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Tax takes a toll- Corporate Demat Account
Traders of Reddit trading from a corporate demat account, how did you do it, and how effective has that been in saving taxes? I have been doing some research and the only way to establish a company with the sole purpose of trading in derivatives is a partnership firm, not even an LLP. Pvt Ltd is out of the picture because: 1. Compliance is a pain in the ass. 2. As per RBI 50-50 rule, if more than 50% of your revenue comes from trading or financial investments, you have to be registered as an NBFC. That requires 2Cr to start with. With the partnership firm, there's a small impact on taxation if you draw salaries. The question is, is it all worth the effort of switching from personal to corporate?3
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