PAY LESS TAXES.
How the best (Traders and Fund Managers) get away with paying less taxes, protecting their capital and creating substantial wealth.
And the exact methods for you to use (kept secret from 99% of Traders): ๐งต
Collaborated with @niki_poojary
How the best (Traders and Fund Managers) get away with paying less taxes, protecting their capital and creating substantial wealth.
And the exact methods for you to use (kept secret from 99% of Traders): ๐งต
Collaborated with @niki_poojary
1/ Unsecured Loans:
Above 50 lakh profit in individuals, you are liable to pay a surcharge which adds to your tax burden heavily.
Therefore, you can give your family an unsecured loan and start trading in their trading account to divide the profit among your family members.
Above 50 lakh profit in individuals, you are liable to pay a surcharge which adds to your tax burden heavily.
Therefore, you can give your family an unsecured loan and start trading in their trading account to divide the profit among your family members.
As a result, the profit will now be split amongst your family.
Now, assuming you are earning a 50 lakh profit and are liable to pay high tax on it on one family member.
You can keep switching between 4 of your family members and earn only 12.5 L per person.
Now, assuming you are earning a 50 lakh profit and are liable to pay high tax on it on one family member.
You can keep switching between 4 of your family members and earn only 12.5 L per person.
2/ Gifts:
Some people don't want to get into the hassle of loans and then paying interest to each other.
In such cases, you can gift money to your family members.
After that, trade in their account to make money.
Keep doing this among your family.
Some people don't want to get into the hassle of loans and then paying interest to each other.
In such cases, you can gift money to your family members.
After that, trade in their account to make money.
Keep doing this among your family.
If you plan to do the two things mentioned above, you will already save a significant amount of tax.
How? Let's look ahead.
How? Let's look ahead.
3/ Use no tax slab:
There is no tax on the first 2.5 lakh of income for an individual.
Assuming a family of 4, you can avail this 2.5L benefit amongst your family.
You did not pay tax on 10L (2.5*4) of your income as a result.
There is no tax on the first 2.5 lakh of income for an individual.
Assuming a family of 4, you can avail this 2.5L benefit amongst your family.
You did not pay tax on 10L (2.5*4) of your income as a result.
5/ Expenses lower your taxes:
If you want to reduce your income tax, you can do that by showing the expenses that you have made.
Trading profits come under business income.
Any expenses that you make for your business can be claimed.
If you want to reduce your income tax, you can do that by showing the expenses that you have made.
Trading profits come under business income.
Any expenses that you make for your business can be claimed.
6/ What do you spend on to trade?
To trade, each of us needs:
โข Computers
โข Laptop
โข Mobiles
This is absolutely basic to our business.
After that, in order to connect to
โข The markets and
โข Place orders
We also need an internet connection.
To trade, each of us needs:
โข Computers
โข Laptop
โข Mobiles
This is absolutely basic to our business.
After that, in order to connect to
โข The markets and
โข Place orders
We also need an internet connection.
7/ The office you might be trading in might need an:
โข Television to watch the news
โข Air conditioner
โข Fridge
Since these are related to your business, which is trading, these expenses can be claimed.
As a result, your tax will reduce.
โข Television to watch the news
โข Air conditioner
โข Fridge
Since these are related to your business, which is trading, these expenses can be claimed.
As a result, your tax will reduce.
8/ If your trading capital is high enough, you might need to diversify into:
โข Different instruments and
โข Multiple stocks.
You cannot place all these orders manually.
So you can hire dealers to punch orders for you.
โข Different instruments and
โข Multiple stocks.
You cannot place all these orders manually.
So you can hire dealers to punch orders for you.
9/ Salaries
People who manage other people's money also hire dealers to punch orders in multiple accounts.
Utilize their salaries, which your company incurs as an expense, to reduce your taxes.
People who manage other people's money also hire dealers to punch orders in multiple accounts.
Utilize their salaries, which your company incurs as an expense, to reduce your taxes.
10/ Travel expenses:
If you travel for some business event, you can claim the:
โข Flight tickets
โข Food costs and
โข Hotel stay
You can claim these costs as an expense when conducting meetings with clients or events.
If you travel for some business event, you can claim the:
โข Flight tickets
โข Food costs and
โข Hotel stay
You can claim these costs as an expense when conducting meetings with clients or events.
11/ Losses from Futures and Options:
The majority of traders lose money in the stock market.
If you are one of them, you can show your losses, and then when you make a profit from trading, offset these losses.
This will reduce your taxable income in subsequent years.
The majority of traders lose money in the stock market.
If you are one of them, you can show your losses, and then when you make a profit from trading, offset these losses.
This will reduce your taxable income in subsequent years.
12/ HUF (Hindu Undivided Family):
You can open a HUF for tax-saving purposes. This becomes a separate entity.
You can claim different expenses here as well.
Many of my trader friends are doing this to reduce taxes.
You can open a HUF for tax-saving purposes. This becomes a separate entity.
You can claim different expenses here as well.
Many of my trader friends are doing this to reduce taxes.
Conclusion:
Instead of arguing and commenting something negative in the comments, can use this as a guide for discussions with your trader friends and your CA.
Each CA operates differently. Some will agree and some won't.
Hope this helped.
Instead of arguing and commenting something negative in the comments, can use this as a guide for discussions with your trader friends and your CA.
Each CA operates differently. Some will agree and some won't.
Hope this helped.
If you found this useful, please do RT first tweet.
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
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