How does TDS work for NRI accounts at FYERS?
Tax Deducted at Source (TDS) for NRI accounts at FYERS is deducted in accordance with Indian tax laws. This ensures compliance with the Income Tax Act, requiring brokers to deduct TDS on capital gains from the sale of securities.
How TDS Works:
1. Provisional TDS Blocking: When you sell securities, we block a provisional TDS amount at the end of the trading day (T+0). This provisional block is based on the transaction value and the applicable tax rate.
2. Final TDS Deduction or Reversal: On the next working day (T+1), we reverse the provisional block and apply the actual TDS based on the realised capital gains in the ledger.
Note: The final TDS amount is determined by considering the overall realised capital gains for the financial year, not just the specific trade. This ensures accurate tax deduction in compliance with applicable regulations.
Applicable TDS Rates:
Short-Term Capital Gains (STCG): 23.92% TDS (incl. cess & surcharge) is applicable on profits from securities held for less than 365 days.
Long-Term Capital Gains (LTCG): 14.95% TDS (incl. cess & surcharge) is applicable on profits exceeding ₹1,25,000 for securities held for more than 365 days.
To know the break up of TDS in detail, kindly refer to this article.
Related Articles
How are the TDS rates determined for NRI Non-PIS accounts at FYERS?
FYERS deducts Tax Deducted at Source (TDS) on Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) for NRI Non-PIS accounts based on Indian tax laws. The rates depend on the type of capital gain and the asset class (Equity or ...
Why am I being charged TDS in my NRI Non-PIS account?
TDS is deducted in your NRI Non-PIS account as per Section 195 of the Income Tax Act, 1961, which mandates the deduction of tax on income generated in India by non-residents, including capital gains from the sale of securities. Additionally, as per ...
Can an NRI link both NRE and NRO accounts to a single trading account?
An NRI is permitted to open both NRE and NRO accounts with any bank that is authorized by the Reserve Bank of India (RBI). However, when it comes to linking these accounts to a trading account with FYERS, an NRI must choose to link either one — an ...
Which banks can be linked for NRO accounts with FYERS?
When opening a Portfolio Investment Scheme (PIS) account through FYERS, you have the option to partner with the following banks: HDFC Bank Axis Bank Yes Bank If you're opting for a Non-PIS account, FYERS offers you the flexibility to link any bank of ...
Can a guardian oversee multiple minors' Demat accounts with FYERS?
Currently, only one minor account can be associated with one guardian account at FYERS. However, you're allowed to be the guardian for the Demat accounts of two or more minors, as long as they are your children.