I am an Indian resident.I am in to online forex trading with a foriegn broker.?
Friday, April 18, 2014
, Posted by Ryanita at 3:57 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.
what is the best source to learn forex trading?
Q. i need a trusted book or a series of books or a collection or seminars or videos or anything that can take me from A to Z because simply I KNOW NOTHING ABOUT IT but i am curious and i want to learn it and if i like it i will continue
Answer
There are many sources to learn forex trading. As a matter of fact too many that one often get confused. The numerous forums with 101 views just adds to the confusion :p
My advice always is that if something sounds too good to be true, it probably is. There is no shortcut to riches. Be prudent ya! Anything that advocates understanding of the market and proper money management is probably good.
There are many sources to learn forex trading. As a matter of fact too many that one often get confused. The numerous forums with 101 views just adds to the confusion :p
My advice always is that if something sounds too good to be true, it probably is. There is no shortcut to riches. Be prudent ya! Anything that advocates understanding of the market and proper money management is probably good.
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