Thank you all for the quick responses. I appreciate it.
I have gone through your entire explanation and I feel there are some loose ends between your understanding and my problem statement. So, I wanted to re-explain it clearly, so that I want to know if your opinion still holds good.
Friends ---- > Not investors, just friends and so gave me as a loan with 0% interest, i.e. as a monetary help for a limited period of time, which I need to repay after the time period. They gave it out of their savings after paying tax on salaries.
Myself -------> I shall pool up the entire amount and I approach a known investor/trader Mr.X. This Mr.X, promises me to pay me 10% of the amount that I invest. This amount is the same that I obtained as a help from my friends.
Mr.X ----------> He does trading/investments in his own name and PAN, and he is liable to pay or pays the entire taxes (STT, GST, Captal Gain Taxes etc) at his end. Now, he pays me the 10% returns from the profit left after the taxation, along with the initial investment I invested with him, in the stipulated time period that we agreed upon initially.
Myself--------> I shall retain 10% returns with me and pay back the principal amount that I took from my friends back again.
End of the Transaction.
Every transaction takes place through the online banking channels only.
Now, considering this scenario, please explain me how am I liable to the amount that I received after taxing it at Mr.X's end already. He just shares the amount from his profit after the tax. Doesn't it count as dual taxation if I have to pay taxes on it again?
Do I need to maintain any book of accounts or audit for my scope of transactions??