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Trading in IQ option

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27 Points Posted on 27 December 2020

Hi All,

trading ( Binary and Options) under IQ option website / app is legal in India.? Need to know the Tax impact for both profit and losses against trading.

Expecting your guidance ASAP..

Replies (3)

Quick Summary

This discussion explores the legality of trading binary and options on IQ Option within India. It clarifies that such trading is legal if conducted according to SEBI and RBI guidelines, but illegal otherwise. The tax treatment differs: legal trading is considered business income, while illegal trading falls under 'income from other sources'. The advice also touches upon potential documentation requests from the IT department, especially if offshore brokers are involved.

ayusmita

Tax consultant

3466 Points Posted on 27 December 2020

Binary and option trading is an European country trading platform
if traded as per SEBI and reserve Bank of India act and guide line then it is legal in india
if not traded as per the guidelines then illegal in india
in Europe country it is taken as gambling and in india it is taken as income
if it is traded as per indian guidelines and legal in india then it's comes under business income
and if it illegal then it's comes under income from other sources
again if off shore brokerage involved then after filling it department might ask you some documents
and if not involved then there's is less change of asking for documents
again to know the legal and illegal
read your terms and conditions and taxation part if not got there then ask your support services number