How does TDS work for NRI accounts at FYERS?
TDS (Tax Deducted at Source) for NRI accounts at FYERS is processed in accordance with Indian income tax laws. FYERS ensures compliance by deducting TDS on capital gains arising from the sale of securities, following a systematic two-step settlement process.
How TDS is applied?
- Provisional TDS Blocking (T+0)
At the end of the trading day when you sell a security, FYERS blocks a provisional TDS amount based on the transaction value and indicative TDS rate.
This amount appears as a temporary debit in your ledger. - Final TDS Deduction or Reversal (T+1)
On the following business day, the provisional TDS is reversed.
The actual TDS is then applied based on the realised capital gains for that day, ensuring accurate deduction.
Important note on TDS calculation
TDS is computed based on your cumulative realised capital gains across all trades in a financial year. The tax is not linked to a single trade but reflects gains/losses in aggregate to apply the correct tax slab and exemption limits.
Applicable TDS rates
| Capital Gains Type | Holding Period | TDS Rate (incl. cess & surcharge) | Applicability |
|---|
| STCG | Less than 365 days | 23.92% | On all short-term capital gains |
| LTCG | More than 365 days | 14.95% | On long-term gains exceeding ₹1,25,000 annually |
What if...
| Scenario | What you should know |
|---|
| Your provisional TDS seems too high | It is adjusted on T+1 based on actual gains, not trade value |
| You incurred a loss but see a TDS entry | Only net positive realised gains are taxed; losses nullify the tax |
| You need to claim a refund | Download Form 16A from FYERS and file your ITR or DTAA claim accordingly |
Use FYERS ledger reports to track daily TDS entries, and consult your tax advisor for optimising deductions or treaty-based reliefs.
Last updated: 19 Jun 2025
Related Articles
How are the TDS rates determined for NRI Non-PIS accounts at FYERS?
For NRI clients operating Non-PIS (Non-Portfolio Investment Scheme) accounts at FYERS, Tax Deducted at Source (TDS) is automatically deducted on capital gains arising from trades. The applicable TDS rates are governed by Indian tax laws and vary by ...
Why am I being charged TDS in my NRI Non-PIS account?
TDS (Tax Deducted at Source) is applied to NRI Non-PIS accounts in accordance with Indian tax and foreign exchange laws. When an NRI earns capital gains by trading in Indian securities, FYERS is legally required to deduct tax before crediting ...
Which banks can be linked for NRO accounts with FYERS?
When opening an NRI trading account with FYERS, the type of account—PIS or Non-PIS—determines your options for linking a bank. Banks for PIS accounts For clients choosing to trade under the Portfolio Investment Scheme (PIS), FYERS supports ...
Does FYERS offer reduced brokerage for high-volume NRI traders?
At FYERS, we believe in fairness, transparency, and equal treatment for all our clients—including Non-Resident Indians (NRIs). That’s why we maintain a consistent brokerage policy regardless of trading volume or account value. Brokerage policy for ...
Is income earned in my NRI account subject to taxes?
Yes, any income generated from your NRI account through transactions in India is subject to taxation under the provisions of the Income Tax Act, 1961. According to Section 5 of the Act, income that accrues or arises in India, or is received in India, ...