What are the mandatory registrations required for such a firm or an individual?

Thanking you in anticipation, and awaiting your kind responses.

Yours truly,

B S Bhmra

Replies (1)

1. This is one type of Financial Institution not regulated by RBI

2. TDS rate is 10% on interest

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details