Respected Traderji members,
I am planning to do trading with 50-50 partnership with my maternal uncle. He will just invest the money. I will trade on behalf of him with broker account opened by my name. Only my bank account will be registered for transaction with that broker account. If I gain some profit then I'll deduct the possible tax from that profit (i.e. I'll not use the deduced money in any way) and after that I'll transfer 50% profit (after deducing the total possible tax) to my uncle's bank account through my online bank account.
Now I want to know will there be any tax implications on the money my uncle is going to recieve from me each month through onlne bank transfer? Will he has to pay any tax because he will be doing neither trade nor any business or any job. How will he has to show this monthly income which I transfer to his bank account?
Please show me the correct path. Thanks
I am planning to do trading with 50-50 partnership with my maternal uncle. He will just invest the money. I will trade on behalf of him with broker account opened by my name. Only my bank account will be registered for transaction with that broker account. If I gain some profit then I'll deduct the possible tax from that profit (i.e. I'll not use the deduced money in any way) and after that I'll transfer 50% profit (after deducing the total possible tax) to my uncle's bank account through my online bank account.
Now I want to know will there be any tax implications on the money my uncle is going to recieve from me each month through onlne bank transfer? Will he has to pay any tax because he will be doing neither trade nor any business or any job. How will he has to show this monthly income which I transfer to his bank account?
Please show me the correct path. Thanks
