Posted on: 16th Sep, 2009 07:05 am
if i open a demat account in the name of my sister and do trading with that,
whatever income i am gaining is that included in my income ?
So is that taxable?
whatever income i am gaining is that included in my income ?
So is that taxable?
i'm not familiar with "demat" but i'll take a stab at this.
if you open an account in your sister's name, then the earnings become hers, don't they? how would they be yours?
as for taxation....income is always taxable.
if you open an account in your sister's name, then the earnings become hers, don't they? how would they be yours?
as for taxation....income is always taxable.
Earning will be in the name of your sister. so income will get added in her name & as per rule she will pay taxes.
It is a very simple logic but like George i am also unaware of Demat Account. Will you explain what it is?
It is a very simple logic but like George i am also unaware of Demat Account. Will you explain what it is?
A demat account is a DEMATERIALIZED ACCOUNT in which one holds shares of various companies in electronic form. Basically, a license/permission to do trading. (That courtesy of Google and I'm still not sure what it is)
As noted above, an account in your sister's name is not yours.
Additionally, income is money earned and likely to continue 3 years or longer. The account sounds more like an investment account. If you are not taking a steady income from the account, you are not earning income. Like any other investment account, the value grows or decreases based on trades and dividends and interest. The value of the account by itself is not income at all for anyone.
As noted above, an account in your sister's name is not yours.
Additionally, income is money earned and likely to continue 3 years or longer. The account sounds more like an investment account. If you are not taking a steady income from the account, you are not earning income. Like any other investment account, the value grows or decreases based on trades and dividends and interest. The value of the account by itself is not income at all for anyone.
