Prop Firm Trading - ITR Filing 2026
Your Prop Firm Profits Are Legally Exposed.
Let's Fix That.
Thousands of Indian traders receive international payouts every month with zero compliant tax filing. The Income Tax Department, RBI, and Black Money Act are watching. We file it right - the first time.
Black Money Act Penalty 90% + Tax | FEMA Contravention Fine 3× Income Received | Max Prosecution 10 Years | Assessment Window 16 Years |
Why It Matters
The Legal Minefield Most Traders Ignore
Prop firm income touches four separate legal frameworks simultaneously. Getting any one of them wrong has severe consequences.
Income Tax Act, 1961
Prop firm income must be correctly classified as business income, filed in ITR-3, and disclosed in Schedule FSI and FA. Wrong form selection alone can make a return defective and trigger reassessment.
Penalty u/s 270A — up to 200% of tax
FEMA, 1999
Trading forex on offshore prop firm platforms potentially violates RBI's capital account restrictions. Every inward remittance must have documented purpose codes and be FEMA-permissible.
Fine up to 3× the amount received
Black Money Act, 2015
Any foreign income or asset — including Wise balances, Payoneer accounts, or foreign exchange earnings — that goes undisclosed triggers this law, regardless of intent.
30% tax + 90% penalty + criminal prosecutionCrypto Payout Risk
USDT or stablecoin payouts held in foreign wallets are simultaneously undisclosed foreign assets (Black Money Act) and FEMA violations. Each unpaid payout compounds your legal exposure.
Section 115BBH — 30% flat tax + FEMA penalties
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