Is it legal or illegal?

[viv_1612]

Can someone please tell whether it is legal or illegal to do forex trading in india?

 

[chintan786]

Bhai agar pakde gaye to illigal or agar nahin pakde gaye to ligal...... waise RBI ki limit 40000 USd ki hai.......u can use ur credit card for payments and if remittance is more than 25000 usd then be cautious.

 

[yasirdxb]

Hi

There is nothing ileegal in forex trading. your income (if any) will be taxed

under the head 'Income from business and profession'.normal taxation

provisions are applicable. and YES there are some limits set by the RBI.

 

[flipips]

there is nothing illegal in this as long as you stay within the remittance limits of RBI and as long as you pay taxes for your income.

 

[online984]

we should pay income tax i am right?

 

[BUZZ]

how about the NRI using the normal trading account to trade equities? Is it legal or illegal...? if illegal then what are the consequences?
thanks
Bizz

 

[duster]

we should pay income tax i am right?

Any resident of any known country has to pay an income tax, where income means all incoming cash flows - no matter if it was a second hand TV sale or FX order result.

Then, it comes to your own responsibility and the extent to which you follow the national laws. If the latter is high, then each particular period of time (in most countries - each year) you have to pay back to the government a part of your annual income. Normally, if your incomes are low - competent governmental bodies are not interested in wasting time witnessing you and your operations - that's why majority of people on Earth ignores (at least - partly) this obligation. Another reason is that it's, frankly, impossible to control all cash flows in any country of a reasonable size.

It has nothing to do with Forex, it applies to everything you earn in your life as long as you live in a country. When you work for somebody (when you receive a salary), the tax is already paid by your employer - that's why in such cases you don't have to worry.

 

[ARMHM]

how about the NRI using the normal trading account to trade equities? Is it legal or illegal...? if illegal then what are the consequences?
thanks
Bizz

Nowhere did I see that it is illegal for NRI to have a normal trading account. It is something like your business in India is functioning while you are residing outside. The only drawback is it difficult to repatriate income from the operation.

 

[nreddy]

It is not illegal to trade forex from India.

It becomes illegal when you:-
- Do not pay income tax for your earnings
- Do more than 1 million US Dollar Outbound transfer in a year

- Also, a disadvantage in forex trading is you cannot show up your losses to save on income tax. Losses are losses. Only Equity, Derivatives etc based Trading losses can save you from tax.


Also note that you should have $25,000 (That is Minimum Rs 12.5 Lakhs) or more money with you (Other than own home, apartment etc). Otherwise you are faking your application with Forex Broker.

~ nreddy

 

[duster]

Also note that you should have $25,000 (That is Minimum Rs 12.5 Lakhs) or more money with you (Other than own home, apartment etc). Otherwise you are faking your application with Forex Broker.

~ nreddy

Where did you get this number from? I guess it depends entirely on a particular broker - different brokers offer different conditions. I know that many of them do not require such amounts, especially retail FX brokers.