My friend is a salaried man. He has collected some money. He wants to invest it in some business. H…
My friend is a salaried man. He has collected some money. He wants to invest it in some business. He is planning to buy a car and attach it with a reputed travel agent. He has some questions.
- Can he do that along with employment?
- Will he have to pay tax on this income too?
- Shall he open a separate current account for this?
- Can he do it in his name or he has to open company?
Kanishka Aug. 11, 2018
Generally people invest in avenues like Mutual Funds etc. There are only a handful people like your friend. I personally respect them a lot.
Here are my answers for your 4 questions:
- Law doesn't stop him. He can do any other business along with employment. But please watch his employment contract. His employer might have added some clause to do no business along with employment.
- Yes, he will have to pay taxes on this income.
- He is not required to open a separate current account. But as a professional I would advise him to open up a separate account for this business. He should deposit all his car business income in it. And he should pay car expenses from this account only.
- He can do it either ways. I would advise him to do it in his own name until he goes big.
And here is my bonus advise.
Please read GST application on car rent business.
