Taxation for a family investment firm

i would rather simply split the transactions into multiple accounts and pay tax under 44AD on it. and in case turnover exceeds 44AD limit, park expenses in that PAN including salaries/professional fee etc and pay tax on account basis on that PAN only. 

The proposed calculation is not safe to rely on as stated. A company may trade in securities and borrow from its shareholders, but the interest and ₹80 lakh each described as “contractual remuneration” will not automatically be deductible or eligible for 44ADA.

• Interest: Deduction generally requires a genuine loan used for business, documented terms, actual interest liability and compliance with related-party and withholding-tax rules. A 12% rate is not automatically acceptable merely because it is agreed; its commercial basis and the facts of the arrangement matter.
• Remuneration: Payments to you and your father must be for genuine services, commercially supportable and properly authorised/documented. Section 40A(2) can restrict excessive or unreasonable payments to related persons. A company also cannot simply treat owners’ withdrawals as deductible contractor fees.
• Section 44ADA: It is for eligible professionals carrying on specified professions—not a general presumptive option for trading or contracting income. Contractor receipts do not qualify merely by being labelled professional fees; eligibility depends on the actual activity and profession. If eligible, the 44ADA gross-receipt ceiling and cash-receipt condition also apply.
• Trading and tax: F&O income is generally treated as non-speculative business income, while cash-segment treatment depends on the nature and holding pattern of the transactions. The company’s final tax rate is not necessarily 25%; it depends on the company’s eligibility for the applicable regime and conditions. Also model the tax on salary/fees and interest in your and your father’s hands, plus TDS, GST and audit implications.

The company must be the genuine trader: funds, broker account, contracts, books and risk should sit with the company. Incorporation does not itself convert personal trading into company trading or guarantee a lower overall tax burden. Have the structure and projections reviewed before transferring funds or placing trades, using the proposed loan terms, service roles, expected turnover and chosen tax regime.

This structure should be assessed as a complete company-trading and related-party payment workflow, not only by comparing headline tax rates. Manual work on loans, remuneration, TDS, GST and tax computations is difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. WhatsApp us to explore a more efficient compliance workflow: https://wa.me/message/3HVOZ7HIY4ESC1