Demat a/c is used for intraday transactions

This query is : Resolved

Guest

Guest (Querist)

06 July 2013 Dear Experts

I am totally in fix and confused about my DEMAT a/c.

The query is as below
•I have a DEMAT a/c.
•I am working in an organization which deals in online trading of shares / scrip
•However, our clients’ intraday transactions are run by my organization through my DEMAT a/c. i.e. My DEMAT a/c is used by my organization for day to day transactions that too intraday.
•The scrip is bought and sold on NSE and BSE during trading hours. And I need to square off all open positions during trading hours.

•At the day-end, profit/loss arises through these transactions.
•Total turnover of the entire year is expected to be Rs.360 Crores
•Therefore, I want to know the consequences for Assessment Year 2014-15.

Should I allow them to use my DEMAT a/c for their transactions ?

Am I going to be scrutinized by the IT department in the Assessment?

How do the Income tax laws apply?

Shall my bank a/c be affected through these transactions?

Please guide me and help me

Very severe

Thanks in advance

Rupesh Jain

Rupesh Jain (Expert)
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06 July 2013 you should stop transaction through you demat a/c due to you will
face income tax notice.

and also you have file income tax return and when you face income tax liability also.

Message likes : 1 times

Guest

Guest (Querist)

06 July 2013 Respected Rupesh sir

can you please elaborate ?
because my employer gives me Rs.2000 pm for each such a/c and I maintain 11 such accounts. and that is my remuneration.

If I stop this then I will be sacked by my employer.

then what is the solution of this dilemma because I want to save my job as well as clients of my employer.

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Rupesh Jain

Rupesh Jain (Expert)
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08 July 2013 at present SEBI not allowed to any one for sell his share in other name trading a/c

but I cannot under stand what procedure you follow for this.

and in income tax if select scrutiny
what will you reply regarding the source of investment in shares .
and then you pay amount from your a/c by cash or by cheque.

pls open client demat a/c

Message likes : 1 times

Guest

Guest (Querist)

09 July 2013 thanks sir
I thank you very much

Sir I traded these shares on my name .

My sir took money from clients and then credited it into my bank a/c

that's how it went on.

but I instantly stop this procedure and make my boss understand this,

thereby I will make our clients open Demat a/c

Thanks sir for your valuable guidance