Do I Pay Taxes If I Invest Through My Mother's Account?

[vsharad]

My brother wants to invest and trade in the stock market using our mother's account, as she is a housewife with no other income.

Do we need to pay taxes on the gains made through her account? How does this impact tax obligations?

Is there a knowledgeable person here who can shed light on this?

Thanks

 

[Shin-Chan]

She should file her taxes if the gains are not much there is no income tax and given her PAN is active in investing and money is being made; its always advisable to file taxes.

 

[Shin-Chan]

Do we need to pay taxes on the gains made through her account? How does this impact tax obligations?
Depends if the income is more than 7L (new tax rules) then only and if it is more than 7L and in case of non filing expect a SMS and a potential latter for show cause of non payment of taxes.

 

[Shin-Chan]

If you are investing and using her account for tax benefits you can use any portal like cleartax to file taxes on your own will be simple use platforms like Zerodha etc who have all stuff sorted for tax payers.

In case plan is to trade in derivatives better will be to consult a local CA for tax filing in case you have NO idea about taxes.

 

[luciferlucifer is verified member.]

you will have to pay tax for short and long term capital gains tax for equity accordingly no matter you earn money or not. But for intraday your slab rate is added to tax so if for your case intraday gains will have no tax

 

[vsharad]

you will have to pay tax for short and long term capital gains tax for equity accordingly no matter you earn money or not. But for intraday your slab rate is added to tax so if for your case intraday gains will have no tax

Does that mean if he trades (intraday) using her account, there are no taxes? but buying stocks and MFs will incur LTCG & STCG accordingly

 

[Riya Sharma]

Don't pay the taxes. If IT Raid happens or receive letter just feign ignorance.