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Email: [email protected] Why is forex trading not allowed in india Forex trading in India is a popular investment option, but it comes with tax implications. Trading in foreign exchange directly within India is illegal, and certain regulations must be followed. Forex trading falls under different categories, with most traders reporting profits as business income. Taxation includes income tax (I-T) based on gains earned and the goods and services tax (GST) applicable to all foreign exchange transactions. The tax rates vary based on the individual’s income range, and the GST amount can range from 5% to 18% of the income. Understanding these tax structures is crucial for any investor looking to engage in forex trading in India.
Forex trading legal in india
India’s current account deficit declined to US$ 23.2 billion (0.7 per cent of GDP) during 2023-24 from US$ 67.0 billion (2.0 per cent of GDP) during the previous year due to a lower merchandise trade deficit which reflects a robust external balance position, according to RBI data released on June 24 this year. How can you Trade Forex in India? In order to start Forex trading in India, an individual has to open a Forex trading account with a SEBI registered Forex broker in India. Once the account is set up he\she can start trading currencies in the Forex market.Related Articles
If u have a trustable relative/friend who lives abroad and have citzenship of that country(where FOREX trading is legal) . Send money to him to open a account on his name. Then trade from India. Whenever u want u ask your friend to withdraw and send money back to your indian bank account or ask him to instruct his family members in india to give the amount to you (as he can use the withdrawn amount for himself). Example of Forex Trading in India ⭐️ Resident Indians can trade in currency through various Indian financial institutions today However, currently the resident Indians cannot trade in currency pairs not involving the Indian Rupee, (like the USD/GBP) with any scheduled bank or such other agency falling under the regulatory purview of the Reserve Bank of India Therefore to trade in such currency pairs, one will have to transact Foreign Exchange trades outside India.
