Individual vs pvt ltd? best for trading

Tax planning 354 views 2 replies

Hi,

I have query related to both income-tax / corporate-tax and trading. In my family we two people want to do trading. Is it better we trade invidually or start a trading pvt ltd and trade? Which one saves more tax ? I am sure individually there are no exemptions from profit (correct me if i am wrong) , But what kind of expenses I can exempt while i am trading like a pvt ltd  ( office rent / software license cost / internet bill ..) ?

For example If each of us got 6 lakh profit from intraday trading and short term trading ( less than 1 year ). How much we are obligated to pay income tax as individuals? How much we have to pay as pvt ltd after all the expemtions (take exmample values for each exemption)

Tons of Thanks to each one of you , 

HB

Replies (2)
Better to incorporate a private limited company.

My personal suggestions is, for starting a business in any form look it from a commercail / practical point of view and not from taxation point. Once your business grows then evaluate other things.

Further individual or Pvt Ltd Co. both has its pros and cons.


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