LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Share trading

Praveen C (Test) (32 Points)

06 January 2015

Hi,

I am a British Citizen and having OCI (Overseas Citizen Of India) card. Would like to start trading in India. Can you please answer the following questions.

1. If I trade for example with starting with 1 crore rupees and if I earn a profit of 20 lakhs in a year, how much tax do I need to pay in India ?

2. Once after I pay tax in India do I need to pay tax in UK as well ?

3. I know that it is very easy to transfer funds from UK to India and how easy to take money back from India to UK ?

4. Is trading an individual is a good idea or trading as a company ? If so, is it good to open a company in UK or in India ?

Thanks,

Prav

Reply
Follow
Share

4 Replies

anil jain (Partner) (1067 Points)
Replied 06 January 2015

1. amount and rate of tax depends whether assessee is individual or company. in case of company 30% + 3% cess on tax, incase of individual slab rate applies. apart from that surcharge alos applies differentli for individual and company.

2. Since you are British citizen, and also resident as per British tax rules, definitely you will also be liable for tax in Britain.

3. You can take money from India after paying due taxes in India that too up to certain limits. general limit at present is USD 10 million.

4. These all depends on all related matters. No streight formulae is applicable for every situation. It can be decided after considering so many factors.

Anil Jain

Chartered Accountant

9968384056

1 Like

Praveen C (Test) (32 Points)
Replied 06 January 2015

Hi Anil Jain,

Thanks for your response. Regrading taking funds back from India to UK, how straight forward is it to take funds back ? I have heard that I need to get a sort of no tax dues certificate from CA and if this is the case approximately, how much would CA charge for this ?

Regards,

Prav