I am an Indian resident.I am in to online forex trading with a foriegn broker.?
Saturday, February 15, 2014
, Posted by Ryanita at 1:00 PM
haatni
I am an Indian resident.I am in to online forex trading with a foriegn broker. Say if I have a profit of 1 crore in the forex account abroad.Do I need to pay tax in India for that 1 crore? or If I transfer 20 lakh to my Indian savings bank account in a financial year from the forex account abroad, What will be my taxable income ?? 1 crore or 20 lakh ??
Answer
Say in different way:: If you eput 100 USD onto forex account and after a trade you decided to pay out 90 USD from your forex account you did not earn any extra money (you did not generate any profit). No profir= no tax. But if you used this same amount of money (100 dollars) and you earned 200 and you decided to pay out 200 and you left on forex account your 100 still, you should pay tax, because if you got more money that you paid in - this is your income. If you had 100 USD on forex account and now you have 101 it means you earned 1 USD and you must pay tax from 1 USD in your country after transfering money to a bank. If your country takes 30% tax from the income you should pay 30 cents tax. But I think money on the forex account is safe - as long as you have the money there - you can treat it as your investment (not as loss or income). The income is when you take more money out of the account. Is that logic? Be careful. Some governments may wish to take your money (as a tax) even when you did not finished your trade (for example tax from each plus transaction you finished on forex - but this is unfair -when the money is still in trade they are not allowed to take any money from you. Forex is not like a shop where you generate profit with each sale. Forex is like a bank - bank counts tax as a yearly income from your earning multiplied by days. In forex nothing is stable and not all transactions will be profitable. Therefore governements should not be allowed to ask for any money when the money is on the forex account (even if you earned 1000USD). Example : I have done trade on forex and opened many short transactions. Everything was good and I secured them by opposite long transactions. For month I invested 12000 pounds and my profit was 3000-5000 pounds. But this money was still invested. One day I was not carefull and I was bored with the situation and decided to unblock some of the secure transactions to make big profit quick. But only because I unblocked to many opposite transactions - my balance soon was ruined and I have lost all. (I was not pacient enough). No country can ask me for a tax because there was not profit at the ened. But also for example one month earlier they were not entitled to ask for the tax when the transactions has been opened still. I am not shure how is in your country. Be carefull.
Say in different way:: If you eput 100 USD onto forex account and after a trade you decided to pay out 90 USD from your forex account you did not earn any extra money (you did not generate any profit). No profir= no tax. But if you used this same amount of money (100 dollars) and you earned 200 and you decided to pay out 200 and you left on forex account your 100 still, you should pay tax, because if you got more money that you paid in - this is your income. If you had 100 USD on forex account and now you have 101 it means you earned 1 USD and you must pay tax from 1 USD in your country after transfering money to a bank. If your country takes 30% tax from the income you should pay 30 cents tax. But I think money on the forex account is safe - as long as you have the money there - you can treat it as your investment (not as loss or income). The income is when you take more money out of the account. Is that logic? Be careful. Some governments may wish to take your money (as a tax) even when you did not finished your trade (for example tax from each plus transaction you finished on forex - but this is unfair -when the money is still in trade they are not allowed to take any money from you. Forex is not like a shop where you generate profit with each sale. Forex is like a bank - bank counts tax as a yearly income from your earning multiplied by days. In forex nothing is stable and not all transactions will be profitable. Therefore governements should not be allowed to ask for any money when the money is on the forex account (even if you earned 1000USD). Example : I have done trade on forex and opened many short transactions. Everything was good and I secured them by opposite long transactions. For month I invested 12000 pounds and my profit was 3000-5000 pounds. But this money was still invested. One day I was not carefull and I was bored with the situation and decided to unblock some of the secure transactions to make big profit quick. But only because I unblocked to many opposite transactions - my balance soon was ruined and I have lost all. (I was not pacient enough). No country can ask me for a tax because there was not profit at the ened. But also for example one month earlier they were not entitled to ask for the tax when the transactions has been opened still. I am not shure how is in your country. Be carefull.
Forex trading?
Mc D
What are the risk of trading currency with Forex trading? I live in China, but wants to try trading currency with Forex. One of the operator asked me to send the money across to them in USA and start trading in minutes time. I don't know much about currency trading but they said they will offer me a course to get me started. Do I engage in this business?
Answer
Like everyone else has said you need to take your time when deciding to trade the Forex market. That being said, if you are willing to learn how to trade it properly and are patient you can make money even with a small ($5000) account.
You will need to set strict money management rules, that is how much to place on each trade, how much you are willing to lose on each trade and how much profit you are happy to take on each trade.
Greed can do funny things and a winning trade can end up a loosing trade.
Follow these 10 steps
1. Get access to and read as much free information as possible
2. Download free Forex Charts
3. Take some Forex courses
4. Test and trial a couple of different forex strategies to determine which is best for your personality. Donât rush this stage as you will really get to know yourself, how you react to loss, greed, fear and you will come to an understanding of how much time you really want to commit to your trading.
5. Open a demo account with an online forex broker, and start with a conservative amount in your account between $5000 and $10,000.
6. Simulator trade for between about 3 months
7. Open a Mini-Forex Account and fund with a conservative amount of money, between $300 - $2000.
8. Build your confidence by taking small amounts from the market consistently.
9. Throughout this whole process develop a trading plan that will consist of
a. What size your real trading account will be
b. How much you will trade each time
c. What timeframes you will trade
d. How much you will risk each trade
10. Trading for Real - Start trading a real account and continue to monitor and track your progress, recognising that you are a continual learner.
You can learn more from the free course at http://www.my-forex-training.com/FreeCourseSignUp.html
Like everyone else has said you need to take your time when deciding to trade the Forex market. That being said, if you are willing to learn how to trade it properly and are patient you can make money even with a small ($5000) account.
You will need to set strict money management rules, that is how much to place on each trade, how much you are willing to lose on each trade and how much profit you are happy to take on each trade.
Greed can do funny things and a winning trade can end up a loosing trade.
Follow these 10 steps
1. Get access to and read as much free information as possible
2. Download free Forex Charts
3. Take some Forex courses
4. Test and trial a couple of different forex strategies to determine which is best for your personality. Donât rush this stage as you will really get to know yourself, how you react to loss, greed, fear and you will come to an understanding of how much time you really want to commit to your trading.
5. Open a demo account with an online forex broker, and start with a conservative amount in your account between $5000 and $10,000.
6. Simulator trade for between about 3 months
7. Open a Mini-Forex Account and fund with a conservative amount of money, between $300 - $2000.
8. Build your confidence by taking small amounts from the market consistently.
9. Throughout this whole process develop a trading plan that will consist of
a. What size your real trading account will be
b. How much you will trade each time
c. What timeframes you will trade
d. How much you will risk each trade
10. Trading for Real - Start trading a real account and continue to monitor and track your progress, recognising that you are a continual learner.
You can learn more from the free course at http://www.my-forex-training.com/FreeCourseSignUp.html
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