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Investing in Zerodha Stock: Tax Implications and Claiming Benefits?

Samkit

Samkit Maniar  | Answer  |Ask -

Tax Expert - Answered on Jul 25, 2024

CA Samkit Maniar has eight years of experience in income tax, mergers and acquisitions and estate planning.
He has graduated from Mumbai’s N M College of Commerce and Economics and has completed his CA from The Institute of Chartered Accountants of India."... more
Yogalakshmi Question by Yogalakshmi on Jul 02, 2024Hindi
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Just now I'm being entered inside tax. I've invested in Zerodha stock. Will it come under other income source? Also how can I get a claim since it's an investment.

Ans: Can you please elaborate your question? Did you mean that you have opened a zerodha account and invested in a particular stock or you have received ESOP from Zerodha?
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9854 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 19, 2025

Asked by Anonymous - Jan 19, 2025Hindi
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I am an NRI with an NRO trading account through Zerodha, but I cannot trade in F&O and Intraday. I have been filing my returns consistently though I have had no income in India in the last 10 years. But I have investments in MF, PPF, NPS, Medical and Life Insurances, ULIPs which were initiated while working in India and had tax saving options and it is being continued. I would like to trade in F&O and Intraday. My wife is not employed till date and has a regular savings account with the Bank which is Resident Indian normal account. She has never filed any IT returns since as there was no income and transactions from my side were only for family maintenance. My question is, can I open a regular trading account in her name so that we can do trading in F&O and Intraday? What are the necessary things which I need to follow for filing IT returns and how my investments can be helpful to file returns through her account. She doesn't have any investments except LIC & Health Insurance policies in her name for which I pay from myside.
Ans: Yes, you can open a trading account in your wife's name to trade in F&O and intraday; however, there are a few important considerations:

Steps to Open a Trading Account:
Convert Savings Account to a Trading-Compatible Account: Ensure her existing bank account supports trading transactions. If not, convert it to a trading-compatible savings account.
KYC Compliance: Complete her KYC process with updated details, including PAN, Aadhaar, and a valid address proof.
Link Demat and Trading Account: Open a Demat and trading account in her name with a broker that supports F&O and intraday trading for resident individuals.
Nominate a Separate Source of Funds: Ensure the funds transferred to her account are not directly linked to your NRI account to avoid legal and taxation issues.
Tax Implications:
Income from Trading: Any income generated from trading in her account will be considered her income. Since she has no other sources of income, her income from trading may be taxed as per the slab rate applicable to her.
Gift Declarations: Funds transferred to her account can be considered a gift. Gifts from a spouse are exempt from tax, but the income generated (through trading) will be clubbed with your income under Section 64 of the Income Tax Act.
Filing IT Returns:
She will need to file her own ITR if her total income (including trading profits) exceeds the taxable limit (Rs. 2.5 lakhs for individuals below 60).
Any clubbed income will still require an ITR to declare the source and details.
Investments for IT Filing:
Investments in her name (e.g., LIC and health insurance) can help:

Claim deductions under Section 80C for LIC premiums.
Claim deductions under Section 80D for health insurance premiums.
Alternative Suggestions:
Joint Investments: Instead of opening an account in her name, consider using investments in her name (LIC, insurance, etc.) to improve her financial standing without additional compliance.
Professional Advice: Engage a CA familiar with NRI taxation and clubbing provisions to ensure full compliance and proper structuring.
If you'd like detailed help with tax planning, compliance, or investment strategies, let me know!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment.

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Nayagam P

Nayagam P P  |9512 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Asked by Anonymous - Jul 27, 2025Hindi
Career
My son has got svnit surat cse branch through Josaa counselling. we are more interested in mnit jaipur, is it a wise decision if we switch to Ai and data science branch or electronics and communication branch in mnit jaipur if we get that in csab round
Ans: Switching from Computer Science and Engineering (CSE) at SVNIT Surat to either the Artificial Intelligence and Data Science or Electronics and Communication Engineering (ECE) branches at MNIT Jaipur through CSAB counselling involves weighing critical factors such as accreditation, placements, faculty strength, infrastructure, research, and exposure opportunities. MNIT Jaipur is a top-tier NIT accredited by NAAC (A) and NBA for multiple branches, ranked 43rd in NIRF 2024 and consistently within India’s top 50 engineering institutes, with substantial research activity in areas including AI, data science, and electronics. The AI and Data Science program has a well-structured curriculum aligned with contemporary industry trends and witnessed an average package of ?12.4L with about 75% placement in its initial years, while ECE placements over the last cycle consistently exceeded 85% with the highest offers above ?30LPA and reputed core as well as IT sector recruiters. Modern infrastructure at MNIT Jaipur includes advanced labs, extensive research centres, and holistic campus facilities.

In comparison, SVNIT Surat’s CSE branch has a stellar placement rate, regularly surpassing 90% and posting average packages around ?18LPA, notably higher than non-core branches, with strong recruitment from top tech giants and nearly 100% placement in recent years. Its CSE program enjoys strong peer and employer perception, robust projects, and steady research engagement, although MNIT has an edge in national ranking, research breadth, and campus ambiance.

Recommendation: Prioritize SVNIT Surat CSE for its consistently high placement rate and average package if pure CSE and early career outcomes are your primary focus. Opt for MNIT Jaipur AI and Data Science if your son aspires to specialize in AI with versatile skill sets at a higher-ranked, research-oriented campus. The ECE option at MNIT Jaipur offers balanced career prospects and exposure to both core electronics and IT roles, making it an excellent alternative to CSE. Both MNIT branches are highly reputable, but unless your son has a distinct passion for AI/Data Science or ECE, the career trajectory and placement outcomes of SVNIT Surat CSE remain the strongest in the present landscape. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9512 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
Respected Sir, my son has provisionally secured admission in the Integrated Artificial Intelligence program at VIT Bhopal, and in Core Computer Science and Engineering at Amity University Gwalior and LNCT Bhopal (Main Campus). His JEE Main CRL rank is above 100,000. Based on this, kindly suggest which option would be the best, and what should we do regarding CSAB counseling."
Ans: Among the available options for your son—VIT Bhopal’s Integrated Artificial Intelligence, Core Computer Science and Engineering at Amity University Gwalior, and LNCT Bhopal Main Campus—each offers distinctive program strengths, but they differ in national standing, academic exposure, and industry integration. VIT Bhopal’s five-year Integrated M.Tech. in Artificial Intelligence delivers a dual-degree program emphasizing hands-on experience, advanced AI/ML curriculum, and robust engagement with research, capstone projects, and internships. The program’s ties with leading tech companies provide significant project and employment exposure, and its campus boasts modern computing facilities and collaborative industry events. Amity University Gwalior’s B.Tech CSE, NAAC ‘A’ grade accredited and ranked in NIRF 2024 (#201-300), is known for its industry-oriented curriculum with specializations in AI, ML, cyber security, and more, placing strong emphasis on internships and skill development; the placement cell has maintained about 80–90% placement rates in the CSE branch in recent years, with access to major recruiters and a vibrant campus environment. LNCT Bhopal, one of central India’s most established private technical institutes, offers a competitively priced B.Tech CSE program that aligns closely with core industry requirements, providing collaborations with technology majors such as Oracle and IBM, and consistent placement rates around 75–85%, with the advantage of large annual intake and an expansive recruiter network.

Regarding CSAB counselling for JEE Main CRL above 100,000, the likelihood of securing CSE or top branches in NITs, IIITs, or GFTIs is extremely low, as the most recent cutoffs for even newer or remote campuses in CSAB special rounds have tended to close well below the 100,000 mark for CSE, with most NITs and IIITs closing their CSE branches under 60,000–70,000. Some peripheral GFTIs or newer IIITs may admit at higher ranks, but offerings are typically in lower-demand streams or less central locations, and competition remains fierce for computer science-based programs. However, CSAB remains an avenue for backup exploration and should still be attempted until the final rounds, in case of changes in seat availability or candidate withdrawal.

Recommendation: Prioritize VIT Bhopal’s Integrated Artificial Intelligence for its cutting-edge interdisciplinary focus, advanced learning pathways, and research-driven orientation, offering future-ready skills in a rapidly expanding domain. Next, consider Amity University Gwalior’s CSE for its NIRF ranking, strong campus placements, and multiple specialization tracks, especially if your son prefers a pure computer science degree in a polished urban campus. LNCT Bhopal’s CSE should be the third choice, valued for its affordability, solid placement record, and breadth of industry connections within central India. Simultaneously, participate in CSAB special rounds but keep expectations realistic about CSE/IT options, making early decisions on private college premium seats as soon as possible for best outcomes. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9512 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
Respected Sir, my son has provisionally secured admission in the Integrated Artificial Intelligence program at VIT Bhopal, and in Core Computer Science and Engineering at Amity University Gwalior and LNCT Bhopal (Main Campus). His JEE Main CRL rank is above 100,000. Based on this, kindly suggest which option would be the best, and what should we do regarding CSAB counseling.
Ans: Among the available options for your son—VIT Bhopal’s Integrated Artificial Intelligence, Core Computer Science and Engineering at Amity University Gwalior, and LNCT Bhopal Main Campus—each offers distinctive program strengths, but they differ in national standing, academic exposure, and industry integration. VIT Bhopal’s five-year Integrated M.Tech. in Artificial Intelligence delivers a dual-degree program emphasizing hands-on experience, advanced AI/ML curriculum, and robust engagement with research, capstone projects, and internships. The program’s ties with leading tech companies provide significant project and employment exposure, and its campus boasts modern computing facilities and collaborative industry events. Amity University Gwalior’s B.Tech CSE, NAAC ‘A’ grade accredited and ranked in NIRF 2024 (#201-300), is known for its industry-oriented curriculum with specializations in AI, ML, cyber security, and more, placing strong emphasis on internships and skill development; the placement cell has maintained about 80–90% placement rates in the CSE branch in recent years, with access to major recruiters and a vibrant campus environment. LNCT Bhopal, one of central India’s most established private technical institutes, offers a competitively priced B.Tech CSE program that aligns closely with core industry requirements, providing collaborations with technology majors such as Oracle and IBM, and consistent placement rates around 75–85%, with the advantage of large annual intake and an expansive recruiter network.

Regarding CSAB counselling for JEE Main CRL above 100,000, the likelihood of securing CSE or top branches in NITs, IIITs, or GFTIs is extremely low, as the most recent cutoffs for even newer or remote campuses in CSAB special rounds have tended to close well below the 100,000 mark for CSE, with most NITs and IIITs closing their CSE branches under 60,000–70,000. Some peripheral GFTIs or newer IIITs may admit at higher ranks, but offerings are typically in lower-demand streams or less central locations, and competition remains fierce for computer science-based programs. However, CSAB remains an avenue for backup exploration and should still be attempted until the final rounds, in case of changes in seat availability or candidate withdrawal.

Recommendation: Prioritize VIT Bhopal’s Integrated Artificial Intelligence for its cutting-edge interdisciplinary focus, advanced learning pathways, and research-driven orientation, offering future-ready skills in a rapidly expanding domain. Next, consider Amity University Gwalior’s CSE for its NIRF ranking, strong campus placements, and multiple specialization tracks, especially if your son prefers a pure computer science degree in a polished urban campus. LNCT Bhopal’s CSE should be the third choice, valued for its affordability, solid placement record, and breadth of industry connections within central India. Simultaneously, participate in CSAB special rounds but keep expectations realistic about CSE/IT options, making early decisions on private college premium seats as soon as possible for best outcomes. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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